Track market-moving stories before they get noisy

In June of last year, Meta Platforms (META -0.53%) agreed to buy the clean energy attributes of Constellation Energy's (CEG +0.03%) Clinton Clean Energy Center in Illinois for 20 years. The agreement covers 1,121 megawatts of nuclear generation -- more output than Constellation has committed to any other artificial intelligence (AI) buyer. The next-biggest is the roughly 835-megawatt agreement that is restarting a Three Mile Island unit for Microsoft.

But the Meta contract doesn't commence until June 2027, nine months from now. And it means the results Constellation is reporting today, including the guidance it raised with last month's second-quarter report, don't include a dollar from the company's biggest AI agreement.

For investors who own the stock as a way to play AI's power demand, I think the calendar is worth getting straight. Shares go for about $299 as of this writing. Their high over the past year was $412.70. The growth the market is paying for arrives on a schedule.

Image source: Getty Images.

What exactly did Meta buy?The social media company is purchasing Clinton's clean energy attributes for two decades as part of its commitment to match 100% of its electricity use with clean and renewable energy. The plant's power itself keeps flowing onto the local grid.

The agreement also supported relicensing the facility, and regulators granted the renewal in December 2025, clearing Clinton to run through 2047. And plant upgrades will add 30 megawatts of output along the way.

The June 2027 start date isn't arbitrary. Clinton is supported today by Illinois's ratepayer-funded zero-emission credit program, and the Meta agreement begins when that program expires.

In other words, the plant is being paid right now. The deal changes who pays for Clinton's clean energy attributes, not whether anyone does.

More start dates aheadThe Meta contract is one item in a queue. Constellation's 20-year agreement with Microsoft begins when the Crane Clean Energy Center, the former Three Mile Island unit, comes back online.

Regulators have approved transferring interconnection rights to the site from two Pennsylvania fossil-fuel units Constellation had planned to retire, along with a fuel license amendment -- progress the company said moves the plant closer to restarting in 2027.

Constellation's second-quarter update also disclosed 920 megawatts of new long-term contracts to sell nuclear power, signed with investment-grade customers on 15-to-20-year terms with start dates from 2029 through 2032. Among them is a 176-megawatt deal with Walmart that will support a 30-megawatt capacity expansion at Constellation's Dresden plant in Illinois.

So the contracted demand arrives in stages -- Meta in June 2027, the Crane restart the same year, and the newest agreements from 2029 on. Not one of them adds anything to this year's results.

This year's growth doesn't need MetaThe queue matters because Constellation's earnings are climbing without it.

Constellation's non-GAAP (adjusted) operating earnings rose to $2.55 per share in the second quarter of 2026, about 34% higher than the $1.91 it earned a year earlier. The company credited the addition of Calpine, the natural gas and geothermal generator it acquired in January, along with favorable market and portfolio conditions, partially offset by nuclear outages. Constellation also lifted its guidance for the full year and now expects adjusted operating earnings of $11.50 to $12.50 per share in 2026. Showing how much growth is arriving before any AI contract kicks in, the midpoint of that range sits about 28% above the $9.39 per share the company earned last year.

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In short, the earnings the stock is priced against are moving higher on their own, with the contracted nuclear deals stacked on top starting in the middle of next year.

Shares trade at about 25 times earnings, measured against the midpoint of Constellation's 2026 guidance. It's a premium price for a power producer, but I'd argue it's attached to unusually visible growth: the customers are signed and the start dates are on paper.

Of course, contracted isn't the same as guaranteed. The plants have to run, the Crane restart could slip, and a 20-year agreement can't pull its start date forward.

But growth backed by signed contracts is arguably easier to count on than growth that depends on demand that may never show up. Constellation's biggest AI deal starts paying next June. Until then, the earnings carrying the stock don't need it.

Key Takeaways CEG signed 920 MW of long-term nuclear PPAs in Q2, with contracts averaging 18.5 years.Walmart agreed to buy about 176 MW of CEG nuclear power, including 30 MW of added Dresden capacity.CEG targets more than 20% base EPS growth from 2026-2029 and over 10% rolling three-year growth. Constellation Energy (CEG - Free Report) benefits from an expanding Commercial & Industrial (C&I) customer base as businesses, data centers and other large customers seek reliable, long-term power. The company’s competitive advantage lies in its large fleet of reliable, carbon-free nuclear generation, which can meet customers’ growing electricity needs while supporting their sustainability goals.

The opportunity is becoming increasingly visible in 2026, with CEG signing 920 megawatts (MW) of long-term nuclear Power Purchase Agreements (PPAs) with investment-grade customers in the second quarter. The contracts have an average duration of 18.5 years, with operations scheduled to begin between 2029 and 2031, and are expected to ramp up fully by 2032. These agreements enhance long-term revenues and earnings visibility, with CEG expecting nearly 30% of its clean baseload generation to be secured under long-term contracts.

The Walmart agreement further demonstrates the potential of C&I demand. Walmart agreed to purchase about 176 MW of nuclear power, including 30 MW of expanded generation capacity at CEG’s Dresden facility. The deal supports Walmart’s expansion while enabling CEG to invest more at the plant.

The company’s existing generation fleet helps meet rising demand faster while reducing reliance on new power plants and transmission infrastructure. CEG targets more than 20% growth in base EPS from 2026 through 2029, along with long-term, rolling three-year base EPS growth of more than 10%.

Overall, growing C&I demand can strengthen CEG’s revenues and earnings visibility while improving generation utilization and supporting sustainable long-term growth.

Expanding C&I Demand Drives Utility GrowthExpanding C&I demand creates opportunities to secure long-term contracts, improve generation utilization and increase earnings visibility. Rising data-center and commercial loads can also support capacity additions and investment in reliable generation.

NRG Energy (NRG - Free Report) advanced its Bring Your Own Power strategy with a global cloud and AI hyperscale for a proposed 1.2-gigawatt Texas combined-cycle gas turbine, using customer-backed investment to capture rising large-load demand.

Vistra (VST - Free Report) is positioned to capture rising data-center demand through Helix Digital Infrastructure, where it will serve as the preferred power provider. Part of the benefits from the Meta nuclear PPAs are expected to contribute to Adjusted EBITDA in 2027.

