Track market-moving stories before they get noisy

Shares of Constellation Energy (CEG -5.49%) jumped from $291.11 on Oct. 6 to $309.80 the same day following the announcement of its landmark 20-year power purchase agreement (PPA) and strategic collaboration with Alphabet.

There was plenty of enthusiasm for the $4.3 billion deal, which will add 890 megawatts of new nuclear capacity through updates at 11 Constellation-owned nuclear units in Illinois, Pennsylvania, and New Jersey.

However, in the days since the announcement, Consellation stock is actually down more than 3%. The reason is that the energy stock is already trading at a high multiple relative to its peers, at more than 28 times trailing earnings and more than 23 times forward earnings.

Here are three reasons why Constellation is worth that lofty valuation after the Alphabet agreement.

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The deal provides cash flow security The deal locks in long-term demand over a 15- to 20-year horizon. It also has an additional 15-year agreement covering 2,700 megawatts from Constellation's existing nuclear fleet. Pairing the Alphabet announcement with a similar recent $3 billion, 20-year deal with Amazon establishes a predictable baseline of contracted cash flows.

This shields a significant portion of Constellation's nuclear fleet from merchant power price volatility and guarantees high-margin monetization for decades.

Instead of worrying about the typical construction delays, budget overruns, and regulatory hurdles connected with building nuclear plants from scratch, this deal focuses on uprates, which increase the maximum licensed electricity output of an existing, operational nuclear reactor. These include modernizing turbines, steam generators, and controls at existing facilities.

Just look at what happened with the last two new reactors, Georgia Power's Vogtle 3 and Vogtle 4 plants in Georgia, which cost more than $35 billion to build and took 15 years to build. Constellation is updating reactors already in place, a far more economical process, and expects to have the updates ready in 2028.

Analysts have an average price target of $341.53 for the stock, well above its current trading price.

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Constellation isn't really overpriced The stock is trading at lower valuations than its historical averages. That's because its shares have fallen more than 17% so far this year. It isn't fair to compare Constellation to other nuclear power stocks, as there isn't a direct comparison. Constellation operates the largest nuclear fleet in the U.S., about one-fifth of all nuclear capacity in this country.

Through six months, the company reported revenue of $18.6 billion, up 44.5%, year over year. Earnings per share were $5.88, an increase of 92.7% over the same six months a year ago. Those numbers show that the mystery isn't the company's valuation, but why it isn't even higher.

The company is a go-to for hyperscalers Its size and scope mean Constellation is best positioned to benefit from the growing need for stable power for data centers, as it can provide 22 gigawatts of carbon-free nuclear power, three times more than any other utility in the U.S.

Hyperscalers such as Alphabet require firm, 24/7 carbon-free power to fuel energy-hungry artificial intelligence data centers, making intermittent renewables insufficient on their own. This deal, alongside consecutive mega-deals from other tech giants, validates that nuclear operators possess irreplaceable pricing power. It also shows that tech companies are willing to heavily co-invest to secure reliable electricity.

Most of Constellation's nuclear assets are on the PJM Interconnection grid. PJM encompasses Northern Virginia and the surrounding Mid-Atlantic regions, with the highest density of data center infrastructure in the world.

Individual hyperscalers are asking for multi-gigawatt commitments. Constellation is one of the only energy providers in the country with a large enough portfolio to handle multiple GW-scale agreements without exhausting its asset base.

Worth it, despite some risks There are legitimate reasons that Constellation isn't trading higher. It's important to note that revenue from these uprates won't begin until 2028, leaving the stock vulnerable to a broader tech sector sell-off, especially if artificial intelligence (AI) spending cools.

However, these deals also de-risk the company's investments in expanding its nuclear capacity. Constellation shouldn't be viewed as another boring utility stock but as a prime enabler of infrastructure for AI data centers. It expects more than 20% EPS growth through 2029, and based on its first-half earnings, is delivering on that forecast.

Constellation Energy Corporation (CEG - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned +4.7%, compared to the Zacks S&P 500 composite's +2.4% change. During this period, the Zacks Alternative Energy - Other industry, which Constellation Energy Corporation falls in, has lost 2.7%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Constellation Energy Corporation is expected to post earnings of $3.99 per share for the current quarter, representing a year-over-year change of +31.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.

The consensus earnings estimate of $12.19 for the current fiscal year indicates a year-over-year change of +29.8%. This estimate has changed +0.4% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $13.25 indicates a change of +8.8% from what Constellation Energy Corporation is expected to report a year ago. Over the past month, the estimate has changed +1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Constellation Energy Corporation.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Constellation Energy Corporation, the consensus sales estimate for the current quarter of $8.69 billion indicates a year-over-year change of +32.2%. For the current and next fiscal years, $33.68 billion and $32.56 billion estimates indicate +31.9% and -3.3% changes, respectively.

Last Reported Results and Surprise HistoryConstellation Energy Corporation reported revenues of $7.5 billion in the last reported quarter, representing a year-over-year change of +23%. EPS of $2.55 for the same period compares with $1.91 a year ago.

Compared to the Zacks Consensus Estimate of $7.47 billion, the reported revenues represent a surprise of +0.48%. The EPS surprise was +8.05%.

Over the last four quarters, Constellation Energy Corporation surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Constellation Energy Corporation is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Constellation Energy Corporation. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Key Takeaways Constellation issued $5.0B of long-term debt and retired $5.35B in the first six months of 2026.CEG identified $3.9B of growth capital for 2026-2027 to support its expanding generation portfolio. CEG expects $11.5-$13B of free cash flow before growth during 2028-2029, strengthening capital flexibility. Constellation Energy Corporation’s (CEG - Free Report) financing strategy provides flexibility to fund growth investments while maintaining an investment-grade balance sheet. The strategy is becoming increasingly important as the company expands its generation portfolio and pursues opportunities following the Calpine acquisition.

In the first six months of 2026, CEG issued $5.0 billion of long-term debt and retired $5.35 billion, helping manage its debt obligations following the Calpine acquisition. As of June 30, total long-term debt was $19.6 billion, including $13.0 billion of senior unsecured notes. At the end of second-quarter 2026, CEG’s Times Interest Earned ratio of 7.5 indicates sufficient capacity to meet its interest obligations.

The company issued $2.2 billion of senior notes in May, comprising $750 million of 4.55% notes due 2029, $600 million of 4.80% notes due 2032 and $850 million of 5.30% notes due 2036. The proceeds were used to repay short-term borrowings and for general corporate purposes.

CEG’s strong financing capacity supports its capital allocation strategy. The company identified $3.9 billion of growth capital for 2026-2027 and expects $11.5-$13 billion of free cash flow before growth during 2028-2029. Its BBB+ and Baa1 investment-grade ratings further enhance financial flexibility.

Overall, CEG’s financing strategy supports growth investments, portfolio expansion, financial flexibility and sustainable long-term earnings growth.

Prudent Debt Management Supports Utility GrowthPrudent debt management helps utilities maintain financial flexibility and fund essential infrastructure without significantly weakening credit quality. A balanced financing approach also supports generation investments, acquisitions and long-term growth.

PPL Corporation (PPL - Free Report) had $3.48 billion of unused credit capacity as of June 30, 2026, providing substantial liquidity for capital investments while limiting reliance on short-term borrowings.

Vistra (VST - Free Report) maintained $6.3 billion of available liquidity as of June 30, 2026, while repaying term loans, credit-facility borrowings and senior notes, supporting financial flexibility for future investments.

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 29.82% and 8.76%, respectively, year over year.

Image Source: Zacks Investment Research

CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 14.89%, ahead of the industry average of 8.28%.

