01—Abstract
Summary
Summary of the 10-Q filed October 28, 2026. Cited figures are marked; the original filing is the authoritative source.
NiSource Inc. reported third-quarter 2026 net income attributable to NiSource of $129.5 milliona, or $0.27 per diluted share, up from $94.7 million, or $0.20 per diluted share, in the prior-year quarter.
Total operating revenues rose to $1,349.4 millionb from $1,273.1 million, and operating income increased to $340.3 million from $297.5 million. For the nine months, net income attributable to NiSource was $682.1 million ($1.42 diluted EPS), compared with $671.7 million ($1.42) a year earlier, as higher revenues from new rates and lower property taxes were offset by higher operation and maintenance expense, depreciation and interest expense. Interest expense, net rose to $601.3 million for the nine months from $451.7 million.
The filing is dominated by the data center strategy. NIPSCO entered into a Microsoft Contract in October 2026, with capacity commitments beginning in 2028 and increasing to 788 MW in 2031. GenCo entered into a tolling agreement with AGP for a 600 MWAC / 2,400 MWh battery energy storage system at approximately $2.2 billionc.
Management now estimates the aggregate cost of planned expenditures for existing data center customers at $14.0 to $14.5 billiond, and expects roughly $40.0 billion of capital investment over 2027-2033. Capital expenditures for the nine months were $3,102.5 million. Long-term debt grew to $16,380.8 million (excluding current portion), and the company issued $750.0 million of 6.25% junior subordinated notes in August 2026 alongside $1.25 billion of senior notes in May 2026.
Liquidity remains substantial but tighter. Net available liquidity was $1,947.5 million at September 30, 2026, versus $2,024.1 million at year-end 2025. The debt-to-capitalization covenant ratio was 51.3% against a 70.0% limit, and credit ratings are BBB+ (S&P), Baa2 (Moody's) and BBB (Fitch), all with stable outlooks.
The company also faces regulatory and operational issues, including an IURC investigation into storm restoration after an August 11, 2026 storm event that caused outages for approximately 375,000 customers, and continued Section 202(c) emergency operation of the R.M. Schahfer coal facility.
02—Key points
Key Highlights
- Q3 2026 net income attributable to NiSource was $129.5 million ($0.27 diluted EPS), versus $94.7 million ($0.20) in Q3 2025; nine-month diluted EPS was $1.42, flat year over year.
- Total operating revenues were $1,349.4 million for the quarter, up from $1,273.1 million, and operating income rose to $340.3 million from $297.5 million.
- Interest expense, net rose to $601.3 million for the nine months from $451.7 million, reflecting higher debt levels.
- Microsoft signed a data center contract in October 2026 with capacity starting in 2028 and increasing to 788 MW in 2031; GenCo also agreed to a roughly $2.2 billion AGP battery storage tolling agreement.
- Planned expenditures for existing data center customers are estimated at $14.0 to $14.5 billion, within a total capital plan of about $40.0 billion for 2027-2033.
- Net available liquidity was $1,947.5 million at September 30, 2026, and the debt-to-capitalization ratio was 51.3% versus a 70.0% covenant limit.
- An August 11, 2026 storm event caused outages for approximately 375,000 customers, with about $216.9 million of storm-related costs in the quarter and an IURC investigation opened in September 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 28, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.30B$1.24B | +4.7% |
| Operating Income | $340.30M$297.50M | +14.4% |
| Net Income | $129.50M$94.70M | +36.7% |
| EPS (Basic) | $0.27$0.20 | +35.0% |
| EPS (Diluted) | $0.27$0.20 | +35.0% |
| Shares Outstanding (Basic) | 479.80M472.10M | +1.6% |
| Shares Outstanding (Diluted) | 481.10M473.70M | +1.6% |
05—Questions
Frequently Asked Questions
How did NiSource's earnings perform in the third quarter of 2026?
Net income attributable to NiSource was $129.5 million, or $0.27 per diluted share, compared with $94.7 million, or $0.20 per diluted share, in the third quarter of 2025. The filing attributes the increase mainly to higher revenues from new rates, lower property taxes and lower income taxes, partly offset by higher operation and maintenance expense, including storm-related costs, higher depreciation and higher interest expense.
What are the main data center developments disclosed in the filing?
NIPSCO entered into a Microsoft agreement in October 2026, subject to IURC approval, to provide capacity and electricity starting in 2028 and rising to 788 MW in 2031. GenCo also entered into a tolling agreement with AGP in October 2026 for a 600 MWAC / 2,400 MWh battery energy storage system at approximately $2.2 billion. The company says it expects to need significant additional financing to build the generation and transmission assets required for these contracts.
How is NiSource funding its capital program?
During 2026 NiSource issued $500.0 million of 4.75% notes due 2031 and $750.0 million of 5.30% notes due 2036 in May, plus $750.0 million of 6.25% junior subordinated notes due 2057 in August. It also received $194.4 million of contributions from NIPSCO and GenCo minority interest holders in the nine months, and has an ATM equity program with about $1.15 billion of capacity remaining. The filing notes that the company may also consider JVs or off-balance sheet arrangements to support its investment grade ratings.
What regulatory and operational risks are highlighted?
The IURC opened a formal investigation in September 2026 into NIPSCO's storm restoration practices after the August 11 storm event. The R.M. Schahfer coal facility continues to operate under successive 90-day Section 202(c) emergency orders, currently through December 18, 2026, with $141.4 million deferred to regulatory assets for compliance costs. The IURC also opened investigations in July 2026 into authorized return on equity and the future use of regulatory trackers, and a gas meter accuracy investigation remains pending with an evidentiary hearing scheduled for March 2027.
What is the status of the company's credit ratings and liquidity?
As of September 30, 2026, NiSource was rated BBB+ by S&P, Baa2 by Moody's and BBB by Fitch, all with stable outlooks. Net available liquidity was $1,947.5 million, compared with $2,024.1 million at December 31, 2025. The filing states that certain agreements would require about $154.2 million of collateral if the company were downgraded below investment grade.
06—Continue