NiSource earnings test data center strategy as costs weigh

NiSource Inc. will report second-quarter earnings Wednesday before markets open, with investors focused on whether its data center growth strategy can offset short-term cost pressures that have weighed on profit expectations. Analysts expect earnings of 20 cents per share on revenue of $1.25 billion, a 7.1% decline in profit year-over-year despite an anticipated 7.8% revenue increase. Wall Street maintains a buy rating on the stock, with a consensus price target of $51.17, implying nearly 15% upside from Monday's close of $44.53. The utility has signed agreements for approximately 3.8 gigawatts of data center capacity with hyperscale clients including Amazon and Alphabet, with up to 5 GW more in development. Cost pressures from storm expenses, union labor, depreciation, and interest costs may offset tariff benefits of about 20 cents per share.