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CEG’s Stock Price PerformanceIn the past three months, the company’s shares have risen 6.4% against the industry’s 13.6% fall.

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CEG’s Zacks Rank

LUSBY, Md.--(BUSINESS WIRE)--Constellation (Nasdaq: CEG) and Amazon (Nasdaq: AMZN) today announced a long-term agreement that will support the continued investment in and expansion of the Calvert Cliffs Clean Energy Center, Maryland’s only nuclear plant and largest source of clean energy. The agreement will enable more than $3 billion in Maryland infrastructure investment, including state-of-the-art improvements across the entire 1,790-megawatt plant and approximately 190 megawatts in total of new, emissions-free generating capacity coming online between 2030 and 2032.

The expansion of Calvert Cliffs’ generating capacity will be supported by a 20-year agreement, which includes 690 megawatts of power, including the 190 megawatt uprate. The parties have also entered into a related retail supply agreement to support Amazon operations in the 13-state PJM market. In addition to making the uprate possible, Amazon’s long-term commitment will help provide Constellation with the revenue certainty to relicense the plant for another 20 years and make progress toward the development of new clean energy power plants at the site, adding to Maryland’s supply of clean and reliable energy.

The agreement will also help Amazon manage its energy costs for facilities throughout the region. All the electricity generated by Calvert Cliffs will continue flowing to the PJM regional grid just as it does now, demonstrating how large energy users can support investments in new, reliable generation while strengthening the broader electric system.

“This agreement demonstrates how private investment can strengthen critical energy infrastructure,” said Joe Dominguez, chairman, president and chief executive officer, Constellation. “Amazon’s commitment supports the long-term operation of Calvert Cliffs for generations to come and creates a strong foundation for future investment in both the facility and in advanced nuclear technologies.”

“Amazon is committed to investing in carbon-free energy to strengthen the grid and benefit the communities where we operate," said Kerry Person, vice president of AWS Global Operations and Data Center Delivery. "This long-term agreement with Constellation sustains the continued operation and expansion of Maryland's largest source of carbon-free energy, supports hundreds of jobs, and brings significant new generation to the regional grid.”

Located in Lusby on the western shore of the Chesapeake Bay, Calvert Cliffs produces approximately 80% of Maryland’s clean energy and enough electricity to power the equivalent of more than 1.3 million homes. The facility employs more than 800 people and contributes about $21 million annually in taxes supporting schools, roads and other public services.

About Constellation

Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the largest private-sector power producer in the world and the nation's largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind and solar facilities, our fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation's clean energy and delivering the around-the-clock reliability needed to power America's growing economy. We are also the largest nuclear energy company in the U.S. and a leading competitive retail supplier, serving approximately 2.5 million customer accounts nationwide, including 80% of the Fortune 100. We are committed to investing in innovation and new technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.

Key Takeaways Constellation Energy's EFOF rose to 6.2% in Q2 2026 from 4.5% in Q1, signaling higher forced outages. CEG's 93% nuclear capacity factor and 96% renewable capture highlight performance across its fleet. Lower EFOF could boost CEG's fleet availability, supporting power sales, capacity revenues and cash flow. Constellation Energy (CEG - Free Report) benefits from its expanded generation fleet, strengthening its ability to meet rising demand for reliable electricity. Following its January 2026 acquisition of Calpine, CEG uses the Equivalent Forced Outage Factor (EFOF) to measure forced outages and reduced operating capacity across its natural gas, oil and pumped-storage hydro fleet.

CEG’s EFOF increased to 6.2% in the second quarter of 2026 from 4.5% in the first quarter. The higher EFOF indicates greater forced unavailability or reduced operating capacity across the applicable fleet. The metric covers multiple generation technologies, so the 6.2% figure should be viewed as a combined fleet measure rather than compared directly with benchmarks for a single plant technology.

Reducing EFOF could improve fleet availability and enable the company to capture more opportunities from its expanded generation portfolio. This is particularly relevant as CEG integrates the larger generation portfolio acquired through Calpine. Improving reliability and reducing forced outages could help the company maintain greater availability across its gas, oil and pumped-storage hydro assets.

CEG reported a 93% nuclear capacity factor in the second quarter of 2026, excluding Salem and South Texas Project, along with a 96% renewable energy capture rate, highlighting performance across its nuclear and renewable generation fleets.

Thus, lower EFOF, alongside strong nuclear and renewable performance, could improve fleet availability, supporting power sales, capacity revenues, operating efficiency and cash flow.

Fleet Performance Monitoring Aids Utility GrowthFleet performance monitoring helps utilities track asset health, identify emerging failures, optimize maintenance and improve reliability. Data-driven insights can reduce downtime and operating costs while supporting efficient asset utilization, stronger performance and sustainable utility growth.

Clearway Energy, Inc. (CWEN - Free Report) tracks fleet performance through plant availability, with solar at 99%, flexible generation at 97% and wind at 92%, alongside compensable generation and performance indices.

Vistra Corporation (VST - Free Report) reported 95.7% total commercial availability and 50.2 terawatt-hours of generation, reflecting strong operational availability and effective utilization across its power-generation fleet.

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 29.82% and 8.76%, respectively, year over year.

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CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 14.89%, ahead of the industry average of 7.15%.

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CEG’s Stock Price PerformanceIn the past three months, the company’s shares have plunged 2.7% compared with the industry’s 8.8% fall.

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CEG’s Zacks Rank

Constellation (Nasdaq: CEG) today announced an agreement to acquire 100% of RISEC Holdings, LLC (RISEC), owner of the Rhode Island State Energy Center, from Shell Energy North America, (US), L.P. (SENA) a subsidiary of Shell plc (Shell) for $715 million, subject to customary purchase price adjustments.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260909301280/en/

The Rhode Island State Energy Center in Johnston, R.I.

Located in Johnston, R.I., the Rhode Island State Energy Center is a combined-cycle electric generation facility, fueled by natural gas. The facility has two combustion turbines and one steam turbine and is capable of generating up to 609 megawatts of electricity. The facility sells electricity and capacity into the competitive ISO New England wholesale power market and is expected to become part of Constellation’s merchant generation portfolio.

“The Rhode Island State Energy Center is a high-performing asset that perfectly complements Constellation’s extraordinarily successful customer business in New England,” said Joe Dominguez, chairman, president and chief executive officer, Constellation. “As Constellation’s business in New England grows, we need a reliable asset that is well-positioned on both the electric grid and the natural gas pipeline system. RISEC checks all of these boxes and will be immediately accretive to Constellation’s business plan. We look forward to closing the transaction and to begin working with the fantastic team at RISEC to build on the plant's strong operating record as we power families and businesses across New England.”

RISEC has served the New England power grid since 2002. Its combined-cycle technology captures and reuses heat from the plant’s gas turbines to generate additional electricity, allowing it to operate more efficiently and with lower emissions than a traditional single-cycle natural gas plant.

The $715 million purchase price is equivalent to approximately $580 million net of expected first year tax benefits. The transaction is expected to be immediately accretive to Constellation’s operating earnings, deliver returns above the company’s 10% unlevered return threshold, and will not impact its ability to execute $5 billion of authorized share repurchases by the end of 2027.

The transaction is expected to close following receipt of customary regulatory approvals and satisfaction of other closing conditions. Until closing, RISEC will continue to operate under its current ownership.

Day Pitney LLP is serving as lead transaction counsel to Constellation.

