Ocean Power Technologies CEO Philipp Stratmann joined Steve Darling from Proactive to discuss the company's acquisition of strategic subsea technology assets from Columbia Power Technologies, a move that expands its AI-enabled maritime infrastructure platform from the ocean surface to the seabed.
Stratmann said the acquisition adds intellectual property and engineering expertise in subsea power systems, complementing the company's existing capabilities in offshore power generation, autonomous surface vehicles, maritime sensing, communications, and AI-powered software. The enhanced platform is designed to support persistent underwater operations, including autonomous underwater vehicles, subsea sensing, distributed communications, and long-duration maritime missions.
The company also reported financial results for fiscal 2026, which management described as a transformational year as Ocean Power Technologies evolved from technology demonstrations to operational deployments serving defense, security, and commercial customers.
Highlights included securing the company's largest deployment and recurring revenue contract—an approximately $6.5 million U.S. Coast Guard PowerBuoy® maritime domain awareness program—as well as integrating its PowerBuoy®, Merrows® AI platform, and autonomous technologies into active maritime security missions alongside leading defense partners, including Anduril.
Ocean Power Technologies also ended the year with a record backlog of $19.8 million, a 58% increase from the previous year, providing improved visibility into future revenue.
Looking ahead, Stratmann said the company's priorities include executing the U.S. Coast Guard deployment, converting its record backlog into revenue, and expanding relationships with U.S. government agencies, allied nations, and major defense contractors as demand for AI-enabled maritime infrastructure continues to grow.
Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF, FRA:FLM1) CEO Ralph Rushton talked with Proactive about the company's latest drilling campaigns at the Berenguela and Challacollo projects, outlining exploration plans aimed at expanding existing mineral resources while engineering work continues in parallel.
Proactive: Welcome back inside our Proactive newsroom. Joining me is Ralph Rushton, CEO of Aftermath Silver. Great to see you again. How are you?
Ralph Rushton: I'm very good, thank you. Fresh back from a nice break in Europe.
You're back to work because the company has resumed drilling on a couple of projects. Let's begin with Berenguela.
We've moved the drill to the eastern side of the mineral resource. Our 2024 and 2025 drilling intersected long intervals of high-grade copper there. We're now following those results up by drilling along the edge of the resource and extending eastwards beyond it to determine whether additional copper mineralisation can be incorporated into the resource estimate.
How is the drilling program being carried out?
We're positioned on the easternmost drill section of the existing resource and extending holes a few hundred metres beyond it. Any mineralisation encountered there would likely represent an addition to the existing resource. We've only recently started, so there are no results yet.
Is this expected to be a lengthy program?
It's an iterative program. If we have success, we'll continue drilling until we've gathered sufficient information. At the same time, we're waiting for permits for another copper target southwest of the project. Once work in the east is complete, we'll move there.
Northern Chile is also seeing activity.
Yes, at the Challacollo project. It's been in our portfolio for about seven years. We intended to drill last year, but contractor issues and equipment problems delayed the program. We're now close to completing the first hole. We're testing the margins of the existing resource to determine whether it can be expanded with additional ounces.
Were these targets identified through geophysical work?
No. Challacollo is a historic mine with extensive mine plans and a prefeasibility study completed around 10 to 12 years ago. We already have substantial geological information, so we haven't needed geophysics. That information has guided our targeting.
Investors will likely be pleased to see drilling progressing on two projects.
Absolutely. Engineering studies continue at Berenguela, but as a geologist I'm always happy when we're drilling. Exploration keeps things exciting alongside the engineering work.
Thanks for the update.
Thanks very much.
Quotes have been lightly edited for style and clarity
Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF, FRA:8SR) earlier this week outlined encouraging early-stage gold indications from its East Goldfield project in central Nevada and detailed plans for a substantial geophysical programme intended to define deeper drill targets.
CEO Mike Power told Proactive that the company had used small, man-portable drills to test the upper portions of three interpreted feeder structures. Two of the feeders returned encouraging indications, while the third did not.
Power referenced a result of approximately 1.83 grams per tonne gold, noting that the short drill holes did not represent true widths and were designed primarily to establish whether gold was present in the upper parts of the structures.
He said the presence of gold near surface was significant because the company believed that stronger mineralisation could occur farther down the interpreted feeder structures. Power described the structures as comparable to chimneys or tailpipes within the mineralised system.
“The fact that they’ve got it at surface is really promising because that’s not where you expect to find the high grade,” he said.
Silver Range Resources has worked at East Goldfield for approximately 10 years. Power said recent geological mapping, supported by aeromagnetic and radiometric survey data, had improved the company’s understanding of the project.
Potential catalysts include the receipt of access permits, the start of fieldwork and completion of the survey. The company hopes to finish the programme by the end of August, release results in September and identify prospective drill targets for the fall.
Reconnaissance Energy Africa earlier this week announced the successful production of the first onshore hydrocarbons in Namibia during testing at its Kavango well, marking an important milestone for both the company and the country's emerging onshore petroleum sector.
Speaking with Proactive, chief executive Brian Reinsborough said the achievement represented an encouraging validation of the company's exploration model. He explained that the Kavango well is only the second well to penetrate this geological formation in Africa and that bringing hydrocarbons to surface at this stage demonstrates that key elements of the petroleum system are functioning as expected.
Reinsborough said production testing confirmed natural gas and potentially liquid hydrocarbons at surface, with samples now undergoing laboratory analysis in the United States to determine their composition. He noted that while not every geological objective had yet been achieved, the results provided confidence that the fractured reservoir system can deliver producible hydrocarbons.
"We know the hydrocarbons are there and we know the petroleum system is working and we know we're in a fractured reservoir system," Reinsborough said.
The company also disclosed that equipment limitations affected its ability to obtain accurate flow-rate measurements. Reinsborough explained that the separator supplied by Schlumberger was designed for offshore deepwater operations and was not ideally suited for an onshore exploration well. He said future testing is expected to use more appropriate equipment sourced from North America.
Looking ahead, one of the key catalysts will be the laboratory analysis of the collected hydrocarbon samples, which should provide greater clarity on liquid content and commercial potential. Another important milestone will be the possible drilling of a horizontal sidetrack from the existing well, which Reinsborough said could intersect a greater number of natural fractures and improve production performance.
Beyond exploration, Reinsborough outlined a broader commercial strategy. He said liquids could support an early production system using trucking and rail to generate initial project cash flow, while natural gas development could underpin gas-to-power projects in partnership with BW Energy and NAMPower. Such developments could supply electricity within Namibia and potentially neighbouring Zambia, where energy demand remains significant.
Reinsborough said the company believes it is well positioned regardless of whether the resource proves to be more oil or gas weighted, describing both commodities as attractive long-term opportunities for Reconnaissance Energy Africa Ltd (TSX-V:RECO, OTCQX:RECAF).
Thistle Resources (TSX-V:TRCG, OTC:TRCGF) CEO Patrick Cruickshank talked with Proactive about the launch of the company's trenching program at its Brunswick Project in New Brunswick, where exploration is focused on antimony alongside high-grade silver and gold mineralization.
Proactive: Welcome back inside our Proactive newsroom. Joining me is Patrick Cruickshank, CEO of Thistle Resources (TSX-V:TRCG, OTC:TRCGF). Great to see you again.
Patrick Cruickshank: Good morning. Thank you for inviting me back.
The company recently announced the start of its trenching program at the Brunswick Project, targeting antimony. Tell us about the importance of this stage.
The trenching program is a quick and efficient way to expose the bedrock. We've committed to five large trenches down to bedrock and will carry out both standard sampling and channel sampling, which is similar to collecting drill core. The main objective is to examine the contact between the granite and the antimony-bearing quartz system so we can better understand its orientation and determine the best direction for future drilling.
You've already collected around ten samples from the first trench, so it's off to a strong start.
Yes, it couldn't have gone better. We already know we have a high-grade system, but what makes this project unique is the combination of high-grade antimony with silver values of up to 2,200 grams per tonne, along with gold. The project is also located about 1,000 metres from the historic Brunswick 6 and Brunswick 12 mines, suggesting there is a geological relationship that differentiates us from other antimony exploration companies.
You also mentioned similarities with the Lake George antimony deposit, while noting there are important differences.
We're encouraged by the New Brunswick government's support for critical minerals. The province announced plans to become a significant critical minerals jurisdiction and is supporting efforts to bring the historic Lake George antimony project back into production. That deposit was one of the world's largest antimony producers, operating from 1876 to 1996, and it's only about two hours from our project. That's positive for both the province and our company.
Finally, remind viewers why antimony is such an important critical mineral.
Antimony is one of Canada's critical minerals and is essential for supply chain security. China controls approximately 80–90% of global supply, so discovering deposits outside that supply chain is important. New Brunswick has a strong history of antimony mineralization. The metal is used in military applications, including night vision technology, as well as battery technology and electric vehicles. Because it is rare, we believe the opportunity could be significant for both New Brunswick and Thistle Resources.
Exciting work ahead. Thanks for joining us, Patrick.
Thank you. I'd be pleased to return once the certified assay results are available.
Quotes have been lightly edited for style and clarity
Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) earlier this week announced a $15 million strategic investment alongside a long-term supply agreement with Spanish River Carbonatite, providing fresh capital to accelerate expansion while strengthening the company's long-term growth strategy.
Speaking with Proactive, CEO Neil Wiens said the transaction followed months of collaboration between the companies, including product efficacy testing that demonstrated a strong fit between Spanish River Carbonatite's activated limestone material and Replenish Nutrients' fertilizer products.
Wiens explained that the financing is split into two equal tranches. The first $7.5 million will fund expansion at the company's Beiseker, Alberta facility, where it plans to construct a pellet production facility adjacent to its existing granulation operation. He said the location already has the necessary infrastructure and sufficient land available, making it an attractive site for expansion.
The second $7.5 million will provide working capital to support inventory, marketing and operational growth as production continues to increase. Wiens noted that the company's granulation facility continues to ramp up production and that recent investments in infrastructure have positioned the business for its next phase of development.
A further component of the transaction is a long-term supply agreement with Spanish River Carbonatite. Wiens said testing confirmed the material works well with Replenish Nutrients' products, supporting the strategic relationship between the companies.
The investment also strengthens the company's leadership through the addition of experienced capital markets professionals. Wiens said Tim Close brings extensive experience growing agricultural businesses, while Dr. David Morris contributes expertise in scaling companies after previously selling a business to a Fortune 500 company.
Looking ahead, Wiens suggested the company is seeing momentum from both investors and customers. He remarked that "our phone is ringing off the hook, not only on the investment side, but also on the side of people buying our product," while adding that farmers are responding positively because the products are performing as intended.
Potential catalysts for investors include the planned expansion of the Beiseker facility, commissioning of additional pellet production capacity, continued operational ramp-up, execution of the long-term supply agreement, increasing customer adoption and the company's ability to deploy its new capital efficiently as it pursues further growth.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NEE either through stock ownership, options, or other derivatives. 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: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
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4:20pm: A losing week overall Wall Street ended a choppy Friday on a mixed note, with the Dow Jones and S&P 500 managing modest gains while the Nasdaq remained under pressure as investors wrapped up a volatile week.
The Dow climbed 236 points, or 0.5%, to 51,947, while the S&P 500 edged up 4 points, or 0.1%, to 7,412. The tech-heavy Nasdaq fell 162 points, or 0.6%, to 24,976, extending its recent weakness.
Despite Friday's rebound for the broader market, all three major indexes finished the week in the red. The Nasdaq led the declines, losing around 2% over the past five trading sessions as investors continued to rotate away from some high-growth technology names.
Attention now turns to a packed week of corporate earnings that could set the tone for markets heading into August. Big Tech will once again dominate the spotlight, with results due from Meta Platforms, Microsoft, Apple, Amazon and Arm. Investors will also be watching reports from blue-chip names including Coca-Cola, Exxon Mobil and Chevron for fresh insight into consumer spending and the energy sector.
With earnings season entering one of its busiest stretches, traders will be looking for signs that corporate profits can continue to support a market that has faced increased volatility in recent weeks.
3:40pm: Proactive news headlines American Resources Corp (NASDAQ:AREC) approved a special cash dividend of $0.0431 per share, returning capital to shareholders while continuing to invest in its critical minerals business. Miivo AI (TSX-V:MIVO) launched Customer Insights, an AI-powered self-service platform that helps small and mid-sized businesses track customer sentiment and manage their online reputation across major digital platforms. Ocean Power Technologies Inc (NYSE-A:OPTT) acquired strategic subsea technology assets from Columbia Power Technologies to expand its capabilities from surface to seabed and strengthen its autonomous maritime infrastructure offering. 2:30pm: Market movers Intel Corp (NASDAQ:INTC, XETRA:INL) shares fell more than 4% after investors looked past a strong second-quarter earnings beat and upbeat guidance to focus on mixed analyst reactions following the chipmaker's results. Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares climbed about 3% after the telecom giant beat second-quarter earnings expectations and raised its full-year outlook despite reporting revenue that missed forecasts. American Express Company (NYSE:AXP, XETRA:AEC1) shares dropped about 6% after second-quarter revenue narrowly missed Wall Street expectations, overshadowing better-than-expected earnings. 12:15pm: Welcome to X, Mr Huang Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) (Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)) CEO Jensen Huang posted on X for the first time on Friday, sharing a multi-company letter that defends open-weight AI models as essential to US technology leadership.
Huang, who joined the platform last month but had not posted until now, used his debut message to promote a letter signed by Nvidia and roughly 20 other organizations, including Meta, Microsoft and Palantir.
The letter argues that open models strengthen safety, accelerate innovation and support national AI sovereignty, and that US leadership should not rest on a single frontier model alone.
For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.
AI will transform every industry, power every company, and be built by every country.
Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C
— Jensen Huang (@JensenHuang) July 24, 2026 11:00am: Inflation still Fed's primary concern The US labour market continues to show little sign of meaningful deterioration despite softer hiring in June, according to Bank of America, leaving inflation as the Federal Reserve's primary concern ahead of next week's policy meeting.
The bank noted that while June payroll growth came in below expectations, the broader picture remains solid. The three-month average of job gains is still comfortably above the level needed to keep pace with population growth, while the unemployment rate has held steady at 4.2%.
More recent indicators have also remained encouraging. Bank of America said ADP private payroll growth has eased in recent weeks, but suggested that slowdown likely reflects a normalization after unusually strong hiring earlier this year. At the same time, weekly jobless claims continue to point to a stable labour market.
"Bottom line: the labor market appears healthy heading into the July FOMC meeting, leaving the focus squarely on inflation risks," analysts wrote.
10am: Mixed open It's another mixed open on Wall Street, with the Dow adding around 100 points, or 0.2%, while the S&P 500 was flat and the Nasdaq Composite started down 0.2% as technology shares seemed to be extending yesterday's selloff.
Charter Communications was the biggest Nasdaq 100 faller, sliding 6% after earnings, while other fallers include Marvell, Lumentum, Micron, Western Digital, ARM, Seagate and Intel, all down over 3.8%.