The Zacks Rundown on CEGCEG’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates an increase of 29.29% and 8.09%, 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 7.13%.

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CEG’s Stock Price PerformanceIn the past three months, the company’s shares have risen 3.2% against the industry’s 16.1% fall.

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CEG’s Zacks RankCEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

Long before the sector became a derivative play on the artificial intelligence (AI) trade, utility stocks were coveted by income-hungry, risk-averse investors. The thesis often attached to the sector is access to above-average yields and defensive traits with the potential for better long-term returns than high-grade bonds. Not to be overlooked is the sector's potential for payout growth.

Utility stocks account for 13.3% of the S&P High Yield Dividend Aristocrats® index, a gauge that includes only those members of the S&P Composite 1500 index that have raised dividends in at least 20 consecutive years.

This utility stock has quickly become a dependable dividend growth name. Image source: Getty Images.

Constellation Energy (CEG -2.00%) isn't there yet, but it's positioning itself to be a boring, dependable utility dividend raiser. Officially spun off from Exelon in February 2022, Constellation is young as a stand-alone publicly traded utility company, particularly among utility names. Youth isn't preventing the company from showing commitment to payout growth, and that's one of the reasons I like this stock.

Immediately following the Exelon separation, Constellation became not just a dividend payer but a dividend grower. From 2022 through 2025, the utility's annual payout nearly tripled.

Here's another reason I like this stock: Not only did Constellation boost its dividend by 10% last year, but it's also targeting the same level of growth this year. Call it boring or dependable, but either way, I'll take the clarity. I'll also happily take a dividend growth rate that far outpaces inflation, and these days, that's saying something.

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Though not necessarily boring, Constellation's dividend trajectory has other favorable attributes. First, 2025 marked the fourth straight year in which the company's earnings topped the midpoint of its guidance range. That's a sign the earnings growth is there to support boring but consistent payout increases.

Second, Constellation is a utility with exposure to the AI power demand trade. A recently completed acquisition makes Constellation the largest U.S. provider of electricity, and its portfolio includes natural gas, nuclear, and renewables, making it a desirable partner for data center firms.

Todd Shriber owns shares of Constellation Energy. The Motley Fool has positions in and recommends Constellation Energy. The Motley Fool has a disclosure policy.

Since the announcement of Microsoft (MSFT) working with Constellation Energy (CEG) to restart a reactor at the Three Mile Island plant, publicly traded companies in the nuclear sector have seen significant stock price changes. New investors looking at the nuclear renaissance story are now assessing whether the opportunity has come and gone for capitalizing on renewed interest in nuclear energy. Considering that much of the actual work has yet to begin, there is still potential for significant growth.

Key Takeaways  TerraPower (private) has started construction of the first utility-scale reactor plant in the U.S. Meanwhile, the anticipated nationwide build-out could see as many as 20 reactors announced in the near future. The Department of Energy (DOE) has announced multiple initiatives, grants, and conditional loans to support the nuclear industry. Only a small portion of the support has been released to date. While public companies have experienced recent volatility, the private sector has seen funding rounds exceed $1 billion. This indicates a more positive long-term picture. The Nationwide Build Out Has Not Yet Begun Earlier this year, TerraPower (private) announced the start of construction for the first utility-scale advanced reactor in the country. The project involves the construction of a 345 megawatt (MW) reactor developed in partnership with GE Vernova (GEV) . The reactor is designed to supply power to as many as 400,000 homes when paired with the energy storage system integrated into the reactor design.

While there are multiple companies benefiting today from the construction of the country’s first utility-scale reactor, this project is only the beginning. The companies partnering with TerraPower are utilizing the opportunity to start building out their manufacturing capacity. Most of the revenue from the project will likely be reinvested into new facilities and personnel while preparing for future larger build-out plans.

See more: NUKZ Constituents Secure Key TerraPower Contracts

During an earnings call earlier this year, leadership from Cameco Corp. (CCJ)  detailed the U.S. government’s plans for as many as 20 AP1000 reactors. The AP1000 is a 1,100 MW reactor designed by Westinghouse, which is 49% owned by Cameco. The nuclear equipment manufacturers that stand to realize significant revenue from the construction of these massive power plants have yet to announce the associated supply contracts.

See more: Cameco Sees Path to 20 New US Large-Scale Reactors

Reactor plants cost billions of dollars, and the majority of that money is spent on construction and plant components. Paired with the significant support announced by the federal government, nuclear supply chain companies could announce multiple major new contracts in the quarters ahead.

Most Federal Awards and Programs Are Still in Initial Stages The federal government has announced multiple initiatives and award programs in recent years to support the domestic nuclear renaissance. Most of the money pledged to the industry, though, has yet to find its way to company balance sheets:

$17.5 billion for the AP1000 nuclear supply chain $2.5 billion in support for reactor restarts by Constellation and Holtec (private) $80 billion to build AP1000 reactors between the U.S. government, Cameco, and Brookfield $40 billion from Japan for GE Vernova (GEV) small modular reactors (SMRs) The announcement of some of these programs resulted in significant price action among publicly traded nuclear companies. However, the actual money is yet to reach the companies involved. Future nuclear construction announcements should trigger major supply contract deals across the sector.

See more: DOE’s $17.5B Loan Boosts Nuclear Supply Chain

Private Market Confidence Contrasts Public Market Volatility Recent trading sessions have seen reactor development and nuclear fuel chain companies experiencing significant volatility and pullbacks. 

Many investors and short-term traders see the nuclear renaissance as tightly tied to the adoption of artificial intelligence (AI) and the build out of data centers. The nuclear sector has been repeatedly questioned in terms of the long-term potential as the sentiment for continued AI adoption swings wildly week-to-week.

The negative public market sentiment contrasts greatly with recent  private market activity. Investors in the private markets must be more comfortable with their capital being locked in place for longer periods of time compared to the public market, due to lower liquidity. With that in mind, some of the recent funding rounds from reactor development companies have been substantial:

Antares Nuclear (private), a company building small reactors for use by the military, raised $470 million in their latest funding round. Valar Atomics (private) is building small reactors for commercial energy and hydrogen production and raised over $1 billion in their recent Series B funding round. Potential Exists Across the Entire Nuclear Value Chain The VettaFi Nuclear Renaissance Index (NUKZX) is designed with the entire nuclear industry in mind, not just reactor developers and uranium miners. The index includes more mature reactor development businesses, such as GE Vernova (GE) and BWX Technologies (BWXT), alongside more junior companies such as Oklo  (OKLO) and NANO Nuclear (NNE). NUKZX also holds companies that will benefit from incoming contracting across the supply chain, such as Curtiss-Wright (CW) and Mirion Technologies (MIR).

