Constellation Energy Corporation produces and sells energy products and services in the United States. The company operates through five segments: Mid-Atlantic, Midwest, New York, ERCOT, and Other Power Regions. It offers electricity, natural gas, energy-related products, and sustainable solutions. The company has approximately 31,676 megawatts of generating capacity consisting of nuclear, wind, solar, natural gas, and hydroelectric assets. It serves distribution utilities, municipalities, cooperatives, and commercial, industrial, public sector, and residential customers. The company was incorporated in 2021 and is headquartered in Baltimore, Maryland.
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Constellation Energy Q2 Revenue Rises 23% to $7.50 Billion
Constellation Energy reported second-quarter 2026 operating revenues rose 23% year over year to $7.50 billion, driven partly by the Calpine acquisition, higher capacity revenues and stronger commercial performance. Adjusted operating earnings increased 33.5% to $2.55 per share. The company signed nearly 920 megawatts of long-term nuclear power purchase agreements with an average duration of 18.5 years, and expects nearly 30% of its baseload clean-generation megawatt-hours to be covered by long-term agreements. Constellation projects 20%+ base-adjusted operating earnings growth through 2029 and a 10%+ long-term rolling three-year base EPS growth target. It also filed license renewal applications for Ginna and Nine Mile Point Unit 1 targeting operations through 2049, and is advancing the Crane Clean Energy Center restart following approvals from the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission.
Constellation Energy Raises 2026 EPS Guidance to $11.50-$12.50
Constellation Energy raised its 2026 adjusted EPS guidance to a range of $11.50 to $12.50, up from $11.00 to $12.00, while Talen Energy cleared more than 10 GW in the 2028/2029 PJM Base Residual Auction worth $2.025 billion to $2.225 billion. Uranium Energy carries zero debt and $794 million in liquid assets while operating the largest new greenfield ISR uranium project in over a decade. Constellation's Q2 adjusted EPS of $2.55 beat estimates by 9.52% on revenue of $7.504 billion, up 23% year over year, and management reiterated base EPS growth of 20% or more through 2029. Talen reported a GAAP loss of $2.00 per share due to $211 million in unrealized commodity derivative losses, but adjusted EBITDA rose to $374 million from $90 million a year ago. Uranium Energy produced 200,000 pounds at a total cost of $54.61 per pound in fiscal Q3 with no revenue recognized as management held inventory.
AI Infrastructure Borrowing Hits Record, Lifting Long-Term Yields
US companies have issued nearly $1.7 trillion in bonds so far this year, up 27% from the same period a year ago and more than all of 2025 combined, according to SIFMA data, with hyperscalers, data-center REITs, and power producers leading the charge. BMO Capital Markets rates strategist Ian Lyngen said a record pace of corporate bond issuance has added substantial duration supply to US fixed income markets, with consequences for the outright level of yields as well as the shape of the yield curve and term premium. The 30-year Treasury touched 5.323% on August 18, a 19-year high, while the 10-year sat at 4.69% and the 30-year at 5.23% on August 20. Digital Realty raised its 2026 development capex guidance to $3.5 billion to $4.0 billion and long-term debt issuance guidance to $1.5 billion to $2.0 billion, while Constellation Energy took total long-term debt to $17.5 billion after financing the Calpine acquisition. Vertiv completed a $2.1 billion senior unsecured notes issuance and a new $2.5 billion revolving credit facility in March, earning inaugural investment-grade ratings from Moody's and S&P. Palantir, which carries no meaningful debt, trades at a trailing P/E of 149, and the article notes that higher real yields driven by AI borrowing could compress its multiple faster than earnings can grow into it.
Constellation Energy and GE Vernova Benefit From Data Center Power Demand
Constellation Energy and GE Vernova are positioned to benefit from surging electricity demand from AI data centers. Constellation, which operates the largest nuclear power fleet in the U.S., signed a 20-year power purchase agreement with Microsoft to restart the Three Mile Island nuclear facility in Pennsylvania, now called the Crane Clean Energy Center. GE Vernova, which supplies power generation and distribution hardware, generated $5 billion from data center power equipment in the first half of this year, more than double its total for all of last year, and holds a $176 billion backlog. Constellation Energy shares are down over 25% year to date through August 20, while GE Vernova shares are up over 42% this year and 194% since the start of 2025.