American Express has dropped 4.8%, the biggest Dow faller, but Verizon tops the leaderboard with a 3.5% gain, followed by Salesforce and IBM.
8am: Dow called higher but tech to remain a drag Wall Street is set for a tentative recovery on Friday after the previous session's technology selloff wiped roughly $800 billion from the market value of the so-called Magnificent Seven tech giants, with the world also waking to a new US tariff regime.
Dow Jones futures were up 199 points or 0.4%, while S&P 500 was expected to add 0.2% and Nasdaq futures were broadly flat, having surrendered an earlier gain of around 0.25%.
The day before, the Nasdaq had tumbled 2.2% to 25,138 due to the worst session for the Mag 7 since the original "tariff tantrum" day. The S&P 500 fell 1.2% to 7,408, while the Dow shed 507 points, or 1%, to close at 51,712.
Investors dumped technology stocks after results from Tesla and Alphabet failed to ease concerns about surging AI spending. Higher oil prices also reignited inflation worries and pushed Treasury yields to their highest levels of the year.
After WTI crude reached a seven-week high of $93.5 a barrel the previous afternoon, prices eased to $89.8 on Friday morning.
Security concerns remain elevated after strikes in the Red Sea, which led some tanker operators to reroute vessels onto even longer journeys.
Meanwhile, Donald Trump confirmed new tariffs covering more than 99% of US goods imports under Section 301 rules.
The levies, ranging from 10% to 12.5%, take effect Friday and are designed to enforce restrictions on "forced labour" imports, the White House said.
"Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere," US Trade Representative Jamieson Greer said.
Yale Budget Lab estimates the measures will lift the average statutory tariff rate to 12.8%.
In company news, Intel Corp (NASDAQ:INTC) gained 3% in premarket trading after beating second-quarter expectations and issuing a stronger outlook.
American Express Company (NYSE:AXP) has fallen 2.3% despite an earnings beat, while Verizon Communications Inc (NYSE:VZ, XETRA:BAC) is down 1.3% and NextEra Energy Inc (NYSE:NEE) has slipped 0.7% following mixed quarterly updates.
Elsewhere, a senior Korean official said Samsung and SK Hynix are expected to announce “very large-scale” contracts with leading US technology companies during President Lee Jae-myung’s visit to Silicon Valley, which starts today.
4:20pm: A losing week overall Wall Street ended a choppy Friday on a mixed note, with the Dow Jones and S&P 500 managing modest gains while the Nasdaq remained under pressure as investors wrapped up a volatile week.
The Dow climbed 236 points, or 0.5%, to 51,947, while the S&P 500 edged up 4 points, or 0.1%, to 7,412. The tech-heavy Nasdaq fell 162 points, or 0.6%, to 24,976, extending its recent weakness.
Despite Friday's rebound for the broader market, all three major indexes finished the week in the red. The Nasdaq led the declines, losing around 2% over the past five trading sessions as investors continued to rotate away from some high-growth technology names.
Attention now turns to a packed week of corporate earnings that could set the tone for markets heading into August. Big Tech will once again dominate the spotlight, with results due from Meta Platforms, Microsoft, Apple, Amazon and Arm. Investors will also be watching reports from blue-chip names including Coca-Cola, Exxon Mobil and Chevron for fresh insight into consumer spending and the energy sector.
With earnings season entering one of its busiest stretches, traders will be looking for signs that corporate profits can continue to support a market that has faced increased volatility in recent weeks.
3:40pm: Proactive news headlines American Resources Corp (NASDAQ:AREC) approved a special cash dividend of $0.0431 per share, returning capital to shareholders while continuing to invest in its critical minerals business. Miivo AI (TSX-V:MIVO) launched Customer Insights, an AI-powered self-service platform that helps small and mid-sized businesses track customer sentiment and manage their online reputation across major digital platforms. Ocean Power Technologies Inc (NYSE-A:OPTT) acquired strategic subsea technology assets from Columbia Power Technologies to expand its capabilities from surface to seabed and strengthen its autonomous maritime infrastructure offering. 2:30pm: Market movers Intel Corp (NASDAQ:INTC, XETRA:INL) shares fell more than 4% after investors looked past a strong second-quarter earnings beat and upbeat guidance to focus on mixed analyst reactions following the chipmaker's results. Verizon Communications Inc (NYSE:VZ, XETRA:BAC) shares climbed about 3% after the telecom giant beat second-quarter earnings expectations and raised its full-year outlook despite reporting revenue that missed forecasts. American Express Company (NYSE:AXP, XETRA:AEC1) shares dropped about 6% after second-quarter revenue narrowly missed Wall Street expectations, overshadowing better-than-expected earnings. 12:15pm: Welcome to X, Mr Huang Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) (Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)) CEO Jensen Huang posted on X for the first time on Friday, sharing a multi-company letter that defends open-weight AI models as essential to US technology leadership.
Huang, who joined the platform last month but had not posted until now, used his debut message to promote a letter signed by Nvidia and roughly 20 other organizations, including Meta, Microsoft and Palantir.
The letter argues that open models strengthen safety, accelerate innovation and support national AI sovereignty, and that US leadership should not rest on a single frontier model alone.
For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.
AI will transform every industry, power every company, and be built by every country.
Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C
— Jensen Huang (@JensenHuang) July 24, 2026 11:00am: Inflation still Fed's primary concern The US labour market continues to show little sign of meaningful deterioration despite softer hiring in June, according to Bank of America, leaving inflation as the Federal Reserve's primary concern ahead of next week's policy meeting.
The bank noted that while June payroll growth came in below expectations, the broader picture remains solid. The three-month average of job gains is still comfortably above the level needed to keep pace with population growth, while the unemployment rate has held steady at 4.2%.
More recent indicators have also remained encouraging. Bank of America said ADP private payroll growth has eased in recent weeks, but suggested that slowdown likely reflects a normalization after unusually strong hiring earlier this year. At the same time, weekly jobless claims continue to point to a stable labour market.
"Bottom line: the labor market appears healthy heading into the July FOMC meeting, leaving the focus squarely on inflation risks," analysts wrote.
10am: Mixed open It's another mixed open on Wall Street, with the Dow adding around 100 points, or 0.2%, while the S&P 500 was flat and the Nasdaq Composite started down 0.2% as technology shares seemed to be extending yesterday's selloff.
Charter Communications was the biggest Nasdaq 100 faller, sliding 6% after earnings, while other fallers include Marvell, Lumentum, Micron, Western Digital, ARM, Seagate and Intel, all down over 3.8%.
American Express has dropped 4.8%, the biggest Dow faller, but Verizon tops the leaderboard with a 3.5% gain, followed by Salesforce and IBM.
8am: Dow called higher but tech to remain a drag Wall Street is set for a tentative recovery on Friday after the previous session's technology selloff wiped roughly $800 billion from the market value of the so-called Magnificent Seven tech giants, with the world also waking to a new US tariff regime.
Dow Jones futures were up 199 points or 0.4%, while S&P 500 was expected to add 0.2% and Nasdaq futures were broadly flat, having surrendered an earlier gain of around 0.25%.
The day before, the Nasdaq had tumbled 2.2% to 25,138 due to the worst session for the Mag 7 since the original "tariff tantrum" day. The S&P 500 fell 1.2% to 7,408, while the Dow shed 507 points, or 1%, to close at 51,712.
Investors dumped technology stocks after results from Tesla and Alphabet failed to ease concerns about surging AI spending. Higher oil prices also reignited inflation worries and pushed Treasury yields to their highest levels of the year.
After WTI crude reached a seven-week high of $93.5 a barrel the previous afternoon, prices eased to $89.8 on Friday morning.
Security concerns remain elevated after strikes in the Red Sea, which led some tanker operators to reroute vessels onto even longer journeys.
Meanwhile, Donald Trump confirmed new tariffs covering more than 99% of US goods imports under Section 301 rules.
The levies, ranging from 10% to 12.5%, take effect Friday and are designed to enforce restrictions on "forced labour" imports, the White House said.
"Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere," US Trade Representative Jamieson Greer said.
Yale Budget Lab estimates the measures will lift the average statutory tariff rate to 12.8%.
In company news, Intel Corp (NASDAQ:INTC) gained 3% in premarket trading after beating second-quarter expectations and issuing a stronger outlook.
American Express Company (NYSE:AXP) has fallen 2.3% despite an earnings beat, while Verizon Communications Inc (NYSE:VZ, XETRA:BAC) is down 1.3% and NextEra Energy Inc (NYSE:NEE) has slipped 0.7% following mixed quarterly updates.
Elsewhere, a senior Korean official said Samsung and SK Hynix are expected to announce “very large-scale” contracts with leading US technology companies during President Lee Jae-myung’s visit to Silicon Valley, which starts today.
Key Takeaways NextEra Energy's adjusted EPS rose 9.5% to $1.15, beating estimates, while revenues missed. FPL added nearly 90,000 customers and has 21 GW of large-load interest, including 12 GW advanced.NextEra Energy Resources added 3.6 GW of renewables and storage, lifting backlog to 35.1 GW. NextEra Energy (NEE - Free Report) reported second-quarter 2026 results with adjusted earnings per share of $1.15, up 9.5% from $1.05 a year ago. The figure beat the Zacks Consensus Estimate of $1.09 by 5.5%. Strong contributions from both Florida Power & Light (“FPL”) and NextEra Energy Resources allowed the company to surpass expectations.
GAAP earnings per share were $1.50 compared with 98 cents in the year-ago quarter.
RevenuesTotal operating revenues were $7.53 billion, up 12.4% year over year but missed the Zacks Consensus Estimate of $7.99 billion by 5.8%. A key highlight was NextEra Energy Resources’ record renewables and storage origination, which added 3.6 gigawatts (“GW”) to backlog.
NEE’s Revenue Mix Reflected Strength in Both EnginesOperating revenues increased from $6.7 billion in the second quarter of 2025 to $7.53 billion, supported by gains across both major operating platforms. By segment, FPL generated $4.89 billion of operating revenues in the quarter, while NextEra Energy Resources produced $2.53 billion, with Corporate and Other adding $106 million.
Highlights of NextEra Energy's ReleaseFPL’s growth in the reported quarter was largely fueled by ongoing business investments. Operationally, FPL’s regulatory capital employed increased about 9.3% year over year, while the customer base expanded nearly 90,000 in the quarter.
FPL continues to witness strong demand from hyperscalers and other large customers seeking reliable, competitively priced power with quick deployment. The utility has nearly 21 GW of large-load interest, including 12 GW in advanced discussions, with some projects potentially coming online as early as 2028. FPL expects to announce at least one large-load deal under its tariff by year-end.
NextEra Energy Resources had a strong quarter for new renewables and storage origination, adding to its backlog. With the new additions, NextEra Energy Resources' backlog now totals 35.1 GW after taking into account more than 1.1 GW of new projects placed into service as of July 24, 2026.
Total operating expenses in the second quarter were $5.28 billion, up 10%, due to higher operational and maintenance expenses and higher fuel, purchased power and interchange expenses.
Financial HighlightsOn the balance sheet at June 30, 2026, NextEra Energy reported cash and cash equivalents of nearly $2.86 billion and total assets of $232.8 billion.
Long-term debt stood at $98.79 billion, while total equity was $68.1 billion.
In the first six months of 2026, net cash provided by operating activities was $7.27 billion, net cash used in investing activities was $19.11 billion and net cash provided by financing activities was $12.05 billion.
The utility’s full-year growth narrative continued to center on capital deployment, with nearly $5.78 billion of capital expenditures in the first six months of the year.
NEE Guidance and Financial Position Stayed in FocusNextEra Energy maintained the 2026 adjusted earnings per share expectation of $3.92 to $4.02 and said it is targeting the high end of that range. The Zacks Consensus Estimate for 2026 earnings per share is currently pegged at $4.01, which is near the top of the guidance.
In the long term, the company continues to target adjusted earnings per share growth of more than 8% annually through 2032 to 2035, using 2025 adjusted earnings of $3.71 as the base.
NEE’s Zacks RankNextEra Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming ReleasesXcel Energy (XEL - Free Report) is set to release second-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings per share is pegged at 79 cents.
XEL’s long-term (three-to-five years) earnings growth rate is 9.36%. The Zacks Consensus Estimate for second-quarter earnings per share indicates year-over-year growth of 5.33%.
Dominion Energy (D - Free Report) is scheduled to announce second-quarter 2026 results on July 31. The Zacks Consensus Estimate for earnings per share is pegged at 78 cents.
The consensus estimate for second-quarter earnings per share indicates growth of 4% from the prior-year actual.
Exelon Corporation (EXC - Free Report) is scheduled to announce second-quarter 2026 results on July 30. The Zacks Consensus Estimate for earnings is pegged at 44 cents per share.
Exelon’s long-term earnings growth rate is estimated at 6.03%. The Zacks Consensus Estimate for second-quarter earnings per share indicates growth of 12.82% from the year-earlier level.
Three dividend-paying blue chips reported Q2 2026 earnings on the same morning, all beating EPS estimates: Verizon Communications (NYSE:VZ | VZ Price Prediction) at $45.03 looks attractive, American Express (NYSE:AXP) at $321.72 appears fairly valued, and NextEra Energy (NYSE:NEE) at $89.24 screens favorably.
Each revealed a different story beneath the headline beat, with sharply divergent market reactions.
Verizon: The Cheap Yield Story Just Got Cheaper Verizon posted adjusted EPS of $1.30 vs. $1.27 estimated, its sixth consecutive beat, and raised full-year guidance to $4.99 to $5.04 with free cash flow growth of 9% to 10%. Postpaid phone net adds swung from a loss of 9,000 to a gain of 184,000, and fiber connections jumped 43.3% to 10.9 million. Shares gained 2.76% on the report.
VZ trades at a forward P/E of 9 with a 6.24% dividend yield backed by 25+ years of uninterrupted payments and a hike to $0.7075 quarterly. The analyst target of $51.12, from 26 covering analysts with 11 Buys and 15 Holds, implies roughly 13% upside.
Bears cite $136.5 billion of unsecured debt and net debt/EBITDA of 2.5x, up from 2.2x. Free cash flow of $6.43B, up 27.12% YoY comfortably covers the payout.
At $45.03, Verizon looks attractive on valuation and yield. The stock has returned 13% YTD, ahead of the S&P 500’s 10% gain, and raised guidance plus expanded $4.5B buyback offer defensive yield and a credible growth path from emerging AI infrastructure revenue.
American Express: A Great Business at an Uncomfortable Moment AmEx beat EPS at $4.53 vs. $4.40 estimated on 9% Card Member spending growth, the fastest in three years. Revenue of $19.64B missed the $19.70B estimate grew while expenses rose 12% against 10% revenue growth, and the effective tax rate jumped to 23.6% from 18.7%. Management held EPS guidance at $17.30 to $17.90 and reinvested outperformance. Shares fell 5.61% on the earnings report.
Bulls note Platinum refresh is driving the fastest-growing portfolio in U.S. Consumer, accelerating Millennial and Gen-Z acquisition, and provisions dropped to $1.10B from $1.40B.
