Why Is BLACK HILLS CORP (BKH) Stock Up Today?

Black Hills Corp (BKH) shares climbed 7.21% to close at $75.84, driven by the announcement of a long-term power supply agreement with Google. The utility company signed definitive agreements to provide energy for a planned data center in Cheyenne, Wyoming, a move that triggered immediate positive analyst reactions and a surge in trading volume.

What Happened

Black Hills Corp disclosed on October 6, 2026, that it executed definitive agreements effective September 30, 2026, to serve Google’s planned data center in Cheyenne, Wyoming. The contract runs through 2048 and involves the provision of up to 590 megawatts of grid-connected energy service while managing 2.1 gigawatts of total load. To support this demand, the company is investing $1.8 billion in new company-owned natural gas generation. Management projects the project will deliver approximately $2.4 billion in unlevered free cash flow, net of the generation capital investment, with a target of $150 million in net income by 2030.

Following the disclosure, Freedom Broker upgraded Black Hills to a Buy rating and raised its price target to $78. B of A Securities also maintained a Buy rating, lifting its price target to $97. The company affirmed its full-year 2026 GAAP EPS guidance of $4.25 to $4.45, which compares to an estimate of $4.33. In its most recent quarterly report, Black Hills posted adjusted EPS of $0.54, beating the $0.40 estimate, although sales of $452.8 million missed the $490.89 million estimate.

What The Data Shows

The stock’s performance has been strong over the recent period, moving up 8.7% over the last eight sessions from $69.73 to $75.83. On October 7, 2026, the stock printed 26 fresh 52-week highs and 2 fresh 52-week lows. The current market capitalization stands at $5.4 billion with a P/E ratio of 17.8. Fundamentals include a revenue growth of 2.5% on a trailing twelve-month basis, a net margin of 13.0%, and a dividend yield of 3.99%. The stock has a beta of 0.66 and trades within a 52-week range of $59.91 to $78.69.

What To Watch

Investors will monitor the execution of the $1.8 billion capital investment and the progress of the Cheyenne data center construction. The company’s ability to meet its 2030 net income target and maintain its affirmed EPS guidance will be key metrics for assessing the long-term value of the Google partnership.