Constellation Energy Raises Guidance, Signs 920 Megawatts of New Power Deals
Constellation Energy raised its full-year adjusted operating earnings guidance to $11.50 to $12.50 per share and signed 920 megawatts of new long-term power purchase agreements in the second quarter. The contracts, averaging 18.5 years in length, include a 176-megawatt deal with Walmart split into two 15-year contracts starting in 2029 and 2030, and will fund a 30-megawatt expansion at the Dresden Clean Energy Center. The company also cleared key regulatory hurdles for the restart of its Crane Clean Energy Center, the former Three Mile Island Unit 1, with FERC granting a grid connection waiver and the NRC approving a fuel license amendment, keeping the 835-megawatt unit on track to restart in 2027. However, GAAP earnings per share fell to $1.42 from $2.67 a year earlier, partly due to a higher share count after the Calpine acquisition, and nuclear output slipped to 44,160 gigawatt-hours from 45,170 with the capacity factor dipping to 93.0% from 94.8%. Constellation also agreed to sell the 606-megawatt Brazos Valley Energy Center to LS Power for $860 million, pending Department of Justice approval.
SpaceX earnings call remarks jolt telecom and energy stocks
SpaceX's latest earnings call triggered sharp moves in telecom and energy stocks after executives outlined plans to build a terrestrial wireless network and massive power infrastructure. COO Gwynne Shotwell said Starlink would target customers of AT&T, Verizon, and T-Mobile, which together generate roughly $600 billion a year, causing shares of those carriers to drop. Deutsche Telekom CEO Timotheus Hottges acknowledged the market reaction, calling it overblown but saying the company takes SpaceX's ambitions seriously. Separately, Elon Musk's comments about building 20 gigawatts of power lifted natural gas equipment suppliers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. The call also boosted Nvidia after Musk said SpaceX would build exclusively on its Vera Rubin architecture, and highlighted Echostar's 261.8 million share stake in SpaceX as a direct beneficiary.
AI Power Demand Creates Opportunities for Constellation, Vistra, and NextEra
The explosive growth in artificial intelligence is creating a historic boom in energy demand, with modern AI hardware requiring up to 100 kilowatts per server rack, and three utility stocks are positioned as hidden winners. Constellation Energy, the largest commercial operator of nuclear power in the U.S. with 22 gigawatts of capacity, has entered 20-year power purchase agreements with Microsoft and Meta Platforms, including restarting a unit at Three Mile Island, and recently diversified through its $26.6 billion acquisition of Calpine. Vistra Corporation, with about 44,000 megawatts of total capacity, has a 20-year power purchase agreement with Meta for 2,600 megawatts from its nuclear plants and is the preferred power provider for Helix Investments, a new company formed with KKR, the Kuwait Investment Authority, and Nvidia with over $10 billion in capital commitments. NextEra Energy, which operates the largest regulated utility in the U.S. and the world's largest producer of wind and solar power, has a record 35.1 gigawatt renewable and storage pipeline and is partnering on a $100 billion AI data center campus in Kentucky, where it will build 2 gigawatts of natural-gas generation and up to 2.6 gigawatts of battery storage.
Constellation Energy Beats Earnings and Lifts Guidance, Yet Remains 26% Undervalued per One Estimate
Constellation Energy reported second quarter 2026 results that beat expectations, with sales of US$7,504 million and net income of US$513 million, and also raised its full-year earnings outlook. Despite an 8.92% share price gain over the past month, the stock is still down 28.71% year to date, though its three-year total shareholder return stands at 152.05%. The most popular narrative among investors pegs Constellation Energy's fair value at $352.91, well above the last close of $261.10, implying the stock is 26% undervalued. This thesis is driven by growing demand for carbon-free, reliable power from large-scale customers such as data centers and corporates, which is expected to generate higher-margin, longer-term contracts and significant revenue and earnings growth. However, a contrasting view notes that Constellation Energy trades at a price-to-earnings ratio of 24.6 times, above the US Electric Utilities industry average of 21.2 times and above its own estimated fair ratio of 29.8 times, raising questions about whether expectations are already elevated.
