Is ES a Buy? What to Consider in 2026
Last updated July 2026
Short answer
The bull case for Eversource Energy (ES) rests on Rate-base growth from a large capital plan: Eversource has laid out roughly $26.5 billion of capital spending for 2026 through 2030, weighted toward electric distribution (about 42 percent) and electric transmission (about 27 percent). Revenue (TTM) is ~$12.5B. If you believe that thesis holds, the real questions become position sizing and overlap, not timing. The main risk to that view: Regulatory outcomes are the central risk: a FERC reduction to the base transmission ROE is expected to lower after-tax earnings by roughly $70 million in 2026 and contributed to a downward revision of full-year guidance. Whether ES is a buy comes down to whether you believe the thesis. This is informational, not a recommendation, and Walnut is not an investment adviser.
Eversource Energy is a public utility holding company that delivers electricity and natural gas to roughly 4 million customers across Connecticut, Massachusetts, and New Hampshire. Its earnings come almost entirely from regulated electric distribution, electric transmission, and gas distribution, where allowed returns and rate base (the capital investment regulators let it earn on) drive results. After several turbulent years, the company completed its exit from offshore wind in 2024 and closed the ~$2.4 billion sale of its Aquarion Water business in mid-2026, repositioning itself as a pure-play regulated utility focused on wires and pipes. The investment picture is the classic regulated-utility trade-off: relatively predictable, rate-base-linked earnings and a meaningful dividend in exchange for modest growth and sensitivity to interest rates and regulatory outcomes. Eversource targets a $26.5 billion capital plan for 2026 through 2030, weighted toward electric distribution and transmission, which underpins its reaffirmed 5 to 7 percent long-term EPS growth rate. The Aquarion proceeds are being used to pay down debt, addressing a balance sheet that had been a persistent investor concern. The offset is regulatory friction, including a FERC transmission ROE reduction, and the leftover cost-sharing exposure from the wind exit.
What's the case for buying ES?
1. Rate-base growth from a large capital plan
Eversource has laid out roughly $26.5 billion of capital spending for 2026 through 2030, weighted toward electric distribution (about 42 percent) and electric transmission (about 27 percent). Because a regulated utility earns an allowed return on that invested capital, this plan is the primary engine behind the reaffirmed 5 to 7 percent long-term EPS growth rate through 2030.
2. Simplified pure-play regulated profile
The completed exit from offshore wind and the mid-2026 sale of Aquarion Water leave Eversource as a focused regulated electric and gas utility. Removing the volatile, capital-intensive wind exposure narrows the range of outcomes, which is generally how utility investors prefer these businesses to look.
3. Debt reduction and balance-sheet repair
The Aquarion sale generated about $1.7 billion of adjusted net equity proceeds earmarked to displace Eversource debt. Lowering leverage matters for a capital-heavy utility that must continually access debt markets, and a healthier balance sheet supports both the credit profile and the funding of the capital plan.
4. Dividend and transmission franchise
Eversource carries a dividend yielding roughly 4 percent, a core part of the total-return case, and operates a large regulated transmission network (estimated transmission rate base above $11 billion). Transmission investment tends to be a steadier, FERC-regulated growth avenue that complements state-regulated distribution earnings.
What are the risks to ES?
Regulatory outcomes are the central risk: a FERC reduction to the base transmission ROE is expected to lower after-tax earnings by roughly $70 million in 2026 and contributed to a downward revision of full-year guidance. State rate cases in Connecticut and Massachusetts have at times been contentious, which can pressure allowed returns and cost recovery. As a capital-intensive utility, Eversource is sensitive to interest rates, since higher rates raise financing costs and make its dividend yield less competitive versus bonds. Residual cost-sharing obligations from the offshore wind exit (up to roughly $240 million of potential overrun exposure shared with the buyer) remain an overhang. Finally, executing a multi-billion-dollar capital plan while managing leverage leaves limited room for operational or weather-related surprises.