NUKZX serves as the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ).

Related Research: NUKZ Constituents Secure Key TerraPower Contracts

DOE’s $17.5B Loan Boosts Nuclear Supply Chain

Cameco Sees Path to 20 New US Large-Scale Reactors

Looking for nuclear insights in your inbox? Subscribe here to keep a pulse on nuclear investing through our weekly research.

For more news, information, and analysis, visit the Nuclear Energy Content Hub.

vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ, for which it receives an index licensing fee. However, NUKZ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ.

Modern data centers require massive amounts of power, and those demands are only growing. High-density AI clusters packed with Nvidia (NVDA -0.99%) graphics processing units (GPUs) can require 100 kilowatts (kW) to over 300 kW per rack, or up to 20 times the electricity consumption of traditional server racks.

Computing capacity is capped by power availability, which has proven to be a major bottleneck in the AI data center build-out. As a result, capital is flowing to companies that can reliably deliver power or manufacture power equipment. For investors looking to capitalize on the AI energy boom, here are some of the companies emerging as top winners.

Image source: Getty Images.

Utility operators are immediate beneficiaries of the energy demand boom Regulated utilities operate under government oversight and are appealing because they can offer predictable income and reliable dividends to navigate market cycles. NextEra Energy (NEE -0.36%) is a regulated utility with upside from its renewables business. The company owns the stable utility Florida Power & Light. It also owns NextEra Energy Resources, one of the largest producers of wind and solar power.

That said, connecting power-hungry data centers to the public utility grid often faces three- to seven-year interconnection queues, creating an opportunity for independent power producers (IPPs). Also known as merchant power companies, these companies own electricity generation assets but not the transmission grid.

This group includes companies such as Constellation Energy (CEG +2.75%) and Vistra (VST +1.55%), which sell electricity in competitive wholesale markets and benefit from supply constraints and surging demand.

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Constellation is appealing because it is the largest nuclear operator in the United States, with 22 gigawatts (GW) of nuclear energy capacity. Because it can provide carbon-free, baseload energy, nuclear energy has emerged as a top choice among hyperscalers looking to power their growing data center footprints. In recent years, Constellation has signed major power purchase agreements with Microsoft and Meta Platforms.

Vistra is another massive power producer, with 44 GW of total generation capacity, including natural gas, nuclear, and coal. The company also signed an agreement with Meta Platforms earlier this year. In addition, Vistra, along with KKR, the Kuwait Investment Authority, and Nvidia, formed Helix Investments to build AI infrastructure. As part of this, Vistra will be Helix's preferred power provider.

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Grid-independent solutions have grown in popularity Because of transmission bottlenecks and grid interconnection delays, which could take up to a decade in some cases, hyperscalers are turning to off-grid dispatchable power solutions to generate electricity on-site at data centers. These benefit companies that provide gas turbines or fuel cells that can run on natural gas, including GE Vernova (GEV -1.70%) and Bloom Energy (BE -1.14%).

GE Vernova is a global leader in power equipment, with technology that generates roughly 25% of the world's electricity. The company has seen unprecedented demand for its heavy-duty and HA-advanced high-efficiency natural gas turbines, which can be deployed to provide baseload power in months rather than years. GE Vernova boasts a massive backlog totaling $163 billion, with agreements extending through 2031.

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Bloom Energy provides solid-oxide fuel cell systems (Bloom Energy Servers) that can use a wide range of fuels, including natural gas, biogas, or hydrogen. Bloom has signed massive deals in recent years, including an expanded strategic infrastructure agreement with Brookfield Asset Management for $25 billion, along with contracts with Oracle, Intel, and CoreWeave.

Aggressive investors may want to consider these highly speculative energy stocks The next frontier of long-term power generation could be driven by small modular nuclear reactors (SMRs) and utility-scale battery storage systems.

In the nuclear space, Oklo (OKLO +3.82%) and NuScale Power (SMR +7.52%) are two popular SMR developers that could revolutionize how nuclear energy is deployed. These companies intend to offer factory-fabricated, modular nuclear reactors that could provide off-grid, safe nuclear energy on-site for data centers and other industrial operators. These reactors are promising, but won't be commercially available until the 2030s at the soonest.

Then you have battery storage solutions, such as those provided by Fluence Energy (FLNC +2.72%). Fluence provides modular battery energy storage systems (BESS), such as its Smartstack platform, along with software tools to help stabilize electrical loads.

On June 1, Fluence announced a partnership with Nvidia (along with Siemens and nVent) to integrate its Smartstack BESS into Siemens' AI data center blueprints for Nvidia's DSX Vera Rubin NVL72 platform.

Investors have a few ways to play the AI energy boom For aggressive investors, Oklo, NuScale, and Fluence have significant upside potential, but they must balance that potential against the long time horizon and high costs of scaling up.

Independent power providers, such as Constellation and Vistra, should benefit from securing long-term agreements with technology customers. Meanwhile, off-grid power solutions from GE Vernova and Bloom Energy are experiencing a historic surge in demand, which should drive strong growth over the next several years.

When it comes to data center build-out, modern data centers require significant power, turning boring energy and industrial stocks into long-term winners thanks to technological innovations and the massive spending boom in data centers and related infrastructure in the coming years.

Courtney Carlsen has positions in Bloom Energy, Constellation Energy, Fluence Energy, GE Vernova, Meta Platforms, Microsoft, Nvidia, Oracle, and Vistra. The Motley Fool has positions in and recommends Bloom Energy, Brookfield Asset Management, Constellation Energy, Fluence Energy, GE Vernova, Intel, KKR, Meta Platforms, Microsoft, NextEra Energy, Nvidia, Oracle, and Vistra. The Motley Fool recommends NuScale Power. The Motley Fool has a disclosure policy.