Constellation Energy lifts 2026 adjusted earnings guidance to $11.50–$12.50 per share
Constellation Energy raised its 2026 full-year adjusted operating earnings guidance to a range of $11.50 to $12.50 per share. The company also reported adjusted earnings of $2.55 per share for the latest quarter, up from $1.91 a year ago, while adjusted net income climbed to $920 million from $599 million. Constellation locked in another 920 megawatts of long-term power purchase agreements with 15- to 20-year terms and deliveries between 2029 and 2032, and regulators cleared a key hurdle for the planned 2027 restart of the Crane Clean Energy Center. The company agreed to sell its 606-megawatt Brazos Valley gas plant for $860 million, completing divestiture commitments tied to the Calpine acquisition pending regulatory approval. GAAP earnings fell to $1.42 per share from $2.67 due to one-off factors, but the underlying operating picture continued to improve.
SpaceX's 20-gigawatt power target is a 'clear positive' for equipment suppliers
SpaceX is targeting as much as 20 gigawatts of power, cooling, and electrical infrastructure online by the end of next year, a demand level that Melius Research calls a 'clear positive' for industrial equipment suppliers. Managing director James West highlighted that this massive requirement, nearly half of the 53 gigawatts of new US generation capacity added in 2025, will benefit companies already riding the AI infrastructure boom. Among the beneficiaries are natural gas power equipment makers GE Vernova and Baker Hughes, as well as power providers Constellation Energy, NextEra Energy, Vistra, and EQT Corporation. GE Vernova reported a 36% backlog increase to $176 billion in its second quarter, with power segment orders up 134% year on year, while Baker Hughes saw its industrial energy and technology orders double to over $7 billion. Elon Musk stated that even if forecasts fall short, SpaceX should still have around 15 gigawatts of capacity at the power plant level by the end of 2027.
LS Power to buy Brazos Valley Energy Center from Constellation for $860m
LS Power has reached a definitive agreement to purchase the Brazos Valley Energy Center, a 606-megawatt natural gas-fired combined-cycle facility in Texas, from Constellation for $860 million. The plant, located near Houston within the ERCOT power market, is the final asset Constellation must sell under regulatory commitments tied to its earlier acquisition of Calpine. The transaction is pending approval from the US Department of Justice and is expected to close by the end of the year. Once completed, the acquisition will increase LS Power's generation portfolio in ERCOT, with its national operating fleet projected to reach approximately 14.1 gigawatts following this and other pending deals. LS Power was advised legally by White & Case and Willkie Farr & Gallagher, with financial advice from Houlihan Lokey and RBC Capital Markets.
Constellation Energy Q2 Earnings Preview Shows Mixed Signals Ahead of August Report
Constellation Energy is expected to report second-quarter 2026 results on August 6, with the Zacks Consensus Estimate for revenues at $7.47 billion, a 22.41% increase from the year-ago figure, and earnings per share pegged at $2.36, up 23.56% year-over-year. The Zacks quantitative model does not predict an earnings beat this quarter, as the company carries an Earnings ESP of -0.39% and a Zacks Rank of 4, or Sell. Rising electricity demand from data centers, the commercial launch of the 460-MW Pin Oak Creek Energy Center, the commissioning of the 105-MW Pastoria Solar Project, and contributions from acquired Calpine assets are expected to have boosted performance. The stock has gained 8.5% over the past six months, outperforming the industry's 3.7% growth, and trades at a forward price-to-earnings of 21.28 times, a discount to the industry average of 23.09 times. However, the company's net profit margin is 10.86 times, below the industry peer level of 14.29 times, leading analysts to suggest waiting for a more attractive entry point.
GE Vernova Set to Be Biggest Winner From AI Data Center Power Shortfall
Morgan Stanley projects a 38-gigawatt electricity gap for U.S. data centers, leaving up to an 11-gigawatt deficit through 2028 even after all practical solutions are deployed. The investment bank estimates that natural gas turbines could provide 15 to 20 gigawatts of that capacity, making GE Vernova the clearest beneficiary given its dominance in large-frame gas turbines and a multiyear data center order backlog. Other potential solutions include fuel cells, co-located nuclear plants, and repurposed Bitcoin mining sites, but Morgan Stanley's base case still shows a supply shortfall. Companies such as Bloom Energy, Constellation Energy, Vistra, Talen Energy, Core Scientific, IREN, and Cipher Mining also stand to benefit from the power crunch. The analysis suggests the AI industry's biggest obstacle has shifted from semiconductor supply to electricity supply, with owners of existing power assets poised to capture significant value.