How is ES valued? (as of JULY 2026)
Snapshot for ES as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue (TTM): ~$12.5B
- Market cap: ~$25B
- 2026 non-GAAP EPS guidance: ~$4.57 to $4.72
- Long-term EPS growth target: ~5 to 7% through 2030
- Dividend yield: ~4.3%
- P/E (approx.): ~15 to 16x
Eversource beat Q1 2026 estimates with revenue of about $4.5 billion and non-GAAP EPS of $1.73, but trimmed full-year non-GAAP guidance to roughly $4.57 to $4.72 (from $4.80 to $4.95) to reflect the FERC ROE reduction and the loss of Aquarion earnings. The valuation, a P/E in the mid-teens and a yield above 4 percent, is typical for a regulated utility where the stock trades on rate-base growth and interest rates more than on quarterly momentum.
How do you decide if ES is a buy?
Rather than asking whether ES is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold ES indirectly through an index or sector ETF before adding more.
For the full picture, see the ES stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about ES against your real portfolio and see your actual exposure before deciding.
The bottom line on ES
The bottom line: Eversource Energy's story right now is Rate-base growth from a large capital plan, with revenue (ttm) at ~$12.5B. If you believe that narrative continues, the call is about sizing ES sensibly and checking overlap with what you own; if you doubt it (the risk: regulatory outcomes are the central risk: a FERC reduction to the base transmission ROE is expected to lower after-tax earnings by roughly $70 million in 2026 and contributed to a downward revision of full-year guidance.), it is not for you. Decide from the thesis, not the ticker. Walnut is not an investment adviser.
More on ES
- ES stock guide (what the company does, ETFs that hold it, similar stocks, and the themes it fits)
- ES stock forecast (the drivers and risks shaping the outlook)
- Does ES pay a dividend?
Build a basket around ES with Walnut
Use Eversource Energy as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is ES a good stock to buy right now?
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The case for Eversource Energy right now is Rate-base growth from a large capital plan, with revenue (ttm) at ~$12.5B. If you believe that thesis holds, ES is a way to own it and the real questions are sizing and overlap, not timing; the main risk to that view is regulatory outcomes are the central risk: a FERC reduction to the base transmission ROE is expected to lower after-tax earnings by roughly $70 million in 2026 and contributed to a downward revision of full-year guidance. So it comes down to whether you believe the thesis. Walnut is not an investment adviser and this is not a recommendation.
What does Eversource Energy do?
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Eversource Energy is a public utility holding company that delivers electricity and natural gas to roughly 4 million customers across Connecticut, Massachusetts, and New Hampshire.
What are the main risks of ES?
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Regulatory outcomes are the central risk: a FERC reduction to the base transmission ROE is expected to lower after-tax earnings by roughly $70 million in 2026 and contributed to a downward revision of full-year guidance. State rate cases in Connecticut and Massachusetts have at times been contentious, which can pressure allowed returns and cost recovery. As a capital-intensive utility, Eversource is sensitive to interest rates, since higher rates raise financing costs and make its dividend yield less competitive versus bonds. Residual cost-sharing obligations from the offshore wind exit (up to roughly $240 million of potential overrun exposure shared with the buyer) remain an overhang. Finally, executing a multi-billion-dollar capital plan while managing leverage leaves limited room for operational or weather-related surprises.
What does Eversource Energy do?
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Eversource is a regulated utility holding company that delivers electricity and natural gas to roughly 4 million customers across Connecticut, Massachusetts, and New Hampshire. Its earnings come from regulated electric distribution, electric transmission, and gas distribution operations.
Is Eversource still in the offshore wind business?
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No. Eversource completed its exit from offshore wind in 2024, selling its stakes in the South Fork and Revolution Wind projects to Global Infrastructure Partners. It retained limited cost-sharing obligations but no longer develops offshore wind, refocusing on its regulated utility operations.
Why did Eversource sell Aquarion Water?
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Eversource closed the roughly $2.4 billion sale of Aquarion Water in mid-2026 to simplify into a pure-play regulated electric and gas utility and to raise cash. The approximately $1.7 billion of net equity proceeds are being used to pay down debt.
Does Eversource pay a dividend?
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Yes. Eversource pays a quarterly dividend that yields roughly 4.3 percent as of mid-2026. The dividend is a central part of the investment case, funded by relatively stable regulated earnings, though it depends on continued regulatory and cash-flow support.
Walnut is informational and is not an investment adviser. This page is educational and not a recommendation to buy or sell ES; figures are approximate and dated, and your own situation, time horizon, and risk tolerance should drive any decision. Verify current data before investing.