Constellation Energy (CEG -1.52%) reached $412.70 within the past year. As of this writing, shares go for about $274 -- roughly a third below that record. My prediction: shares take the record back before 2030.

The climb that prediction requires is steep but, arguably, not wild. From about $274, returning to $412.70 by the end of 2029 works out to about 13% compound annual appreciation over the next three and a half years.

For scale, Constellation's net income across the trailing 12 months comes to $3.5 billion, on revenue of $31.3 billion. Constellation is also a company whose growth over the rest of the decade is spelled out in advance to an unusual degree.

Earnings growth alone could cover that, if the current trajectory holds.

Image source: Getty Images.

Earnings are climbing fastConstellation, the largest private-sector power producer in the world, earned $9.39 per share on a non-GAAP (adjusted) operating basis in 2025. This month, alongside second-quarter results, management raised its full-year 2026 guidance to a range of $11.50 to $12.50 per share. The $12 midpoint sits 28% above last year's figure.

The second quarter itself ran ahead of that pace. Adjusted operating earnings came in at $2.55 per share, up 34% year over year from $1.91. The company credited the addition of Calpine and favorable market and portfolio conditions.

Worth noting: the adjusted figure is the one guidance runs on, and it sets aside items the company treats as outside its operations. On a GAAP (generally accepted accounting principles) basis, second-quarter earnings were $1.42 per share, down from $2.67 a year earlier, largely on such items. And the operating trend is the one doing the climbing.

In other words, the guidance raise wasn't a rounding tweak. It reflects a business earning meaningfully more than it did a year ago, with half the year still to go.

Demand with signatures on itWhat makes the growth unusual for a power producer, I'd argue, is how much of it is already contracted, and with whom. The buyers include some of the biggest technology companies in the world.

The Crane Clean Energy Center, the Pennsylvania nuclear plant Constellation is restarting under a 20-year power purchase agreement with Microsoft, is expected to return 835 megawatts to the grid in 2027. Two regulatory approvals arrived in recent months. The Nuclear Regulatory Commission approved a fuel license amendment allowing the plant to receive new fuel, and a federal waiver cleared the way for the transfer of existing grid-connection rights to the site.

Meta Platforms, meanwhile, signed its own 20-year agreement in 2025, taking 1,121 megawatts from the Clinton plant in Illinois starting in June 2027 -- a deal that also supports the plant's relicensing and a 30-megawatt boost to its output.

And alongside the latest results, Constellation reported another 920 megawatts of newly signed long-term power purchase agreements, with terms of 15 to 20 years starting between 2029 and 2032.

Each of those contracts starts on a dated schedule. That is what makes the next few years of growth more visible than a power producer's growth usually is.

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The path back: 13% a yearAt about $274, shares trade at about 23 times the midpoint of this year's guidance. Hold the stock's valuation multiple steady, and reaching $412.70 by the end of 2029 requires about $18 of adjusted earnings per share that year. Getting to $18 from this year's $12 midpoint takes about 14% annual growth -- roughly half the rate management just guided to for 2026.

Between Crane's 835 megawatts arriving in 2027, Meta's contract starting the same year, and the new agreements phasing in from 2029, the growth drivers with dates on them stretch across the exact window the prediction covers.

Sure, the market could pay less per dollar of earnings than it does today. Shares have traded between $228.63 and $412.70 over the past year, so the market has already repriced this company sharply in both directions. And the adjusted results lean partly on market conditions that helped this quarter and may reverse. But the prediction doesn't need the price-to-earnings ratio to expand, and it doesn't need a single new contract to be signed. It needs the company to keep growing at about half this year's pace.

My prediction stands. With those contracts in place and the required rate running below the pace management is already delivering, I expect Constellation to be back at its record before 2030.

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.

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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.

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Artificial intelligence has an electricity problem, and nuclear is the answer investors keep circling back to. Hyperscaler capital expenditure is running at $710 billion combined in 2026, and the always-on baseload profile of nuclear reactors is the only clean generation source that can realistically underwrite 24/7 data center loads. That structural setup is why nuclear generated roughly 73.3 billion kilowatthours in January 2026 at a 100.0% capacity factor, and why hyperscalers are locking in decade-plus power purchase agreements at prices utilities would have scoffed at three years ago.

Here are three US-listed nuclear names worth studying this August, each hitting the theme from a different angle: the operator, the fuel supplier, and the components manufacturer.

Constellation Energy (NASDAQ: CEG) Constellation Energy (NASDAQ:CEG | CEG Price Prediction) runs the largest US nuclear fleet and, after closing the Calpine acquisition on January 7, 2026, is now the largest private US power producer at 55 GW of combined capacity. Shares closed at $265.12 on August 5, 2026, up 7.83% over the past month but still down 24.73% year to date. That drawdown makes the current setup interesting.

Q1 2026 was a statement quarter. Revenue hit $11.12 billion, up 63.9% year over year and beating consensus by 27.69%, while adjusted EPS came in at $2.74 versus a $2.61 estimate. Management reaffirmed 2026 adjusted operating EPS guidance of $11.00 to $12.00 and is targeting base EPS growth above 20% through 2029. The AI catalyst list is deep: the 20-year Microsoft PPA supporting the Crane Clean Energy Center restart, a 380 MW CyrusOne deal at Freestone signed February 2026 with an option for another 380 MW, and 780 MW signed at Thad Hill. Constellation estimates each 1,000 MW of powered land deals adds $0.20 to $0.50 in EPS.

Forward P/E sits at 22x, with an analyst target of $352.86 and aggregated prediction sentiment scoring 72.8 (bullish, medium confidence). Risk: Calpine integration execution and roughly $17.5 billion in long-term debt post-deal leave less room for operational stumbles.

Cameco (NYSE: CCJ) If Constellation sells the electrons, Cameco (NYSE:CCJ) sells the fuel. It is the world’s largest publicly traded uranium producer and owns 49% of Westinghouse alongside Brookfield. Shares closed at $94.27 on August 5, up 11.47% in the past week and 26.63% over the past year. The move tracks a uranium market where spot prices sit at US$88.49/lb, up 34% year over year, and long-term prices at US$91.50/lb are near 2012 highs.