Utilities sector slips 0.25% in July as Constellation Energy surges 13.35%
The utilities sector declined 0.25% in July, outperforming the S&P 500's 0.61% drop. Constellation Energy led all gainers with a 13.35% advance, boosted by its venture arm's first investment in a U.S. nuclear developer, Blue Energy. PG&E Corporation rose 7.42% after reaffirming 2026 core EPS guidance of $1.64 to $1.66 and targeting a 20% dividend payout starting in 2028. On the downside, Alliant Energy fell 6.57% following an analyst downgrade citing an 8% premium to fair value, while DTE Energy dropped 6.18% ahead of its earnings report.
Trump Executive Order Targets Quadrupling US Nuclear Capacity to 400 Gigawatts by 2050
President Donald Trump signed an executive order in May 2025 aiming to expand U.S. nuclear power capacity from 100 gigawatts to 400 gigawatts by 2050. The order seeks to accelerate regulatory and financing support for both established nuclear operators and emerging technologies like small modular reactors. Constellation Energy has already received a $1 billion government loan tied to its nuclear ambitions, while NuScale Power recently won approval for a higher-capacity reactor design and is working with a Romanian utility and the Tennessee Valley Authority on potential first deployments. Cameco and Brookfield Renewable offer indirect exposure through uranium supply and shared ownership of Westinghouse, respectively. Power demand is projected to grow 60% over the next 20 years, up from 10% in the prior two decades, intensifying the push for reliable, carbon-free baseload generation.
Constellation Energy Stock Surges Nearly 5% on Nuclear Deal and Domestic Power Initiative
Constellation Energy shares jumped almost 5% on Wednesday as part of a broader rally in nuclear stocks. The U.S. government signed a 30-year nuclear cooperation deal with Saudi Arabia, and Bloomberg reported a new $200 million program to support domestic power plant construction aimed at meeting AI data center energy needs. While Constellation operates America's largest fleet of full-scale nuclear plants and was not named as a direct participant in either effort, investors see the company benefiting from the administration's strong push to expand nuclear power generation.
Constellation Energy's Diversified 55-GW Fleet Positions It for Clean Energy Growth
Constellation Energy is leveraging a diversified 55-gigawatt generation fleet to support long-term growth and meet rising clean electricity demand. Following its acquisition of Calpine, the fleet spans nuclear, natural gas, oil, geothermal, hydro, wind, and solar, producing nearly 10% of the nation's clean electricity. The company plans nearly 10 gigawatts of new capacity, will restart the 835-megawatt Crane plant to serve Microsoft's AI-driven demand, and has submitted nearly 5,000 megawatts of new nuclear uprates, natural gas, and battery storage projects into PJM's interconnection queue. Capital expenditures are set at $5.7 billion in 2026 and $4.7 billion in 2027 to upgrade plants and extend asset life. Constellation Energy's trailing-12-month return on equity stands at 16.81%, well above the industry average of 7.15%.
Motley Fool Projects $5,000 in Constellation Energy Could Grow to $11,500 by 2036
The Motley Fool projects that a $5,000 investment in Constellation Energy could grow to roughly $11,500 by 2036, while the same amount in Cameco could reach about $7,400 under a base-case scenario. Constellation Energy, the largest U.S. nuclear operator, expects base earnings per share to grow at an annualized rate of more than 20% from 2026 through 2029, with growth of more than 10% in each of the three-year periods after 2029. Using the midpoint of its 2026 base earnings guidance of $6.70 per share, those targets would lift base EPS to about $22.56 by 2036, and applying a conservative 18 times earnings multiple yields a share price near $580. Cameco, a major uranium producer with a 49% stake in Westinghouse, is seen growing EPS from an estimated $1.66 in 2026 to about $5.16 by 2036 under a 12% annual growth assumption, and at 25 times earnings the stock could trade near $129. The analysis notes risks including Constellation's integration of Calpine and nuclear restart challenges, as well as Cameco's production disruptions and potential valuation compression.
