Dominion Energy (D) Stock Rises As Q3 Earnings Meet Merger Scrutiny

Dominion Energy just dropped its Q3 2026 report and the stock is already voting with its wallet. The share price closed at US$66.62, up 2.3% on the day, even before the market gets a full weekend to chew on the numbers.

The hook is simple. Earnings looked punchy on the surface, with basic EPS of about US$1.32 and net income from ongoing operations of roughly US$1.16b. Yet the real story is the strain behind those profits. A richer valuation at roughly 22x P/E and pressure from interest and dividend coverage sit in the background, testing how much optimism today’s price move really reflects.

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Q3 2026 Earnings Summary

• Revenue (Q3 2026 vs. Q3 2025): US$5,617m vs. US$4,527m (up about 24%)
• Net Income from Ongoing Operations (Q3 2026 vs. Q3 2025): US$1,161m vs. US$995m (up about 17%)
• Basic EPS (Q3 2026 vs. Q3 2025): US$1.32 vs. US$1.17 (up about 13%)
• Earnings from Discontinued Operations (Q3 2026 vs. Q3 2025): loss of US$1m vs. no disclosed gain or loss (directionally weaker by US$1m)

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Dominion’s Growth Narrative Clears Key Execution Hurdles

Dominion Energy’s growth story hinges on big projects and big loads actually turning into regulated earnings, not just pitch-deck slides.

"Surging large-load demand in Dominion Energy’s Virginia territory, including over 53 GW of data center capacity in the pipeline and a series of record peak days in 2026, supports ongoing grid and generation buildout that can lift regulated revenue and earnings as those assets enter rate base."

Q3 shows that pipeline biting. Management flagged 3.4% weather normal electric sales growth, all ten 2026 summer peak days at Dominion Virginia, and more than 12 GW of data center contracts. Operating EPS landed above consensus and full year EPS is now tracking to the top half of guidance, which backs the load driven growth claim.

Merger, CVOW And Policy Risks Still Cast A Long Shadow

The worry has been that Dominion Energy’s ambitious plan runs into political and regulatory pushback before the cash flows show up.

"Concerns that the proposed all stock merger with NextEra could lead to higher customer bills and questions about whether regulators have enough time and information to review the deal may result in stricter conditions, delay or rejection."

That concern is alive. The merger now faces heavy scrutiny in Virginia with calls for strict bill protections and even rejection, while hearings stretch into early 2027. On top of that, CVOW’s updated US$11.65b cost and a six month timing slip, plus new cost assignment rules for large loads, reinforce that approval risk and project execution drag still sit alongside the stronger quarter.

That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.

Hunt For Mispriced Earnings Power

Dominion Energy just reminded investors how quickly sentiment can change around a single quarter. The real opportunity is finding stocks that could be undervalued before the market reassesses their earnings power.

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