About Constellation

Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the largest private-sector power producer in the world and the nation's largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind and solar facilities, our fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation's clean energy and delivering the around-the-clock reliability needed to power America's growing economy. We are also the largest nuclear energy company in the U.S. and a leading competitive retail supplier, serving approximately 2.5 million customer accounts nationwide, including 80% of the Fortune 100. We are committed to investing in innovation and new technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260909301280/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Key Takeaways Constellation Energy's Q2 revenues rose 23% to $7.50B, while adjusted operating EPS increased 33.5%. CEG signed nearly 920 MW of long-term nuclear PPAs, averaging 18.5 years and fully ramping by 2032. CEG targets over 20% operating earnings growth through 2029 and over 10% EPS growth. Constellation Energy’s (CEG - Free Report) expanding revenues are helping offset higher costs, supported by stronger commercial performance and contributions from its broader generation portfolio. Revenue growth strengthens CEG’s financial performance by supporting cash generation and enhancing financial flexibility.

During the second quarter of 2026, operating revenues rose 23% year over year to $7.50 billion, driven partly by the Calpine acquisition, higher capacity revenues and stronger commercial performance. Adjusted operating earnings increased 33.5% to $2.55 per share, demonstrating that revenue growth can translate into stronger earnings when margins and portfolio performance improve.

Constellation signed nearly 920 megawatts (MW) of long-term nuclear power purchase agreements (PPAs), with an average duration of 18.5 years. The agreements begin between 2029 and 2031 and fully ramp up by 2032. CEG expects nearly 30% of its baseload clean-generation megawatt-hours to be covered by long-term agreements. This growing contracted portfolio should improve revenue visibility, provide greater earnings stability and support more predictable long-term growth. CEG projects 20%+ base-adjusted operating earnings growth through 2029, alongside a 10%+ long-term, rolling three-year base EPS growth target.

CEG filed license renewal applications for Ginna and Nine Mile Point Unit 1, targeting operations through 2049, while advancing the Crane Clean Energy Center restart following approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission. Extending CEG’s nuclear fleet life could support revenue growth from additional generation and long-term PPAs.

Overall, stronger revenue growth could support CEG’s long-term earnings, provided it manages costs and converts contracted opportunities into sustainable margins.

Revenue Growth Helps Utilities Manage Rising CostsGrowing revenues are improving utilities’ top-line performance, helping offset higher fuel, supply and operating expenses. This strengthens overall performance and supports continued infrastructure investment and long-term earnings growth.

Clearway Energy (CWEN - Free Report) : Operating revenues rose 22.7% year over year to $481 million in the second quarter of 2026 from $392 million, while operating income increased 36.5% to $116 million from $85 million.

NRG Energy (NRG - Free Report) : Revenues increased 11% year over year to $7.48 billion in the second quarter of 2026 from $6.74 billion, while operating income improved to $976 million from zero in the year-ago quarter.

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 28.01% and 7.96%, respectively, year over year.

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CEG’s Returns on Equity (ROE)Constellation's trailing-12-month ROE is 14.89%, ahead of the industry average of 7.94%.

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CEG’s Stock Price PerformanceIn the past month, the company’s shares have risen 1.4% against the industry’s 2.7% fall.

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CEG’s Zacks Rank

Nuclear power is experiencing a structural global renaissance, driven by rising data center and artificial intelligence (AI) demand, with companies needing stable, consistent energy.

Dozens of nations have committed to tripling global nuclear capacity by 2050, and nuclear power supply remains severely constrained relative to this long-term demand curve.

Constellation Energy (CEG +1.39%) and Cameco Corporation (CCJ -0.01%) are great ways to play the rising use of nuclear energy in the U.S., but for different reasons. Constellation is one of the largest providers of nuclear energy, while Cameco is one of the biggest providers of nuclear fuel.

Here's why each stock is a solid long-term purchase.

Image source: Getty Images.

Constellation is a pure-play way to play AI and data center growth
Constellation operates the largest nuclear fleet in the United States, producing more than 180 terawatt hours (TWh) of annual nuclear generation. Unlike solar or wind, nuclear provides nonstop carbon-free baseload power. Tech hyperscalers such as Microsoft, Meta Platforms, Amazon, and Alphabet, that are building AI-driven data centers, face strict zero-emissions targets and require constant, uninterrupted power.

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Constellation commands a distinct scarcity premium here, as evidenced by major multidecade agreements, including its landmark 20-year power purchase agreement (PPA) with Microsoft to restart the Crane Clean Energy Center (Three Mile Island Unit 1), and long-term nuclear PPAs with major corporate buyers such as Walmart.

The company recently received an important fuel license approval from the Nuclear Regulatory Commission for the Crane Clean Energy Center, and the Federal Energy Regulatory Commission (FERC) approved a waiver to transfer existing capacity interconnection rights (CIR) from its Eddystone Natural Gas Power Plant to Crane.

Constellation is seeing revenue growth
Nuclear power forms the absolute bedrock of Constellation's financial performance. In the second quarter, the company reported $7.5 billion in revenue, up 22.9% from the same quarter a year ago, while adjusted earnings per share (EPS) were $2.55, up 33.5% year over year.

The company signed an additional 920 megawatts (MW) of long-term power purchase agreements for nuclear generation with a diverse set of customers, providing transparent long-term revenue visibility.

Under the Inflation Reduction Act (IRA), Constellation benefits from the Nuclear Production Tax Credit (PTC). This creates a statutory revenue floor for nuclear power output, protecting top-line margins if wholesale power prices plunge, while leaving upside uncapped when market power prices (or premium data center PPAs) rally.

Cameco provides Western nations with dependable uranium
Cameco has 433 million pounds of proven and probable uranium reserves, including the world's highest-grade and lowest-cost uranium deposits in Saskatchewan's Athabasca Basin, mainly Cigar Lake and McArthur River/Key Lake. It also owns a mine in Kazakhstan.

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The mines' high ore grades mean Cameco can extract significantly more uranium per metric ton of rock than competitors, insulating its profit margins even during cyclical pullbacks. As Western nations aggressively phase out dependence on Russian nuclear fuel and processing, Cameco stands out as a safe, Western-aligned supplier with Tier-1 sovereign risk profiles. It has sales of 28 million pounds of uranium per year, contracted through 2030.

The company isn't just a uranium miner
Through its 49% joint venture ownership of Westinghouse Electric Company, alongside Brookfield Renewable Partners (BEP -1.36%), Cameco transformed from a commodity miner into a fully integrated nuclear services giant. Westinghouse tech is utilized in roughly 57% of operating nuclear reactors worldwide, providing recurring, high-margin revenue from maintenance, refueling, software, and replacement parts.

Westinghouse also provides direct exposure to the construction of new large-scale reactors, which gives Cameco cash flow streams across every phase of the nuclear lifecycle, including mining, fuel fabrication, and reactor servicing.

Uranium sales are lifting the company's finances
In some ways, Cameco's ownership of Westinghouse stock dragged down the company in the second quarter. Overall, EPS was $0.18, down 75% year over year. Revenue was $814 million, down 7% over the same period last year. However, much of that is due to the timing of customer requirements, which increase in the winter months.

However, the company's uranium segment reported revenue of $712 million, up 15% year over year, and adjusted EBITDA of $423 million, up 48% year over year. The company released encouraging guidance for 2026.

It said it expects the average realized price per pound for uranium to be between $91 and $96 per pound, up from $85 to $89, and expects uranium revenue to be between $2.7 billion and $2.91 billion, up from $2.54 billion to $2.73 billion. Cameco also increased its forecast for fuel services revenue to $610 million to $630 million, up from $590 million to $630 million. The company also predicts overall revenue to be between $3.32 billion and $3.75 billion, up from $3.13 billion to $3.37 billion.