Constellation Energy Favored Over Bloom Energy for 2026 Amid AI-Driven Power Demand
Constellation Energy is the better buy over Bloom Energy for 2026, according to a Motley Fool analysis, due to its established nuclear fleet and long-term data center contracts. Constellation, now the largest private power producer after acquiring Calpine, reported fiscal 2025 revenue of roughly $25.5 billion and net income of nearly $2.3 billion, with a forward P/E of 21.5x. Bloom Energy, a fuel cell maker with a $25 billion financing framework from Brookfield Asset Management, posted revenue of about $2.0 billion but a net loss of nearly $88.4 million, trading at a forward P/E of 96.5x. While both companies stand to benefit from surging electricity needs for AI data centers, Constellation's predictable cash flow and lower valuation make it the preferred choice over Bloom's higher-risk, high-growth profile.
New York Halts Large Data Centers, Validating BlackRock CEO's Power Crunch Warning
New York has become the first U.S. state to halt construction of large data centers, with Governor Kathy Hochul issuing an executive order imposing a one-year moratorium on environmental permits for new facilities consuming 50 megawatts or more. The move validates recent warnings from BlackRock CEO Larry Fink about strained power infrastructure, as he cautioned that such moratoriums are not the answer and urged faster delivery of power. Fink noted that data centers currently cost $50 to $60 billion for a one-gigawatt facility, and he contrasted U.S. delays with China building 100 gigawatts of nuclear and close to 100 gigawatts of solar to prepare for the AI revolution. The moratorium places utility stocks like Constellation Energy, Vistra, and NextEra Energy in focus, as energy producers with capacity to deliver consistent power without hiking consumer prices are seen as essential partners for tech companies.
Three Utility Stocks Positioned for AI-Driven Power Demand
Constellation Energy, Entergy, and NextEra Energy are identified as utility stocks poised to benefit from rising electricity demand driven by AI data centers. Constellation Energy, which owns 15 nuclear power plants, has secured long-term power deals with hyperscalers like Meta Platforms and is expected to see earnings grow nearly 25% this year and 16% in 2027. Entergy, the Gulf region utility supplying power to Meta's $50 billion Louisiana data center, plans to raise up to $4.4 billion in equity through 2029 and forecasts nearly 40% earnings growth by 2029. NextEra Energy is increasing its exposure through a planned merger with Dominion Energy, the utility for northern Virginia's data center alley, with management projecting at least 9% annual adjusted earnings growth through 2032.
Constellation Energy invests in nuclear developer Blue Energy
Constellation Energy has made an equity investment in Blue Energy, a developer of prefabricated nuclear power plants, through its venture capital arm. The investment amount was not disclosed. This marks Constellation Technology Ventures' first investment in a U.S. nuclear developer advancing small modular reactors. Blue Energy earlier this year raised $380 million and partnered with GE Vernova to develop a multi-gigawatt gas-to-nuclear project using BWRX-300 small modular reactors.
Climate Tech Market Projected to Reach $312.74 Billion by 2035
The global climate technology market is projected to grow from USD 48.46 billion in 2025 to USD 312.74 billion by 2035, driven by clean energy and carbon removal advancements. Investments surpassed USD 1.8 trillion in 2024, favoring renewables over fossil fuels and accelerating technologies like carbon capture and AI-driven climate solutions. Policy frameworks such as the U.S. Inflation Reduction Act and Europe's Green Deal, along with cost reductions in solar, wind, and battery technologies, are speeding the transition to sustainable energy infrastructure. Innovations in energy storage and green hydrogen adoption highlight the sector's shift from experimental phases to large-scale implementation.
AI-Driven Power Demand Pushes U.S. Utility Unpaid Bills to $25 Billion
U.S. utility unpaid bills have surged from roughly $15 billion in 2022 to $25 billion in 2025, while electricity shutoffs rise alongside soaring demand from artificial intelligence data centers. In Virginia, a key data center market, electricity prices near data centers jumped over 260% over five years, according to Bloomberg. NextEra Energy is acquiring Dominion Energy, betting on AI demand to boost earnings, but the deal hinges on regulatory approval for rate increases. Companies like Constellation Energy, Brookfield Renewable, and Bloom Energy operate outside the regulated utility framework, offering alternative ways to invest in AI power demand without direct exposure to rate-hike pushback.
