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CEG raised 2026 guidance to $12.50-$12.80 & secured long-term nuclear power deals with Amazon and Google.
Constellation Energy Corporation (CEG - Free Report) reported third-quarter 2026 adjusted operating earnings of $5.06 per share, up 66.4% year over year. The figure beat the Zacks Consensus Estimate of $3.90 per share by 29.74%, driven by favorable market and portfolio conditions and the addition of Calpine.
GAAP earnings per share in the reported quarter were $5.19 compared with $2.97 in the year-ago quarter. Net income attributable to common shareholders increased to $1.84 billion from $930 million, reflecting stronger operating performance.
Total Revenues
Revenues increased 45.4% to $9.55 billion and surpassed the consensus estimate of $8.563 billion by 11.53%. Nuclear output totaled 46,677 gigawatt-hours (GWh), up from 46,477 GWh in the year-ago quarter.
Constellation Energy Corporation Price, Consensus and EPS Surprise
Total operating expenses rose 28.9% year over year to $7.07 billion. Purchased power and fuel expenses increased 23.4% to $4.40 billion, while operating and maintenance costs climbed 31.8% to $1.99 billion.
Depreciation and amortization expenses advanced 88.4% to $454 million. Despite higher costs, operating income increased 129.5% to $2.49 billion from $1.09 billion in the third quarter of 2025. Net interest expenses increased to $217 million from $134 million.
CEG's Earnings Benefit From Calpine Contribution
Adjusted operating earnings increased 88.2% to $1.79 billion from $952 million a year earlier. The improvement reflected Calpine's contribution, strong commercial performance and higher capacity revenues, partially offset by lower nuclear production tax credit revenues.
CEG's Nuclear Fleet Performance
Excluding Salem and the South Texas Project, CEG's nuclear plants recorded a capacity factor of 97.2% compared with 96.8% a year earlier. The company experienced 20 planned refueling outage days, down from 23 days in the prior-year period.
Non-refueling outage days increased to six from five. The nuclear fleet achieved a 99.2% capacity factor during the June-August summer period, reflecting strong operational reliability. Renewable energy capture for the wind, solar and run-of-river hydro fleet was 96.4%, compared with 96.8% a year earlier.
Constellation Expands Long-Term Power Agreements
Constellation entered into a 20-year, 690-megawatt (MW) power purchase agreement with Amazon. The arrangement supports more than $3 billion in infrastructure investment at Calvert Cliffs Clean Energy Center, including a 190-MW capacity expansion expected between 2030 and 2032.
The company also announced a 20-year agreement with Google supporting approximately 890 MW of incremental nuclear generation capacity. The arrangement enables more than $4.3 billion in investment across 11 nuclear units, with the first uprate expected in 2028.
Constellation additionally signed its first Peak+ agreement, covering 270 MW of energy, capacity and nuclear attributes over 20 years beginning in 2028. The integrated offering combines new capacity resources with tailored customer energy solutions.
Constellation Advances Strategic Investments
Constellation agreed to acquire the 609-MW Rhode Island State Energy Center from Shell Energy North America for $715 million, subject to customary adjustments. The natural gas-fired facility is expected to become part of its merchant generation portfolio.
The company also signed a conditional Department of Energy loan commitment for up to $5 billion to support nuclear uprates. The proposed 30-year financing would provide additional flexibility for investments in expanding existing nuclear generation capacity.
CEG's Cash Flow and Balance Sheet Position
As of Sept. 30, 2026, cash and cash equivalents were $603 million compared with $3.64 billion at the end of 2025. Long-term debt increased to $19.04 billion from $7.25 billion, while total assets reached $99.19 billion.
Operating cash flow for the first nine months totaled $4.98 billion, compared with $3.43 billion a year earlier. Capital expenditures increased to $3.46 billion from $1.96 billion.
Constellation deployed approximately $3 billion toward share repurchases during the first nine months, repurchasing about 11 million shares. Approximately $2 billion remained under its share repurchase authorization.
