Black Hills rises 7.2% after Google power deal, $1.8 billion generation plan

What happened

Black Hills (BKH) rose 7.2% on October 7, 2026, after the company signed definitive agreements to supply power to a planned Google data center in Cheyenne, Wyoming. The company said it would invest $1.8 billion from 2027 to 2029 to add generation capacity to serve the project. Reuters and GlobeNewsWire reported that the contracts include a Large Power Contract Services Agreement and a Generation Facilities Agreement and that contract terms for the Google site will run through 2048. The stock jumped after the company disclosed the contracts and the related capital plan, which investors treated as a major, company-specific development.

How big was the move

The stock rose 7.2% on the day and rose 8.2% over the last five sessions, an advance 7.5 percentage points better than the utilities sector median, which fell 0.3% on the day. Trading volume was 3.9 times its 20-day average and the session's change was 5.0 times a typical daily move for this stock. The S&P 500 fell 0.2% on the day and rose 2.0% over five sessions, underscoring that the price action was largely driven by company news rather than market-wide forces. Black Hills has a beta of 0.35, meaning the stock tends to move less than the market, which makes the magnitude of Friday's move more notable.

The technical picture

The stock opened 5.7% above the previous close on the news and closed the session at $75.84. It was 6.9% above its 20-day moving average, 5.1% above its 50-day moving average and 4.4% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The relative strength index (14 days) stands at 68, in a neutral range. The share price was 3.6% below the 52-week high. Over one month the stock rose 2.2%, over three months it rose 3.5% and over one year it rose 25.3%, which is 9.6 percentage points ahead of the S&P 500. Volatility was 23% annualized over 60 days, higher than 64% of its own readings over five years.

Fundamentals and valuation

For the four quarters through June 30, 2026, Black Hills reported revenue of $2.30 billion, which grew 2.5% from a year earlier and compared with revenue growth of 3.6% one quarter earlier. Diluted earnings per share for that period were $3.96, with earnings per share growth having fallen 0.3% from a year earlier. Gross margin widened to 42.9% versus 38.8% a year earlier, and operating margin was 23.8% versus 23.5% a year earlier. Free-cash-flow margin stood at 13.3% and return on invested capital was 4.7%. The balance sheet shows net debt of 5.7 times EBITDA, and share count over one year increased by 5.1%.

On valuation, the stock trades at 19.2 times trailing earnings and 17.5 times forward earnings, with a free-cash-flow yield of 5.6%. Its price to trailing earnings is higher than 95% of its own readings over the past five years; the five-year median is 16.0 times earnings. PromtFinance scores rank the company 27 for Value (Very weak), 10 for Growth (Very weak), 57 for Quality (Neutral), 99 for Momentum (Exceptional), 41 for Revisions (Weak) and 37 for Stability (Weak). Market value was $5.40 billion on the session.

Earnings and analyst expectations

Black Hills last reported on August 5, 2026, posting earnings per share of $0.54 against $0.41 expected, 33.0% above estimates. That was one consecutive quarter beating estimates and the average surprise over the last four reports was 7.8% above estimates. The typical two-day reaction after recent reports was that the stock rose 0.6%. The next report is scheduled for November 4, 2026.

Fifteen analysts cover the stock, with 53% recommending Buy and the consensus rating at Buy. The consensus price target is $84.50, which is 11.4% above the closing price of $75.84.

An additional report, cited by The Motley Fool, said the Google agreement is expected to generate net income of $150 million in 2030 and $2.4 billion in unlevered free cash flow by 2048 for Black Hills. The company itself disclosed the contracts and the related $1.8 billion capital plan. Investors will be watching filings and regulatory disclosures for more detail on cash flows and timing.

What to watch

• November 4, 2026: next quarterly report date.
• The company's planned $1.8 billion investment from 2027 to 2029 in new generation capacity announced with the Google agreements.
• Any filings or regulatory approvals tied to the Large Power Contract Services Agreement and the Generation Facilities Agreement running through 2048.
• Updates or third-party estimates on projected cash flow from the Google deal as reported by other outlets.