Constellation Energy plans nearly 10 GW of new capacity to meet rising U.S. electricity demand
Constellation Energy is adding nearly 10 gigawatts of new power capacity and restarting the 835-megawatt Crane Clean Energy Center to serve Microsoft’s AI-driven electricity demand, while also expanding its natural gas and battery storage business. The company has entered a 20-year power purchase agreement with Meta to supply 1.1 gigawatts from the Clinton Clean Energy Center in Illinois. Following the Calpine acquisition, Constellation owns about 55 gigawatts of capacity across nuclear, natural gas, geothermal, hydro, wind and solar assets. The company projects 2026 adjusted earnings per share of $11 to $12 and more than 20% annual base EPS growth through 2029, supported by long-term data center contracts, higher natural gas plant utilization and nuclear production tax credits.
Constellation Energy signs nuclear power deal with Walmart, P/E drops to 21x
Constellation Energy has signed a nuclear power deal with Walmart, supporting the retailer's clean energy goals, following a similar 20-year contract with Meta. The company's price-to-earnings ratio has fallen to 21 times, down from nearly 50 times during the peak of nuclear power enthusiasm, making the stock more reasonably valued. Constellation Energy, one of the largest nuclear power providers in the United States, sells power at market rates outside the regulated framework, allowing it to ink long-term contracts directly with customers. The company also expanded into natural gas power through its acquisition of Calpine, positioning it to benefit from broader electricity demand growth, which is expected to increase by 60% between 2025 and 2045.
Nuclear Energy Comeback Is Real: Three Stocks to Play the Revival
Electricity demand is projected to increase by 60% between 2025 and 2045, driving a nuclear power renaissance. Constellation Energy, a major independent nuclear producer, has seen its stock pull back roughly 40% from its 2025 high, with its price-to-earnings ratio now at a more reasonable 20x. NuScale Power, a start-up developing small modular reactors, remains a high-risk play as it has yet to deploy its technology commercially and continues to lose money. Brookfield Renewable Partners offers a safer, income-oriented option with a 4.6% distribution yield and a 50% stake in nuclear services provider Westinghouse.
Energy Analyst Warns U.S. Grid Cannot Support AI Data Center Demand
Energy analyst Jeremy Eliahou Ontiveros warned that the U.S. grid cannot support the pace of AI data center growth, forcing AI labs to build their own generation. He noted that Anthropic plans to expand from 1.5 gigawatts of capacity at the end of 2025 to over 10 gigawatts by 2027, equivalent to building a Google in two years. While host Shayle Kann projected roughly 35 gigawatts of annual new supply from gas, solar, and batteries, Eliahou Ontiveros called that insufficient against 50 gigawatts of annual data center demand. Constellation Energy reported a 63.9% year-over-year revenue jump to $11.12 billion in Q1 2026, and Vistra signed 20-year power purchase agreements with Meta and AWS totaling over 3,800 megawatts. Equipment suppliers like GE Vernova and Vertiv are seeing surging orders, with Vertiv's Q4 2025 organic orders up 252% year over year and backlog reaching $15 billion.
Constellation Energy Gains 2% While Broader Market Dips
Constellation Energy Corporation closed at $244.52, a 2.01% gain that outpaced the S&P 500's 0.28% decline. The stock has fallen 4.74% over the past month, underperforming both the Oils-Energy sector's 4.3% loss and the S&P 500's 1.64% gain. The company is expected to report earnings per share of $2.24, up 17.28% from the prior-year quarter, on revenue of $7.51 billion, a 23.16% increase. For the full year, consensus estimates call for earnings of $11.74 per share and revenue of $35.48 billion, representing jumps of 25.03% and 38.95%, respectively. Constellation Energy holds a Zacks Rank of 3, or Hold, and trades at a forward price-to-earnings ratio of 20.42, above the industry average of 17.86, while its PEG ratio stands at 0.94 versus the industry's 2.03.
