NiSource Q3 Earnings Rise as Data Center Plan Supports Growth Outlook

NiSource Inc. (NYSE: NI) reported higher third-quarter earnings and narrowed its 2026 consolidated adjusted earnings-per-share guidance to the upper half of its existing $2.02-to-$2.07 range, while introducing 2027 guidance of $2.22 to $2.30. The utility also raised its expected consolidated adjusted EPS compound annual growth rate for 2027 through 2033 to 10%-11%, reflecting planned investments in its regulated utility operations and GenCo data center strategy.

For the three months ended September 30, 2026, net income available to common shareholders rose to $129.5 million, or $0.27 per diluted share, from $94.7 million, or $0.20 per share, a year earlier. Adjusted net income increased to $130.9 million from $91.8 million, while adjusted EPS climbed to $0.27 from $0.19.

Consolidated operating revenue was $1.35 billion, compared with $1.27 billion in the third quarter of 2025. GAAP operating income increased by $42.8 million to $340.3 million, and adjusted operating income rose by $48.8 million to $342.3 million.

For the first nine months of 2026, NiSource recorded GAAP net income available to common shareholders of $685.7 million, up $14 million from the prior-year period. Diluted EPS was unchanged at $1.42. Adjusted net income rose by $62.1 million to $718.1 million, and adjusted EPS increased to $1.49 from $1.38.

Columbia operations lead quarterly improvement

Columbia Operations accounted for most of the year-over-year increase in third-quarter operating profit. The segment’s GAAP operating income rose to $119.2 million from $52.1 million, while adjusted operating income increased to $123.1 million from $53.4 million.

NIPSCO Operations reported GAAP operating income of $223.1 million, down from $232.6 million a year earlier. Adjusted operating income declined to $221.2 million from $227.3 million. For the first nine months, however, NIPSCO’s adjusted operating income increased to $718.3 million from $663.4 million, while Columbia’s rose to $717 million from $614.1 million.

NiSource’s non-GAAP adjustments for the first nine months included $21.4 million of workplace-continuity costs associated with an April 2026 NIPSCO lockout and $11.4 million of consulting and severance costs related to its Value Captured initiative. The company also adjusted for weather compared with normal conditions.

Data center contracts reshape long-term plan

NiSource’s longer-term outlook incorporates its GenCo operations, which provide electric service and capacity to data centers and other large-load customers. The company announced a 20-year agreement with Microsoft on October 16 covering infrastructure that supports 788 megawatts of demand. Demand is expected to begin increasing in 2028 and reach its full level by 2031.

The Microsoft contract follows previously disclosed agreements with Amazon and Alphabet. NiSource said its current GenCo contracts are expected to produce $1.75 billion of savings for existing customers over their terms. Its pool strategy includes about 1,900 megawatts of generation, storage, power-purchase agreements and contracted resources intended to serve current and future demand.

The company identified a data center pipeline of up to 9 gigawatts by 2035. That includes about 2 GW under strategic negotiation and as much as another 2 GW of developing opportunities beyond signed capacity. NiSource cautioned that execution depends on its ability to develop the required generation and transmission resources and secure financing on acceptable terms.

For 2027, management expects base-plan adjusted EPS of $2.17 to $2.21 and GenCo adjusted EPS of $0.05 to $0.09, producing consolidated adjusted EPS of $2.22 to $2.30. The upper end of the GenCo range contemplates multiple additional customers, according to the presentation.

NiSource expects annual base-plan adjusted EPS growth of 6%-8% from 2027 through 2033 and consolidated adjusted EPS CAGR of 10%-11% over the same period. The company also projects 9%-10% annual growth in its consolidated investment base and 8%-10% growth in its base-plan rate base.

Capital plan expands to $40 billion

The company outlined $40 billion of capital investment for 2027 through 2033, comprising $32 billion for the base plan and $8 billion for GenCo. Its five-year plan for 2027 through 2031 totals $29 billion, including $21 billion of base-plan spending and the same $8 billion of GenCo investment. A further $3 billion of potential base-plan spending through 2033 is not included in the core plan.

NiSource expects to fund 55%-60% of the seven-year plan with cash from operations after specified distributions and financing items, 30%-35% with net new debt, 5%-8% with equity and 3%-5% with minority-interest contributions. The company expects annual equity issuance of $400 million to $600 million in the near term, declining over the planning period, with minimal equity beginning in 2032.

Management maintained a target of 14%-16% for adjusted funds from operations to debt annually through 2033 and said financing is intended to support its current investment-grade credit ratings. NiSource had approximately $18.3 billion of debt and $1.9 billion of net available liquidity as of September 30, 2026.

The investment program remains subject to construction schedules, cost estimates, regulatory outcomes and access to financing. Other stated risks include data center customer performance or contract termination, changes in capacity accreditation, commodity and supply costs, cybersecurity threats, interest rates, credit ratings and the company’s ability to recover investments through rates and contracts.