The world’s largest retailer, Walmart (WMT -0.57%) has signed Constellation Energy (CEG +2.54%) to buy 176 megawatts (MW) of nuclear power over two 15‑year terms, beginning in 2029 and 2030.

That’s just one of the big highlights from Constellation Energy’s latest quarterly earnings report, signaling how the rush for stable, reliable clean power is no longer just a hyperscale story.

Constellation’s latest long-term earnings growth forecast could make your jaw drop.

Image source: Getty Images.

The numbers don’t lieConstellation just revealed that it locked in 920 MW of long-term power purchase agreements (PPA), including the Walmart contract, in the second quarter. The average contract duration is 18.5 years, offering exceptional cash flow visibility.

Constellation is the world’s largest private-sector power producer and the largest producer of clean energy in the U.S. It owns 55 gigawatts of capacity across nuclear, natural gas, oil, geothermal, wind, solar, and hydropower, including the nation’s largest nuclear energy fleet.

That asset base alone can power nearly 27 million homes and provide 10% of the nation’s clean energy, giving Constellation near-unrivaled scale and advantage as demand for 24/7 baseload power explodes amid the artificial intelligence (AI) data center and electrification boom.

That structural advantage is showing up directly in Constellation’s numbers. It reported adjusted earnings of $2.55 per share for Q2, a significant improvement over the year-ago figure of $1.91 per share.

Constellation also provided two crucial updates in its latest earnings report.

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Huge progress on the Microsoft contract Constellation has applied for license renewals for two nuclear units in New York to extend their operational lives by 20 years, all the way out to 2049.

At the same time, the Nuclear Regulatory Commission (NRC) approved the fuel license amendment for the Crane Clean Energy Center, formerly known as the Three Mile Island Unit 1.

Paired with a critical Federal Energy Regulatory Commission (FERC) waiver that transfers existing grid connection rights from another plant to the Crane nuclear unit, Constellation just cleared major hurdles to bring the unit back online to deliver power to Microsoft (MSFT +0.22%) under a 20-year PPA.

What this means for Constellation Energy investorsWith big-ticket contracts steadily rolling in, Constellation projects adjusted earnings to grow at an annualized rate of 20% through 2029 off its guided 2026 base of $11.50–$12.50 per share.

Here’s the real kicker: That 20% projection does not include additional long-term contracts.

That simply means on top of the already impressive projected growth rate, every new PPA Constellation signs from here on out is pure upside on top of an already massive earnings baseline growth.

For investors, Constellation’s latest earnings report and PPAs, such as those with Walmart, are yet another reminder that this isn’t just a utility stock. It’s a potential compounder in the making amid the nuclear energy renaissance, fueled largely by the data center build-out.

BALTIMORE--(BUSINESS WIRE)--Constellation Energy Corporation (Nasdaq: CEG) today reported its financial results for the second quarter of 2026.

“This quarter's accomplishments reflect the momentum we're building across our business,” said Joe Dominguez, president and CEO of Constellation. “From advancing the restart of the Crane Clean Energy Center, to executing long-term agreements with our corporate customers and extending the lives of two critical New York assets, we’re strengthening the nation's energy infrastructure and helping meet growing demand for reliable power.”

“Our second-quarter results and increased full-year EPS guidance demonstrate the earnings power of our expanded platform, strong operational and commercial performance, and the disciplined execution of our capital allocation strategy,” said Shane Smith, executive vice president and chief financial officer of Constellation. “We remain focused on integrating Calpine, capturing the value of our expanded fleet and investing in opportunities that generate attractive returns. With a strong balance sheet, a differentiated customer facing business, and a generation portfolio well positioned to serve increasing demand for reliable energy, we are well positioned to deliver on our growth commitments and create sustained value for our owners.”

Second Quarter 2026

Our GAAP Net Income for the second quarter of 2026 decreased to $1.42 per share from $2.67 per share in the second quarter of 2025. Adjusted (non-GAAP) Operating Earnings for the second quarter of 2026 increased to $2.55 per share from $1.91 per share in the second quarter of 2025. For the reconciliations of GAAP Net Income (Loss) to Adjusted (non-GAAP) Operating Earnings, refer to the GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation section below.

Adjusted (non-GAAP) Operating Earnings in the second quarter of 2026 primarily reflects:

The addition of Calpine and favorable market and portfolio conditions, partially offset by unfavorable nuclear outages Recent Developments and Second Quarter Highlights

Progress continues at Crane Clean Energy Center paving way for restart: FERC approved our waiver request to transfer CIRs from the dual fuel Eddystone Units 3 and 4 in Pennsylvania to the Crane Clean Energy Center. This decision clears a critical regulatory hurdle for the plant restart, we expect the transfer to expedite its ability to deliver reliable emissions-free power to the grid. Additionally, the NRC has approved a fuel license amendment request for the Crane Clean Energy Center — a major milestone moving us closer to restarting operations in 2027. Helping our customers meet their evolving energy needs: We have signed an additional 920 megawatts (MW) of long-term power purchase agreements (PPA) for clean, reliable nuclear generation with a diverse set of investment grade customers. These agreements are for 15-20 years in duration and are set to begin in 2029 through 2032. Among these PPAs, our 176 MW agreement with Walmart will enable a 30 MW capacity expansion at our Dresden Clean Energy Center in Illinois and facilitate additional investments to strengthen the local community by supporting jobs and enabling continued expansion of operations and workforce. Agreement to divest the Brazos Valley Energy Center: In August 2026, we entered into an agreement with LS Power to divest the Brazos Valley Energy Center (f/k/a Jack A. Fusco Energy Center), a 606 MW natural gas-fired plant in ERCOT for $860 million before closing adjustments, a key step in satisfying regulatory commitments related to our acquisition of Calpine earlier this year. This marks the last asset sale required by our regulatory commitments under the acquisition. Closing of the sale is subject to the receipt of approval by the DOJ, and other customary closing conditions. We expect the transaction to close by the end of this year. License renewal applications for two New York nuclear units: We have filed license renewal applications with the NRC to extend the operations of the Ginna Clean Energy Center and the Nine Mile Point Unit 1 reactor in upstate New York to 2049. If approved, the units' operating licenses would be extended 20 years, to 2049. Nine Mile Point Unit 2 is currently licensed to operate until 2046. Recognized for our culture: For the fourth year in a row we were Certified™ by Great Place to Work®. The designation is based on how our employees rate their experience working at Constellation. In a survey of about 5,000 of our employees, 83% of those who responded said it is a great place to work – about 26 points higher than the average U.S. company. Great Place to Work® is acknowledged worldwide as a global benchmark for workplace culture, employee experience and the leadership behaviors proven to deliver strong market performance, employee retention and increased innovation. For the second year in a row we were recognized as one of the Civic 50® and as the energy sector leader by Points of Light. The Civic 50® is a well-respected standard for corporate social impact, recognizing the most community-minded companies in the U.S. for how they show up through employee volunteerism, community investment and broader social impact efforts.

We were recognized as a World’s Top Disability Inclusive Business based on our performance on the Disability Index®, the leading benchmark for disability inclusion. This recognition signifies that we’re a leading performer in disability inclusion, accessibility and workplace practices. It's also a reflection of our commitment to fostering an environment where all employees can do their best work, advance their careers and feel a true sense of belonging.