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The analyst target of $374.94, from 30 analysts with 14 Buys, 15 Holds, and 1 Sell, implies about 17% upside. AXP trades at a forward P/E of 20, a premium to its long-term average, and has lagged the S&P 500 with a 7.12% YTD decline.
At $321.72, American Express appears fairly valued. The franchise is intact and 11.61% one-year return shows the long-term compounder still works, but expenses outpacing revenue in a decelerating consumer environment is the wrong setup for fresh capital. Wait for a reset toward $285.29 52-week low or proof that reinvestment produces incremental revenue.
NextEra Energy: Power Demand and a Merger Catalyst NEE delivered adjusted EPS of $1.15 vs. $1.10 estimated, its fifth straight beat, with net income up 55% to $3.14B. FPL added 90,000+ customers, and NEER added 3.6 GW to a 35.1 GW backlog. Revenue of $7.53B missed the $8.15B estimate grew 12.45% YoY.
Management reaffirmed $3.92 to $4.02 adjusted EPS, targeting the high end, plus 8%+ compound EPS growth through 2032. The proposed Dominion Energy combination, expected to close H2 2027, would support 11% annual regulatory capital growth through 2032.
Shares are up 13.41% YTD and 26.86% over one year, both ahead of the S&P 500. Coverage runs 22 analysts, with 14 Buys, 7 Holds, and 1 Sell.
At $89.24, NextEra Energy screens favorably on growth and yield. Utilities rarely offer a 2.64% yield compounding near 10% annually alongside an accelerating regulatory capital base and a rerating catalyst. The analyst target of $98.80 implies roughly 11% upside and does not yet fully price the Dominion deal. Watch state and FERC approvals into 2027.
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NextEra Energy, Inc. (NEE) Q2 2026 Earnings Call July 24, 2026 9:00 AM EDT
Company Participants
Michael Dowling
John Ketchum - President, CEO & Chairman
Michael Dunne - CFO & Executive VP of Finance
Scott Bores - President & CEO
Brian Bolster - CEO & President
Conference Call Participants
Steven Fleishman - Wolfe Research, LLC
Julien Dumoulin-Smith - Jefferies LLC, Research Division
Nicholas Campanella - Barclays Bank PLC, Research Division
Jeremy Tonet - JPMorgan Chase & Co, Research Division
Carly Davenport - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Good day, and welcome to the NextEra Energy, Inc. Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.
I would now like to turn the conference over to Michael Dowling, Director of Investor Relations. Please go ahead.
Michael Dowling
Good morning, everyone, and thank you for joining our second quarter 2026 financial results conference call for NextEra Energy. With me this morning are John Ketchum, Chairman, President and Chief Executive Officer of NextEra Energy; Mike Dunne, Executive Vice President and Chief Financial Officer of NextEra Energy; Armando Pimentel, Vice Chairman of NextEra Energy; Scott Bores, President and Chief Executive Officer of Florida Power & Light Company; Brian Bolster, President and Chief Executive Officer of NextEra Energy Resources; and Mark Hickson, Executive Vice President of NextEra Energy.
John will start with opening remarks, and then Mike will provide an overview of our results. Our executive team will then be available to answer your questions.
We will be making forward-looking statements during this call based on current expectations and assumptions, which are subject to risks and uncertainties. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect or because of other factors discussed in today's earnings news release, in the comments made during this conference call, in the
12:15pm: Welcome to X, Mr Huang Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) (Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)) CEO Jensen Huang posted on X for the first time on Friday, sharing a multi-company letter that defends open-weight AI models as essential to US technology leadership.
Huang, who joined the platform last month but had not posted until now, used his debut message to promote a letter signed by Nvidia and roughly 20 other organizations, including Meta, Microsoft and Palantir.
The letter argues that open models strengthen safety, accelerate innovation and support national AI sovereignty, and that US leadership should not rest on a single frontier model alone.
For my first post, I’m sharing a letter @NVIDIA signed on why open models matter.
AI will transform every industry, power every company, and be built by every country.
Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty.… pic.twitter.com/t02bi51N4C
— Jensen Huang (@JensenHuang) July 24, 2026 11:00am: Inflation still Fed's primary concern The US labour market continues to show little sign of meaningful deterioration despite softer hiring in June, according to Bank of America, leaving inflation as the Federal Reserve's primary concern ahead of next week's policy meeting.
The bank noted that while June payroll growth came in below expectations, the broader picture remains solid. The three-month average of job gains is still comfortably above the level needed to keep pace with population growth, while the unemployment rate has held steady at 4.2%.
More recent indicators have also remained encouraging. Bank of America said ADP private payroll growth has eased in recent weeks, but suggested that slowdown likely reflects a normalization after unusually strong hiring earlier this year. At the same time, weekly jobless claims continue to point to a stable labour market.
"Bottom line: the labor market appears healthy heading into the July FOMC meeting, leaving the focus squarely on inflation risks," analysts wrote.
10am: Mixed open It's another mixed open on Wall Street, with the Dow adding around 100 points, or 0.2%, while the S&P 500 was flat and the Nasdaq Composite started down 0.2% as technology shares seemed to be extending yesterday's selloff.
Charter Communications was the biggest Nasdaq 100 faller, sliding 6% after earnings, while other fallers include Marvell, Lumentum, Micron, Western Digital, ARM, Seagate and Intel, all down over 3.8%.
American Express has dropped 4.8%, the biggest Dow faller, but Verizon tops the leaderboard with a 3.5% gain, followed by Salesforce and IBM.
8am: Dow called higher but tech to remain a drag Wall Street is set for a tentative recovery on Friday after the previous session's technology selloff wiped roughly $800 billion from the market value of the so-called Magnificent Seven tech giants, with the world also waking to a new US tariff regime.
Dow Jones futures were up 199 points or 0.4%, while S&P 500 was expected to add 0.2% and Nasdaq futures were broadly flat, having surrendered an earlier gain of around 0.25%.
The day before, the Nasdaq had tumbled 2.2% to 25,138 due to the worst session for the Mag 7 since the original "tariff tantrum" day. The S&P 500 fell 1.2% to 7,408, while the Dow shed 507 points, or 1%, to close at 51,712.
Investors dumped technology stocks after results from Tesla and Alphabet failed to ease concerns about surging AI spending. Higher oil prices also reignited inflation worries and pushed Treasury yields to their highest levels of the year.
After WTI crude reached a seven-week high of $93.5 a barrel the previous afternoon, prices eased to $89.8 on Friday morning.
Security concerns remain elevated after strikes in the Red Sea, which led some tanker operators to reroute vessels onto even longer journeys.
Meanwhile, Donald Trump confirmed new tariffs covering more than 99% of US goods imports under Section 301 rules.
The levies, ranging from 10% to 12.5%, take effect Friday and are designed to enforce restrictions on "forced labour" imports, the White House said.
"Today's action will begin to correct what is both a human rights abuse and distortive trade practice to improve the welfare of workers everywhere," US Trade Representative Jamieson Greer said.
Yale Budget Lab estimates the measures will lift the average statutory tariff rate to 12.8%.
In company news, Intel Corp (NASDAQ:INTC) gained 3% in premarket trading after beating second-quarter expectations and issuing a stronger outlook.
American Express Company (NYSE:AXP) has fallen 2.3% despite an earnings beat, while Verizon Communications Inc (NYSE:VZ, XETRA:BAC) is down 1.3% and NextEra Energy Inc (NYSE:NEE) has slipped 0.7% following mixed quarterly updates.
Elsewhere, a senior Korean official said Samsung and SK Hynix are expected to announce “very large-scale” contracts with leading US technology companies during President Lee Jae-myung’s visit to Silicon Valley, which starts today.
NextEra Energy (NEE - Free Report) reported $7.53 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 12.5%. EPS of $1.15 for the same period compares to $1.05 a year ago.
The reported revenue represents a surprise of -5.76% over the Zacks Consensus Estimate of $7.99 billion. With the consensus EPS estimate being $1.09, the EPS surprise was +5.51%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how NextEra performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Revenues- NextEra Energy Resources (NEER): $2.53 billion versus the two-analyst average estimate of $3.27 billion. The reported number represents a year-over-year change of +32.3%.Operating Revenues- Florida Power & Light (FPL): $4.9 billion versus the two-analyst average estimate of $4.97 billion. The reported number represents a year-over-year change of +4%.Operating Income (Loss)- Florida Power & Light (FPL): $1.82 billion compared to the $2 billion average estimate based on two analysts.Operating Income (Loss)- Corporate & Other: $-103 million versus the two-analyst average estimate of $-38.5 million.Operating Income (Loss)- NextEra Energy Resources (NEER): $519 million versus the two-analyst average estimate of $1.53 billion.View all Key Company Metrics for NextEra here>>>
Shares of NextEra have returned +2.4% over the past month versus the Zacks S&P 500 composite's +0.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
NextEra Energy (NEE -0.30%) reported its second-quarter financial results on June 24. The utility giant generated robust earnings growth, as its adjusted earnings per share surged 9.5%. The company is benefiting from strong power demand growth from AI data centers and other catalysts.
Here’s a closer look at that report and whether investors should buy the utility stock right now.
Image source: The Motley Fool.
Another strong showingNextEra Energy reported $2.4 billion, or $1.15 per share of adjusted earnings, in the second quarter, up 9.5% compared to the year-ago period. Both the utility’s businesses, FPL and Energy Resources, delivered strong results.
The company’s regulated electric utility in Florida, FPL, generated $1.4 billion in net income, up nearly 11% year over year. It continues to benefit from Florida’s economic growth, adding more than 90,000 customers over the past year. That’s driving heavy capital spending ($12 billion to $13 billion this year) to support the state's growing power demand. FPL is seeing robust demand from data center developers and other large customers.
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Meanwhile, its clean energy infrastructure development platform, NextEra Energy Resources, reported earnings growth of more than 18% to about $1.3 billion. It placed 1.1 gigawatts (GW) of new projects into service over the past three months to support growing power demand from other utilities and large customers. The company also energized a new 137-mile transmission line in New Mexico to strengthen grid reliability in the state.
Powerful growth still aheadNextEra Energy believes it will continue growing briskly for years to come. Its baseline expectation is to deliver more than 8% compound annual adjusted earnings per share growth through 2032, with a target to maintain that same growth rate from 2032 to 2035. It has multiple growth catalysts. FPL has roughly 21 GW of large-load interest from data center developers and other large power users, including 12 GW in advanced discussions that could begin delivery as soon as 2028. Meanwhile, NextEra Energy Resources has 35.1 GW in its backlog, most of which it expects to deliver by the end of the decade. It also remains on track to restart its Duane Arnold nuclear power plant by 2029 to support Google’s growing power demand and was selected to develop two large-scale transmission projects in Illinois.
While NextEra already has robust growth in its existing businesses, it aims to further enhance its strong growth profile by combining with Dominion. That $67 billion deal will create the world’s largest regulated electric utility. NextEra expects the deal will accelerate its earnings growth rate to more than 9% annually through 2032, with a target of maintaining that rate through 2035. Dominion’s electric utility in Virginia is benefiting from strong power demand growth from data centers, and the combined company would be better positioned to support it.
NextEra’s robust growth has helped power its stock, which is up more than 22% over the past year. As a result, it currently trades at more than 22 times forward earnings, which is higher than its peers (19 to 21 times range) and the S&P 500 (21.5x).
However, that’s still a fairly attractive value to pay for this leading utility stock. It’s the largest player in the space and growing faster than most of its peers. It could generate double-digit average annual total returns from here by adding its growth rate to its current dividend yield (2.8%). That’s a strong return from a lower-risk investment, making NextEra still look like a compelling buy after its earnings report.
NextEra Energy NYSE: NEE reported second-quarter 2026 adjusted earnings per share of $1.15, while adjusted EPS for the first six months of the year rose 9.8% from a year earlier. Chairman, President and CEO John Ketchum said the results reflected continued execution at Florida Power & Light Co. and NextEra Energy Resources amid rising electricity demand.
Miniatures of windmill, solar panel and electric pole are seen in front of NextEra Energy logo in this illustration taken January 17, 2023. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
CompaniesJuly 24 (Reuters) - NextEra Energy (NEE.N), opens new tab beat Wall Street estimates for second-quarter profit on Friday, as robust demand for electricity from data centers continued to drive growth at its regulated utility and renewable energy businesses.
U.S. utilities are investing billions of dollars to expand power generation and transmission as technology companies race to secure electricity for data centers, and as more of the economy shifts to electricity from fossil fuels.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
The U.S. Energy Information Administration expects power demand, which reached a record for a second straight year in 2025, to continue rising through 2026 and 2027.
NextEra, one of the world's largest renewable energy developers, is among the companies positioning themselves for that growth.
In May, it agreed to buy Dominion Energy (D.N), opens new tab in a $66.8 billion deal that would create one of the world's largest electric utilities and broaden its regulated footprint across fast-growing U.S. markets.
The deal is under regulatory review after drawing opposition from U.S. Senator Angus King, who argued it would concentrate too much market power in one company.
Florida Power & Light, the company's regulated utility, posted a 10.2% rise in second-quarter net income to $1.41 billion, while regulatory capital employed increased about 9.3%.
NextEra said FPL continues to see strong interest from hyperscalers and other large electricity users, with about 21 gigawatts of large-load opportunities, including 12 GW in advanced discussions.
It expects to announce at least one agreement under its large-load tariff before year-end.
NextEra Energy Resources, its renewable energy unit, reported net income of $1.63 billion, up 66.2%, and added 3.6 GW of wind, solar and battery storage projects during the quarter, taking its development backlog to about 35.1 GW.
The company earned $1.15 per share on an adjusted basis in the quarter ended June 30, above analysts' average estimate of $1.11, according to data compiled by LSEG.
Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo
Our Standards: The Thomson Reuters Trust Principles., opens new tab
NextEra Energy (NEE - Free Report) came out with quarterly earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.09 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.51%. A quarter ago, it was expected that this parent company of Florida Power & Light Co. would post earnings of $0.98 per share when it actually produced earnings of $1.09, delivering a surprise of +11.22%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
NextEra, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $7.53 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.76%. This compares to year-ago revenues of $6.7 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
NextEra shares have added about 11.9% since the beginning of the year versus the S&P 500's gain of 8.2%.
What's Next for NextEra?While NextEra has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for NextEra was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.27 on $9.18 billion in revenues for the coming quarter and $4.01 on $31.85 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Entergy (ETR - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 29.
This power company is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of -6.7%. The consensus EPS estimate for the quarter has been revised 4.4% higher over the last 30 days to the current level.
Entergy's revenues are expected to be $3.56 billion, up 6.9% from the year-ago quarter.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE) has posted its second-quarter 2026 financial results in a news release available on the company's website at www.NextEraEnergy.com/FinancialResults.
Members of the company's senior management team will discuss the company's second-quarter 2026 financial results during an investor presentation to be webcast live, beginning at 9 a.m. ET today. The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/FinancialResults. A replay will be available for 90 days by accessing the link listed above.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns the largest energy infrastructure development company in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.
