Constellation Energy raises 2026 earnings outlook on AI demand

Constellation Energy Corporation reported second-quarter 2026 non-GAAP adjusted operating earnings of $2.55 per share, a 34 percent increase from the $1.91 per share recorded in the same period last year. The company subsequently raised its full-year 2026 guidance to a range of $11.50 to $12.50 per share, positioning the midpoint roughly 28 percent above the prior year's $9.39 per share. This upward revision reflects immediate earnings strength independent of future contract contributions, according to reporting from GN auto stocks/energy-stocks: energy earnings.

The stock closed at $299.05 on the Nasdaq on September 8, 2026, down 0.3 percent from the previous session. Despite the slight daily decline, the share price remains modestly above certain intrinsic value estimates as investors assess the impact of the upgraded financial targets and the company's expanding role in supplying electricity to artificial intelligence data centers.

Nuclear capacity drives quarterly performance

Constellation Energy’s nuclear fleet generated 44,160 gigawatt-hours of electricity during the second quarter of 2026. This volume of generation directly supported the 34 percent year-over-year growth in adjusted earnings per share to $2.55. The reliability and scale of this nuclear output formed the primary basis for the company's decision to upgrade its full-year earnings guidance to the $11.50 to $12.50 per share range.

Long-term contracts secure data center demand

The company has secured two 20-year nuclear power agreements with Microsoft and Meta, linking its existing U.S. assets to growing data center electricity requirements. The Microsoft agreement supports the planned restart of the Crane Clean Energy Center, formerly Three Mile Island Unit 1, which is expected to restore approximately 835 megawatts of nuclear generation subject to regulatory approvals.

Meta’s agreement covers 1,121 megawatts at the Clinton Clean Energy Center in Illinois, with supply commencing in 2027. This contract also supports an additional 30 megawatts of capacity, further anchoring the utility's revenue stream to the expanding power needs of the technology sector.

Valuation metrics show modest premium

Analysts note that the stock trades at a premium relative to some intrinsic value models. One assessment valued the shares at $299.05 against an estimated intrinsic value of $286.08, implying a 4.5 percent premium. Insider activity over the past 12 months included approximately $0.4 million in purchases with no reported selling, suggesting management confidence in the long-term outlook.

Sell-side consensus indicates a bullish stance, with 20 Buy ratings compared to only 3 Hold recommendations. The average analyst price target stands at $348.30, implying roughly 16 percent upside potential from the current trading level. This valuation reflects the market's integration of the company's recent acquisition of Calpine and its expanded portfolio of nuclear and renewable assets.