Key Highlights

  • National Grid plc (LSE:NG.) was in focus on 22 October 2026 as hotter UK inflation pushed gilt yields higher, testing rate-sensitive utilities.
  • In its pre-close update, the group said it expects full-year underlying EPS growth slightly ahead of its 13% to 15% guidance range.
  • National Grid Ventures and Other is set to deliver about £130 million of extra first-half performance from one-off fair value gains and interconnector income.
  • Half-year results are scheduled for Thursday, 5 November 2026.

Why Is National Grid in Focus Today?

National Grid plc (LSE:NG.) was a stock to watch on Thursday, 22 October 2026, as investors absorbed UK inflation data that came in hotter than expected and strengthened bets on a Bank of England rate rise in November. Rising gilt yields typically weigh on regulated utilities, whose valuations are sensitive to the cost of capital and the relative appeal of their dividends compared with bonds.

Yet National Grid has a supportive company-specific backdrop. Its pre-close update on 5 October signalled earnings slightly ahead of guidance for the year, giving the shares a cushion as the market turned more cautious. With half-year results two weeks away, investors are weighing that operational strength against macro headwinds.

What the Pre-Close Update Said

National Grid said it now expects underlying earnings per share growth for the year to be slightly above its 13% to 15% guidance range. The upgrade was driven by a much better-than-expected first half at National Grid Ventures and Other, which is set to deliver about £130 million of additional performance. That reflects significant one-off fair value gains from two capital market transactions in its NG Partners investment portfolio, together with improved interconnector income.

The regulated businesses continue to perform in line with expectations. In UK Electricity Transmission and UK Electricity Distribution, operating profit is expected to be broadly evenly split across the year. In the US, regulated operations remain weighted to the second half, in line with normal seasonality, with New England returning to a more typical profile after a one-off federal regulatory judgement on returns affected the prior year. Underlying EPS will be weighted toward the second half.

Half-year net debt is expected to be broadly in line with full-year guidance after the Joulent investment and the usual second-half weighting of cash flows.

The Investment Story

National Grid is in the middle of a £70 billion energy network investment programme over five years, confirmed at its full-year results in May 2026. Delivery mechanisms have been secured for around three-quarters of the plan, and about two-thirds is already covered by regulatory agreements. The programme is designed to expand and upgrade transmission networks to connect renewable generation and meet rising electricity demand, including from data centres.

This investment grows the regulated asset base on which National Grid earns returns, underpinning long-term earnings growth. It was partly funded by a large rights issue in 2024, which reset the balance sheet for the expansion phase.

Share Price Context

The stock reached a two-year intraday high of £14.37 on 2 March 2026. It closed at about £11.92 on 10 August, around 4% higher year to date at that point and roughly 13% higher than a year earlier. Investors have balanced the attraction of steady earnings growth and an inflation-linked dividend against the sensitivity of utilities to interest rates.

Leadership

Zoë Yujnovich became Chief Executive in November 2025, succeeding John Pettigrew, and has led the company through the delivery of its investment plans and the current financial year.

Market Backdrop on 22 October 2026

The FTSE 100 fell about 0.3% on Thursday to a one-week low. Banks were the biggest drag, miners declined and oil prices climbed. Higher gilt yields weighed on interest-rate-sensitive sectors such as utilities and property, while defensive consumer and pharmaceutical stocks performed better.

What Are Investors Watching Next?

The half-year results on 5 November are the key event. Investors will focus on confirmation of the EPS upgrade, capital expenditure progress, net debt, and the interim dividend. Regulatory developments in the UK, including transmission price controls, and in US states will remain important, as will updates on connection reforms and grid capacity for new demand.

Movements in gilt and US Treasury yields, as well as Bank of England policy, will continue to influence the shares in the short term.

Outlook

National Grid plc (LSE:NG.) enters its half-year reporting with earnings tracking ahead of plan and a clear multi-year investment runway. Rising yields present a near-term challenge for valuation, but the operational picture is supportive. The 5 November results will show whether the FTSE 100 network operator can turn its upgraded outlook into renewed share price momentum.