Evergy Q2 2026 GAAP EPS rose to $0.91 from $0.74 (adjusted $0.88 vs $0.82) on new Kansas rates, a 25% hotter quarter and data-center demand; 2026 adjusted EPS guidance of $4.14–$4.34 reaffirmed.
Revenue
$1.5B
+4.4% YoY
Net income
$215M
+25.5% YoY
Diluted EPS
$0.91
+23.0% YoY
Operating margin
25.4%
Overview: a hot quarter plus Kansas rate increases lifted earnings about 25%
Evergy, which supplies electricity to about 1.7 million customers in Kansas and Missouri, reported second-quarter 2026 net income of $215.0 million, or $0.91 per diluted share, up from $171.3 million ($0.74) a year earlier. Revenue rose 4.4% to $1,500.1 million.
Management's 10-Q names three main drivers: new Evergy Kansas Central customer rates that took effect in October 2025, higher retail electricity sales (a hotter quarter, plus more underlying demand, including a data center that began taking power in 2026), and a swing from losses to gains on small non-utility investments. Higher interest, depreciation and operating costs offset part of that.
GAAP net income grew 25.5%, but some of that growth came from the investment swing. Adjusted EPS, management's measure that strips out those investment gains and losses, rose 7.3% to $0.88. That is a better guide to the underlying trend.
Key metrics
Metric
Q2 2026
Q2 2025
YoY Change
Operating revenues
$1,500.1M
$1,437.0M
+4.4%
Utility gross margin (non-GAAP)
$1,052.8M
$991.7M
+6.2%
Income from operations
$380.6M
$343.8M
+10.7%
Operating margin
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Operating margin is the share of revenue left after running the business (fuel, power purchases, maintenance, depreciation and non-income taxes), before interest and income tax. Utility gross margin is revenue minus fuel, purchased power and regional transmission charges. Those costs are largely passed through to customers, so this measure shows what the utility actually keeps to cover its costs and earn a return.
Year to date (six months): revenue was $2,943.8M (+4.7%), net income attributable to Evergy was $366.5M (+23.7%), diluted EPS was $1.55 versus $1.28 (+21.1%), and adjusted EPS was $1.57 versus $1.37 (+14.6%).
Takeaway: On the adjusted figures Evergy's core business grew about 7% this quarter. Heavier spending is starting to show: property additions are up 48% year to date and interest expense up 8%. Earnings growth now depends on getting that spending into customer rates (the Missouri Metro case decides rates for January 2027) and on data-center contracts turning into actual electricity sales.
Retail sales: weather helped, and so did underlying demand
Cooling degree days, a standard measure of how much air-conditioning weather a quarter had, rose 25% year over year. Sales to all three main retail customer classes grew:
Retail class (Q2)
Revenue 2026
Revenue 2025
Revenue change
MWh change
Residential
$528.4M
$491.9M
+7.4%
+4.3%
Commercial
$507.1M
$467.6M
+8.4%
+6.8%
Industrial
$170.2M
$160.5M
+6.0%
+3.6%
Total electric retail
$1,217.9M
$1,130.7M
+7.7%
+5.2%
Wholesale
$68.1M
$91.2M
−25.3%
−25.6%
The heat explains why residential volume jumped. The six-month numbers show the business-customer trend more clearly: year-to-date residential volume actually fell 1.1%, while commercial rose 4.4% and industrial rose 6.8%. For the six months the 10-Q credits $31.1 million of the utility-gross-margin increase to "higher weather-normalized demand from commercial and industrial customers, including a data center customer that began taking service in 2026 and higher demand from a large load industrial customer." That is demand growth that does not depend on the weather, and it is what the growth plan relies on.
Wholesale revenue (power sold into the regional market rather than to Evergy's own customers) fell by a quarter in the quarter. Most wholesale margin is shared with customers through fuel-cost mechanisms, so this has little effect on earnings.
Utility gross margin rose $61.1 million in the quarter: $30.8 million from weather and higher underlying demand, and $30.3 million from the new Kansas Central rates. Year to date, the Kansas Central rates added $65.7 million, and non-regulated energy marketing at Kansas Central added another $15.6 million.
Data-center and large-load customers
In 2026, Evergy signed electric service agreements with several large customers to serve data centers with a projected peak steady load of about 2,600 MW. The agreements cover three new projects and the expansion of two previously announced ones, with service starting between 2026 and 2028 (including an optional ramp-up period of up to five years). For scale, Evergy owns or contracts about 15,800 MW of generating capacity. The 10-Q does not name these customers.
These contracts carry guaranteed minimum payments. As of June 30, 2026, Evergy reported $8.9 billion of remaining contractual minimum payments from large-load customers (those expected to use more than 75 MW), over a weighted-average term of 15 years. Minimums are typically set at 80% of each customer's expected annual capacity demand. This matters because it protects the company, and its other customers, if a data center uses less power than planned. In the earnings release (8-K Exhibit 99.1), CEO David Campbell said large-customer interest "remains very strong" and that Evergy expects to sign "at least one more electric service agreement in 2026."