Constellation Energy Offers 70% Upside as Nuclear AI Play Finds Support
Constellation Energy, the largest nuclear power generator in the U.S., is being highlighted as a top stock to buy now for long-term growth, dividends, value, and 70% upside as it attempts to find technical support at a key level. The company completed its $27 billion acquisition of Calpine in early 2026, creating the largest clean power company in the U.S. and expanding its footprint into California and Texas. CEG has signed long-term nuclear power deals with Microsoft, Meta, and others, positioning it as a key beneficiary of the AI data center boom that is projected to drive U.S. electricity demand up 25% by 2030. The stock has climbed roughly 380% since its February 2022 IPO but is down about 40% from its October 2025 highs, now trading at 18.9 times forward 12-month earnings—a 23% discount to its industry. Constellation raised its dividend by 10% in 2026 and expects to grow earnings by over 20% annually through 2029, with 16 of 22 brokerage recommendations at Strong Buy.
XLU edges VPU as cleaner AI data-center play on Constellation and Vistra concentration
The Utilities Select Sector SPDR Fund, or XLU, has slightly outperformed the Vanguard Utilities Index Fund ETF, known as VPU, by concentrating its holdings in large-cap power generators tied to the AI data-center boom. XLU holds roughly 30 names with a combined 9.47% weighting in Constellation Energy and Vistra, the independent power producers signing hyperscaler contracts and pursuing nuclear restarts, while VPU spreads across more than 65 holdings including water and mid-cap utilities with little AI exposure. From January 2023 through early July 2026, XLU returned 42.75% versus VPU's 42.05%, and over five years XLU gained 62.63% compared with VPU's 60.64%. The narrow gap reflects that regulated utilities broadly re-rated on the same AI power theme, but XLU's construction rules make it the cleaner expression for investors specifically targeting the data-center power buildout.
Constellation Energy Shares Trail Industry Over Past Year Amid Acquisition Concerns
Constellation Energy shares have lost 24.4% over the past year, underperforming the Zacks Alternate Energy – Other industry's 21.7% gain and the Zacks Oil-Energy sector's 21.9% rally. The decline reflects investor concerns over the Calpine acquisition, including high leverage and share dilution, as well as transmission bottlenecks delaying the restart of the 835-megawatt Three Mile Island plant. Despite the weakness, the company benefits from growing data center demand, a reliable nuclear fleet achieving a 92.3% capacity factor in first-quarter 2026, and expansion of its clean energy portfolio through acquisitions and long-term agreements with partners like Walmart and Pine Creek RNG. Earnings estimates for 2026 and 2027 have edged up 0.86% and 0.52% over the past 60 days, while the stock trades at a forward price-to-earnings multiple of 18.86, a discount to the industry's 24.99. The stock carries a Zacks Rank of 3, or Hold.
Nuclear power has become a strategically vital energy sector, driven by AI electricity demand and a push to quadruple U.S. nuclear capacity to 400 GWe by 2050. Constellation Energy, the largest U.S. private power producer with a 55 GW fleet, has locked in power-purchase agreements with Microsoft, Meta, and CyrusOne, and trades at $243 against a $360.24 Wall Street target. Cameco, the world's largest publicly traded uranium miner, beat Q1 estimates by 38%, holds 230 million pounds under long-term contracts, and partners with Brookfield on at least $80 billion in AP1000 reactor deployments. Oklo, the only small modular reactor developer with both a site use permit and secured fuel, has roughly 14 GW in customer agreements anchored by a 12 GW deal with Switch, though it remains pre-revenue with a $73.6 million net loss in fiscal 2024.
Constellation Energy signs major clean-energy deals to capture AI-driven power demand
Constellation Energy is securing large clean-energy supply contracts with major technology and commercial customers to benefit from rising AI-driven electricity demand. The company recently signed a 15-year power purchase agreement with Walmart for 176 megawatts of carbon-free electricity from the Dresden Clean Energy Center and a 20-year agreement with Microsoft linked to the restart of the Crane Clean Energy Center. It also signed a 380 megawatt agreement with CyrusOne in Texas, with an option to expand by another 380 megawatts. To meet growing demand, Constellation has submitted nearly 5,000 megawatts of new generation projects, including nuclear uprates, natural gas plants, and battery storage, and its acquisition of Calpine adds a large fleet of flexible natural gas power plants. The company expects base earnings to grow by more than 20% annually through 2029, supported by long-term contracts, nuclear production tax credits, and increasing demand from hyperscale data centers.