Nuclear Operations: Our nuclear fleet, including our owned output from the Salem and South Texas Project (STP) Generating Stations, produced 44,160 gigawatt-hours (GWhs) in the second quarter of 2026, compared with 45,170 GWhs in the second quarter of 2025. Excluding Salem and STP, our nuclear plants at ownership achieved a 93.0% capacity factor for the second quarter of 2026, compared with 94.8% for the second quarter of 2025. There were 86 planned refueling outage days in the second quarter of 2026 and 41 in the second quarter of 2025 for sites we operate. There were 20 non-refueling outage days in the second quarter of 2026 and 22 in the second quarter of 2025 for sites we operate. Natural Gas, Oil, and Renewables Operations: As a result of our expanded fleet following the acquisition of Calpine in January 2026, we now consider Equivalent Forced Outage Factor (EFOF) to be a key operational metric beginning in 2026. EFOF represents the percentage for which a generating unit is not available due to forced outages and forced deratings in a given period. The EFOF of our natural gas, oil, and pumped-storage hydro fleet for the second quarter of 2026 is 6.2%. Renewable energy capture for our wind, solar and run-of-river hydro fleet was 96.0% in the second quarter of 2026, compared with 96.1% in the second quarter of 2025. GAAP/Adjusted (non-GAAP) Operating Earnings Reconciliation

The table below provides a reconciliation of GAAP Net Income to Adjusted (non-GAAP) Operating Earnings. Adjusted (non-GAAP) Operating Earnings is not a standardized financial measure and may not be comparable to other companies’ presentations of similarly titled measures.

Unless otherwise noted, the income tax impact of each reconciling adjustment between GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings is based on the marginal statutory federal and state income tax rates, taking into account whether the income or expense item is taxable or deductible, respectively, in whole or in part, which may result in an effective tax rate that differs from the marginal rate. The marginal statutory income tax rate was 25.5% for the three months ended June 30, 2026 and 2025. The following table provides a reconciliation between GAAP Net Income (Loss) Attributable to Common Shareholders and Adjusted (non-GAAP) Operating Earnings for the three months ended June 30, 2026 compared to the same period in 2025.

Three Months Ended June 30,

2026

2025

(In millions, except per share data)

Earnings

Per Share(a)

Earnings

Per Share(a)

GAAP Net Income (Loss) Attributable to Common Shareholders

$

513

$

1.42

$

839

$

2.67

Unrealized (Gain) Loss on Fair Value Adjustments (net of taxes of $116 and $37, respectively)(b)

340

0.94

(121

)

(0.38

)

Decommissioning-Related Activities (net of taxes of $298 and $208, respectively)(c)

(221

)

(0.61

)

(144

)

(0.46

)

Amortization of Acquired Commodity Contracts (net of taxes of $51 and $—, respectively)(d)

149

0.41

—

—

Calpine Merger and Integration Costs (net of taxes of $17 and $3, respectively)(e)

84

0.23

9

0.03

Plant Retirements and Divestitures (net of taxes of $— and $2, respectively)

—

—

7

0.02

Pension & OPEB Non-Service (Credits) Costs (net of taxes of $7 and $3, respectively)

20

0.06

9

0.03

Change in Legal and Environmental Liabilities (net of taxes of $12 and $—, respectively)

35

0.10

—

—

Adjusted (non-GAAP) Operating Earnings

$

920

$

2.55

$

599

$

1.91

___________________

(a)

Amounts may not sum due to rounding. Earnings per share amount is based on average diluted common shares outstanding of 360 million and 314 million for the three months ended June 30, 2026 and 2025, respectively.

(b)

Includes unrealized gains and losses on economic hedges, interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.

(c)

Reflects all gains and losses associated with NDTs, ARO accretion, ARC depreciation, ARO remeasurement, and impacts of contractual offset for Regulatory Agreement Units. The tax effects of Regulatory Agreement Units result in a 100% effective tax rate under contractual offset accounting. Additionally, the tax effects of NDT investment returns result in different effective tax rates depending on whether the underlying funds are held within qualified or non-qualified trusts.

(d)

In 2026, reflects the non-cash impacts of the amortization of certain commodity contracts recorded at fair value associated with the Calpine acquisition.

(e)

Reflects costs associated with the completion of the Calpine merger and subsequent integration of its operations. Certain of these transaction-related expenses are not tax deductible.

Webcast Information

We will discuss second quarter 2026 earnings in a conference call scheduled for today at 10:00 a.m. Eastern Time. The webcast and associated materials can be accessed at https://investors.constellationenergy.com.

About Constellation

Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the largest private-sector power producer in the world and the nation’s largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind and solar facilities, our fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation’s clean energy and delivering the around-the-clock reliability needed to power America’s growing economy. We are also the largest nuclear energy company in the U.S. and a leading competitive retail supplier, serving approximately 2.5 million customer accounts nationwide, including 80% of the Fortune 100. We are committed to investing in innovation and new technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.

Non-GAAP Financial Measures

We utilize Adjusted (non-GAAP) Operating Earnings (and/or its per share equivalent) in our internal analysis, and in communications with investors and analysts, as a consistent measure for comparing our financial performance and discussing the factors and trends affecting our business. The presentation of Adjusted (non-GAAP) Operating Earnings is intended to complement and should not be considered an alternative to, nor more useful than, the presentation of GAAP Net Income (Loss).

The tables above provide a reconciliation of GAAP Net Income (Loss) to Adjusted (non-GAAP) Operating Earnings. Adjusted (non-GAAP) Operating Earnings is not a standardized financial measure and may not be comparable to other companies’ presentations of similarly titled measures.

Due to the forward-looking nature of our Adjusted (non-GAAP) Operating Earnings guidance, we are unable to reconcile this non-GAAP financial measure to GAAP Net Income (Loss) given the inherent uncertainty required in projecting gains and losses associated with the various fair value adjustments required by GAAP. These adjustments include future changes in fair value impacting the derivative instruments utilized in our current business operations, as well as the debt and equity securities held within our nuclear decommissioning trusts, which may have a material impact on our future GAAP results.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “will,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “predicts,” and variations on such words, and similar expressions that reflect our current views with respect to future events and operational, economic, and financial performance, are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding the acquisition of Calpine Corporation, the pro forma combined company and its operations, strategies and plans, enhancements to investment-grade credit profile, synergies, opportunities and anticipated future performance and capital structure, and expected accretion to earnings per share and free cash flow. Information adjusted for the acquisition should not be considered a forecast of future results.

Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. The factors that could cause actual results to differ materially from the forward-looking statements made by Constellation Energy Corporation and Constellation Energy Generation, LLC, (the Registrants) include those factors discussed herein, as well as the items discussed in (1) the Registrants' 2025 Annual Report on Form 10-K in (a) Part I, ITEM 1A. Risk Factors, (b) Part II, ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part II, ITEM 8. Financial Statements and Supplementary Data: Note 18 — Commitments and Contingencies; (2) the Registrants' Second Quarter 2026 Quarterly Report on Form 10-Q (to be filed on August 6, 2026) in (a) Part II, ITEM 1A. Risk Factors, (b) Part I, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations, and (c) Part I, ITEM 1. Financial Statements: Note 15 — Commitments and Contingencies; and (3) other factors discussed in filings with the SEC by the Registrants.

