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NEE Likely to Beat Q1 Earnings Estimates: How to Play the Stock?
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Key Takeaways
NextEra Energy reports Q1 2026 on April 23; consensus sees 91 cents EPS on $7.16B revenues.
FPL benefits from Florida growth, steady customer adds and bills about 30% below the national average.
NEE's Energy Resources added 13.5 GW to renewables/storage backlog in 2025; new projects may lift Q1.
NextEra Energy (NEE - Free Report) is scheduled to release its first-quarter 2026 results on April 23, before market open. The Zacks Consensus Estimate for earnings is currently pegged at 91 cents per share on revenues of $7.16 billion.
First-quarter earnings estimates have gone up 2.25% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 14.62%.
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 3.89%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our proven model conclusively predicts 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 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 +8.51%.
Some companies in the same industry with the right combination of the two factors for an earnings beat this season are PG&E Corporation (PCG - Free Report) , CenterPoint Energy (CNP - Free Report) and Exelon Corporation (EXC - Free Report) . PCG, CNP and EXC currently have an Earnings ESP of +7.89%, +0.11% and +0.19%, respectively, and carry a Zacks Rank #2 each.
Factors Likely to Have Boosted NEE Stock’s Q1 Results
NextEra Energy’s subsidiary, Florida Power & Light (“FPL”), continues to gain from Florida’s robust economic growth, driving steady customer additions each quarter. Ongoing capital investments support reliable service and help keep electricity rates about 30% below the national average. Lower costs and a gradual shift toward renewable energy are further strengthening customer retention and reducing fuel expenses.
FPL holds a strong foothold in Florida’s utility market, supported by long-term franchise agreements with various municipalities. The new rate agreement provides FPL with four years of regulatory clarity. All these factors are likely to have positively impacted earnings in the first quarter.
NextEra Energy’s other unit, Energy Resources, is benefiting from the new additions to its renewables and storage portfolio. This unit added more than 13.5 GW of new generation and battery storage to the backlog in 2025. The addition of new renewable generation is likely to have boosted first-quarter performance.
NextEra Energy’s first-quarter earnings are also expected to have gained from strong contributions coming in from its long-term power purchase agreements with customers. Supported by a robust supply chain, the company delivers affordable electricity through scalable, cost-efficient renewable projects, using its scale, expertise and advanced technology to benefit from rising U.S. power demand.
New projects placed into service are likely to have contributed to first-quarter earnings.
NEE Stock Returns Better Than Its Industry
Return 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 12.18%, ahead of the industry average of 10.82%.
Image Source: Zacks Investment Research
NEE Stock’s Price Performance
NEE’s shares have gained 42.2% in the past year compared with the Zacks Utility – Electric Power industry’s rise of 31.6%.
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 22.37X compared with its industry’s 15.9X.
Image Source: Zacks Investment Research
Investment Thesis
Florida’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.
While NextEra Energy’s returns are currently stronger than the industry average, its premium valuation suggests that maintaining existing positions may be the more cautious approach at this time.
Rounding Up
NextEra Energy is expected to deliver a positive earnings surprise in the first quarter, supported by strong performance across its business units. Continued expansion of its renewable energy portfolio, along with Florida’s robust economic growth, is opening up additional avenues for long-term growth.
With rising demand and a steadily expanding customer base, the company remains well positioned for growth, making it an attractive investment at current levels.
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NEE Likely to Beat Q1 Earnings Estimates: How to Play the Stock?
Key Takeaways
NextEra Energy (NEE - Free Report) is scheduled to release its first-quarter 2026 results on April 23, before market open. The Zacks Consensus Estimate for earnings is currently pegged at 91 cents per share on revenues of $7.16 billion.
First-quarter earnings estimates have gone up 2.25% over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates a year-over-year increase of 14.62%.
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 3.89%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our proven model conclusively predicts 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 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 +8.51%.
Zacks Rank of NEE: The company currently carries a Zacks Rank #3. 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 PG&E Corporation (PCG - Free Report) , CenterPoint Energy (CNP - Free Report) and Exelon Corporation (EXC - Free Report) . PCG, CNP and EXC currently have an Earnings ESP of +7.89%, +0.11% and +0.19%, respectively, and carry a Zacks Rank #2 each.
Factors Likely to Have Boosted NEE Stock’s Q1 Results
NextEra Energy’s subsidiary, Florida Power & Light (“FPL”), continues to gain from Florida’s robust economic growth, driving steady customer additions each quarter. Ongoing capital investments support reliable service and help keep electricity rates about 30% below the national average. Lower costs and a gradual shift toward renewable energy are further strengthening customer retention and reducing fuel expenses.
FPL holds a strong foothold in Florida’s utility market, supported by long-term franchise agreements with various municipalities. The new rate agreement provides FPL with four years of regulatory clarity. All these factors are likely to have positively impacted earnings in the first quarter.
NextEra Energy’s other unit, Energy Resources, is benefiting from the new additions to its renewables and storage portfolio. This unit added more than 13.5 GW of new generation and battery storage to the backlog in 2025. The addition of new renewable generation is likely to have boosted first-quarter performance.
NextEra Energy’s first-quarter earnings are also expected to have gained from strong contributions coming in from its long-term power purchase agreements with customers. Supported by a robust supply chain, the company delivers affordable electricity through scalable, cost-efficient renewable projects, using its scale, expertise and advanced technology to benefit from rising U.S. power demand.
New projects placed into service are likely to have contributed to first-quarter earnings.
NEE Stock Returns Better Than Its Industry
Return 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 12.18%, ahead of the industry average of 10.82%.
Image Source: Zacks Investment Research
NEE Stock’s Price Performance
NEE’s shares have gained 42.2% in the past year compared with the Zacks Utility – Electric Power industry’s rise of 31.6%.
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 22.37X compared with its industry’s 15.9X.
Image Source: Zacks Investment Research
Investment Thesis
Florida’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.
While NextEra Energy’s returns are currently stronger than the industry average, its premium valuation suggests that maintaining existing positions may be the more cautious approach at this time.
Rounding Up
NextEra Energy is expected to deliver a positive earnings surprise in the first quarter, supported by strong performance across its business units. Continued expansion of its renewable energy portfolio, along with Florida’s robust economic growth, is opening up additional avenues for long-term growth.
With rising demand and a steadily expanding customer base, the company remains well positioned for growth, making it an attractive investment at current levels.