Is Fortis Inc. profitable in 2026?

Yes. Fortis reported Q1 2026 net earnings of $501 million CAD, following full-year 2025 net earnings of $1.7 billion CAD ($3.40 per share), up from $1.6 billion in 2024, driven by rate base growth at Central Hudson and other subsidiaries (as of 2026-05-06).

Could AI replace Fortis Inc.'s business?

No. Fortis delivers electricity and gas through exclusive regulator-granted monopoly franchises across nine utilities; AI cannot substitute for physical wires and pipes. AI data-center demand is instead fueling growth, with ITC delivering 300 MW to a first data-center customer as of 2026-05-06.

Who owns Fortis Inc.?

Fortis Inc. is a publicly traded company on TSX and NYSE under ticker FTS with no controlling parent; institutional ownership is roughly 34.4% and insider ownership near 0%. Market capitalization was approximately CA$42.3 billion as of 2026-07-26.

Is Fortis Inc. cutting jobs in 2026?

No evidence of layoffs. Fortis employed approximately 9,600 employees in late 2025 and 9,900 by Q1 2026, a modest increase, as the company executes a record CA$28.8 billion five-year capital plan announced 2026-07-01.

Who is Fortis Inc.'s biggest competitor?

Fortis has no direct competitor within its franchise territories since regulators grant exclusive service monopolies. Commonly cited Canadian utility peers include Emera, Canadian Utilities, and Hydro One, though these do not compete for the same customers, per a 2026-04-08 analyst comparison.

How is Fortis Inc. exposed to AI data centers?

AI-driven data-center load is Fortis's largest growth driver, with ITC's Iowa project reaching 300 MW (toward 1,600 MW) and Tucson Electric Power signing a ~286 MW deal with Beale Infrastructure, though Arizona's AG appealed that deal's approval on 2026-02-19.

Oil and gas companies · Canada

Fortis Inc.

fortisinc.com ↗

Holding company owning nine regulated electric and gas utilities in Canada, the US, and Caribbean.

Hard to displace

Assessed 26 July 2026 · Evidence as of 26 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 26 July 2026 · Checkable from H2 2026 · Every call on the record Checkpoint: FERC large-load interconnection show-cause compliance filings due

The call

Fortis sits behind franchise walls that AI cannot climb, with the live question being how much data center demand regulators let it charge for.

Fortis Inc. owns and operates nine electric and gas utilities across Canada and the US, each operating as the sole provider in its region under exclusive licenses from regulators. This legal monopoly protection cannot be replaced by a competitor or an AI system, and the company earns predictable returns by recovering its costs plus a regulator-approved profit margin from customers. The main risk is political pushback: as data centers drive rapid demand for electricity, regulators and state officials are starting to question whether utilities should pass all those new costs to regular customers or absorb them themselves. If regulators force Fortis to pay for data-center hookups out of its own pocket instead of billing the data centers, the company's growth plans will slow.

Why

AI pressure: AI data center operators seeking power deals (e.g., TEP/Beale Infrastructure). AI-driven data centers add load and grow the rate base rather than threaten it, but regulators may push back on who pays. Could AI do the core job? Unlikely.

Bigger players: None apparent. No company can legally enter Fortis's service territories; entry requires a franchise grant, not capital or technology. Could a giant copy it? No, they are blocked.

What protects it. Exclusive regulator-granted franchises and cost-of-service rate base returns block any competitor or technology from taking customers.

What would change this call

Outcome of Arizona AG appeal of TEP/Beale Infrastructure data-center energy deal. Shows whether regulators will let Fortis pass data-center costs to large-load customers.
FERC large-load interconnection compliance filings and rulings expected H2 2026. Indicates if utilities like Fortis absorb data-center interconnection costs, denting rate-base growth.
Ruling in Rep. Josh Riley v. NYPSC over Central Hudson rate hikes. Tests whether regulators will curb Fortis subsidiary rate increases.

