CMS Energy (NYSE:CMS) Issues Earnings Results, Beats Estimates By $0.01 EPS

06 Feb 2026, 18:21 by Kim Johansen · The Markets Daily

CMS Energy (NYSE:CMS – Get Free Report) announced its earnings results on Thursday. The utilities provider reported $0.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.94 by $0.01, FiscalAI reports. CMS Energy had a return on equity of 12.10% and a net margin of 12.62%.The business had revenue of $2.23 billion for the quarter, compared to analyst estimates of $2.13 billion. During the same quarter last year, the firm earned $0.87 EPS. CMS Energy’s revenue for the quarter 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 Stock Down 0.2%

NYSE CMS traded down $0.16 during mid-day trading on Friday, hitting $72.70. The company’s stock had a trading volume of 1,447,596 shares, compared to its average volume of 3,071,070. The company has a current ratio of 0.90, a quick ratio of 0.60 and a debt-to-equity ratio of 1.84. CMS Energy has a twelve month low of $67.04 and a twelve month high of $76.45. The firm has a market capitalization of $22.12 billion, a price-to-earnings ratio of 21.02, a PEG ratio of 2.54 and a beta of 0.47. The company’s 50 day simple moving average is $70.85 and its 200 day simple moving average is $72.22.

CMS Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, February 27th. Stockholders of record on Tuesday, February 17th will be issued a dividend of $0.57 per share. This is a positive change from CMS Energy’s previous quarterly dividend of $0.54. This represents a $2.28 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Tuesday, February 17th. CMS Energy’s dividend payout ratio is presently 62.72%.

CMS Energy News Summary

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

Positive Sentiment: Q4 beat — CMS reported EPS of $0.95 vs. $0.94 consensus and revenue of $2.23B (+12.3% y/y), showing stronger demand and margin improvement. CMS Energy Q4 Earnings Surpass Estimates
Positive Sentiment: Raised 2026 guidance — management updated FY2026 EPS guidance to $3.83–$3.90 after exceeding 2025 targets, signalling confidence in demand and earnings trajectory. CMS Energy Exceeds Earnings Guidance in 2025, Raises 2026 Adjusted EPS Guidance
Positive Sentiment: Dividend increase — the board raised the quarterly dividend to $0.57 (5.1% increase, ~3.1% yield), supporting income-oriented holders. Board Increases Quarterly Dividend to 57 Cents
Positive Sentiment: Demand and investment tailwinds — management cited strong power demand (residential, commercial, data centers) and advancing a ~$24B investment plan as reasons for the raised profit outlook. Reuters: CMS Energy raises 2026 profit forecast
Neutral Sentiment: Mizuho raised its price target from $73 to $76 but kept a “neutral” rating, implying only modest upside expectation from here. Benzinga: Mizuho raises PT to $76
Neutral Sentiment: Full earnings materials and transcripts are available (earnings presentation and call transcript), useful for drilling into drivers and guidance detail. Seeking Alpha: Q4 Results – Earnings Call Presentation
Negative Sentiment: Regulatory/rate-case risk — analysts flagged a recent rate-case ruling that could cloud near-term pricing and earnings visibility for the utility, which may limit multiple expansion. Investing.com: Rate-case ruling clouds outlook

Analysts Set New Price Targets

Several analysts have issued reports on CMS shares. KeyCorp upped their price objective on CMS Energy from $76.00 to $79.00 and gave the company an “overweight” rating in a research note on Wednesday, October 15th. UBS Group reissued a “neutral” rating on shares of CMS Energy in a research report on Friday. Wolfe Research set a $82.00 price objective on shares of CMS Energy in a research note on Friday, January 30th. Mizuho raised their target price on shares of CMS Energy from $73.00 to $76.00 and gave the company a “neutral” rating in a report on Friday. Finally, Jefferies Financial Group upped their price target on shares of CMS Energy from $79.00 to $81.00 and gave the stock a “buy” rating in a report on Wednesday, January 28th. Eight research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $77.57.

Get Our Latest Stock Analysis on CMS

Hedge Funds Weigh In On CMS Energy

Hedge funds and other institutional investors have recently modified their holdings of the business. CIBC Bancorp USA Inc. purchased a new stake in shares of CMS Energy during the 3rd quarter worth approximately $3,219,000. Coldstream Capital Management Inc. increased its stake in shares of CMS Energy by 34.4% in the third quarter. Coldstream Capital Management Inc. now owns 6,582 shares of the utilities provider’s stock worth $482,000 after purchasing an additional 1,685 shares in the last quarter. Danske Bank A S bought a new stake in shares of CMS Energy in the third quarter valued at approximately $901,000. Advisory Services Network LLC bought a new stake in shares of CMS Energy in the third quarter valued at approximately $190,000. Finally, Kestra Private Wealth Services LLC lifted its stake in shares of CMS Energy by 4.6% during the 3rd quarter. Kestra Private Wealth Services LLC now owns 4,659 shares of the utilities provider’s stock valued at $341,000 after buying an additional 206 shares in the last quarter. Hedge funds and other institutional investors own 93.57% of the company’s stock.

CMS Energy Company Profile

(Get Free Report)

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.