Rate cases and regulation
Evergy Kansas Central: new retail rates from its 2025 case took effect in October 2025 and were the single largest earnings driver this quarter. As part of that settlement, Kansas Central must refund customers 50% of any annual earnings above a 9.7% return on equity. In July 2026 the Kansas Corporation Commission confirmed that no refund was owed for 2025, and the company currently expects none for 2026.
Evergy Metro (Missouri): in February 2026 Metro asked the Missouri Public Service Commission for about $140 million more in annual retail revenue, based on a 10.5% return on equity and a 52% equity capital structure. The evidentiary hearing is scheduled for October 2026, and new rates are expected in January 2027.
Transmission charges (Kansas): updated transmission-cost prices took effect in May 2026. They add $16.8 million a year of retail revenue at Kansas Central and reduce Metro's by $4.3 million compared with 2025.
Evergy Missouri West: the 10-Q describes no pending Missouri West general rate case. Its regulatory news this quarter is financing: FERC approved up to $1.3 billion of long-term debt authority in July 2026.
New generation and capital spending
In May 2026, Evergy Metro applied to Missouri regulators for permission to build a 440 MW simple-cycle natural-gas plant in Nodaway County, Missouri. It asked for a decision by December 2026 and expects the plant to start operating in 2030.
Spending is rising quickly. Additions to property, plant and equipment reached $1,811.8 million in the first half, up from $1,220.1 million (+48%). The 10-Q attributes this to "a variety of capital projects, including construction of new generating facilities." Operating cash flow fell to $711.1 million from $773.5 million, mainly because of under-recovered fuel costs at Missouri West and larger coal inventory purchases. Borrowing is covering the gap.
Financing: more debt, and dilution from the convertible notes
Interest expense rose 7.9% in the quarter to $165.9 million, driven by new long-term debt and heavier short-term borrowing. Capitalized financing costs on construction partly offset the increase.
Convertible notes: in January and February 2026, Evergy repurchased $244.1 million of its 4.50% convertible notes due 2027 for $309.5 million, taking a $10.3 million loss that is excluded from adjusted EPS. $1,155.9 million remains outstanding. Evergy's share price has stayed well above the conversion price, so holders can convert through September 2026, and the notes now count as about 4.8 million extra shares in diluted EPS (1.8 million a year ago). The 10-Q puts the resulting drag at about $0.02 per share in the quarter.
Equity: forward sale agreements under the at-the-market stock program could be settled for about 5.2 million new shares and $413.5 million in cash. Evergy has not yet received any proceeds, and about $0.8 billion of the program remains available.
Liquidity: Evergy signed a new $3.5 billion master credit facility running to June 2031, with $1,648.4 million available at quarter-end. After the quarter, according to 8-K filings, Evergy issued $600 million of 6.40% junior subordinated notes due 2057 on August 24 (and terminated its $500 million term loan the same day). On September 16, Kansas Central issued $350 million of 5.600% first mortgage bonds due 2034.
GAAP vs. adjusted EPS
Reconciliation (Q2)
2026
2025
GAAP diluted EPS
$0.91
$0.74
(Gains)/losses on early-stage clean-energy investments, after tax
−$0.03
+$0.08
Adjusted EPS (non-GAAP)
$0.88
$0.82
Last year's quarter included $25.4 million of pre-tax losses on these small venture-style investments, and this year's included $7.9 million of realized gains. Evergy says it is in the process of disposing of them. That swing explains why GAAP EPS grew three times as fast as adjusted EPS. The year-ago quarter also included $11.6 million of other income from a commercial solar project that did not recur, which weighed on this year's comparison.
Guidance and outlook
In its August 6 earnings release (8-K Exhibit 99.1), Evergy reaffirmed 2026 adjusted EPS guidance of $4.14–$4.34 (midpoint $4.24). It also reaffirmed its long-term target of 6% to 8%+ annual adjusted EPS growth through 2030, and it expects growth above 8% from 2028 through 2030. First-half adjusted EPS of $1.57 is about 37% of the midpoint. That is typical for a summer-peaking utility, where the July–September quarter usually carries the most weight.
Our read: first-half adjusted EPS grew 14.6%, and the Kansas rate reset and data-center demand are both showing up in reported sales, so the guidance looks achievable. The risks are about timing more than demand. Depreciation (+5.5% in the quarter) and interest costs are growing with the construction program. The next step-up in earnings depends on the Metro rate decision for January 2027, on approval of the gas plant, and on the 2,600 MW of new data-center load actually starting on schedule. Shareholders also face dilution from the convertible notes and the forward equity sales as they settle.
Source: Evergy, Inc. Form 10-Q for the quarter ended June 30, 2026 (filed August 6, 2026). Guidance and CEO quotes are from the Q2 2026 earnings release (8-K Exhibit 99.1, August 6, 2026). Post-quarter financing is from 8-Ks filed August 24 and September 16, 2026.