Q1 2026 was messy on the top line, with revenue of $606.3 million missing consensus of $815.1 million by 25.62%, though EPS of $0.34 matched estimates and adjusted net earnings jumped to $145.6 million from $50.2 million a year earlier. Guidance for 2026 remains intact: revenue of $3.13 billion to $3.37 billion and Westinghouse adjusted EBITDA of $370 million to $430 million (Cameco share). The bull case rests on visibility: roughly 230 million pounds committed under long-term contracts, a Westinghouse AP1000 US Government strategic partnership targeting $80 billion-plus in aggregate investment, and 38 countries pledged to triple nuclear capacity by 2050. Analysts carry a $129.15 target, with prediction sentiment at 60.74, bullish.

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Risk: The Key Lake mill maintenance shutdown extending into Q3 2026, potential US uranium tariffs, and a CRA transfer pricing dispute with $559 million held are real overhangs. Valuation is stretched at a forward P/E of 77x, so this pick works only if uranium prices stay elevated.

BWX Technologies (NYSE: BWXT) BWX Technologies (NYSE:BWXT) is the pick-and-shovel play: it manufactures nuclear components for naval reactors, commercial reactors, and small modular reactor programs. Shares closed at $168.28 on August 5, off 14.53% over the past month but up 6.89% in the past week after a strong earnings report.

Q2 2026 delivered revenue of $901.6 million, up 18.0% year over year, and non-GAAP EPS of $1.07 versus $1.042 expected, the fifth consecutive EPS beat. Commercial Operations revenue of $302.5 million, up 72% was the eye-opener. Management raised full-year guidance: revenue to approximately $3.80 billion, non-GAAP EPS to $4.70 to $4.80, and free cash flow to $345 million to $360 million.

CEO Rex D. Geveden said, "Demand for new nuclear solutions is remarkably deep and broad, complementing our strong and growing base of highly predictable revenue streams in our Government and Commercial segments." The Precision Components Group acquisition closed July 1, 2026, expanding US commercial nuclear manufacturing capacity, and the company is divesting its medical business to concentrate on defense and commercial nuclear. Backlog stands at $8.65 billion, including over $1.4 billion in naval propulsion contracts. A $0.27 quarterly dividend pays September 4, 2026. Analyst target: $235.16; forward P/E of 38x.

Risk: Federal budget uncertainty and potential government shutdowns weigh on the Government Ops segment, which still contributes the majority of revenue.

What to Watch Next The through-line: hyperscalers writing multi-decade PPAs, uranium spot prices holding near multi-year highs, and component manufacturers raising guidance. Keep an eye on PJM’s Reliability Backstop Procurement framework, set to enable bilateral contracting from March 2027, and any DOE loan guarantee announcements against the $26.5 billion nuclear authorization. Each of these three names offers a different way to underwrite the same thesis: AI needs power that never sleeps.

If You'd Bought Amazon When the Motley Fool Said To…In September 2002, Stock Advisor told subscribers to buy Amazon. In December 2004, Netflix. In April 2005, Nvidia. The newsletter still publishes two new stock picks every month — and over 23 years, has more than quadrupled the S&P 500. Here's how to get this month's picks:

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Nuclear energy is experiencing a resurgence, as more entities turn to the power source to address growing energy demands while meeting carbon-reduction goals. At the UN Climate Change Conference (COP28), numerous countries, including the United States, France, Japan, and the United Kingdom, pledged to triple global nuclear energy capacity by 2050.

What makes nuclear particularly compelling is its unmatched capacity factor. According to the U.S. Department of Energy (DOE), nuclear plants operate at a capacity factor of around 92%, 1.5 times higher than natural gas and four times that of solar.

Major technology companies are increasingly turning to nuclear power. The DOE has implemented reforms to streamline permitting, speed up testing, and accelerate the commercial deployment of next-generation nuclear technologies.

With such powerful tailwinds over the coming decades, here are two nuclear energy stocks investors can buy in August.

Image source: Getty Images.

This uranium miner has cost advantages and upside from the nuclear infrastructure boom Located in the Athabasca Basin in Canada, Cameco (CCJ +0.76%) owns and operates some of the highest-grade uranium mines in the world. With a controlling stake in McArthur River and Cigar Lake, the company owns mines with high-grade ore deposits. This gives it a cost advantage thanks to the low life-of-mine cash operating costs of $21.72 per pound at McArthur River and $23.94 per pound at Cigar Lake, enabling it to produce more uranium with a smaller environmental footprint.

One thing that makes Cameco appealing is that most of its operations are based in North America, giving it a geographic advantage as a major uranium supplier for Canada and the United States as countries shift away from Russian sources. Additionally, it is insulated from the political and regulatory uncertainties that plague other uranium-producing regions such as Kazakhstan, Uzbekistan, and Niger.

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The company also has a 49% ownership stake in Westinghouse Electric Company, with Brookfield Renewable Partners owning the other 51%. This gives Cameco exposure not just to uranium and conversion, but also to the build-out of nuclear reactors. That's because Westinghouse's technology is utilized in half of the world's operating nuclear reactors. In addition, the U.S. DOE conditionally committed $17.5 billion in loans to finance up to 10 Westinghouse AP1000 nuclear reactors.

On July 31, Cameco and Brookfield Renewable Partners announced that Westinghouse Electric had confidentially submitted a draft registration statement on Form S-1 to the U.S. Securities and Exchange Commission for a proposed initial public offering (IPO). Because Cameco took on debt and equity to finance the deal, the IPO will give it a chance to raise capital, pay down debt, and provide a public valuation that could reflect strong demand for nuclear energy infrastructure.

Cameco has assets across the nuclear value chain and has locked in commitments to deliver an average of 28 million pounds of uranium annually through 2030, giving it stellar revenue visibility. For long-term investors seeking exposure to the broader tailwinds that should lift the nuclear industry, Cameco, down 31% from its 52-week high, is an excellent stock to scoop up in August.

This leading nuclear power provider is positioned to benefit from rising electricity demand While Cameco operates across the nuclear value chain, Constellation Energy (CEG -0.68%) is the largest nuclear power operator in the United States. Operating as a merchant power company, the utility provider controls 22 gigawatts (GW) of nuclear capacity across 14 generating stations and supplies approximately 10% of the country's clean, carbon-free electricity.