Investors are cautioned not to place undue reliance on these forward-looking statements, whether written or oral, which apply only as of the date of this press release. Neither Registrant undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

Constellation Energy Corporation

GAAP Consolidated Statements of Operations and

Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments

(unaudited)

(in millions, except per share data)

  Three Months Ended June 30, 2026

Three Months Ended June 30, 2025

GAAP (a)

Non-GAAP Adjustments

GAAP (a)

Non-GAAP Adjustments

Operating revenues

$

7,504

$

525

(b),(c),(d)

$

6,101

$

(87

)

(b),(c)

Operating expenses

Purchased power and fuel

4,023

(114

)

(b),(d)

3,132

77

(b)

Operating and maintenance

2,253

(214

)

(c),(e),(h)

1,617

(76

)

(c),(e)

Depreciation and amortization

443

(14

)

(c),(e)

254

(32

)

(c),(g)

Taxes other than income taxes

207

(3

)

(e)

147

—

Total operating expenses

6,926

5,150

Gain (loss) on sales of assets

2

—

—

—

Operating income (loss)

580

951

Other income and (deductions)

Interest expense, net

(283

)

16

(b),(e)

(118

)

(2

)

(b)

Other, net

603

(574

)

(b),(c),(f)

440

(418

)

(b),(c),(f)

Total other income and (deductions)

320

322

Income (loss) before income taxes

900

1,273

Income tax (benefit) expense

398

(95

)

(b),(c),(d),(e),(f),(h)

440

(237

)

(b),(c),(e),(f),(g)

Equity in losses of unconsolidated affiliates

6

—

—

—

Net income (loss)

508

833

Net income (loss) attributable to noncontrolling interests

(5

)

—

(6

)

1

(i)

Net income (loss) attributable to common shareholders

$

513

$

839

Effective tax rate

44.2

%

34.6

%

Earnings per average common share

Basic

$

1.42

$

2.67

Diluted

$

1.42

$

2.67

Average common shares outstanding

Basic

360

314

Diluted

360

314

___________________

(a)

Results reported in accordance with GAAP.

(b)

Adjustment for unrealized gains and losses on economic hedges, interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.

(c)

Adjustment for all gains and losses associated with Nuclear Decommissioning Trusts (NDT), Asset Retirement Obligation (ARO) accretion, Asset Retirement Cost (ARC) Depreciation, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.

(d)

In 2026, reflects the non-cash impacts of the amortization of certain commodity contracts at fair value associated with the Calpine acquisition.

(e)

Adjustment for costs associated with the completion of the Calpine merger and subsequent integration of its operations.

(f)

Adjustment for Pension and Other Postretirement Employee Benefits (OPEB) Non-Service credits.

(g)

Adjustments related to plant retirements and divestitures.

(h)

Adjustment for changes in legal and environmental liabilities.

(i)

Adjustment for elimination of the noncontrolling interest related to certain adjustments.

Constellation Energy Corporation

GAAP Consolidated Statements of Operations and

Adjusted (non-GAAP) Operating Earnings Reconciling Adjustments

(unaudited)

(in millions, except per share data)

  Six Months Ended June 30, 2026

Six Months Ended June 30, 2025

GAAP (a)

Non-GAAP Adjustments

GAAP (a)

Non-GAAP Adjustments

Operating revenues

$

18,626

$

(586

)

(b),(c),(d)

$

12,889

$

199

(b),(c)

Operating expenses

Purchased power and fuel

10,375

(416

)

(b),(d)

7,516

(7

)

(b)

Operating and maintenance

4,033

(145

)

(c),(e),(i)

3,162

(154

)

(c),(e),(i)

Depreciation and amortization

886

(34

)

(c),(e)

502

(69

)

(c),(g)

Taxes other than income taxes

436

(5

)

(e)

307

—

Total operating expenses

15,730

11,487

Gain (loss) on sales of assets

16

—

—

—

Operating income (loss)

2,912

1,402

Other income and (deductions)

Interest expense, net

(536

)

32

(b),(e)

(264

)

32

(b)

Other, net

649

(580

)

(b),(c),(f)

286

(231

)

(b),(c),(f)

Total other income and (deductions)

113

22

Income (loss) before income taxes

3,025

1,424

Income tax (benefit) expense

928

(327

)

(b),(c),(d),(e),(f),(h),(i)

462

(88

)

(b),(c),(e),(f),(g)

Equity in income (losses) of unconsolidated affiliates

14

—

—

—

Net income (loss)

2,111

962

Net income (loss) attributable to noncontrolling interests

8

3

(j)

5

3

(j)

Net income (loss) attributable to common shareholders

$

2,103

$

957

Effective tax rate

30.7

%

32.4

%

Earnings per average common share

Basic

$

5.89

$

3.05

Diluted

$

5.88

$

3.05

Average common shares outstanding

Basic

357

314

Diluted

357

314

___________________

(a)

Results reported in accordance with GAAP.

(b)

Adjustment for unrealized gains and losses on economic hedges interest rate swaps, and fair value adjustments related to gas imbalances and equity investments.

(c)

Adjustment for all gains and losses associated with NDTs, ARO accretion, ARC Depreciation, ARO remeasurement, and any earnings neutral impacts of contractual offset for Regulatory Agreement Units.

(d)

In 2026, reflects the non-cash impacts of the amortization of certain commodity contracts at fair value associated with the Calpine acquisition.

(e)

Adjustment for costs associated with the completion of the Calpine merger and subsequent integration of its operations.

(f)

Adjustment for Pension and OPEB Non-Service credits.

(g)

Adjustments related to plant retirements and divestitures.

(h)

Adjustment to deferred income taxes due to changes in forecasted apportionment.

(i)

Adjustment for changes in legal and environmental liabilities.

(j)

Adjustment for elimination of the noncontrolling interest related to certain adjustments.

BALTIMORE--(BUSINESS WIRE)--The Board of Directors of Constellation Energy Corporation (Nasdaq: CEG) declared a quarterly dividend of $0.4265 per share on Constellation’s common stock. The dividend is payable on Sept. 4, 2026, to shareholders of record as of 5 p.m. Eastern time on Aug. 18, 2026.

About Constellation

Constellation Energy Corporation (Nasdaq: CEG), a Fortune 200 company headquartered in Baltimore, is the largest private-sector power producer in the world and the nation's largest producer of clean and reliable energy. With 55 gigawatts of capacity from nuclear, natural gas, oil, geothermal, hydro, wind and solar facilities, our fleet has the generating capacity to power the equivalent of 27 million homes, providing about 10% of the nation's clean energy and delivering the around-the-clock reliability needed to power America's growing economy. We are also the largest nuclear energy company in the U.S. and a leading competitive retail supplier, serving approximately 2.5 million customer accounts nationwide, including 80% of the Fortune 100. We are committed to investing in innovation and new technologies to drive the transition to a reliable, sustainable and secure energy future. Follow Constellation on LinkedIn and X.

Key Takeaways Constellation Energy raised its repurchase authorization to $5 billion and bought 1.2 million shares. CEG plans $5.7 billion and $4.7 billion in capital spending for 2026 and 2027 to meet rising demand. The Calpine acquisition expanded CEG's clean power portfolio, while strong free cash flow supports growth. Constellation Energy (CEG - Free Report) , through its disciplined capital allocation strategy, deploys cash toward growth investments while increasing shareholder value through dividends and share repurchases. The company is strategically investing capital in high-return growth projects to expand earnings, strengthen cash flow and create long-term shareholder value.

CEG increased its share repurchase authorization to $5 billion and repurchased approximately 1.2 million shares during the first quarter, reflecting management's confidence in its long-term earnings and cash flow generation. Share repurchases reduce outstanding shares, improve earnings per share (EPS) and support long-term shareholder value. The company has deployed nearly $2.7 billion to repurchase 18.5 million shares since its separation from Exelon.

By acquiring Calpine, Constellation Energy expanded its clean power generation portfolio. The company also highlighted strong free cash flow to support strategic growth investments and disciplined capital allocation.

