Key Highlights

  • National Grid plc (LSE:NG.), a FTSE 100 utility, is in focus on 28 October 2026 after raising its earnings growth outlook earlier this month.
  • Underlying earnings per share growth for fiscal 2027 is now expected to be slightly above the previous 13% to 15% guidance.
  • National Grid Ventures and Other is expected to add about £130 million of first-half performance versus expectations.
  • Shares trade near 1,225 pence, around 14% below their 52-week high, with a dividend yield of about 4%.
  • Brokers remain split, with some trimming price targets while others stay positive.
  • Half-year results for the six months to 30 September are due on 5 November 2026.

Why National Grid plc (LSE:NG.) Is in Focus on 28 October 2026

National Grid plc (LSE:NG.) is attracting steady attention among FTSE 100 investors on 28 October 2026 because it sits at the intersection of two powerful market themes: defensive income and the build-out of electricity networks. The shares have drawn interest since the company lifted its earnings growth outlook in an update on 5 October, and the debate has intensified as several brokers revisited their price targets in the weeks that followed.

With half-year results scheduled for 5 November, the next few days are a natural period for positioning, and the stock regularly features in lists of the most searched London utilities.

The Raised Outlook

In its pre-close update, National Grid said it now expects underlying earnings per share growth for fiscal 2027 to be slightly above its earlier guidance of 13% to 15%. Management said its regulated businesses were performing in line with expectations and that stronger performance from National Grid Ventures and Other would add roughly £130 million to first-half results compared with expectations.

This distinction matters. The regulated networks provide the predictable core of the earnings stream, while the ventures arm adds an element of upside. Investors will want to know how much of the improvement is repeatable and how much reflects timing or one-off factors.

Recent Financial Performance

The upgraded outlook builds on a solid prior year. In fiscal 2025/26 underlying operating profit rose about 8.8% to £5.68 billion, and underlying earnings per share increased to 78.0 pence from 72.0 pence. That growth reflects continued investment in regulated asset base across electricity transmission and distribution in both the United Kingdom and the United States.

For a utility, growth in regulated asset base is the key driver of long-term earnings and dividends, which is why capital expenditure plans and regulatory settlements feature so heavily in investor discussions.

Share Price, Valuation and Yield

On 26 October the shares were around 1,225 pence, within a 52-week range of roughly 1,096 to 1,428 pence, which leaves the stock about 14% below its high. Market capitalisation was around £61.6 billion, the trailing price-to-earnings ratio was just under 19, and the dividend yield was about 4%. In the United States the depositary shares closed at $82.22 on 28 October.

The shares dipped around 1% on 20 October when several brokers revisited their views, but have since stabilised. Valuation remains a talking point, since utilities that grow earnings at double-digit rates tend to attract premium multiples when interest rate expectations are stable.

Where the Brokers Stand

Analyst opinion is mixed. One major bank cut its price target to 1,175 pence from 1,253 pence while keeping a neutral rating, and another lowered its target to 1,310 pence from 1,440 pence while retaining an overweight stance. A Swiss bank maintained a sell rating with a 1,110 pence target. Others have kept hold or outperform views with targets in the 1,300 to 1,350 pence area.

The spread of opinions illustrates the central debate: bulls highlight the visible growth in regulated assets and the raised outlook, while bears point to the valuation, rising capital needs and sensitivity to bond yields.

Sector Themes: Grid Investment and Regulation

National Grid benefits from the long-term need to expand and upgrade electricity networks to connect renewable generation, accommodate rising electricity demand and strengthen resilience. That creates a long runway for capital deployment at regulated returns.

At the same time, the company must finance that investment. Investors will watch funding plans, credit metrics and any signal on equity issuance, along with regulatory outcomes on allowed returns in both the United Kingdom and the United States.

What Investors Are Watching Next

The main catalyst is the half-year release on 5 November 2026, covering the six months to 30 September. Investors will look for confirmation of the raised guidance, the interim dividend, capital expenditure progress, net debt and commentary on funding. They will also watch for detail on the contribution from National Grid Ventures and Other, and for any regulatory updates that could influence future allowed returns.

Bond yields and interest rate expectations will remain a major external driver for the share price. This article is general information only and does not constitute investment advice.

Risks

Risks include higher interest rates, regulatory decisions that reduce allowed returns, cost inflation on large projects, financing needs, and weather or operational events affecting network performance.

Outlook for National Grid plc (LSE:NG.)

National Grid plc (LSE:NG.) combines a raised earnings outlook, growing regulated assets and a yield near 4% with a valuation that has attracted cautious broker commentary. On 28 October 2026 the FTSE 100 utility remains in focus because the 5 November half-year results will test whether the upgraded growth path is on track.