Goldman Sachs (GS -1.95%) has gone through better and worse times over its storied, 157-year history, and these are definitely better times. Among a large array of capital markets activity in the second quarter, the most prominent was its role as the lead underwriter on the Space Exploration Technologies (SpaceX) initial public offering (IPO).
Goldman Sachs stock hit a record last week, topping $1,150, and there's still momentum building as the investment bank services its long backlog of client demand. But is there anything left for new investors?
Driven by a strong bull market Goldman Sachs is the largest investment bank in the world, and it thrives in strong bull markets. The S&P 500 hit new highs in the second quarter, during which it gained 14.6%, and that drives business for investment banks. CEO David Solomon noted that the artificial intelligence (AI) cycle is creating large capital markets needs, and clients are coming to Goldman Sachs for services like financing and risk management.
Image source: Getty Images.
The bank has several divisions, and there's a flywheel effect as financing advice turns into capital raises and capital raises in turn become opportunities for the wealth management division. Altogether, it's a wheel that keeps turning and reaping results in all sorts of ways.
This led to record performance in the second quarter, including record revenue of $20.3 billion, record fees, record assets under management of more than $4 trillion, and record earnings per share of $20.98. Global banking and markets revenue increased 53% year over year, driven by a 55% increase in investing banking fees, while total revenue was up 39%.
Not just SpaceX While the SpaceX IPO was certainly an important part of the second-quarter blowout, there were several other prominent pieces. It also structured a secondary offering for Alphabet, advised NextEra Energy's acquisition of Dominion Energy, and advised Comcast's spinoff of NBCUniversal. Solomon noted a "significant" increase in corporate dealmaking, and large-cap corporate mergers and acquisitions volume increased 90% year over year through the first half of 2026, while its backlog is the highest in five years and the second-highest ever.
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The question is what comes next. While Solomon pointed out that it's clear that these are the early innings in the AI buildout, history shows that high IPO activity often comes at the end of a bull cycle. Goldman Sachs stock trades at just under 17 times trailing-12-month earnings, which is a premium to recent averages. This might be the peak of the deal-making cycle, and investors should consider that, as well as Goldman Sachs is performing, this might not be the optimal time to buy the stock.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Goldman Sachs Group, and NextEra Energy. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
Key Takeaways NextEra Energy leads on dividend yield, net margin, stock stability and one-year share performance.Constellation Energy is likely to post stronger 2026-2027 earnings growth estimates and long-term growth.NextEra Energy plans over $94.1B in investments through 2030 to strengthen its operations. The Zacks Utility - Electric Power industry offers a compelling opportunity for stable, long-term income, supported by its regulated business model. Utilities can recover approved costs and earn regulated returns, which helps limit earnings volatility. Resilient electricity demand across economic cycles, combined with generally attractive dividend yields, makes the sector a dependable defensive choice for income-focused investors. Moreover, the capital-intensive nature of utility operations makes lower interest rates particularly beneficial, as reduced borrowing costs can support long-term infrastructure investments and ease financing pressures.
NextEra Energy (NEE - Free Report) and Constellation Energy (CEG - Free Report) are two of the major U.S. energy companies operating in power generation. The energy space is going through a transitional phase, with emphasis on producing clean energy and reducing emissions from the electricity generation process.
NextEra Energy is a leading U.S. utility with a strong position in renewable energy and long-term growth. The company continues to invest significantly in wind, solar, battery storage and grid modernization, reinforcing its role in the clean energy transition. Through its two primary businesses, Florida Power & Light and NextEra Energy Resources, NEE operates one of the largest wind and solar portfolios globally. Supported by solid financial performance, innovation and a diversified energy platform, the company offers investors a combination of stability and long-term growth potential as the shift toward cleaner energy gains momentum.
Constellation Energy also presents an attractive investment case, backed by its position as one of the largest producers of carbon-free nuclear energy in the United States. Its fleet of reliable, high-capacity nuclear plants provides steady baseload power, reducing exposure to commodity price volatility and supporting more predictable cash flows. As electricity demand rises from data centers, artificial intelligence and industrial electrification, Constellation Energy is well positioned to capitalize on growing demand for reliable, around-the-clock zero-emission power. Ongoing investments and supportive energy policies could further enhance its long-term growth prospects.
With demand for clean and reliable electricity accelerating, a closer examination of the fundamentals, growth drivers and investment outlook of both companies can help determine which stock offers the more compelling opportunity for investors.
NEE and CEG’s Earnings EstimatesThe Zacks Consensus Estimate for NextEra Energy’s earnings per share in 2026 and 2027 has increased year-over-year by 8.09% and 8.7%, respectively. Long-term (three to five years) earnings growth per share is pegged at 9.12%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Constellation Energy’s earnings per share in 2026 and 2027 has increased year-over-year by 25.03% and 16.02%, respectively. Long-term earnings growth per share is pegged at 21.74%.
Image Source: Zacks Investment Research
NEE & CEG’s Dividend YieldCompanies involved in electricity generation are heavily regulated, which provides a clear picture of their forward earnings. Stable earnings allow management to approve the distribution of dividends and increase shareholders’ value.
Currently, the dividend yield for NextEra Energy is 2.81% compared with the Zacks S&P 500 composite’s average of 1.33%, and the same for Constellation Energy is 0.68%.
NEE & CEG’s Long-Term Strategic Investment PlansCapital expenditure plays a vital role in the energy sector by supporting infrastructure expansion, enhancing system reliability and enabling sustainable long-term growth. Utilities need to make ongoing investments in power generation, transmission and distribution infrastructure to address rising electricity demand, integrate renewable energy and meet evolving regulatory requirements.
NextEra Energy plans to invest more than $94.1 billion through 2030 to strengthen its operations further. Constellation Energy expects to invest nearly $5.7 billion and $4.7 billion for 2026 and 2027, respectively, including nuclear fuel purchases to build inventory and growth investments for uprates, renewals and plant upgrades.
ValuationNextEra Energy currently appears to be trading at a premium compared with Constellation Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).
NEE is currently trading at 20.92X, while CEG is trading at 19.84X.
Image Source: Zacks Investment Research
Net Profit MarginNet profit margin measures how efficiently a company converts revenues into profit after all expenses, offering insight into its overall profitability and financial health.
NextEra Energy's net margin is 28.42X compared with Constellation Energy’s 10.86X.
Image Source: Zacks Investment Research
Volatility of the StockBeta measures a stock’s volatility relative to the broader market and indicates its level of market-related risk. Generally, a higher beta signals greater volatility and risk. A beta above 1 means the stock tends to experience greater price volatility than the broader market, with larger swings in both directions.
NextEra Energy’s beta is currently pegged at 0.67 and Constellation Energy’s beta is 1.11. CEG tends to be more volatile due to its greater exposure to merchant power markets.
Price PerformanceOver the last year, NextEra Energy’s shares have gained 15.5% against Constellation Energy’s decline of 20.3%.
Price Performance (One year)
Image Source: Zacks Investment Research
Wrapping UpConstellation Energy and NextEra Energy generate significant amounts of clean energy, helping meet the electricity needs of millions of customers across their U.S. service territories.
Based on the above discussion, NextEra Energy currently has a marginal edge over Constellation Energy. NEE’s stronger dividend yield, elaborate capital investment, better price performance, healthier net margin and lower beta make it attractive compared with CEG.
Considering the aforementioned factors, NextEra Energy is currently our choice with a Zacks Rank #2 (Buy), while Constellation Energy carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Andra AP fonden lifted its position in NextEra Energy, Inc. (NYSE:NEE – Free Report) by 194.4% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 360,495 shares of the utilities provider’s stock after purchasing an additional 238,041 shares during the period. Andra AP fonden’s holdings in NextEra Energy were worth $33,483,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in NextEra Energy by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 216,033,697 shares of the utilities provider’s stock valued at $17,343,185,000 after buying an additional 2,234,176 shares in the last quarter. Geode Capital Management LLC grew its position in shares of NextEra Energy by 2.1% during the 4th quarter. Geode Capital Management LLC now owns 47,272,019 shares of the utilities provider’s stock valued at $3,781,790,000 after acquiring an additional 966,152 shares during the period. Norges Bank acquired a new stake in shares of NextEra Energy during the 4th quarter valued at about $2,816,327,000. Price T Rowe Associates Inc. MD increased its stake in shares of NextEra Energy by 6.6% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 18,365,788 shares of the utilities provider’s stock valued at $1,474,407,000 after purchasing an additional 1,136,074 shares in the last quarter. Finally, Deutsche Bank AG increased its stake in shares of NextEra Energy by 2.9% in the 4th quarter. Deutsche Bank AG now owns 17,281,357 shares of the utilities provider’s stock valued at $1,387,347,000 after purchasing an additional 485,854 shares in the last quarter. 78.72% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analysts Forecast Growth A number of equities analysts have issued reports on the company. Morgan Stanley increased their price target on NextEra Energy from $111.00 to $117.00 and gave the stock an “overweight” rating in a research report on Wednesday, June 24th. Evercore restated an “outperform” rating and issued a $107.00 price objective on shares of NextEra Energy in a research report on Monday, May 4th. HSBC increased their target price on NextEra Energy from $103.00 to $106.00 and gave the company a “buy” rating in a research report on Tuesday, April 28th. JPMorgan Chase & Co. lifted their price target on shares of NextEra Energy from $100.00 to $105.00 and gave the company an “overweight” rating in a research note on Wednesday, May 13th. Finally, BMO Capital Markets reduced their price objective on shares of NextEra Energy from $102.00 to $95.00 and set an “outperform” rating for the company in a research report on Monday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $99.32.
View Our Latest Stock Analysis on NEE
NextEra Energy Price Performance Shares of NYSE NEE opened at $88.00 on Tuesday. The firm has a 50-day simple moving average of $87.80 and a 200-day simple moving average of $89.29. The company has a quick ratio of 0.44, a current ratio of 0.54 and a debt-to-equity ratio of 1.41. The stock has a market capitalization of $183.51 billion, a price-to-earnings ratio of 22.39, a price-to-earnings-growth ratio of 2.43 and a beta of 0.67. NextEra Energy, Inc. has a 52 week low of $69.24 and a 52 week high of $98.75.
NextEra Energy (NYSE:NEE – Get Free Report) last posted its quarterly earnings results on Thursday, April 23rd. The utilities provider reported $1.09 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.06. The firm had revenue of $6.70 billion for the quarter, compared to analyst estimates of $7.43 billion. NextEra Energy had a net margin of 29.36% and a return on equity of 12.25%. NextEra Energy’s quarterly revenue was up 7.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.99 earnings per share. NextEra Energy has set its FY 2026 guidance at 3.920-4.02 EPS. On average, equities analysts predict that NextEra Energy, Inc. will post 4.01 earnings per share for the current fiscal year.
NextEra Energy Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, June 5th were given a $0.6232 dividend. The ex-dividend date was Friday, June 5th. This represents a $2.49 dividend on an annualized basis and a yield of 2.8%. NextEra Energy’s payout ratio is currently 63.36%.
NextEra Energy Company Profile (Free Report)
NextEra Energy, Inc (NYSE: NEE), headquartered in Juno Beach, Florida, is a leading clean energy company with both regulated utility operations and competitive renewable generation businesses. The company’s principal operating subsidiaries include Florida Power & Light Company (FPL), a regulated electric utility serving customers in Florida, and NextEra Energy Resources, which develops, constructs, owns and operates a large portfolio of wind, solar and energy storage projects. Together these businesses provide electricity supply, transmission and distribution services as well as utility-scale renewable generation and related services.
NextEra’s activities cover the full lifecycle of power assets, from project development and construction to operation, maintenance and asset optimization.
Recommended Stories Five stocks we like better than NextEra Energy The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding NEE? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NextEra Energy, Inc. (NYSE:NEE – Free Report).
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The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about NextEra Energy (NEE - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
NextEra currently has an average brokerage recommendation (ABR) of 1.91, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 22 brokerage firms. An ABR of 1.91 approximates between Strong Buy and Buy.
Of the 22 recommendations that derive the current ABR, 13 are Strong Buy, representing 59.1% of all recommendations.
Brokerage Recommendation Trends for NEE
Check price target & stock forecast for NextEra here>>>
The ABR suggests buying NextEra, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NEE a Good Investment?Looking at the earnings estimate revisions for NextEra, the Zacks Consensus Estimate for the current year has increased 0.2% over the past month to $4.01.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for NextEra. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for NextEra may serve as a useful guide for investors.
Investors interested in Utilities stocks should always be looking to find the best-performing companies in the group. NextEra Energy (NEE - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question.
NextEra Energy is one of 111 companies in the Utilities group. The Utilities group currently sits at #14 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. NextEra Energy is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for NEE's full-year earnings has moved 0.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, NEE has moved about 10.6% on a year-to-date basis. Meanwhile, the Utilities sector has returned an average of 6.5% on a year-to-date basis. As we can see, NextEra Energy is performing better than its sector in the calendar year.
Another stock in the Utilities sector, NiSource (NI - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 10.1%.
The consensus estimate for NiSource's current year EPS has increased 0.2% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Breaking things down more, NextEra Energy is a member of the Utility - Electric Power industry, which includes 63 individual companies and currently sits at #155 in the Zacks Industry Rank. This group has gained an average of 7.7% so far this year, so NEE is performing better in this area. NiSource is also part of the same industry.
NextEra Energy and NiSource could continue their solid performance, so investors interested in Utilities stocks should continue to pay close attention to these stocks.
Key Takeaways NextEra Energy's Q2 revenues are projected to rise 18.92% year over year to $7.97 billion.Florida demand, customer growth and new renewable projects are expected to support quarterly earnings.Premium valuation and costly natural gas projects remain concerns despite stronger-than-industry ROE. NextEra Energy (NEE - Free Report) is scheduled to release its second-quarter 2026 results on July 24, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.08 per share on revenues of $7.97 billion.
Second-quarter earnings estimates have remained unchanged over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 18.92%.
Image Source: Zacks Investment Research
NEE Stock’s Earnings Surprise HistoryNextEra Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.18%.
Image Source: Zacks Investment Research
What the Zacks Model UnveilsOur proven model does not conclusively predict an earnings beat for NextEra Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
NEE’s Earnings ESP: NextEra Energy has an Earnings ESP of -0.47%.
Zacks Rank of NEE: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Some companies in the same industry with the right combination of the two factors for an earnings beat this season are Edison International (EIX - Free Report) , Duke Energy (DUK - Free Report) and PPL Corporation (PPL - Free Report) . EIX, DUK and PPL currently have an Earnings ESP of +20.45%, +0.08% and +4.23%, respectively. EIX and DUK carry a Zacks Rank #2 each, while PPL has a Zacks Rank #3.
Factors Likely to Have Boosted NEE Stock’s Q2 ResultsNextEra Energy’s subsidiary, Florida Power & Light (“FPL”), continues to capitalize on Florida’s robust economic growth, driving consistent customer additions. Strategic investments in grid infrastructure support reliable service while keeping electricity rates about 25% below the national average. Competitive pricing and the ongoing shift toward renewable energy are improving customer retention and reducing fuel expenses, supporting long-term earnings growth. Improving electricity demand from this region is expected to have a positive impact on earnings.