Not only does Constellation own the largest nuclear capacity, it also operates at best-in-class efficiency, with an average nuclear capacity factor of 94.7% last year. This efficiency advantage means higher revenue per reactor and ensures consistent power delivery to the grid during peak summer and winter demand, when electricity prices spike.

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This nuclear footprint has made Constellation a go-to for major technology companies. In recent years, Microsoft, Meta Platforms, and Dallas-based data center operator CyrusOne have signed long-term power purchase agreements (PPAs) with Constellation. On June 23, Constellation also signed a PPA with Walmart, one of the first PPAs signed by a major U.S. retailer.

The company is taking steps to increase its capacity from within and is pursuing nuclear upgrades to existing facilities to squeeze additional power capacity from its existing fleet. It aims to add roughly 1.5 GW of clean capacity by 2035 through nuclear restarts -- such as the 835-megawatt Crane Clean Energy Center (formerly Three Mile Island Unit 1). The company also recently invested in Blue Energy, marking its first investment in a U.S. developer advancing small modular reactors (SMRs).

Constellation Energy stock has declined 35% from its 52-week high, and is priced around 22.7 times its projected 2026 earnings. Analysts project continued strong growth, with earnings per share expected to grow 13% in 2027 and nearly 29% in 2028, reflecting robust energy demand. For investors seeking nuclear energy exposure through a top utility provider, Constellation Energy is another excellent stock to scoop up in August.

CompaniesAug 6 (Reuters) - Power company Constellation Energy (CEG.O), opens new tab said on Thursday it will sell a gas plant in Texas to LS Power for $860 million, and also raised its current-year operating earnings ​forecast on the back of robust power demand.

Shares of the ‌company were up 5% in premarket trading.

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The sale of Brazos Valley Energy Center plant to LS Power marks the last divestiture required by Constellation to complete its $16.4-billion acquisition of Calpine assets.

Constellation has been ​expanding beyond its nuclear-heavy fleet, with its Calpine acquisition adding a ​large gas-fired generation portfolio that gives it more flexibility in ⁠high-demand markets such as Texas.

"We're strengthening the nation's energy infrastructure and ​helping meet growing demand for reliable power," said CEO Joe Dominguez.

In a ​separate statement, LS Power said its deal for the Texas plant, expected to close by the end of this year, will bring its total capacity to 14,100 MW post ​completion and strengthen its presence in ERCOT, one of the fastest-growing power markets.

LIFTS ​FORECAST ON ROBUST POWER DEMANDConstellation, the largest nuclear power operator in the U.S., has ‌been ⁠benefiting from robust power consumption in the country.

The company said on Thursday it has signed agreements to provide an additional 920 megawatts (MW) of nuclear power to a diverse set of investment-grade customers for 15 to 20 years, ​with supply set ​to begin from ⁠2029 through 2032.

It has also filed applications with the Nuclear Regulatory Commission to extend the operating licenses of ​its Ginna Clean Energy Center and Nine Mile ​Point Unit ⁠1 reactor in New York to 2049, a 20-year extension if approved.

The Baltimore, Maryland-based company posted operating earnings of $2.55 per share, beating the average of analysts' estimates ⁠of $2.28 per ​share, according to data compiled by LSEG.

The ​company raised its forecast for operating earnings to a range of $11.50 to $12.50 per share, from $11.00 to $12.00 ​per share earlier.

Reporting by Dharna Bafna in Bengaluru; Editing by Leroy Leo

Our Standards: The Thomson Reuters Trust Principles., opens new tab

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)--Constellation (Nasdaq: CEG) today announced that its Board of Directors has elected President and Chief Executive Officer Joe Dominguez to serve as Chairman of the Board, effective Aug. 4, 2026, and appointed Roger Crandall, Chairman, President and Chief Executive Officer of MassMutual, to the Board as an independent director, effective Aug. 5, 2026. Charles L. Harrington will serve as Lead Independent Director, reinforcing the company's strong governance framework and independent Board oversight.

Crandall brings nearly four decades of leadership experience in financial services and has served as chief executive officer of MassMutual since 2010. MassMutual, a Fortune 100 company, is one of America’s largest mutual life insurance companies, serving more than four million customers with over $1 trillion in life insurance in force. Under Crandall’s leadership, the 175-year-old company has delivered strong long-term performance and exceptional value to its policyowners. He recently completed service as Chair of the Federal Reserve Bank of Boston and currently serves on several business, educational and nonprofit boards. Crandall earned an MBA from the Wharton School of the University of Pennsylvania and a bachelor's degree in economics from the University of Vermont.

"Roger is an exceptional business leader with deep expertise in capital allocation, risk management, technology transformation and corporate governance," said Dominguez. "His perspective and experience will be invaluable as Constellation continues to execute its strategy and meet growing demand for reliable, carbon-free energy."

"Constellation plays a critical role in powering economic growth and advancing a more reliable and sustainable energy future," said Crandall. "I look forward to working with the Board and leadership team to support the company's long-term success and value creation, all in service of building a better tomorrow for communities across the country."

These appointments follow the resignation of Robert J. Lawless from the Board, effective Aug. 4, 2026. Lawless concludes a distinguished tenure spanning more than two decades of service to Constellation. He served on the board of legacy Constellation Energy Group from 2002 until its merger with Exelon in 2012, on the Exelon Board from 2012 to 2022, and as chairman of Constellation following its separation from Exelon in 2022. His strategic insight, financial acumen, commitment to strong corporate governance and steadfast support of management helped position Constellation for sustained growth and industry leadership.

"Few people have had a greater impact on Constellation's journey than Bob Lawless," said Dominguez. "From his service on the legacy Constellation board to supporting the company through our separation from Exelon, Bob has been a trusted counselor, thoughtful leader and steadfast advocate for our long-term success. His leadership helped lay the foundation for the growth and value creation we have achieved as an independent company, and we are deeply grateful for his service."

Mr. Lawless brought decades of executive leadership, strategic planning and corporate governance experience to the Board. As the former chairman, president and chief executive officer of McCormick & Company, he provided valuable insight on issues affecting public companies and helped strengthen Constellation's focus on long-term shareholder value and disciplined leadership.

