Morningstar

National Grid: Fiscal 2026 Earnings Dented by One-Offs, Shares Attractive

We think National Grid stock is moderately undervalued.

Collage illustration for Utilities Sector with Wind Turbine.

Key Morningstar Metrics for National Grid

  • Fair Value Estimate
    : GBX 1,440
  • Morningstar Rating
    : ★★★★
  • Morningstar Economic Moat Rating
    : Narrow
  • Morningstar Uncertainty Rating
    : Low

What We Thought of National Grid’s Earnings

National Grid NG. released an update ahead of its fiscal 2026 results due on May 14. It said that recognition of customer refund recharges at New England Transmission and storm costs will shave GBX 1 off its fiscal 2026 EPS, or about 1.3%.

Why it matters: Except for those one-offs, the performance is consistent with the guidance provided at the half-year results of 6%-8% EPS growth.

The bottom line: We confirm our GBX 1,440 fair value estimate and narrow moat rating for National Grid. Shares appear undervalued, as rising gilt yield, because of the Iran war, overshadowed the earnings guidance raise of March 5.

Editor's Note: This analysis was originally published as a stock note by Morningstar Equity Research.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.

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