Constellation Energy Shares Rise Over 4% as Q3 Earnings Beat Estimates and 2026 Outlook Improves

Constellation Energy (NASDAQ:CEG) shares advanced more than 4% in premarket trading on Monday after the US power producer reported third-quarter earnings above analyst expectations and raised the midpoint of its full-year adjusted earnings guidance.

Adjusted earnings increased to $5.06 per share for the quarter ended September 30, 2026, compared with $3.04 a year earlier, exceeding analysts’ expectations of $3.89.

Revenue rose to $9.55 billion from $6.57 billion in the prior-year quarter, surpassing the consensus estimate of $9.35 billion.

The company attributed its performance to favourable market and portfolio conditions and its January acquisition of Calpine, partially offset by higher interest costs and factors affecting its nuclear production tax credit portfolio.

Net Income Rises as Revenue Increases

Constellation reported third-quarter net income of $1.84 billion, or $5.19 per share, compared with $930 million, or $2.97 per share, in the corresponding period of 2025.

Net interest expense increased to $217 million from $134 million a year earlier.

Following the results, Constellation narrowed its 2026 adjusted operating earnings forecast to between $12.50 and $12.80 per share, raising the midpoint for the second time this year.

The revised guidance compares with analysts’ consensus expectation of $12.22 per share.

Amazon and Google Agreements Support Nuclear Expansion

Constellation announced long-term electricity supply agreements intended to support additional nuclear generating capacity.

A 20-year, 690-megawatt power purchase agreement with Amazon will support more than $3 billion in investment at the company’s Calvert Cliffs nuclear facility, including a planned 190-megawatt expansion between 2030 and 2032.

A separate 20-year agreement with Google will support more than $4.3 billion in investment across 11 nuclear units, with plans to increase generating capacity by approximately 890 megawatts. The first additional capacity is expected in 2028.

Constellation also signed its first Peak+ agreement, covering 270 megawatts of electricity from existing nuclear plants over 20 years, beginning in 2028.

Chief Executive Officer Joe Dominguez said the agreements “add more than 1,000 megawatts of new, emissions-free generation to the grid.”

He added that the additional capacity is “coming online with no costs being borne by existing customers.”

Constellation Plans $715 Million Power Plant Acquisition

The company also agreed to acquire the 609-megawatt Rhode Island State Energy Center natural gas facility from Shell Energy North America for $715 million.

The proposed acquisition remains subject to regulatory approvals.

Separately, Constellation signed a conditional commitment with the US Department of Energy for a loan guarantee of up to $5 billion to support projects increasing output at its nuclear facilities.

The proposed 30-year financing would carry an interest rate 0.375 percentage points above comparable US Treasury rates.

Nuclear Fleet Reports Higher Generation and Capacity Factor

Constellation’s nuclear fleet generated 46,677 gigawatt-hours during the third quarter, compared with 46,477 gigawatt-hours in the same period last year.

Excluding the Salem and South Texas Project facilities, the company’s nuclear plants operated at a capacity factor of 97.2%, up from 96.8% a year earlier.

The increase reflected higher utilisation across the relevant nuclear generating facilities.

Constellation’s updated earnings guidance follows the quarterly results and the announcement of additional electricity supply agreements, infrastructure investments and financing arrangements.

The planned capacity expansions and acquisition remain subject to their respective development schedules and regulatory requirements.

Constellation Energy Group stock price