Key numbers

Regulated rate base near CA$77B (2026-07-01)
Serves 3.5 to 3.7 million customers (2026-07-01)
Dividend increased every year since 1973 (2026-02-12)

Named risks

Political and regulatory backlash on data-center-driven rate hikes at TEP, including Arizona AG appeal and Pima County opposition. Severity: high
FERC June 2026 show-cause orders could force cost absorption instead of allocation to data centers, compressing rate base growth. Severity: medium
New York litigation alleging Central Hudson rate hikes improperly benefit Fortis's Canadian parent. Severity: medium
USD-CAD foreign exchange and interest-rate sensitivity on debt-funded capex. Severity: low
Zacks sell-leaning rating ahead of Q2 2026 earnings signals near-term earnings skepticism. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Emera Inc.	contesting	Cited as closest Canadian utility peer for investor comparison, no shared service territory (2026-04-08)
Canadian Utilities Ltd.	contesting	Compared as regulated utility peer in sector analysis, not a direct market competitor (2026-04-08)
Hydro One	contesting	Named as Canadian utility peer in dividend/valuation comparisons (2026-04-08)
Brookfield Infrastructure	contesting	Listed as diversified infrastructure peer competing for investor capital, not customers (2026-04-08)

Questions people ask

Is Fortis Inc. profitable in 2026?: Yes. Fortis reported Q1 2026 net earnings of $501 million CAD, following full-year 2025 net earnings of $1.7 billion CAD ($3.40 per share), up from $1.6 billion in 2024, driven by rate base growth at Central Hudson and other subsidiaries (as of 2026-05-06).
Could AI replace Fortis Inc.'s business?: No. Fortis delivers electricity and gas through exclusive regulator-granted monopoly franchises across nine utilities; AI cannot substitute for physical wires and pipes. AI data-center demand is instead fueling growth, with ITC delivering 300 MW to a first data-center customer as of 2026-05-06.
Who owns Fortis Inc.?: Fortis Inc. is a publicly traded company on TSX and NYSE under ticker FTS with no controlling parent; institutional ownership is roughly 34.4% and insider ownership near 0%. Market capitalization was approximately CA$42.3 billion as of 2026-07-26.
Is Fortis Inc. cutting jobs in 2026?: No evidence of layoffs. Fortis employed approximately 9,600 employees in late 2025 and 9,900 by Q1 2026, a modest increase, as the company executes a record CA$28.8 billion five-year capital plan announced 2026-07-01.
Who is Fortis Inc.'s biggest competitor?: Fortis has no direct competitor within its franchise territories since regulators grant exclusive service monopolies. Commonly cited Canadian utility peers include Emera, Canadian Utilities, and Hydro One, though these do not compete for the same customers, per a 2026-04-08 analyst comparison.
How is Fortis Inc. exposed to AI data centers?: AI-driven data-center load is Fortis's largest growth driver, with ITC's Iowa project reaching 300 MW (toward 1,600 MW) and Tucson Electric Power signing a ~286 MW deal with Beale Infrastructure, though Arizona's AG appealed that deal's approval on 2026-02-19.

Timeline

2026-07-24Zacks rates FTS #4 (sell-leaning) ahead of Q2 2026 earnings preview
2026-07-01Announced record CA$28.8B five-year capital plan, 7% rate base CAGR to CA$57.9B by 2030
2026-06-18FERC issued Section 206 show-cause orders on large-load AI/data-center interconnection rules
2026-05-06Q1 2026 results: net earnings $501M, total assets CA$77B, DBRS confirms A(low) rating
2026-05-04Pima County Board opposes pending TEP rate hike of up to ~25% over five years
2026-03-20Rep. Josh Riley sues NY PSC over Central Hudson rate hikes benefiting Fortis's Canadian parent
2026-03ITC Holdings priced US$500M notes due 2031 and US$400M notes due 2036
2026-02-19Arizona AG Kris Mayes appeals approval of TEP/Beale Infrastructure data-center energy deal
2026-02-12FY2025 results: net earnings CA$1.7B, 52nd consecutive year of dividend increases
2025-09-03FortisTCI sold to Vision Ridge Partners, rebranded Pelican Energy TCI

Revision history

26 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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