CEG Raises 2026 Earnings Guidance
Constellation raised the midpoint and narrowed its full-year 2026 adjusted operating earnings guidance to $12.50-$12.80 per share from the previous range of $11.50-$12.50. The revised outlook assumes average diluted shares outstanding of 356 million.
The upward revision reflects commercial outperformance in volatile market conditions, partially offset by higher operating and maintenance expenses associated with that performance.
CEG continues to target base earnings-per-share growth exceeding 20% from 2026 through 2029. The company also aims to achieve long-term rolling three-year base earnings growth of more than 10%.
Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2026 adjusted earnings of $1.08 per share, up 163.4% from 41 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of 91 cents per share by 18.68%. Stronger commodity prices and lower operating costs supported the results.
Total revenues of $855 million increased 16.6% year over year and beat the consensus estimate of $767 million by 11.52%.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2026 operating earnings of $4.03 (€3.50) per share, which lagged the Zacks Consensus Estimate of $4.11 by 1.95%. The bottom line improved 127.7% from the year-ago figure of $1.77 (€1.50).
Total revenues were $66.82 billion, up 37.2% year over year, surpassing the Zacks Consensus Estimate of $53.72 billion by 24.39%. Strong refining margins and higher gas prices supported results.
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2026 adjusted earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.24 by 14.5%. GAAP earnings were 88 cents per share, down 19.3% from $1.09 a year earlier.
Revenues rose 58.4% year over year to $6.86 billion but missed the consensus estimate of $7.33 billion by 6.4%. The first full quarter following Devon's combination with Coterra delivered significantly higher production, led by the Permian Basin.
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CEG Q3 Earnings Beat on Calpine, Strong Commercial Performance
Key Takeaways
Constellation Energy Corporation (CEG - Free Report) reported third-quarter 2026 adjusted operating earnings of $5.06 per share, up 66.4% year over year. The figure beat the Zacks Consensus Estimate of $3.90 per share by 29.74%, driven by favorable market and portfolio conditions and the addition of Calpine.
GAAP earnings per share in the reported quarter were $5.19 compared with $2.97 in the year-ago quarter. Net income attributable to common shareholders increased to $1.84 billion from $930 million, reflecting stronger operating performance.
Total Revenues
Revenues increased 45.4% to $9.55 billion and surpassed the consensus estimate of $8.563 billion by 11.53%. Nuclear output totaled 46,677 gigawatt-hours (GWh), up from 46,477 GWh in the year-ago quarter.
Constellation Energy Corporation Price, Consensus and EPS Surprise
Constellation Energy Corporation price-consensus-eps-surprise-chart | Constellation Energy Corporation Quote
Constellation's Expense Trends
Total operating expenses rose 28.9% year over year to $7.07 billion. Purchased power and fuel expenses increased 23.4% to $4.40 billion, while operating and maintenance costs climbed 31.8% to $1.99 billion.
Depreciation and amortization expenses advanced 88.4% to $454 million. Despite higher costs, operating income increased 129.5% to $2.49 billion from $1.09 billion in the third quarter of 2025. Net interest expenses increased to $217 million from $134 million.
CEG's Earnings Benefit From Calpine Contribution
Adjusted operating earnings increased 88.2% to $1.79 billion from $952 million a year earlier. The improvement reflected Calpine's contribution, strong commercial performance and higher capacity revenues, partially offset by lower nuclear production tax credit revenues.
CEG's Nuclear Fleet Performance
Excluding Salem and the South Texas Project, CEG's nuclear plants recorded a capacity factor of 97.2% compared with 96.8% a year earlier. The company experienced 20 planned refueling outage days, down from 23 days in the prior-year period.
Non-refueling outage days increased to six from five. The nuclear fleet achieved a 99.2% capacity factor during the June-August summer period, reflecting strong operational reliability. Renewable energy capture for the wind, solar and run-of-river hydro fleet was 96.4%, compared with 96.8% a year earlier.