Constellation Energy plans to make capital expenditures of nearly $5.7 billion and $4.7 billion in 2026 and 2027, respectively. These investments are expected to support rising electricity demand, particularly from AI-driven data centers, while strengthening long-term cash flow.

Overall, Constellation Energy's balanced approach of investing in growth while returning excess cash to shareholders enhances earnings visibility, strengthens competitive positioning and supports long-term shareholder value creation.

Capital Allocation Fuels Shareholder ReturnsCapital allocation enhances shareholder returns by balancing strategic growth investments with disciplined cash deployment. Utilities invest in grid modernization while returning excess cash through dividends and share repurchases. This balanced approach supports earnings growth, increases per-share value and creates long-term shareholder value.

NRG Energy, Inc. (NRG - Free Report) balances shareholder returns with growth investments through its disciplined capital allocation strategy, targeting approximately $1.4 billion in share repurchases and dividends alongside about $310 million of growth investments in 2026.

Vistra (VST - Free Report) returned about $600 million to shareholders through dividends and share repurchases by May 1, 2026. Since 2021, it has repurchased $6.3 billion of shares, lowering its outstanding share count by 30%, while retaining $1.5 billion under its repurchase authorization through 2027

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 25.03% and 16.02%, respectively, year over year.

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CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 16.81%, ahead of the industry average of 7.15%.

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CEG’s Stock Price PerformanceIn the past three months, the company’s shares have plunged 12.8% compared with the industry’s 13.6% fall.

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CEG’s Zacks Rank

Constellation Energy (CEG +4.66%) stock was true to its name on Wednesday, as investors energetically traded it almost 5% higher. This was part of a broader rally in nuclear stocks, on the back of a splashy deal signed between the U.S. government and a key ally, plus reports of a new top-down initiative to spur power plant build-outs in this country.

The Saudi deal The Trump administration announced Wednesday that it had signed a long-term deal to help develop nuclear technology with Saudi Arabia. The 30-year pact formalizes nuclear cooperation between the two nations and pushes several U.S. energy companies into leading roles in build-outs in the strategic Middle Eastern country.

Image source: Getty Images.

It's important to note that Constellation isn't likely to be one of the main companies involved in the work, as its concentration is on domestic energy generation. Yet as the No. 1 operator of American nuclear plants, it could serve in an advisory or training capacity.

Besides, the government's striking this deal is yet another strong indication of its desire to promote and support the nuclear power industry.

Today's Change

(

4.66

%) $

12.23

Current Price

$

274.45

Continued domestic push Separately, Bloomberg reported that the administration is also planning to launch a new, $200 million program to support the construction of power plants within our borders. A key goal of this initiative, not surprisingly, is to satisfy the considerable power needs of artificial intelligence (AI)-ready data centers.

As nuclear plants produce considerable clean power, they are considered ideal facilities for such a push.

The Bloomberg article, which cited a document its reporters had seen, mentioned small modluar reactor (SMR) specialists Oklo and X-Energy as participants on the energy industry side, and Microsoft and Nvidia as partners from the tech sector.

Constellation was not mentioned in the article, as it operates full-scale nuclear facilities and not SMRs. Even if it doesn't end up playing a role in the program, it's sure to benefit from this latest top-down effort to boost the nation's power-generating capacity.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways Constellation Energy operates a 55-GW fleet spanning nuclear, gas, geothermal, hydro, wind and solar. CEG plans nearly 10 GW of new capacity and will restart the 835-MW Crane plant for Microsoft's AI demand. CEG plans $5.7B in 2026 and $4.7B in 2027 capex to upgrade plants and support earnings growth. Constellation Energy (CEG - Free Report) benefits from its diversified power generation fleets, which enable it to deliver reliable electricity under changing market conditions. Its balanced generation mix supports the clean energy transition and meets rising electricity demand.

Following its acquisition of Calpine, CEG operates a diversified 55-gigawatt (GW) generation fleet spanning nuclear, natural gas, oil, geothermal, hydro, wind and solar, enough to power approximately 27 million homes. It produces nearly 10% of the nation's clean electricity, plans nearly 10 GW of new capacity and will restart the 835-megawatt (MW) Crane plant, supporting Microsoft's AI-driven demand and long-term growth.

The company is also expanding its generation portfolio to capture growing power demand. CEG’s Calpine unit completed a 25-MW expansion at The Geysers geothermal facility, strengthening its clean energy generation portfolio. It completed the 105-MW Pastoria Solar Project and the 460-MW Pin Oak Creek Energy Center, increasing its renewable and natural gas generation capacity. The company has also submitted nearly 5,000 MW of new nuclear uprates, natural gas and battery storage projects into PJM's interconnection queue, positioning it to benefit from increasing data center electricity demand.

The company plans capital expenditures of $5.7 billion in 2026 and $4.7 billion in 2027 to upgrade plants, extend asset life and support long-term earnings growth. Overall, CEG's diversified generation fleet and expansion projects support long-term earnings growth by meeting rising clean electricity demand.

Utilities Benefit From Diverse Power Generation PortfolioAn integrated energy portfolio combining renewable energy, natural gas, nuclear and energy storage helps diversify revenues, improve reliability and reduce fuel-price risks. It also enables companies to meet growing electricity demand and support long-term earnings growth.

NRG Energy (NRG - Free Report) operates a diversified 25 GW generation portfolio of natural gas, coal and renewable assets. Its integrated fleet enhances operational flexibility and supports growing electricity demand.

Vistra Corp. (VST - Free Report) operates a diversified portfolio of nearly 44 GW of generation assets, including natural gas, coal, nuclear, solar and battery energy storage. Its balanced fleet provides operational flexibility and supports rising electricity demand.

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 25.03% and 16.02%, respectively, year over year.

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CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12-month ROE is 16.81%, ahead of the industry average of 7.15%.

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CEG’s Stock Price PerformanceIn the past month, the company’s shares have plunged 6% compared with the industry’s 12.1% fall.

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CEG’s Zacks Rank

, /PRNewswire/ -- Blue Energy, a developer of financeable, prefabricated nuclear power plants, today announced a strategic equity investment from Constellation Technology Ventures, the venture arm of Constellation (Nasdaq: CEG), the nation's largest producer of clean energy and operator of the largest fleet of nuclear power plants in the United States. The investment reflects a growing confidence in Blue Energy's strategy to utilize shipyard manufacturing and project financing to deploy proven reactor technology that has the potential to accelerate new nuclear development – making it predictable, faster and more affordable. It also marks the first investment by Constellation Technology Ventures in a U.S. nuclear developer advancing small modular reactors.

"With demand for near-term power rising, Constellation's investment will help Blue Energy meet America's need by making new nuclear development predictable, rapidly scalable, and project financeable for the first time in history. This relationship helps us leverage an established operator, proven technology, and innovative, project-financeable deployment models to expand access to nuclear energy," said Jake Jurewicz, Blue Energy CEO and Co-Founder. "Together, we're demonstrating that the future of nuclear energy isn't a decade away and doesn't take a leap of faith on technology or construction execution, it's being built right now."

"Constellation is committed to exploring innovative pathways that can help accelerate the deployment of advanced nuclear technologies in the United States and allocate risk appropriately," said David Dardis, Constellation Senior Executive Vice President and Chief External Affairs and Growth Officer. "The Constellation Technology Ventures investment in Blue Energy supports its deployment plans for the GE Vernova Hitachi's BWRX-300, a proven technology with a potential path to scale for the next generation of nuclear energy."