Record Heat Dome Drove PJM Grid to All-Time Peak Demand Friday
A once-in-a-decade heat dome pushed PJM Interconnection's Friday demand to an estimated 166 gigawatts, which would smash the 2012 all-time record by 5 gigawatts. Dan Leonard of MetDesk noted that the eastern half of the country hasn't seen heat like this since 2012, while structural load growth from data centers and population increases compounds the weather-driven surge. Data center electricity use has more than doubled since 2018 and could reach 12% of U.S. consumption by 2028. Among merchant generators positioned to benefit, Vistra trades 30% below its $223 analyst target, Constellation Energy sits well below a $360 consensus despite running the largest U.S. nuclear fleet, Talen Energy recently closed a $3.5 billion deal to add 2.6 gigawatts of gas plants, and NRG Energy has gained 6% over the past week as heat forecasts intensified.
Citi Keeps Neutral Rating on Constellation Energy, Cuts Price Target to $297
Citi lowered its price target on Constellation Energy to $297 from $348 and kept a Neutral rating on the shares, updating its model after a PJM meeting. The company recently filed license renewal applications to extend operations of its Ginna and Nine Mile Point Unit 1 reactors to 2049, citing New York's renewal of its Zero Emissions Credit program. Constellation said the program is projected to deliver $50 billion in ratepayer savings by 2050 and contribute $38 billion to New York's economy. Separately, Morgan Stanley raised its price target on Constellation Energy to $364 from $359 with an Overweight rating.
Constellation Energy Applies for License Renewals for Two New York Nuclear Plants
Constellation Energy has submitted license renewal applications to the Nuclear Regulatory Commission for its Nine-Mile Point Unit 1 and Ginna Clean Energy Center in New York. The renewals would extend operations of both plants through mid-century, supported by New York State's renewed Zero Emissions Credit program. President and CEO Joe Dominguez said the state's upstate nuclear fleet provides nearly half of New York's clean energy, thousands of jobs, and significant local tax revenue. The ZEC renewal is projected to save customers over $50 billion by 2050, add $38 billion to the state economy, and secure 14,000 permanent local jobs.
Big Tech’s $3 Trillion Struggle to Secure Enough Electricity
Big Tech is facing a critical shortage of electricity to power AI data centers, with utilities quoting two- to four-year wait times just for feasibility studies. Global data center power demand could rise 165% by the end of the decade, according to Goldman Sachs. Companies like Amazon, Microsoft, and Google are racing to lock in long-term power deals, such as Amazon’s agreement with Talen Energy for up to 1,920 megawatts of nuclear power and Microsoft’s 20-year deal with Constellation Energy to restart Three Mile Island for 835 megawatts. Bitzero, which controls over a gigawatt of clean power capacity across Norway, Finland, and North Dakota, has already secured a 15-year lease with OneQode Networks for its full 110-megawatt Norway campus, potentially generating $2.6 billion in contracted revenue. Shark Tank’s Kevin O’Leary is a strategic investor, noting that Bitzero’s sustainable, low-cost electricity positions it as a power provider in an era where AI and Bitcoin mining compete for the same resource.
Morgan Stanley lifts Constellation Energy target to $364, Goldman starts at Neutral
Morgan Stanley raised its price target on Constellation Energy to $364 from $359 while maintaining an Overweight rating, as part of a regular review of North American utilities. Goldman Sachs initiated coverage with a Neutral rating and a $305 target, calling the company a high-quality independent power producer but noting its shares already trade at a meaningful premium to peers. Separately, Reuters reported that Walmart signed two 15-year contracts with Constellation Energy to buy about 176 megawatts of nuclear power from the Dresden Clean Energy Center in Illinois, including 30 megawatts from planned upgrades, starting in 2029 and 2030.
Constellation Energy signs landmark nuclear power deal with Walmart
Constellation Energy has entered a long-term agreement to supply nuclear power to Walmart, marking one of the first such deals between a major US retailer and a nuclear energy provider. Under the deal, Walmart will purchase approximately 176 megawatts of electricity from Constellation's Dresden Clean Energy Center in Illinois, including 30 megawatts from planned plant upgrades, under two 15-year contracts starting in 2029 and 2030. The agreement supports efficiency upgrades at the Dresden plant, allowing increased output without new generation capacity. The stock has declined around 8% over the past month, trading near 52-week lows, partly due to conservative 2026 guidance, but analysts' average price target suggests roughly 40% upside.