NextEra Energy’s other unit, Energy Resources, is benefiting from the new additions to its renewables and storage portfolio. After placing 0.7 gigawatts (GWs) of new projects into service during the first quarter, its backlog stood at nearly 28 GWs. Energy Resources' second-quarter earnings are expected to benefit from the addition of new renewable generation in its portfolio.
Strategic investment in its infrastructure and strong demand from AI and data centers operating in the service region will continue to drive NextEra Energy's performance. New projects placed into service are likely to have contributed to second-quarter earnings.
However, developing natural gas projects has become costly compared with renewable and battery storage and at times, procuring gas turbines for natural gas projects becomes difficult for the company, which can escalate operating costs and adversely impact earnings per share.
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The company's current ROE indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.
Image Source: Zacks Investment Research
NEE Stock’s Price PerformanceNEE’s shares have gained 16.6% in the past year compared with the Zacks Utility – Electric Power industry’s rise of 16.5%.
Image Source: Zacks Investment Research
NextEra Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is trading at 21.12X compared with its industry’s 15.4X.
Image Source: Zacks Investment Research
Investment ThesisFlorida’s improving economic conditions are driving higher electricity demand and supporting steady customer growth for NextEra Energy. Continued investments in renewable energy and battery storage are further enhancing its ability to provide reliable and sustainable power.
Through disciplined cost control, the company keeps utility bills significantly below the national average, improving affordability and helping attract additional customers. Demand from data centers is going to create fresh opportunities for the company.
Although the company’s ROE is better than the industry, its premium valuation and costly natural gas projects compared with renewables are a concern.
Wrapping UpAlthough NextEra Energy’s second-quarter earnings are likely to come in below estimates, its long-term outlook remains solid. Ongoing investments in renewable energy and Florida’s robust economic expansion continue to create new growth opportunities.
With increasing power demand and a steadily expanding customer base, the company is well positioned to deliver sustainable growth, making the stock an appealing investment at current valuations.
Broderick Brian C acquired a new position in NextEra Energy, Inc. (NYSE:NEE – Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 30,954 shares of the utilities provider’s stock, valued at approximately $2,875,000.
Several other institutional investors have also recently made changes to their positions in the business. Indivisible Partners bought a new stake in shares of NextEra Energy in the fourth quarter worth about $1,355,000. Carnegie Investment Counsel boosted its stake in NextEra Energy by 9.4% during the fourth quarter. Carnegie Investment Counsel now owns 458,141 shares of the utilities provider’s stock valued at $36,780,000 after buying an additional 39,250 shares during the last quarter. Swedbank AB boosted its stake in NextEra Energy by 13.4% during the fourth quarter. Swedbank AB now owns 1,016,630 shares of the utilities provider’s stock valued at $81,615,000 after buying an additional 120,389 shares during the last quarter. Fisher Funds Management LTD grew its holdings in NextEra Energy by 3.5% during the 4th quarter. Fisher Funds Management LTD now owns 619,640 shares of the utilities provider’s stock valued at $49,884,000 after buying an additional 20,709 shares in the last quarter. Finally, MGO One Seven LLC grew its holdings in NextEra Energy by 12.1% during the 4th quarter. MGO One Seven LLC now owns 137,251 shares of the utilities provider’s stock valued at $11,018,000 after buying an additional 14,828 shares in the last quarter. Hedge funds and other institutional investors own 78.72% of the company’s stock.
NextEra Energy News Roundup Here are the key news stories impacting NextEra Energy this week:
Positive Sentiment: Several pieces highlighted NextEra as one of the better-positioned utility names, citing its strong customer base, large capital spending plans, and exposure to long-term power demand growth. 4 Utility Electric Power Stocks to Buy Amid Industry Headwinds Positive Sentiment: Articles on wind energy and AI-driven electricity demand framed NEE as a beneficiary of expanding U.S. wind capacity and rising power needs from data centers and electrification. Top Wind Energy Stocks to Add to Your Portfolio for Solid Long-Term Returns Positive Sentiment: Analyst commentary cited a consensus price target near $99.90, suggesting Wall Street still sees upside from current levels. NextEra Energy, Inc. Receives $99.90 Consensus Target Price from Analysts Positive Sentiment: NextEra’s battery-storage expansion was highlighted as supporting grid reliability and renewable integration, reinforcing the company’s clean-energy growth story. Can NextEra’s Battery Storage Boost the Clean Energy Transition? Positive Sentiment: The proposed merger with Dominion Energy could create the largest regulated utility in the U.S., expand NextEra’s footprint across fast-growing southeastern states, and add scale in renewables, storage, nuclear, and natural gas. NextEra Energy and Dominion Energy file to combine… Neutral Sentiment: Some recent coverage focused on NextEra’s role in meeting rising electricity demand, especially from AI and broader infrastructure needs, but these pieces were more thematic than event-driven. Why Is NextEra Energy Central to AI Electricity? Neutral Sentiment: The Dominion deal also comes with meaningful regulatory risk and a long expected timeline, with approval required from multiple agencies and a targeted closing in the second half of 2027. NextEra Energy and Dominion Energy file to combine… Wall Street Analysts Forecast Growth Several analysts have recently issued reports on the company. Bank of America decreased their price objective on NextEra Energy from $95.00 to $93.00 and set a “neutral” rating on the stock in a report on Monday, July 13th. Scotiabank raised their target price on shares of NextEra Energy from $102.00 to $110.00 and gave the company a “sector perform” rating in a report on Friday, April 24th. Wells Fargo & Company set a $102.00 price target on shares of NextEra Energy and gave the stock an “overweight” rating in a research report on Friday, April 24th. Erste Group Bank downgraded shares of NextEra Energy from a “buy” rating to a “hold” rating in a research note on Thursday, June 25th. Finally, BTIG Research reiterated a “buy” rating and set a $112.00 price objective on shares of NextEra Energy in a research report on Friday, April 24th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, NextEra Energy has a consensus rating of “Moderate Buy” and a consensus target price of $99.64.
View Our Latest Analysis on NextEra Energy
NextEra Energy Trading Down 0.1% Shares of NYSE NEE opened at $88.73 on Monday. NextEra Energy, Inc. has a 1-year low of $69.24 and a 1-year high of $98.75. The company has a debt-to-equity ratio of 1.41, a current ratio of 0.54 and a quick ratio of 0.44. The business’s 50 day moving average is $87.94 and its two-hundred day moving average is $89.24. The stock has a market capitalization of $185.04 billion, a P/E ratio of 22.58, a PEG ratio of 2.43 and a beta of 0.67.
NextEra Energy (NYSE:NEE – Get Free Report) last posted its quarterly earnings data on Thursday, April 23rd. The utilities provider reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.06. NextEra Energy had a return on equity of 12.25% and a net margin of 29.36%.The business had revenue of $6.70 billion during the quarter, compared to analyst estimates of $7.43 billion. During the same period last year, the company earned $0.99 EPS. The company’s revenue for the quarter was up 7.3% on a year-over-year basis. NextEra Energy has set its FY 2026 guidance at 3.920-4.02 EPS. As a group, research analysts expect that NextEra Energy, Inc. will post 4.01 EPS for the current year.
NextEra Energy Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, June 5th were given a dividend of $0.6232 per share. The ex-dividend date was Friday, June 5th. This represents a $2.49 dividend on an annualized basis and a yield of 2.8%. NextEra Energy’s payout ratio is 63.36%.
About NextEra Energy (Free Report)
NextEra Energy, Inc (NYSE: NEE), headquartered in Juno Beach, Florida, is a leading clean energy company with both regulated utility operations and competitive renewable generation businesses. The company’s principal operating subsidiaries include Florida Power & Light Company (FPL), a regulated electric utility serving customers in Florida, and NextEra Energy Resources, which develops, constructs, owns and operates a large portfolio of wind, solar and energy storage projects. Together these businesses provide electricity supply, transmission and distribution services as well as utility-scale renewable generation and related services.
NextEra’s activities cover the full lifecycle of power assets, from project development and construction to operation, maintenance and asset optimization.
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NextEra Energy (NEE 0.62%) is already a very large company, with a market cap of $185 billion. With its planned acquisition of Dominion Energy (D 0.91%), a $60 billion market cap competitor, NextEra is looking to get even bigger. The increased scale should help NextEra compete as electricity demand rises, thanks to new technologies such as artificial intelligence, data centers, and electric cars. Here's why the combined company's $59 billion in capital spending will be a big growth driver.
The electricity market is changing in a big way Between 2005 and 2025, electricity demand increased by 10%. Between 2025 and 2045, however, demand is expected to increase by 60%. That's a step change in an industry historically known for slow growth. NextEra, already one of the world's largest utilities, sees an opportunity to leverage scale.
Image source: Getty Images.
Acquiring Dominion will give it greater access to capital markets and provide a more diverse set of investment opportunities by expanding NextEra's regulated utility reach well beyond its home state of Florida. Dominion operates in North Carolina, South Carolina, and Virginia. Notably, Virginia is home to one of the world's most important data center markets, allowing NextEra to lean into this key growth sector.
NextEra has two ways to benefit NextEra's regulated utilities must have their capital spending plans and rates approved by the government. So slow and steady is the norm, but given the expected increase in electricity demand, growth is likely to speed up. Meanwhile, NextEra also operates one of the world's largest contract solar and wind power businesses. That business sells power at market rates, providing an additional growth boost and operating outside the regulated framework. Dominion will increase the company's scale on both sides of the equation, with capital spending across the entire business expected to hit a massive $59 billion per year.
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That spending is expected to support annualized earnings growth of around 9% or more. Without the transaction, NextEra was projecting earnings growth of 8%. A one percentage point increase in growth may not seem material, but it represents an over 12% increase in the growth rate. That's a notable uptick.
Paying dividends in more ways than one Basically, NextEra Energy's bold new capital investment plans, if they work out as hoped, will clearly pay dividends for investors on the growth front. And those plans will also allow the company to maintain its decades-long streak of annual dividend increases. If you are a dividend growth investor, NextEra's 2.7% yield and plan for annual dividend growth of around 6% should probably put this industry giant on your radar.
Key Takeaways NextEra Energy operated 6,168 MW of battery storage as of Dec. 31, 2025.Energy Resources plans to add nearly 32-42 GW of battery storage from 2026 through 2032.Battery storage supports peak demand, lowers costs and reduces reliance on fossil-fuel generation. NextEra Energy Inc. (NEE - Free Report) is expanding the battery energy storage portfolio alongside its solar and wind assets. The battery storage investments enhance grid flexibility, support rising electricity demand and advance the transition to affordable, reliable and cleaner energy. Battery storage additions are in sync with NextEra's long-term objective of delivering affordable, reliable and low-carbon electricity.
As of Dec. 31, 2025, NextEra, through its units, operated 6,168 megawatts of battery storage, reinforcing grid reliability and supporting the integration of renewable energy. Given the increasing focus on using more renewable sources to generate electricity, NextEra unit Energy Resources has plans to add nearly 32-42 gigawatts of battery storage in the 2026-2032 period. Battery storage investment will enable the company to benefit from rising electricity demand driven by AI-powered data centers, electrification and corporate decarbonization.
Battery energy storage plays a vital role in the clean energy transition by storing excess solar and wind power for use during periods of high demand or lower renewable generation. This enhances grid reliability, supports greater renewable energy integration and reduces reliance on fossil fuel-fired power plants.
NextEra’s expanding battery storage portfolio enhances earnings visibility, supports sustainable cash flow growth and reinforces its competitive advantage in the evolving energy landscape. As battery storage becomes increasingly essential to a cleaner and more resilient power grid, NextEra is likely to remain one of the key beneficiaries of the global energy transition.
Battery Storage Allows Utilities to Use More Renewable EnergyBattery storage projects enable utilities to optimize power supply and demand, improve grid reliability and integrate more renewable energy into the electricity system. By storing excess electricity for use during peak demand, these projects enhance grid resilience, lower operating costs and ensure a reliable power supply.
Battery storage is becoming essential for utilities as renewable output grows more variable. The AES Corporation (AES - Free Report) and Xcel Energy (XEL - Free Report) are utilizing storage to shift low-cost power into peak periods, reduce curtailment, improve grid reliability and defer selected infrastructure upgrades. During the energy transition, these capabilities can strengthen asset utilization, support customer demand, lower operating volatility and create durable earnings and investment opportunities.
The Zacks Rundown for NEENextEra Energy’s Earnings Estimates Moving UpThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.7%, respectively.
Image Source: Zacks Investment Research
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.
Image Source: Zacks Investment Research
NEE Price PerformanceShares of NextEra have gained 3.3% in the past month, beating the Zacks Utility - Electric Power industry’s rally of 1.7%.
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Income investors chasing headline yields often miss the more powerful compounding engine: the dividend growth rate. A stock yielding 2% today that raises its payout 10% annually will out-earn a 4% yielder that raises 2% within a decade. For July 2026, three large-cap names stand out because each has just delivered a fresh increase, each has explicitly signaled more to come, and each backs the commitment with double-digit or steadily expanding cash flow. Here is the case for buying Visa, NextEra Energy, and Home Depot for growing income.
Visa (V) Visa (NYSE:V | V Price Prediction) sits at the center of the global card-payments duopoly, and management is treating dividend growth as a priority alongside buybacks. The board hiked the quarterly payout 14% in October 2025, lifting it from 59 cents to 67 cents per share. That is the current declared quarterly rate, most recently paid on June 1 against a May 12 ex-dividend date. Shares traded around $356.80 on July 15, 2026, up 2.98% this year and 43.80% across five years.
The bull case is durable double-digit revenue growth funding both the dividend and buybacks. Fiscal Q1 2026 net revenue rose 14.6% year-over-year to $10.90B, non-GAAP EPS came in at $3.17 and operating cash flow expanded 25.7% to $6.78 billion. Visa repurchased roughly 11 million shares for $3.8 billion in the quarter and still has $21.1 billion remaining on its authorization. With a dividend yield near 0.75% and a forward P/E of 23, the payout ratio remains conservative, leaving ample room for continued double-digit hikes. Analyst consensus target sits at $401.16, with 37 Buy or Strong Buy ratings versus three Hold ratings.
Risk: Visa booked a $707 million litigation provision in Q1 tied to the interchange MDL settlement, and regulatory scrutiny of swipe fees remains an overhang.
NextEra Energy (NEE) NextEra Energy (NYSE:NEE) is arguably the cleanest “growing income” story in the utility sector. The company combines Florida Power & Light’s regulated cash flows with the largest renewables development platform in the country, and management has put a specific number on future dividend growth: roughly 10% per year through 2026 off the 2024 base, followed by 6% annually from year-end 2026 through 2028. The quarterly rate has climbed from $0.515 in 2024 to $0.5665 in 2025 to $0.6232 in 2026, with the most recent payment landing June 15, 2026.