Constellation Expands Long-Term Power Agreements
Constellation entered into a 20-year, 690-megawatt (MW) power purchase agreement with Amazon. The arrangement supports more than $3 billion in infrastructure investment at Calvert Cliffs Clean Energy Center, including a 190-MW capacity expansion expected between 2030 and 2032.
The company also announced a 20-year agreement with Google supporting approximately 890 MW of incremental nuclear generation capacity. The arrangement enables more than $4.3 billion in investment across 11 nuclear units, with the first uprate expected in 2028.
Constellation additionally signed its first Peak+ agreement, covering 270 MW of energy, capacity and nuclear attributes over 20 years beginning in 2028. The integrated offering combines new capacity resources with tailored customer energy solutions.
Constellation Advances Strategic Investments
Constellation agreed to acquire the 609-MW Rhode Island State Energy Center from Shell Energy North America for $715 million, subject to customary adjustments. The natural gas-fired facility is expected to become part of its merchant generation portfolio.
The company also signed a conditional Department of Energy loan commitment for up to $5 billion to support nuclear uprates. The proposed 30-year financing would provide additional flexibility for investments in expanding existing nuclear generation capacity.
CEG's Cash Flow and Balance Sheet Position
As of Sept. 30, 2026, cash and cash equivalents were $603 million compared with $3.64 billion at the end of 2025. Long-term debt increased to $19.04 billion from $7.25 billion, while total assets reached $99.19 billion.
Operating cash flow for the first nine months totaled $4.98 billion, compared with $3.43 billion a year earlier. Capital expenditures increased to $3.46 billion from $1.96 billion.
Constellation deployed approximately $3 billion toward share repurchases during the first nine months, repurchasing about 11 million shares. Approximately $2 billion remained under its share repurchase authorization.
CEG Raises 2026 Earnings Guidance
Constellation raised the midpoint and narrowed its full-year 2026 adjusted operating earnings guidance to $12.50-$12.80 per share from the previous range of $11.50-$12.50. The revised outlook assumes average diluted shares outstanding of 356 million.
The upward revision reflects commercial outperformance in volatile market conditions, partially offset by higher operating and maintenance expenses associated with that performance.
CEG continues to target base earnings-per-share growth exceeding 20% from 2026 through 2029. The company also aims to achieve long-term rolling three-year base earnings growth of more than 10%.
CEG’s Zacks Rank
Constellation has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases From the Sector
Murphy Oil Corporation (MUR - Free Report) reported third-quarter 2026 adjusted earnings of $1.08 per share, up 163.4% from 41 cents in the year-ago quarter. The figure surpassed the Zacks Consensus Estimate of 91 cents per share by 18.68%. Stronger commodity prices and lower operating costs supported the results.
Total revenues of $855 million increased 16.6% year over year and beat the consensus estimate of $767 million by 11.52%.
TotalEnergies SE (TTE - Free Report) reported third-quarter 2026 operating earnings of $4.03 (€3.50) per share, which lagged the Zacks Consensus Estimate of $4.11 by 1.95%. The bottom line improved 127.7% from the year-ago figure of $1.77 (€1.50).
Total revenues were $66.82 billion, up 37.2% year over year, surpassing the Zacks Consensus Estimate of $53.72 billion by 24.39%. Strong refining margins and higher gas prices supported results.
Devon Energy Corp. (DVN - Free Report) reported third-quarter 2026 adjusted earnings of $1.42 per share, beating the Zacks Consensus Estimate of $1.24 by 14.5%. GAAP earnings were 88 cents per share, down 19.3% from $1.09 a year earlier.
Revenues rose 58.4% year over year to $6.86 billion but missed the consensus estimate of $7.33 billion by 6.4%. The first full quarter following Devon's combination with Coterra delivered significantly higher production, led by the Permian Basin.