Dominion Energy, Inc.

(New York Stock Exchange)
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Bullish +55

TD Cowen Upgrades Dominion Energy to Buy at $80. Hereโ€™s Where Shares Could Go in 2026 - TIKR.com

AI-generated analysis

๐Ÿ“ˆ Dominion Energy posted Q2 2026 operating earnings of $0.79 per share, beating the consensus by 16%.

๐Ÿ’ฐ Revenue reached $4.48 billion in Q2, topping the Street's estimate of $4.04 billion by 11%.

๐Ÿ”‹ Virginia Electric adjusted operating earnings rose 22% to $670 million driven by data center demand.

โšก The company contracted 53.8 GW of data center capacity in Virginia, adding 5.3 GW in the first half of 2026.

๐Ÿ“‰ Operating expenses surged 53% year over year to $4.15 billion due to higher fuel and grid costs.

โš–๏ธ A pending $66.8 billion NextEra Energy merger faces a Sept. 3 shareholder vote and regulatory opposition.

๐Ÿฆ TD Cowen upgraded Dominion Energy to Buy with an $80 price target on August 19.

๐Ÿ“Š Wall Street consensus mean price target is $72, leaving a 10% gap above the current $66 price.

๐Ÿ”ฎ TIKR's mid-case model prices Dominion Energy at $94 by December 2030, implying a 43% total return.

๐Ÿ“… Dominion reaffirmed full-year 2026 operating earnings guidance of $3.45 to $3.69 per share.

Bullish Signals
  • Dominion Energy beat Q2 revenue estimates by $440 million, demonstrating strong execution in a high-demand environment.
  • Virginia Electric adjusted operating earnings rose 22% to $670 million as data center interconnection requests piled up.
  • The company added 5.3 GW of contracted data center capacity in just the first half of 2026, signaling robust growth pipeline.
  • TD Cowen upgraded Dominion Energy to Buy with an $80 price target, marking the first bullish call since the merger announcement.
  • Dominion reaffirmed full-year 2026 operating earnings guidance of $3.45 to $3.69 per share, maintaining a $3.57 midpoint.
Risk Factors
  • Operating expenses surged 53% year over year to $4.15 billion, driven by higher fuel purchases and grid upgrades.
  • Fuel costs have risen 88% since 2021, increasing the need to purchase energy from the PJM wholesale market.
  • The pending $66.8 billion NextEra Energy merger faces regulatory opposition from Virginia Governor Abigail Spanberger.
  • Wall Street consensus projects a steep deceleration in revenue growth starting in Q3 2026, dropping to 6% by fiscal 2027.
Full Analysis
Dominion Energy (D) reported strong Q2 2026 results with operating earnings of $0.79 per share, beating the consensus by 16%, and revenue of $4.48 billion, which topped estimates by 11%. The beat was primarily driven by Virginia Electric, where adjusted operating earnings rose 22% to $670 million due to surging data center interconnection requests. The company has contracted 53.8 GW of data center capacity in its Virginia territory, adding 5.3 GW in just the first half of 2026. However, operating expenses surged 53% year over year to $4.15 billion, driven by higher fuel purchases, grid upgrades, and storm restoration costs, as fuel costs have risen 88% since 2021. Dominion Energy faces a pending $66.8 billion merger with NextEra Energy, announced in May, which is scheduled for a shareholder vote on September 3 but faces regulatory opposition from Virginia Governor Abigail Spanberger. TD Cowen upgraded the stock to Buy with an $80 price target on August 19, citing the combined entity's generation buildout potential. Wall Street analysts maintain a cautious stance with a mean price target of $72, while TIKR's mid-case model values the stock at $94 by December 2030. The company reaffirmed full-year 2026 operating earnings guidance of $3.45 to $3.69 per share, with a midpoint of $3.57.