"It has been an honor to serve on Constellation's Board and work alongside such a talented team," said Lawless. "I am proud of what the company has accomplished and confident it is well positioned for continued success."

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.

1.22K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: All research, figures, and interpretation are provided on a best-effort basis only and may be subject to error. Any view, opinion, or analysis does not constitute as investment or trading advice; please do your own due diligence.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

The market expects Constellation Energy Corporation (CEG - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $2.35 per share in its upcoming report, which represents a year-over-year change of +23%.

Revenues are expected to be $7.47 billion, up 22.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 6.96% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Constellation Energy Corporation?For Constellation Energy Corporation, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.93%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Constellation Energy Corporation will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Constellation Energy Corporation would post earnings of $2.56 per share when it actually produced earnings of $2.74, delivering a surprise of +7.03%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Constellation Energy Corporation doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsClearway Energy (CWEN - Free Report) , another stock in the Zacks Alternative Energy - Other industry, is expected to report earnings per share of $0.24 for the quarter ended June 2026. This estimate points to a year-over-year change of -14.3%. Revenues for the quarter are expected to be $480.49 million, up 22.6% from the year-ago quarter.

The consensus EPS estimate for Clearway Energy has been revised 8.1% lower over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +39.43%.

When combined with a Zacks Rank of #5 (Strong Sell), this Earnings ESP makes it difficult to conclusively predict that Clearway Energy will beat the consensus EPS estimate. Over the last four quarters, the company surpassed EPS estimates just once.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

In the latest close session, Constellation Energy Corporation (CEG - Free Report) was down 1.59% at $270.00. This change lagged the S&P 500's 0.02% gain on the day. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.18%.

The company's stock has climbed by 3.91% in the past month, falling short of the Oils-Energy sector's gain of 7.75% and outpacing the S&P 500's gain of 0.77%.

The investment community will be paying close attention to the earnings performance of Constellation Energy Corporation in its upcoming release. The company is slated to reveal its earnings on August 6, 2026. The company's earnings per share (EPS) are projected to be $2.34, reflecting a 22.51% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $7.49 billion, reflecting a 22.82% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.74 per share and a revenue of $35.55 billion, indicating changes of +25.03% and +39.21%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Constellation Energy Corporation. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Constellation Energy Corporation currently has a Zacks Rank of #3 (Hold).

With respect to valuation, Constellation Energy Corporation is currently being traded at a Forward P/E ratio of 23.37. This signifies a premium in comparison to the average Forward P/E of 18.43 for its industry.

One should further note that CEG currently holds a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CEG's industry had an average PEG ratio of 1.8 as of yesterday's close.

The Alternative Energy - Other industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 153, placing it within the bottom 38% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

Investors in Constellation Energy Corporation (CEG - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the January 15, 2027 $95.00 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Constellation Energy share, but what is the fundamental picture for the company? Currently, Constellation Energy is a Zacks Rank #3 (Hold) in the Alternative Energy - Other Industry that ranks in the Bottom 38% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their estimates for the current quarter, while two have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter to move from $2.30 per share to $2.24 per share in the same time period.

Given the way analysts feel about Constellation Energy right now, this huge implied volatility could mean there’s a trade developing. Often times, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

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.

Constellation Energy Corporation (CEG - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -3%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Alternative Energy - Other industry, which Constellation Energy Corporation falls in, has lost 8.8%. 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 RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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 $2.24 per share for the current quarter, representing a year-over-year change of +17.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

The consensus earnings estimate of $11.74 for the current fiscal year indicates a year-over-year change of +25%. This estimate has changed +0.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $13.62 indicates a change of +16% from what Constellation Energy Corporation is expected to report a year ago. Over the past month, the estimate has changed -0.4%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Constellation Energy Corporation is rated Zacks Rank #3 (Hold).

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

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Constellation Energy Corporation, the consensus sales estimate of $7.51 billion for the current quarter points to a year-over-year change of +23.2%. The $35.48 billion and $35.2 billion estimates for the current and next fiscal years indicate changes of +39% and -0.8%, respectively.

Last Reported Results and Surprise HistoryConstellation Energy Corporation reported revenues of $11.12 billion in the last reported quarter, representing a year-over-year change of +63.8%. EPS of $2.74 for the same period compares with $2.14 a year ago.

Compared to the Zacks Consensus Estimate of $8.21 billion, the reported revenues represent a surprise of +35.5%. The EPS surprise was +7.03%.

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.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty 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.

ConclusionThe 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 #3 does suggest that it may perform in line with the broader market in the near term.

Nuclear stocks spent last year near their highs. This year, most of them haven't stopped falling.

That drop has left a lot of investors nursing losses and wondering if the nuclear story is already over. Kuran Francis, host of the FinTek Channel, doesn't see it that way. He argues the falling share prices and the sector's improving fundamentals are two completely separate stories right now, and that's exactly what makes the setup interesting.

Get Constellation Energy alerts:

Falling Prices, Rising DemandThe International Energy Agency projects that electricity demand from data centers will roughly double by 2030, with AI-specific demand growing even faster, largely driven by the buildout of AI infrastructure across the United States.

Nuclear reactors take years to build. That mismatch is the whole story. Companies like Meta Platforms NASDAQ: META, Microsoft NASDAQ: MSFT, and Amazon.com NASDAQ: AMZN signed major power agreements in 2024, and the resulting enthusiasm pushed nuclear stocks well ahead of any actual revenue. Now that the excitement has faded, Francis says the pullback looks less like a broken thesis and more like a reset.

Regulation adds another layer. For decades, the Nuclear Regulatory Commission's job was largely to restrict and slow down new nuclear development, especially after high-profile disasters abroad. That posture is shifting.

The agency's mandate now includes actively facilitating new nuclear capacity, not just policing it, which could shorten some of the approval timelines that have historically dragged projects out for a decade or more.

Long Timelines Cut Both WaysA standard nuclear reactor still takes six to eight years to bring online, and often longer in the United States, given that regulatory history. Smaller "small modular reactors," built at a fraction of the scale, could start reaching commercial operation as soon as 2027, though most timelines point to the early 2030s.

