CMS Energy raises 2026 profit forecast on strong power demand, raises dividend

Feb 5 (Reuters) - U.S. utility CMS Energy CMS.N on Thursday raised its current-year profit forecast on the back of soaring power demand, led by growing residential, commercial and data center growth.

CMS Energy also increased its annual dividend by 11 cents per share to $2.28 for 2026.

Power usage in the U.S. is expected to hit a record high in 2026, the Energy Information Administration said in December, driven by data centers demand and a broader shift to electricity for heating and transport purposes.

Electricity demand from U.S. data centers is projected to nearly triple in the next three years, according to a study by Lawrence Berkeley National Laboratory.

Their power consumption is expected to be as much as 12% of US total electricity consumption, the study added.

CMS Energy's revenue for the fourth quarter rose 12.3% to $2.23 billion, from a year earlier, beating analysts' average estimate of $1.88 billion, according to data compiled by LSEG.

The company's NorthStar Clean Energy segment reported adjusted earnings of 18 cents, compared to 3 cents last year.

CMS Energy reported quarterly profit of 95 cents per share on an adjusted basis for the quarter ended December 31, beating estimates by a cent.

The Michigan-based company expects 2026 profit to be in the range of $3.83 to $3.90, compared with its previous forecast of $3.80 to $3.87 per share.