Blue Energy's model is designed to address one of the biggest challenges facing the nuclear industry: how to finance and deploy new nuclear generation at the speed required to meet growing demand. By utilizing proven nuclear technology and employing an innovative large-format robotic prefabrication and assembly method inspired by offshore oil & gas and LNG projects, the company plans to unlock project financing for the first time in the nuclear sector and accelerate deployment timelines.

Earlier this year, Blue Energy announced it raised $380 million and forged a strategic partnership with GE Vernova to develop a multi-gigawatt gas-to-nuclear project utilizing GE Vernova gas turbines and BWRX-300 small modular reactors. The company also recently secured a key U.S. Nuclear Regulatory Commission licensing milestone that supports its goal of delivering reliable power in 48 months or less through its phased gas-to-nuclear deployment strategy. Blue Energy could begin early site works on its first planned project in Texas in 2026, to support a final investment decision in 2027.

About Blue Energy  

Founded in 2023, Blue Energy develops financeable, turnkey nuclear power plants compatible with leading reactor technology. Our proprietary lower cost of capital solution and offsite pre-fabrication accelerates new nuclear deployment – making it predictable, faster and more affordable. We will deliver baseload power competitive with fossil fuels and renewables to meet unprecedented global demand. Blue Energy's world-class team has extensive experience in nuclear construction, licensing, engineering, and development. We stem from MIT's Nuclear Science & Engineering Department and are backed by VXI Capital, Engine Ventures, At One Ventures and Tamarack Global. Visit www.blueenergy.co or follow us on LinkedIn.

SOURCE Blue Energy

Whether you use large language models like OpenAI's ChatGPT or you're familiar with artificial intelligence (AI) tools like Siri from Apple and Copilot from Microsoft -- or you lean on AI found in various apps and platforms to complete everyday tasks, you're likely well aware of how dominant AI has become in our daily lives.

Most investors familiar with the burgeoning field of AI will point to semiconductor companies as pivotal to the industry's growth.

But investors who only recognize semiconductor stocks as AI investment opportunities are missing out. In fact, there's another stock that's critical for AI growth.

Image source: Getty Images.

Semiconductor stalwarts often steal the spotlight It goes without saying that semiconductor specialist Nvidia attracts the attention of AI investors. The company's consistent innovation and development of chips -- specifically, graphics processing units (GPUs) -- used in data centers has played a vital role in the industry's accelerating growth.

Nvidia's not alone. Other semiconductor companies, such as Micron Technology, which designs memory and storage solutions, are also benefiting from the growth of the AI industry. The company's high-bandwidth memory products, for example, support faster inference and scaling of agentic AI workflows.

While these two companies receive the majority of attention, numerous companies are nipping at their heels. Investors may recognize some of these competitors, but one company is playing an equally -- if not more -- important role in the AI industry's growth, and it represents a different industry altogether.

AI is aiming for the stars with this energy company Data center operators may use extraordinarily advanced GPUs to provide the computing infrastructure for AI applications, but it means little if there's inadequate power to keep the chips humming. That's where Constellation Energy (CEG +1.26%) come in.

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AI computing demands significant amounts of power. To meet this demand, many data center operators are turning to nuclear energy companies, from advanced nuclear reactor companies to established nuclear energy leaders like Constellation Energy.

In 2024, Constellation Energy announced it plans to restart operations at Three Mile Island after signing a 20-year power purchase agreement with Microsoft, which will purchase energy from the nuclear plant to support its data centers in the region.

Building on its partnership with Microsoft, Constellation signed a 20-year power purchase agreement with Meta Platforms in June 2025 for nuclear power generated at the Clinton Clean Energy Center in Illinois. Operations at the nuclear facility are expected to resume in 2027, at which point Meta will use the power to support its AI data centers.

More recently, Constellation announced that its recently acquired unit, Calpine, signed a 380-megawatt (MW) agreement with CyrusOne, a leading global data center developer and operator, to connect and serve a new data center adjacent to the Freestone Energy Center, a natural gas power plant located in Texas. This complements a 400-MW power purchase agreement the two companies inked last year for a new data center CyrusOne is developing in Bosque County, Texas.

Constellation is benefiting now from AI power demand Advanced nuclear reactor companies have gained interest among AI companies, but they require regulatory approval before they can commence operations. Constellation, conversely, doesn't have to wait. Its nuclear assets are ready to provide much-needed power to data center operators right now, making Constellation stock an alluring option for AI-focused investors.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Constellation Energy, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways CEG's clean-energy platform is anchored by nuclear power, with renewables and gas supporting growth. Calpine added gas and geothermal assets, plus solar and geothermal projects, boosting capacity.CEG plans $5.7B in 2026 capex to support fuel inventory, uprates and plant upgrades. Constellation Energy Corporation (CEG - Free Report) presently operates an integrated clean-energy platform anchored by zero-carbon nuclear generation, supported by a large fleet of flexible natural gas-fired plants and renewable energy assets. At the end of 2025, CEG's generation portfolio totaled 31,676 megawatts (MW). Currently, nearly 85% of its generation comes from nuclear energy.

Although the company relies heavily on nuclear energy and natural gas to produce clean electricity for its customers, CEG is steadily expanding its renewable generation capacity, further strengthening its clean-energy portfolio. CEG’s strategic investments in solar, wind, geothermal and battery storage projects position it to meet growing carbon-free electricity demands from data centers and commercial customers. Renewable expansion advances decarbonization efforts and positions CEG to capitalize on favorable tax incentives and accelerating electrification trends.

At the end of 2025, CEG's generation consisted of roughly 2,561 MW of renewable capacity. The Calpine acquisition, completed in January 2026, was significant as it added efficient natural gas and geothermal facilities to its generation portfolio, strengthening its generation mix and expanding its clean electricity generation platform.

Calpine, a wholly owned subsidiary of Constellation Energy, completed the 105-MW Pastoria Solar Project, which will assist in decarbonizing the State Water Project. Recently, Calpine expanded the power-generating capacity of The Geysers Geothermal Complex by 25 MW, capable of powering more than 25,000 homes across California. This enhances grid reliability, supports rising electricity demand across California and creates opportunities for long-term revenue growth.

CEG expects capital expenditures of approximately $5.7 billion in 2026 and $4.7 billion in 2027, supporting nuclear fuel inventory buildup and growth investments in uprates, license renewals and plant upgrades.

Renewable energy also offers significant economic benefits, as resources such as wind, solar and geothermal are not exposed to volatile fuel prices. Technological progress in recent years has driven cost efficiencies, supported revenue growth and strengthened the company's competitive position.

Clean Fuel Focus: Companies Benefit From the TransitionA clear transition is evident in the utility space and the operators are gradually shifting toward clean energy resources to produce electricity. Courtesy of its technological developments, utility-scale renewable plants are becoming cost-effective and are providing support to the grid.

NextEra Energy, Inc. (NEE - Free Report) plans to expand its renewable generation portfolio by approximately 76.6-107.6 gigawatt (GW) through 2032 and currently maintains a development backlog of more than 33 GW. Of the expected additions, solar, wind and gas projects are expected to add 31.5-41.5 GW, 8.5-14.5 GW and 4-8 GW, respectively.

The Southern Company (SO - Free Report) plans to expand its renewable generation portfolio by approximately 20,000 MW by mid-2030 and expects to invest $1 billion in renewable generation in 2030.

CEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 24.92% and 16.62%, respectively, year over year.

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CEG’s Returns on Equity (ROE)Constellation Energy's trailing-12 months ROE is 16.81%, ahead of the industry average of 7.08%.

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CEG’s Stock Price PerformanceIn the past month, the company’s shares have plunged 7.1% compared with the industry’s 0.6% decline.

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CEG’s Zacks Rank