Shares traded near $89.34 on July 15 and are up 10.39% year to date and 19.60% over the past year. Q1 2026 adjusted EPS increased 10% year-over-year to $1.09, and NextEra’s renewables arm added a record 4 GW to backlog, bringing total signed backlog to roughly 33 GW. CEO John Ketchum said “NextEra Energy is off to a terrific start… adjusted earnings per share increasing by 10% year-over-year.” Long-term guidance targets 8%+ adjusted EPS CAGR through 2035, giving the dividend ample fundamental cover. The yield sits around 2.67%, well above Visa’s, with analyst target price at $99.25.
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Risk: NextEra’s growth requires massive capital spending, with $11.06 billion deployed in Q1 alone, and the company’s Q4 2025 EPS missed consensus by 41%. Any tightening of clean-energy incentives or rising rates could squeeze that model.
Home Depot (HD) Home Depot (NYSE:HD) offers a different flavor of dividend growth: the multi-decade streak. The February raise pushed the quarterly payout from $2.30 to $2.33 per share, extending what management calls its 156th consecutive quarterly dividend. Annualized, that puts the forward payout at $9.32, translating to a yield near 2.05%. Shares traded around $345.42 on July 15, essentially flat year to date at -0.12%, and are down 3.69% over the past year.
The bull case rests on operational discipline and optionality on a housing recovery. Fiscal 2025 revenue reached $164.7 billion (+3.24%), adjusted diluted EPS came in at $14.69, and Q4 adjusted EPS beat expectations at $2.72 versus $2.52. The SRS Distribution and GMS acquisitions extend Home Depot’s reach into the professional contractor market through more than 1,250 SRS locations. Return on equity is an exceptional 128.4%, and analysts carry a target of $370.34 with 22 Buy ratings. CEO Ted Decker credited the year to associates “engaging with our customers and growing market share.”
Risk: Big-ticket demand remains under pressure. Q4 comp customer transactions declined 1.6%, and interest expense from acquisition debt is expected to run around $2.3 billion in fiscal 2026. FY26 adjusted EPS guidance of flat to +4% growth is muted compared with peers, which is why the recent raise was a modest 1.3%.
Three different playbooks, one thesis: each of these companies has just increased its dividend, each has a clearly articulated path to keep doing so, and each generates enough cash to fund the commitment without stretching the payout ratio. For investors focused on the trajectory of income rather than the starting yield, July looks like a reasonable entry point to watch.
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In the latest trading session, NextEra Energy (NEE - Free Report) closed at $89.54, marking a +1.31% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.9%.
The stock of parent company of Florida Power & Light Co. has risen by 2.62% in the past month, leading the Utilities sector's gain of 1.43% and the S&P 500's gain of 1.27%.
The upcoming earnings release of NextEra Energy will be of great interest to investors. The company's earnings report is expected on July 24, 2026. The company is expected to report EPS of $1.08, up 2.86% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.97 billion, reflecting a 18.92% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.01 per share and a revenue of $31.84 billion, representing changes of +8.09% and +16.16%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. NextEra Energy is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, NextEra Energy is currently exchanging hands at a Forward P/E ratio of 22.02. Its industry sports an average Forward P/E of 18.39, so one might conclude that NextEra Energy is trading at a premium comparatively.
We can additionally observe that NEE currently boasts a PEG ratio of 2.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Utility - Electric Power industry had an average PEG ratio of 2.74 as trading concluded yesterday.
The Utility - Electric Power industry is part of the Utilities sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 32% of all 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.
To follow NEE in the coming trading sessions, be sure to utilize Zacks.com.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? NextEra Energy (NEE - Free Report) , which belongs to the Zacks Utility - Electric Power industry, could be a great candidate to consider.
This parent company of Florida Power & Light Co. has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 6.56%.
For the last reported quarter, NextEra came out with earnings of $1.09 per share versus the Zacks Consensus Estimate of $0.98 per share, representing a surprise of 11.22%. For the previous quarter, the company was expected to post earnings of $0.53 per share and it actually produced earnings of $0.54 per share, delivering a surprise of 1.89%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for NextEra. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. 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.
NextEra currently has an Earnings ESP of +2.44%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 24, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Ten years ago, a buyer of Lowe’s (NYSE:LOW | LOW Price Prediction) could pick up shares near $66 and collect a quarterly dividend that rose to $0.35 later in 2016. Today, the same share pays $1.25 per quarter, and the stock recently traded near $222. A decade of raises turned a modest-yield holding into a much larger paycheck on the original capital. That is the dividend-growth argument in one stock: the first check was not the point. The tenth-year check was.
That gap is the case for dividend growth investing, and it explains why the first question many income investors ask, “What does this yield today?” can be the wrong one. The better question is what the income stream can plausibly become after ten years of raises.
Why a Small Yield Wins the Long Race Start with the arithmetic every dividend-growth investor eventually internalizes. A portfolio yielding 3% and growing distributions 8% a year doubles its income stream in about nine years. Another nine years, and it has roughly quadrupled. A 9% yielder that holds its payout flat stays where it started in nominal dollars. The tradeoff is time: the low-yield grower may eventually overtake the high-yield alternative, but only if the dividend growth persists.
Johnson & Johnson (NYSE:JNJ) shows the pattern cleanly. The annual dividend grew from $3.15 in 2016 to $5.14 in 2025, with the board recently lifting the quarterly rate to $1.34, its 64th consecutive year of increases. Over the same period shares are up 175%. The starting yield of roughly 3% was the least interesting number in the sequence.
The Growers Worth Owning Now Five names offer that setup right now: modest starting yields, credible growth engines, decades of raises behind them.
Procter & Gamble (NYSE:PG) yields 2.9% and just delivered its 70th consecutive annual increase. Payments have run without interruption since 1890. Management expects to return roughly $10 billion in dividends in fiscal 2026 alongside about $5 billion in buybacks. Coca-Cola (NYSE:KO) pays 2.5%. The quarterly dividend moved from $0.35 in 2016 to $0.53 in 2026, and management guided 8% to 9% comparable EPS growth for the year, which funds the next raise. Lowe’s yields 2.2% but has been the fastest grower of the group. Its quarterly dividend went from $0.28 in 2016 to $1.25 in 2026, and shares are up 236% over ten years. NextEra Energy (NYSE:NEE) yields 2.6%, with management guiding roughly 10% annual dividend growth through 2026 and 6% thereafter, funded by a 33 GW renewables backlog. The stock has climbed 244% in ten years. Johnson & Johnson itself, yielding 2.0%, remains one of only two U.S. companies with an AAA credit rating and holds the longest consecutive dividend-growth streak of the group. Where Higher Current Yield Still Fits Realty Income sits at the other end of the tradeoff. The REIT recently yielded about 5.1%, pays monthly, and declared its 670th consecutive monthly dividend in 2026. Its first-quarter materials noted the 114th consecutive quarterly dividend increase, 98.9% occupancy, and 2026 AFFO-per-share guidance of $4.41 to $4.44, implying projected annual per-share growth of 3.0% to 3.7%. Blending a higher current payer like Realty Income with faster growers can add cash today without abandoning the compounding argument.
How to Use This The 10-year Treasury, recently at 4.48%, is the natural reference point. Any dividend stock yielding below that number is being bought for the growth of the payment, the possibility of price appreciation, or both. That is the trade: accept less current income in exchange for a stream that may grow enough to overtake higher-yield alternatives over time.
Before You Pick a Dividend Stock When screening, compare five-year and ten-year dividend CAGR alongside the current yield. A 2.5% yielder growing 10% is a completely different security than a 2.5% yielder growing 2%. Track yield on cost inside your own account. It is the number that tells you whether the growth thesis is actually working for the capital you have deployed. If current cash matters immediately (retirement, semi-retirement, tuition years), pair a monthly payer like Realty Income with two or three growers rather than tilting the entire portfolio toward high current yield. The paycheck that ends up mattering most arrives in year fifteen, long after the current-yield question has faded into the background.
Contact [email protected] for any questions or corrections.
NextEra heads into earnings with a major catalyst: the Dominion deal, which reshapes its geographic reach and data center exposure while adding regulatory uncertainty. Backlog growth, large‑load contracts, and CapEx visibility remain the core drivers of NEE's long‑term earnings path, making Q2 a key checkpoint for execution. Despite solid fundamentals and new strategic optionality, valuation still screens as fair, keeping my rating unchanged at Hold heading into the earnings release.
, /PRNewswire/ -- NextEra Energy, Inc. (NYSE: NEE) today announced that it plans to report second-quarter 2026 financial results before the opening of the New York Stock Exchange on Friday, July 24, 2026, in a news release to be posted on the company's website at www.NextEraEnergy.com/FinancialResults. The company will issue an advisory news release over PR Newswire the morning of July 24, with a link to the financial results news release on the company's website. As previously communicated, the company will make available its financial results only on its website.
John Ketchum, chairman, president and chief executive officer of NextEra Energy; Mike Dunne, executive vice president, finance and chief financial officer of NextEra Energy; and other members of the company's senior management team will discuss the company's second-quarter 2026 financial results during an investor presentation to be webcast live, beginning at 9 a.m. ET on July 24.
The listen-only webcast will be available on NextEra Energy's website by accessing the following link: www.NextEraEnergy.com/FinancialResults. The financial results news release and the slides accompanying the presentation may be downloaded at www.NextEraEnergy.com/FinancialResults, beginning at 7:30 a.m. ET on the day of the webcast. A replay will be available for 90 days by accessing the link listed above.
NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is the largest electric power and energy infrastructure company in North America and is a leading provider of electricity to American homes and businesses. Headquartered in Juno Beach, Florida, NextEra Energy is a Fortune 200 company that owns Florida Power & Light Company, America's largest electric utility, which provides reliable electricity to approximately 12 million people across Florida. NextEra Energy also owns the largest energy infrastructure development company in the U.S., NextEra Energy Resources, LLC. NextEra Energy and its affiliated entities are meeting America's growing energy needs with a diverse mix of energy sources, including natural gas, nuclear, renewable energy and battery storage. For more information about NextEra Energy companies, visit these websites: www.NextEraEnergy.com, www.FPL.com, www.NextEraEnergyResources.com.
NextEra Energy (NEE - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this parent company of Florida Power & Light Co. have returned +4.1% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Utility - Electric Power industry, to which NextEra belongs, has gained 2.7% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
For the current quarter, NextEra is expected to post earnings of $1.08 per share, indicating a change of +2.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -6% over the last 30 days.
The consensus earnings estimate of $4.01 for the current fiscal year indicates a year-over-year change of +8.1%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.36 indicates a change of +8.7% from what NextEra is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for NextEra.
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.
For NextEra, the consensus sales estimate for the current quarter of $7.97 billion indicates a year-over-year change of +18.9%. For the current and next fiscal years, $31.84 billion and $34.71 billion estimates indicate +16.2% and +9% changes, respectively.
Last Reported Results and Surprise HistoryNextEra reported revenues of $6.7 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.09 for the same period compares with $0.99 a year ago.
Compared to the Zacks Consensus Estimate of $7.21 billion, the reported revenues represent a surprise of -7.01%. The EPS surprise was +11.22%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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.
NextEra is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about NextEra. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways NEE rose 5.2% in the past month, lagging its industry but beating the utilities sector and the S&P 500.NextEra Energy plans over $94.1B in capital investment through 2030 across FPL and Energy Resources.NEE's earnings estimates are rising, with 2026 and 2027 EPS projected to grow 8.09% and 8.68%. Shares of NextEra Energy (NEE - Free Report) have gained 5.2% in the past month, lagging the Zacks Utility - Electric Power industry’s rally of 5.8%. However, the company has outperformed the Zacks Utilities sector and the S&P 500’s return in the same time frame.
NextEra Energy’s recent choppiness in share price stems from concern of its massive long-term capital expenditure plan and share dilution that will result from the proposed acquisition of Dominion Energy. Yet, rising electricity demand from data centers, AI applications and ongoing electrification, coupled with rising corporate demand for clean energy, creates a strong long-term growth opportunity for the company.
Price Performance (One Month)
Image Source: Zacks Investment Research
Another utility, The Southern Company (SO - Free Report) , is also making systematic investments in expanding its clean energy generation portfolio. The company plans to invest more than $80 billion over the next five-year period to strengthen its operations. The Southern Company’s shares have gained 7.4% over the past month.
Should you consider adding NEE to your portfolio only based on recent softness in share price movements? Let’s delve deeper and find out the factors that can help investors decide whether it is a good entry point to add the stock to their portfolio.
NEE Stock’s Tailwinds Despite Recent Softness in PriceNextEra Energy's long-term growth strategy is anchored by the planned capital investment of more than $94.1 billion through 2030 across its Florida Power & Light (“FPL”) and Energy Resources businesses. At FPL, these investments will expand generation capacity, modernize grid infrastructure and enhance system reliability to meet Florida's growing electricity demand. The expanding regulated rate base is expected to drive consistent earnings and cash flow growth.
NextEra Energy’s unit Energy Resources continues to strengthen its renewable energy platform through sustained investments in clean-energy projects. The company expects to add approximately 76.6-107.6 gigawatts (GWs) of renewable generation capacity between 2026 and 2032 and currently maintains a renewable development backlog of more than 33 GWs, providing strong visibility into its long-term growth pipeline.
A strong Florida economy continues to create attractive growth opportunities for NextEra Energy by fueling rising electricity demand. The company is well positioned to capitalize on this trend through ongoing investments in infrastructure expansion and grid modernization. Moreover, Florida Power & Light's residential electricity rates remain significantly below the national average, supporting customer growth, retention and long-term earnings expansion.
NextEra Energy also benefits from one of the utility industry's lowest-cost operating structures, supported by operational excellence, the scale of its renewable energy portfolio and strategically located assets. These advantages enhance profit margins, reinforce its competitive position and support sustainable long-term growth.
NextEra Energy’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.68%, respectively.
Image Source: Zacks Investment Research
The same for SO’s 2026 and 2027 earnings per share indicates a year-over-year increase of 6.51% and 7.53%, respectively.
NextEra Energy’s Earnings SurpriseNextEra Energy’s earnings beat estimates in each of the last four quarters, resulting in an average surprise of 6.18%.
Image Source: Zacks Investment Research
NextEra Energy Increases Shareholders ValueNextEra Energy has authorization in place to repurchase as many as 180 million shares over an unspecified duration. The company also aims to increase its dividend by nearly 10% annually through at least 2026, followed by approximately 6% yearly growth from the end of 2026 through 2028, pending board approval.
NEE’s current quarterly dividend is 62.32 cents per share, while the dividend yield of 2.82% remains higher than 1.38% of the S&P 500 composite.
Another utility, Duke Energy Corporation (DUK - Free Report) , is also making smart capital investments to expand its clean energy generation assets. The current dividend yield of DUK is 3.29% better than its industry and the S&P 500 level.
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.
Image Source: Zacks Investment Research
Duke Energy’s ROE is currently pegged at 9.73% lower than the industry level.
NextEra Energy’s Shares Trading at a PremiumThe company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is currently trading at 21.1X compared with the industry average of 15.86X.
Image Source: Zacks Investment Research
Summing UpNextEra Energy continues to deliver steady operational and financial performance, supported by growing demand for clean energy across its service territories. The company is strategically expanding its clean energy portfolio to address this increasing demand, while Florida's robust economic growth is creating additional opportunities to expand the regulated utility business.
