CMS Energy (NYSE:CMS) Issues Quarterly Earnings Results

CMS Energy (NYSE:CMS) posted its quarterly earnings results on Thursday. The utilities provider reported $0.95 EPS for the quarter, beating the consensus estimate of $0.94 by $0.01, FiscalAI reports. CMS Energy had a net margin of 12.62% and a return on equity of 12.10%. The business had revenue of $2.23 billion during the quarter, compared to analyst estimates of $2.13 billion. During the same quarter in the previous year, the business posted $0.87 EPS. The company’s quarterly revenue was up 12.3% compared to the same quarter last year. CMS Energy updated its FY 2026 guidance to 3.830-3.900 EPS.

Here are the key takeaways from CMS Energy’s conference call:

• CMS won regulatory approvals that could drive growth — the Large Load Tariff (for data centers) was approved and a 20-year renewable energy plan was authorized, creating roughly a $14 billion customer investment opportunity and protections intended to keep existing customers whole.
• Financial beat and raised guidance — CMS delivered 2025 adjusted EPS of $3.61 (up ~8% YoY), exceeded guidance, and raised 2026 EPS guidance to $3.83–$3.90 while reaffirming long‑term 6%–8% growth and a dividend payout target (~55% over the plan).
• Bigger capital plan with mixed funding implications — management increased the five‑year utility customer investment plan to $24 billion (up $4B) supporting ~10.5% rate‑base growth, while planning ~$700M of parent equity issuance in 2026 and ~$1.7B of utility financings.
• Regulatory uncertainty in the electric rate case — the ALJ’s proposal recommended a low (~8.2%) ROE, which could be earnings‑negative if sustained, though management expects the commission to set an ROE around 9.9% or higher and notes the MPSC staff’s position is more constructive.
• Data‑center pipeline could add incremental upside — CMS says the pipeline has grown, it’s in advanced talks on at least one site with agreements near final and a potential online date as early as 2028, though that load is not yet included in the current plan.

CMS Energy Trading Up 1.8%

Shares of NYSE:CMS traded up $1.31 during midday trading on Thursday, reaching $72.91. 3,282,147 shares of the company’s stock were exchanged, compared to its average volume of 3,053,561. The stock has a market cap of $22.19 billion, a price-to-earnings ratio of 21.05, a P/E/G ratio of 2.55 and a beta of 0.47. CMS Energy has a fifty-two week low of $66.53 and a fifty-two week high of $76.45. The firm’s 50 day simple moving average is $70.90 and its two-hundred day simple moving average is $72.22. The company has a debt-to-equity ratio of 1.84, a current ratio of 0.90 and a quick ratio of 0.60.

More CMS Energy News

Here are the key news stories impacting CMS Energy this week:

• Positive Sentiment: Q4 results beat estimates — CMS reported $0.95 EPS vs. $0.94 consensus and revenue of $2.23B (up ~12% y/y), driven by strong clean-energy performance and higher power demand. This is the primary catalyst for the stock strength. CMS Energy Q4 Earnings Surpass Estimates, Revenues Increase Y/Y
• Positive Sentiment: Raised FY-2026 guidance — management lifted adjusted EPS guidance to $3.830–3.900 and said 2026 profit outlook improved on stronger power demand, supporting forward earnings expectations. CMS Energy raises 2026 profit forecast on strong power demand, raises dividend
• Positive Sentiment: Board raised quarterly dividend to $0.57 from $0.5425 — a cash-return signal that reinforces the company’s cash-flow strength and is supportive for income-oriented investors. CMS Energy’s Board of Directors Increases Quarterly Dividend on Common Stock to 57 Cents Per Share
• Positive Sentiment: Full-year 2025 outperformance — CMS reported 2025 diluted EPS of $3.53 (up from $3.30), showing year-over-year earnings improvement and that management exceeded prior guidance. CMS Energy Exceeds Earnings Guidance in 2025, Raises 2026 Adjusted EPS Guidance
• Neutral Sentiment: FY-2026 guidance roughly in line with street — the company’s $3.830–3.900 range is centered near consensus (3.85), so upside is modest and already partially priced in. CMS Energy (CMS) Q4 Earnings and Revenues Beat Estimates
• Negative Sentiment: Regulatory/rate-case risk — analysts had flagged a rate-case ruling that could cloud earnings visibility; this remains a potential headwind investors should monitor. CMS Energy earnings on deck as rate case ruling clouds outlook

Analysts Set New Price Targets

CMS has been the subject of a number of analyst reports. Wolfe Research set a $82.00 target price on CMS Energy in a report on Friday, January 30th. Wells Fargo & Company decreased their price objective on CMS Energy from $77.00 to $74.00 and set an “equal weight” rating for the company in a research note on Tuesday, January 20th. UBS Group set a $79.00 target price on CMS Energy in a research note on Monday. KeyCorp lifted their price objective on shares of CMS Energy from $76.00 to $79.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 15th. Finally, Wall Street Zen raised CMS Energy from a “sell” rating to a “hold” rating in a report on Saturday, January 31st. Eight analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat, CMS Energy has a consensus rating of “Moderate Buy” and a consensus price target of $77.69.

Institutional Trading of CMS Energy

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CMS. Bison Wealth LLC acquired a new position in shares of CMS Energy during the fourth quarter worth about $312,000. Certuity LLC purchased a new stake in shares of CMS Energy in the 3rd quarter valued at approximately $205,000. Quadrant Capital Group LLC increased its position in shares of CMS Energy by 5.9% in the 3rd quarter. Quadrant Capital Group LLC now owns 4,122 shares of the utilities provider’s stock valued at $302,000 after purchasing an additional 231 shares during the last quarter. Brevan Howard Capital Management LP acquired a new stake in shares of CMS Energy in the 2nd quarter valued at $248,000. Finally, Florida Financial Advisors LLC purchased a new stake in shares of CMS Energy during the 2nd quarter worth $234,000. Hedge funds and other institutional investors own 93.57% of the company’s stock.

About CMS Energy

CMS Energy (NYSE: CMS) is an energy company based in Jackson, Michigan, whose principal business is the regulated utility operations of its subsidiary, Consumers Energy. The company is primarily focused on providing electric and natural gas service to customers in Michigan, operating the generation, transmission and distribution infrastructure necessary to deliver energy to residential, commercial and industrial customers. Headquartered in Jackson, CMS Energy conducts its core activities within the state and is regulated by state utility authorities.

Through Consumers Energy and related subsidiaries, CMS Energy develops, owns and operates a portfolio of generation assets and delivers a range of customer-facing services, including electricity and natural gas supply, grid management, energy efficiency programs and demand-response offerings.