That patience requirement has hit small modular names hardest. Oklo Inc. NYSE: OKLO and NuScale Power Corp. NYSE: SMR both surged in late 2025 before giving back much of those gains this year. Francis notes that smaller companies swing harder in both directions and that volatility is the tradeoff for getting in before a story becomes obvious to everyone.

Nuclear already ranks among the safest sources of power generation by deaths per gigawatt, safer than coal, wind, or natural gas. The stocks have never really been priced for that reality.

Constellation Energy: The Steady BetConstellation Energy Today

CEG

Constellation Energy

$253.93 +1.54 (+0.61%)

As of 11:37 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$228.63▼

$412.70Dividend Yield0.67%

P/E Ratio22.14

Price Target$368.32

Constellation Energy NASDAQ: CEG anchors Francis's list. The company already holds multi-billion-dollar power agreements with Meta and Microsoft, recently acquired a major natural gas generation business to bridge near-term demand, and trades at a price-to-earnings ratio in the low 20s.

Constellation is already profitable, which softens the risk that comes with a long buildout. The market cares less about a good idea here than proof that the cash flow already exists, and that combination of income and growth makes the current pullback look more like an opportunity than a warning sign.

Centrus Energy: The High-Risk Supply PlayCentrus Energy Today

LEU

Centrus Energy

$156.23 +0.18 (+0.11%)

As of 11:37 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$142.13▼

$464.25P/E Ratio51.85

Price Target$252.08

For more upside and more risk, Francis points to Centrus Energy Corp. NYSE: LEU, the only U.S.-based producer of high-assay low-enriched uranium, or HALEU, the fuel type most small modular reactors are expected to rely on.

Centrus is also showing real revenue growth as its Technical Solutions and HALEU work ramp up, with management raising full-year 2026 revenue guidance on the back of that progress.

Wall Street has recently trimmed price targets on the stock even as its long-term outlook stays bullish, a split that fits the same disconnect playing out across the sector. This stock could double or go to zero, and it isn't built to be a core holding.

A Simpler Way InVanEck Uranium and Nuclear ETF Today

NLR

VanEck Uranium and Nuclear ETF

$104.96 +0.76 (+0.73%)

As of 11:16 AM Eastern

52-Week Range$101.92▼

$168.12Dividend Yield3.01%

Assets Under Management$3.73 billion

For investors who'd rather not pick a single name, Francis's third pick is the VanEck Uranium and Nuclear ETF NYSEARCA: NLR, which spreads roughly $4 billion in assets across nuclear and uranium companies globally. Constellation and Centrus both sit among its largest holdings, so choosing either the fund or the individual names, rather than both, keeps exposure from doubling up.

The fund isn't a shortcut around volatility. NLR has fallen more than 25% over the past three months, in line with the broader sector, and its relatively small size means a single large investor moving in or out can swing the price meaningfully.

The Long GameNothing about nuclear energy moves on a retail investor's timeline. The upside is a decade-long buildout of demand that isn't going away. The risk is holding through years of a stock price that may not reflect it.

The fear driving the sector down right now and the fundamentals driving it forward are telling two different stories. Long-term investors have to decide which one they believe.

Should You Invest $1,000 in Constellation Energy Right Now?Before you consider Constellation Energy, you'll want to hear this.

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Constellation Energy is uniquely positioned with the largest deliverable carbon-free inventory, controlling over half of the US merchant nuclear pool. CEG's investment case hinges on structural scarcity: its uncontracted nuclear inventory is smaller than the massive data-center-driven supply gap, supporting durable pricing power. Guidance excludes upside from ~147 TWh of uncontracted nuclear, offering a free, unmodeled option potentially worth +$1.5 to $4 EPS over five years.

, /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

Key Takeaways Constellation plans nearly 10 GW of new capacity to meet rising U.S. electricity demand. Long-term deals with Microsoft and Meta support AI-driven power demand and earnings growth. Its 55-GW diversified fleet and 2026 EPS outlook of $11-$12 support long-term growth. Constellation Energy (CEG - Free Report) benefits from America's rapidly rising electricity demand, driven by artificial intelligence, data centers, electrification and the return of manufacturing to the United States. The company believes demand for computing power continues to accelerate, with hyperscale capital spending for 2026 projected to be nearly 75% higher than last year.

Recently, Constellation Energy announced plans to add nearly 10 gigawatts (GW) of new power capacity, restart the 835-MW Crane Clean Energy Center to serve Microsoft's AI-driven electricity demand, and expand its natural gas and battery storage business. Meta entered into a 20-year power purchase agreement with Constellation Energy to procure 1.1 GW of electricity from the Clinton Clean Energy Center in Illinois.  These investments should help the company meet rising U.S. electricity demand while supporting long-term earnings and shareholder growth.

CEG's diversified generation portfolio strengthens its ability to meet rising electricity demand. Following the Calpine acquisition, the company owns about 55 GW of capacity across nuclear, natural gas, geothermal, hydro, wind and solar assets. The company added the 105-MW Pastoria Solar Project and the 460-MW Pin Oak Creek Energy Center and advanced its Freestone data center project. These investments enhance grid reliability and support long-term customer and earnings growth.

Constellation Energy's strong earnings outlook includes 2026 adjusted earnings per share (EPS) of $11-$12 and more than 20% annual base EPS growth through 2029. The company expects further growth from long-term data center contracts, higher natural gas plant utilization and nuclear production tax credits, which should boost long-term performance.

Growing U.S. Power Demand Fuels Utility GrowthU.S. electricity demand is increasing, fueled by data centers, vehicle electrification, manufacturing growth and expanding economic activity.  Growing electricity demand drives utilities to expand generation, transmission and grid infrastructure, supporting long-term rate base and earnings growth.

NextEra Energy (NEE - Free Report) is expanding generation, energy storage and transmission infrastructure to meet rising U.S. electricity demand. The company is also developing gas-fired plants and partnering with Google to support AI-driven data center growth.

Vistra Corp. (VST - Free Report) benefits from rising electricity demand through its diversified nuclear and natural gas fleet. Long-term power agreements with Amazon Web Services and Meta support AI-driven data center growth while providing stable revenues.

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

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

CEG’s Stock Price PerformanceIn the past three months, the company’s shares have plunged 14.5% compared with the industry’s 6.4% fall.

Image Source: Zacks Investment Research

CEG’s Zacks Rank