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NextEra Energy to Report Q4 Earnings: Buy, Sell or Hold the Stock?

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Key Takeaways

  • NextEra Energy is set to report Q4 earnings of 53 cents per share on revenues of $6.55 billion.
  • Customer growth, renewables and nuclear fleet strength are expected to support NEE's Q4 results.
  • NEE's shares gained 18.2% in 6 months but now trade at a premium 21.17X forward P/E versus peers.

NextEra Energy (NEE - Free Report) is scheduled to release its fourth-quarter 2025 results on Jan. 27, before market open. The Zacks Consensus Estimate for earnings is currently pegged at 53 cents per share on revenues of $6.55 billion.

Fourth-quarter earnings estimates have gone down 8.62% over the past 60 days. The bottom-line projection indicates no change from the year-ago quarter’s number. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 21.72%.

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Image Source: Zacks Investment Research

NEE Stock’s Earnings Surprise History

NextEra Energy’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 4.39%.

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Image Source: Zacks Investment Research

What the Zacks Model Unveils

Our 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 surprise this season are Ameren (AEE - Free Report) , Alliant Energy (LNT - Free Report) and Pinnacle West Capital (PNW - Free Report) . AEE, LNT and PNW have an Earnings ESP of +0.66%, +0.87% and +460%, respectively, and carry a Zacks Rank #2 each.

Factors Likely to Have Influenced NEE Stock’s Q4 Results

Florida Power & Light (“FPL”), NextEra Energy’s subsidiary, continues to benefit from Florida’s strong economic growth, which is driving steady quarterly customer additions. Strategic capital investments are enabling FPL to deliver reliable service while keeping electricity bills roughly 40% below the national average. These competitive rates help attract and retain customers, supported by the ongoing shift toward renewable assets that is gradually reducing fuel costs in customer bills.

FPL holds a strong foothold in Florida’s utility market, supported by long-term franchise agreements with various municipalities. These 30-year exclusive contracts provide service rights within defined areas, ensuring operational stability and long-term growth opportunities for the company, and are likely to have fourth-quarter earnings like previous quarters.

NextEra Energy has been benefiting from rising energy demand driven by data center expansion and growing power needs in the Permian Basin. Backed by a strong supply chain, the company continues to provide affordable electricity through scalable, low-cost renewable projects, leveraging its scale, expertise and advanced technology to capitalize on higher U.S. power demand.

Courtesy of its expected strong performance of the nuclear fleet, contributions from NEE’s Energy Resources unit are expected to have remained strong in the fourth-quarter. New projects placed into service are likely to have contributed to fourth-quarter earnings.

NEE Stock Returns Better Than Its Industry

NextEra Energy’s trailing 12-month return on equity (“ROE”) is 12.42%, ahead of the industry average of 10.47%. 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.

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Image Source: Zacks Investment Research

NEE Stock’s Price Performance

NEE’s shares have gained 18.2% in the past six months compared with the Zacks Utility – Electric Power industry’s rise of 7.9%.

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Image Source: Zacks Investment Research


NextEra Energy’s Shares Trading at a Premium

The company is currently valued at a premium compared with its industry on a forward 12-month P/E basis. NextEra Energy is trading at 21.17X compared with its industry’s 15.64X.

Zacks Investment Research
Image Source: Zacks Investment Research


Investment Thesis

Florida’s strong economic rise is driving higher demand and customer growth, which is benefiting NextEra Energy. NEE’s ongoing investments in renewables and battery storage strengthen its ability to deliver reliable, sustainable power.

Through disciplined expense management, NextEra Energy keeps utility bills well below the national average, enhancing the affordability of its services and attracting more customers.

NextEra Energy’s return is currently better than the industry, but the stock's current premium valuation, holding existing positions, may be the most prudent approach for now.

Summing Up

NextEra Energy continues to deliver stable performance, supported by rising demand for clean energy across its service territories. Ongoing expansion of its renewable portfolio and Florida’s strong economic growth are creating additional growth opportunities.

With demand and the customer base steadily increasing, the company remains well positioned for growth, making it a compelling investment at current levels.

 

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