Given the recent softness in share price, investors can still consider adding NextEra Energy in their portfolio for potential long-term gains as the stock currently has a Zacks Rank #2 (Buy) with rising earnings estimates and strong ROE distributes a stable dividend for its shareholders.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about NextEra Energy (NEE - Free Report) .
NextEra currently has an average brokerage recommendation (ABR) of 1.87, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.87 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 14 are Strong Buy, representing 60.9% of all recommendations.
Brokerage Recommendation Trends for NEE
Check price target & stock forecast for NextEra here>>>
While the ABR calls for buying NextEra, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in NEE?In terms of earnings estimate revisions for NextEra, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $4.01.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for NextEra. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for NextEra may serve as a useful guide for investors.
Key Takeaways NextEra's PPAs add contracted revenues and support renewable growth as clean power demand rises.PPAs with Google Cloud and Meta expand demand for wind, solar and battery storage projects.A 33-GW signed project backlog gives NextEra strong earnings visibility and supports new development. NextEra Energy (NEE - Free Report) offers an attractive long-term investment opportunity, driven by its leadership in renewable energy and an expanding portfolio of long-term power purchase agreements (PPAs). Rising demand for reliable, carbon-free electricity from data centers, technology companies and industrial customers supports continued growth, while its regulated utility business provides stable cash flows and a resilient earnings base.
Strategic partnerships are strengthening NextEra's growth outlook. Agreements with Google Cloud and Meta are expanding demand for the company's wind, solar and battery storage projects while adding long-duration contracted revenues. These PPAs enhance earnings visibility, reduce exposure to power price volatility and diversify the customer base through high-quality counterparties.
NextEra’s subsidiary has entered into an MOU with Xcel Energy to accelerate the development of new power generation for large electricity consumers, including data centers. The agreement strengthens their long-standing partnership and supports faster capacity expansion to meet rising power demand.
With disciplined capital investment, a robust renewable development pipeline and a growing backlog of contracted assets, NextEra is well positioned to deliver sustainable earnings growth.
NextEra's expanding portfolio of PPAs provides the foundation for its renewable growth by securing stable, contracted revenues and supporting new project development. These agreements underpin a 33-gigawatt (“GW”) backlog of signed projects, giving the company strong earnings visibility. Supported by this contracted pipeline, NextEra’s unit Energy Resources plans to significantly expand its renewable generation and storage portfolio, reinforcing long-term earnings growth as demand for clean electricity continues to rise.
Long-Term PPAs Boost Prospects of the UtilitiesLong-term PPAs benefit utilities by providing stable, contracted revenues, improving cash flow visibility and reducing exposure to power price volatility. This supports infrastructure investments, strengthens earnings stability and enables continued expansion of reliable, clean energy generation.
Other than NextEra Energy, Dominion Energy (D - Free Report) and Duke Energy (DUK - Free Report) are well positioned to benefit from long-term PPAs. These agreements provide stable, predictable revenues, support renewable energy investments, reduce market risk and improve earnings visibility, enabling both utilities to meet growing demand for reliable, low-carbon electricity while supporting long-term growth.
NextEra’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.68%, respectively.
Image Source: Zacks Investment Research
NextEra Price PerformanceShares of NextEra have gained 6.2% in the past six-month period compared with the Zacks Utility - Electric Power industry’s rally of 8.5%.
Price Performance (Six months)
Image Source: Zacks Investment Research
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.
Image Source: Zacks Investment Research
NEE’s RankNextEra currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, NextEra Energy (NEE - Free Report) was down 1.6% at $86.37. This change lagged the S&P 500's 0.22% loss on the day. Elsewhere, the Dow saw a downswing of 0.03%, while the tech-heavy Nasdaq depreciated by 0.66%.
The stock of parent company of Florida Power & Light Co. has risen by 2.44% in the past month, leading the Utilities sector's gain of 1.62% and the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of NextEra Energy in its forthcoming earnings report. In that report, analysts expect NextEra Energy to post earnings of $1.08 per share. This would mark year-over-year growth of 2.86%. Simultaneously, our latest consensus estimate expects the revenue to be $7.97 billion, showing a 18.92% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.01 per share and revenue of $31.83 billion. These totals would mark changes of +8.09% and +16.12%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. At present, NextEra Energy boasts a Zacks Rank of #2 (Buy).
In terms of valuation, NextEra Energy is currently trading at a Forward P/E ratio of 21.88. This signifies a premium in comparison to the average Forward P/E of 18.44 for its industry.
Investors should also note that NEE has a PEG ratio of 2.57 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Utility - Electric Power was holding an average PEG ratio of 2.77 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Investors interested in Utility - Electric Power stocks are likely familiar with FirstEnergy (FE) and NextEra Energy (NEE). But which of these two stocks presents investors with the better value opportunity right now?
When it comes to mergers and acquisitions, one of the big questions is always, "Is it better to buy the acquirer or the target?" That's particularly interesting with regard to NextEra Energy's (NEE +0.98%) planned purchase of Dominion Energy (D 0.17%). The key factor is the long approval process that normally accompanies large utility mergers. Here's a look at this merger and which of these two stocks is the better dividend option right now.
Why is NextEra buying Dominion? NextEra Energy is one of the world's largest utilities and also one of the world's largest solar and wind companies. That said, on the regulated utility side of the business, it primarily operates in just one state, Florida. That's been a net positive for years, as the Sunshine State has benefited from in-migration. However, scale is increasingly important in the utility industry.
Image source: Getty Images.
Dominion Energy is a multi-state utility that has slimmed down in recent years, becoming primarily a regulated electric utility. It operates in three states: Virginia, North Carolina, and South Carolina. Notably, in Virginia, it has a regulator-granted monopoly in one of the world's most important data center markets. That sets the company up to benefit from the growth of artificial intelligence (AI).
Essentially, NextEra Energy is expanding its geographic reach while, at the same time, leaning into an expected increase in electricity demand. It looks like a reasonable move, noting that Dominion's operating region is just up the East Coast from Florida. Neither company needs this deal to go through, but it is expected to be immediately accretive to NextEra Energy's business and to improve its growth outlook.
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There's a long way to go before the deal is done The merger was announced in May 2026, and the companies expect it to take 12 to 18 months to obtain all required regulatory approvals. So there's likely at least a year in which Dominion will remain a public company. During that time, Dominion will continue to pay its regular dividend. So there's no particular reason why investors shouldn't own it.
Each Dominion shareholder will receive 0.8138 of a NextEra Energy share upon consummation of the deal, plus a portion of a one-time $360 million cash distribution. The two shares are currently tied at the hip. NextEra is trading around $86 per share, while Dominion is around $68, which is just a little below the transaction price. Given the deal, the two stocks will likely rise and fall in tandem most of the time.
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However, there is one area of notable difference. Dominion's dividend yield is currently 3.9%. NextEra Energy's yield is 2.9%. For dividend investors who believe the merger will go through, which seems likely, buying Dominion could allow for a higher income stream until the merger is completed. When that happens, NextEra Energy's dividend policy will become the default. Which isn't terrible, noting that the game plan is for 6% annual dividend growth.
The risk, of course, is that the deal doesn't go through. In that case, Dominion Energy's share price is likely to fall back to its level before the merger announcement. That would mean a drop to around $63 per share, about a 7%. That's a pretty modest downside risk.
Keep things simple or play around at the edges? The truth is that owning Dominion over NextEra Energy right now isn't going to be a millionaire-maker move. But it could add incrementally to the income stream you generate from your portfolio over the next year or so. For investors who like to keep things simple, buying NextEra Energy is the way to go. However, if you are willing to take on a little extra risk for a little extra income, owning Dominion could be worth the effort, as its acquisition by NextEra works through the necessary checks and balances.
Key Takeaways AI data center expansion is boosting demand for power infrastructure, utilities and grid equipment providers.AI infrastructure spending is projected to rise as data center demand grows.ETFs like PAVE and RBLS offer diversified exposure to firms supporting the AI infrastructure build-out. While hyperscalers building next-generation cloud platforms and semiconductor giants producing HBM chips are stealing the spotlight in most instances, the physical structure of the artificial intelligence (AI) industry relies on a less glamorous but equally critical pillar — power infrastructure. This includes utilities like NextEra Energy (NEE - Free Report) and grid-to-chip infrastructure providers like Eaton Corp. (ETN - Free Report) that generate and manage the electricity which feeds power-hungry AI data centers, thereby enabling the smooth operation of high-capacity large-language model (LLM) workloads.
Amid the ongoing AI data center boom, these firms are thus profiting immensely by providing the essential "picks and shovels" for the AI era.
For investors who are increasingly wary of overconcentrated exposure or high valuations in mega-cap technology and hyperscale cloud platforms, shifting focus toward exchange-traded funds (ETFs) holding these physical enablers provides an excellent way to diversify portfolios while staying tethered to the AI secular tailwind.
Below, we discuss how these power infrastructure and utility companies are benefiting from the unprecedented AI data center expansion, using specific examples to provide the insights investors may need before making investment decisions.
The Physical Backbones of the AI Build-OutThe rapid transformation of data centers into dense, high-performance computing "AI factories" is driving massive order backlogs and thereby strong revenue growth visibility for electrical equipment manufacturers, utility players, as well as grid management and data center cooling solutions providers like those mentioned below:
Quanta Services (PWR - Free Report) : It is the largest electrical contractor in the United States by revenues, specializing in the construction of high-voltage transmission lines, electrical substations, and comprehensive power grid infrastructure. It ended the first quarter of 2026 with a record backlog of approximately $48.5 billion, with management highlighting data centers as a major growth engine.
Eaton: It provides essential switchgear, circuit breakers, transformers, and power distribution equipment for data centers and the grid. ETN’s 12-month rolling average order for its Electrical Americas segment went up 42% in the first quarter, driven by data center momentum.
Bloom Energy (BE - Free Report) : It offers solid oxide fuel cells for on-site power generation, reducing dependence of data centers on the grid and minimizing exposure to power interruptions. The company has signed multiple agreements with hyperscalers, the latest of which is with Oracle to deploy 2.8 gigawatts (GW) of Bloom’s fuel cell systems to support the rapid buildout of Oracle’s AI and cloud computing infrastructure.
Meanwhile, the massive 1.8 GW Wyoming data center facility is expected to include 900 megawatts (MW) of Bloom’s fuel cells, representing about $3 billion in revenues for BE in the coming years, according to an analysis by Morgan Stanley’s David Arcaro. (as cited in CNBC).
Caterpillar (CAT - Free Report) : It supplies on-site power generation and cooling equipment for data-intensive facilities. The company registered a solid 22% year-over-year improvement in its Power & Energy segment’s sales during the first quarter, thanks to rapid deployment of large reciprocating engines and turbines, primarily in data center applications.
NextEra Energy: It is the world's largest publicly traded utility by market cap, which currently expects to build between 15 and 30 GW of new generation capacity for U.S. data centers by 2035. In March 2026, the U.S. Department of Commerce selected NEE to build 9.5 GW of new gas-fired generation to serve large load from data centers in Texas and Pennsylvania.
AI Infrastructure Spending Outlook & ETFs to BuySince AI-related facilities require enormous amounts of power, global investments in transmission networks, substations, grid modernization, and power generation projects are rising rapidly. To this end, Gartner projects building AI foundations to alone drive a 49% increase in spending on AI-optimized servers in 2026, while AI infrastructure is expected to add $401 billion in spending this year as technology providers build out AI foundations.
Amid this backdrop, investors looking to capture this physical spending wave through diversified baskets rather than picking individual stocks may consider adding the following ETFs, focused directly on fueling the physical AI build-out, to their portfolios:
Global X U.S. Infrastructure Development ETF (PAVE - Free Report)
This fund, with net assets worth $14.76 billion, offers exposure to 100 companies that stand to benefit from a potential increase in infrastructure activity in the United States, including those involved in the production of raw materials, heavy equipment, engineering, and construction. PWR holds the top spot in this fund, with 3.97% weightage, while ETN holds the fourth spot with 3.25% weightage.
PAVE has soared 25.5% year to date and carries a Zacks ETF Rank #2 (Buy). The fund charges 47 basis points (bps) as fees and traded at a good volume of 2.29 million shares in the last trading session.
This fund, with net assets worth $11.96 billion, offers exposure to 120 companies that are primarily engaged and involved in electric grid, electric meters and devices, networks, energy storage and management, and enabling software used by the smart grid infrastructure sector. ETN holds the top spot in this fund, with 8.24% weightage, while PWR holds the fourth spot with 8.04% weightage.
GRID has surged 24.3% year to date and carries a Zacks ETF Rank #2. The fund charges 56 as fees and traded at a volume of 0.52 million shares in the last trading session.
iShares U.S. Infrastructure ETF (IFRA - Free Report)
This fund, with net assets worth $4.69 billion, comprises 161 U.S. companies with infrastructure exposure by balancing across both infrastructure enablers and infrastructure asset owners. CAT holds the top spot in this fund, with 4.27% weightage, while NEE holds the second spot with 3.97% weightage. PWR holds the fourth position in this fund with 3.68% weightage.
IFRA has rallied 21.8% year to date and carries a Zacks ETF Rank #2. The fund charges 30 as fees and traded at a volume of 0.30 million shares in the last trading session.
First Trust Alerian U.S. NextGen Infrastructure ETF (RBLD - Free Report)
This fund, with net assets worth $40.8 million, comprises 101 U.S. infrastructure companies. BE holds the top spot in this fund, with 1.94% weightage, while CAT holds the ninth spot with 1.20% weightage.
RBLD has rallied 21.4% year to date and carries a Zacks ETF Rank #2. The fund charges 30 as fees and traded at a volume of 0.003 million shares in the last trading session.
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College has become so expensive that many students and parents struggle to cover the cost on their own. Grandparents are often in a different position, having accumulated assets over decades that younger generations have not had time to build. That makes tuition one of the most meaningful gifts they can provide. Rather than leaving an inheritance someday, they can help open doors today by creating a portfolio that generates enough income to cover tuition while leaving the principal intact.
Most families tackle the problem with a 529 plan, contributing for years and hoping investment growth keeps pace with rising costs. Another approach is to build a portfolio that pays the tuition bill itself, turning a pool of assets into a family scholarship fund that can potentially support multiple generations.
What College Actually Costs The target depends on the school. Community colleges often charge $3,000 to $6,000 per year in tuition and fees. In-state public universities typically fall between $10,000 and $15,000 annually, while out-of-state public schools can run $30,000 to $45,000. Private colleges frequently exceed $50,000 per year before room and board.
For this article, we’ll use a $15,000 annual target, or about $1,250 per month, which is enough to cover tuition at many public universities and flagship state schools. The question is simple: how much capital does it take to generate that income indefinitely?
Capital Required, By Yield The math is one division problem: tuition divided by yield equals capital.
Conservative (3 to 4%): At 3.5%, you need $428,571. Think dividend-growth blue chips and aristocrat ETFs. Income tends to outpace tuition inflation. Moderate (5 to 7%): At 5%, $300,000. At 7%, $214,286. Net-lease REITs, telecoms, preferred shares, and high-dividend equity funds live here. Aggressive (8 to 14%): At 10%, just $150,000. BDCs, mortgage REITs, leveraged covered-call funds, and high-yield bond funds. Principal erosion and distribution cuts both happen at this tier. Adjust the portfolio value and rate of return to match your situation and see whether the 5% withdrawal holds up across an 18-year college horizon.
What $15,000 Actually Covers College costs vary dramatically. Community colleges often charge just a few thousand dollars per year in tuition and fees. Many in-state public universities fall in the $10,000 to $15,000 range, while out-of-state public schools can cost $30,000 to $45,000 before housing. Private colleges frequently exceed $50,000 per year. A $15,000 annual income target is designed to cover tuition at many public universities, not the full cost of an elite private school.
A Scholarship You Build Yourself Most college funding plans focus on accumulating a lump sum and then spending it down. An income portfolio takes the opposite approach. A $300,000 portfolio yielding 5% produces roughly $15,000 per year, enough to cover the tuition target used in this article. When the student graduates, the portfolio remains. The income can support another grandchild, graduate school, or a future generation.
The Scholarship That Never Expires Traditional college savings are often exhausted once the tuition bills are paid. An income-producing portfolio can continue generating cash long after the first student graduates. The goal is not simply to fund one degree but to create a lasting family resource that can adapt to changing educational needs over time.
Why Dividend Growth Matters Two portfolios can start with the same $15,000 annual income and end up in very different places. A portfolio yielding 3.5% with 7% annual dividend growth produces roughly $29,500 after ten years and nearly $58,000 after twenty. A portfolio yielding 10% with no growth still produces $15,000. Because tuition has historically risen faster than general inflation, growth matters. The objective is not merely to pay today’s tuition bill but to keep pace with tomorrow’s.
The Two-Grandkid Problem The math scales quickly. At a 5% yield, one grandchild requires about $300,000 of capital. Two grandchildren require roughly $600,000, and three require about $900,000. Fortunately, families rarely face all those bills at once. When grandchildren are several years apart in age, a growing income stream can often support multiple students sequentially rather than simultaneously.
Where The Income Comes From Today The conservative tier draws from Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction), yielding about 2.2% with a beta of 0.26; Procter & Gamble (NYSE:PG); Coca-Cola (NYSE:KO), yielding around 2.6%; and NextEra Energy (NYSE:NEE) at about 2.7% targeting ~10% annual dividend growth through 2026. The moderate tier is anchored by net-lease REITs paying monthly distributions, and high-yield telecoms near 6%. Broad dividend-growth ETFs, preferred-share funds, and the 10-year Treasury near 4.5% or 30-year near 4.9% round out the ballast.
When This Strategy Is The Wrong Tool An income portfolio works best when the college timeline is still years away and the investor can leave the principal intact. If a grandchild starts college in the near future, a 529 plan may offer a simpler and more tax-efficient solution.
In some cases, it may even make sense to allow a student to use federal loans while preserving retirement capital or keeping investments working. If the portfolio’s long-term return exceeds the loan’s interest rate, the family may come out ahead financially. Grandparents can also step in later and make the loan payments themselves, spreading the assistance over time rather than committing a large lump sum upfront. This approach preserves flexibility while still helping the student avoid carrying the debt indefinitely.
Grandparents with limited assets are often better served by helping reduce existing education debt or making direct tuition payments. Most important, anyone who may need the principal for retirement should prioritize their own financial security before creating a tuition fund for future generations.
Three Things To Do This Week Pull the actual tuition and fees figure for the specific public university the grandchild is most likely to attend. Your target may be $11,000, not $15,000. Compare the 10-year total return of a dividend-growth ETF against a 10%-yield covered-call fund. Cumulative income is the right scoreboard, not headline yield. If the portfolio sits in a taxable account, model the tax drag at your bracket. Qualified dividends, REIT distributions, and preferred-share income are taxed very differently.
In the latest close session, NextEra Energy (NEE - Free Report) was up +1.38% at $87.62. The stock outpaced the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.
Shares of the parent company of Florida Power & Light Co. have depreciated by 1.39% over the course of the past month, underperforming the Utilities sector's loss of 0.41%, and the S&P 500's loss of 1.34%.
Analysts and investors alike will be keeping a close eye on the performance of NextEra Energy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.13, reflecting a 7.62% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.97 billion, up 18.96% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.01 per share and a revenue of $31.89 billion, representing changes of +8.09% and +16.34%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for NextEra Energy. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. As of now, NextEra Energy holds a Zacks Rank of #2 (Buy).
From a valuation perspective, NextEra Energy is currently exchanging hands at a Forward P/E ratio of 21.55. This expresses a premium compared to the average Forward P/E of 18.25 of its industry.
It is also worth noting that NEE currently has a PEG ratio of 2.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Utility - Electric Power was holding an average PEG ratio of 2.73 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. With its current Zacks Industry Rank of 156, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NEE in the coming trading sessions, be sure to utilize Zacks.com.
NextEra Energy (NEE - 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.
Shares of this parent company of Florida Power & Light Co. have returned -1.4% over the past month versus the Zacks S&P 500 composite's -1.3% change. The Zacks Utility - Electric Power industry, to which NextEra belongs, has gained 0.2% over this period. Now the key question is: Where could the stock be headed in the near term?
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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, NextEra is expected to post earnings of $1.13 per share, indicating a change of +7.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $4.01 points to a change of +8.1% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $4.37 indicates a change of +8.8% from what NextEra is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for NextEra.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For NextEra, the consensus sales estimate for the current quarter of $7.97 billion indicates a year-over-year change of +19%. For the current and next fiscal years, $31.89 billion and $34.74 billion estimates indicate +16.3% and +8.9% changes, respectively.
Last Reported Results and Surprise HistoryNextEra reported revenues of $6.7 billion in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.09 for the same period compares with $0.99 a year ago.
Compared to the Zacks Consensus Estimate of $7.21 billion, the reported revenues represent a surprise of -7.01%. The EPS surprise was +11.22%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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.
NextEra is graded D on this front, indicating that it is trading at a premium to 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 NextEra. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways NextEra Energy is supported by stable regulated utility operations and a leading renewable platform.NEE plans more than $94.1B in capital investments through 2030 to expand generation and grid assets.NextEra Energy's ROE tops the industry average, and its shares have outperformed over six months. NextEra Energy Inc. (NEE - Free Report) is an attractive long-term utility investment, supported by its combination of stable regulated utility operations and a leading renewable energy platform. Its Florida Power & Light (“FPL”) unit generates predictable earnings, while NextEra Energy Resources drives growth through the extensive wind, solar and energy storage portfolio. This diversified business model balances earnings stability with strong long-term growth opportunities.
A cornerstone of NextEra Energy's growth strategy is its planned capital investment of more than $94.1 billion through 2030. At FPL, these investments will expand generation capacity, upgrade grid infrastructure and improve reliability to meet rising electricity demand in Florida. The resulting growth in the regulated rate base is expected to support steady earnings and cash flow expansion.
At NextEra Energy Resources, capital spending will accelerate the development of renewable energy, battery storage and transmission assets. Growing power demand from data centers, AI applications and electrification trends, along with increasing corporate demand for clean energy, provides a strong foundation for growth.
Overall, NextEra Energy's investment program strengthens both regulated utility and renewable energy businesses, positioning it for sustained earnings growth and expanding asset base. With a disciplined capital allocation strategy, NextEra Energy appears well-positioned to deliver sustainable shareholder value through consistent earnings growth and dividend expansion over the long term.
Capital Investments: A Key Growth Engine for UtilitiesCapital expenditures support long-term utility growth by expanding generation assets, upgrading grid infrastructure and enhancing reliability. These investments grow the regulated rate base, improve operational efficiency and boost earnings.
Duke Energy's (DUK - Free Report) outlook is supported by its regulated utility operations and robust capital investment plan of $103 billion in the 2026-2030 period. Investments in grid modernization, renewable energy and transmission infrastructure are expected to expand Duke Energy's operation and drive consistent earnings.
The Southern Company (SO - Free Report) benefits from a strategic capital spending program. The $78.1 billion Investments through 2030 in grid upgrades, generation capacity and clean energy projects are expected to grow Southern Company’s rate base and enhance the reliability of its services.
NextEra Energy’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.84%, respectively.
Image Source: Zacks Investment Research
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.22%.
Image Source: Zacks Investment Research
NEE Price PerformanceShares of NextEra Energy have gained 7.4% in the past six months compared with the Zacks Utility - Electric Power industry’s rally of 7%.
Image Source: Zacks Investment Research
NEE’s Zacks RankNextEra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of NextEra Energy (NEE +0.37%) currently sit more than 10% below their 52-week high. The utility company's stock price has slumped following the surprising announcement that it agreed to buy Dominion (D +0.60%) in an all-stock deal valued at nearly $67 billion. The merger would create the world's largest regulated electric utility company.
The deal adds near-term risks from regulatory approval uncertainty and potential integration challenges. However, the long-term benefits could far outweigh those risk factors. Here's why I think that investors looking back a decade from now will wish they had capitalized on the sell-off to buy the utility stock.
Image source: The Motley Fool.
Creating a power supermajor NextEra Energy already owns the country's largest electric utility (Florida Power & Light (FPL)). Additionally, it operates one of America's largest energy infrastructure development companies (NextEra Energy Resources). NextEra is a world leader in wind, solar, and battery storage.
The company's merger with Dominion would create a power supermajor. The combined company would be the world's largest regulated electric utility business by market capitalization. It would serve about 10 million utility customer accounts across four fast-growing states and own 110 gigawatts (GW) of power generation capacity. It would be a leader in almost every category, including the world leader in renewables and battery storage, the top U.S. gas-fired power producer, and the second-largest nuclear power operator. That would give it an unmatched global scale, enabling it to buy, build, finance, and operate more efficiently than competitors.
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Accelerating its ability to capitalize on the AI power megatrend NextEra Energy's leading Florida-based utility operations and clean-energy-focused energy resources business already puts it in a strong position to capitalize on surging power demand from AI data centers and other catalysts. The company expected to invest between $295 billion and $325 billion in capital projects through 2032 to support rising power demand. That investment level had NextEra Energy on track to grow its adjusted earnings per share by more than 8% annually through 2032, a rate the company expects to maintain through at least 2035.
The Dominion deal will accelerate its already robust growth plan. Dominion operates in three fast-growing states, including Virginia, a hotbed of data center development. By acquiring Dominion, NextEra can leverage its larger scale to fully capitalize on the data center power opportunity. The company believes it can grow its adjusted earnings per share by more than 9% annually through 2032 and expects to sustain that growth rate through 2035. Further, it can deliver that growth while enhancing its credit profile and lowering its dividend payout ratio.
You'll likely regret missing this opportunity Megamergers aren't without risk, which is why shares of NextEra have tumbled more than 10% since it unveiled its massive Dominion Energy deal. However, it will create a power supermajor and accelerate NextEra's already robust growth profile over the next decade. I think the sell-off will look like an unbelievable buying opportunity with the benefit of a decade of hindsight.
Matt DiLallo has positions in NextEra Energy. The Motley Fool has positions in and recommends NextEra Energy. The Motley Fool recommends Dominion Energy. The Motley Fool has a disclosure policy.
Key Takeaways NextEra is expanding in wind, solar and battery storage to meet rising low-carbon power demand.NextEra projects 76.6-107.6 GW of renewable capacity additions from 2026 to 2032.NEE's ROE tops its industry average, while earnings estimates for 2026 and 2027 are rising. NextEra Energy (NEE - Free Report) holds a strong position in the renewable energy sector, supported by its early and substantial investments in wind, solar and battery storage technologies. As the companies in the Zacks Utility - Electric Power industry shift toward clean power, more utilities are generating electricity from renewable sources. NextEra Energy’s extensive renewable energy infrastructure provides a strong competitive advantage, enabling it to capitalize on the growing demand for low-carbon power solutions.
Growing environmental awareness and increasingly stringent emissions regulations are driving the transition toward clean energy, positioning NextEra Energy to capitalize on rising demand. The company continues to expand its renewable energy footprint. NextEra Energy projects the addition of nearly 76.6-107.6 gigawatts (“GW”) of renewable generation capacity between 2026 and 2032 and currently has a renewable development backlog exceeding 33 GW. supporting long-term growth and revenue visibility.
Renewable energy also offers economic advantages, as wind and solar resources are not subject to fuel price fluctuations. Technological advancements over the past decade have significantly reduced generation costs, enhancing the competitiveness of renewables. Long-term power purchase agreements provide stable and predictable cash flows, while investments in battery storage improve grid reliability and open additional revenue streams.
NextEra Energy’s leadership in renewable energy further strengthens its competitive position. Favorable government policies, including tax incentives and decarbonization initiatives, continue to support industry growth. Through sustained investment in clean energy infrastructure, the company remains well-positioned to benefit from the global energy transition and deliver long-term value to its shareholders.
Other Utilities Expanding Renewable Energy PortfoliosUtilities are expanding their use of clean energy sources, including wind, solar, hydro and nuclear power, while decreasing dependence on fossil fuels. This shift is reducing carbon emissions, supporting environmental goals and helping utilities comply with increasingly stringent regulations.
Duke Energy (DUK - Free Report) and The Southern Company (SO - Free Report) present compelling investment opportunities, supported by their regulated utility businesses and commitment to the clean energy transition. The companies continue to invest in renewable energy projects, nuclear generation, grid upgrades and other low-carbon initiatives aimed at lowering carbon emissions and improving sustainability. These strategic investments are expected to strengthen system reliability and support long-term earnings growth while meeting the rising demand for cleaner sources of electricity.
NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.09%.
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NEE’s Price PerformanceShares of NextEra Energy have gained 7.8% in the past six months compared with the industry’s rally of 6.6%.
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NextEra Energy’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.84%, respectively.
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NEE's Zacks RankNextEra currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy (NEE - Free Report) ended the recent trading session at $86.75, demonstrating a +1.19% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.09%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq appreciated by 1.91%.
Coming into today, shares of the parent company of Florida Power & Light Co. had lost 2.88% in the past month. In that same time, the Utilities sector gained 0.52%, while the S&P 500 gained 0.29%.
Market participants will be closely following the financial results of NextEra Energy in its upcoming release. The company is predicted to post an EPS of $1.13, indicating a 7.62% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.97 billion, indicating a 18.96% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $4.01 per share and a revenue of $31.89 billion, demonstrating changes of +8.09% and +16.34%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for NextEra Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.04% increase. Currently, NextEra Energy is carrying a Zacks Rank of #2 (Buy).
Looking at its valuation, NextEra Energy is holding a Forward P/E ratio of 21.37. This signifies a premium in comparison to the average Forward P/E of 17.86 for its industry.
It's also important to note that NEE currently trades at a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Utility - Electric Power was holding an average PEG ratio of 2.65 at yesterday's closing price.
The Utility - Electric Power industry is part of the Utilities sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 37% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
