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Constellation Energy Corporation
(NASDAQ:CEG)
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Rating:65Neutral
Price Target:
$272.00
â–¼(-2.31% Downside)
Action:Reiterated
Date:10/07/26
CEG’s score is driven primarily by strong profitability but meaningfully offset by weak and volatile free-cash-flow conversion and a stepped-up total debt load in the latest TTM period. The earnings call was a clear positive (raised guidance, long-term contracting, and sizable buybacks), while technical signals are mixed and valuation looks relatively rich with a modest dividend yield.
Positive Factors
Strong profitability
Constellation’s strong gross, operating, and net margins show that its generation and energy-supply platform can convert revenue into substantial earnings. Combined with high recent ROE, this profitability provides capacity to fund operations, support investment, and reinforce its competitive position over the next several quarters.
Negative Factors
Weak free-cash-flow conversion
Sharp free-cash-flow compression means reported earnings are not currently translating into equivalent financial resources. Heavy cash uses can constrain reinvestment, debt reduction, and shareholder returns, while weak conversion leaves less flexibility if operating conditions or capital requirements become more demanding.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability
Constellation’s strong gross, operating, and net margins show that its generation and energy-supply platform can convert revenue into substantial earnings. Combined with high recent ROE, this profitability provides capacity to fund operations, support investment, and reinforce its competitive position over the next several quarters.
Read all positive factors
Constellation Energy Corporation Key Performance Indicators (KPIs)
Any
Nuclear Generation by Geography
Maps out nuclear energy production across various locations, reflecting the company's commitment to stable, low-carbon power generation and its strategic positioning in different regulatory environments.
Maps out nuclear energy production across various locations, reflecting the company's commitment to stable, low-carbon power generation and its strategic positioning in different regulatory environments.
Data provided by:
The Fly
The FlyConstellation Energy Corporation (CEG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$89.80B
Dividend Yield0.66%
Average Volume (3M)3.85M
Price to Earnings (P/E)24.6
Beta (1Y)1.37
Revenue Growth20.74%
EPS Growth7.00%
CountryUS
Employees15,315
SectorUtilities
Sector Strength65
IndustryIndependent Power Producers
Share Statistics
EPS (TTM)10.30
Shares Outstanding354,307,370
10 Day Avg. Volume3,456,190
30 Day Avg. Volume3,845,070
Financial Highlights & Ratios
PEG Ratio-1.26
Price to Book (P/B)7.62
Price to Sales (P/S)4.33
P/FCF Ratio85.85
Enterprise Value/Market Cap1.26
Enterprise Value/Revenue3.63
Enterprise Value/Gross Profit16.33
Enterprise Value/Ebitda14.20
Forecast
1Y Price Target
$347.94Price Target Upside24.97% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)12.04
Revenue Forecast (FY)$33.78B
Constellation Energy Corporation Business Overview & Revenue Model
Company Description
Constellation Energy Corporation operates as a U.S.-based firm dedicated to producing and distributing electricity. Its activities are organized across five primary geographical segments: the Mid-Atlantic, Midwest, New York, ERCOT, and various oth...
How the Company Makes Money
Constellation makes money mainly by generating electricity and by marketing/selling electricity (and related products) to end customers. A large portion of earnings is tied to its power generation operations—especially its nuclear fleet—where reve...
Constellation Energy Corporation Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and commercial performance (beat in adjusted EPS, raised guidance, 920 MW of long-term nuclear deals, efficient outage execution, successful Calpine integration, and aggressive share repurchases), along with several regulatory and licensing milestones that underpin future value. Headwinds were largely timing and execution-related: planned outage days reduced quarterly capacity factor, an Illinois ZEC timing shortfall affected quarter results (but not full-year guidance), PJM/FERC technical details and state-level permitting steps (e.g., Texas Batch Zero) remain to be finalized, and ERCOT price softness is a near-term market headwind. Overall, the positives — including the guidance increase, sizable contracting, capital returns, and regulatory progress — materially outweigh the limited and mostly timing-based lowlights.Positive Updates
Strong Quarterly Earnings
GAAP EPS of $1.42 and adjusted operating EPS of $2.55 in Q2 2026, an increase of $0.64 year-over-year (approximately +33.5% vs. prior-year adjusted EPS of $1.91).
Negative Updates
Quarterly Capacity-Factor Impact from Planned Outages
Elevated planned nuclear refueling outage days reduced the quarter's capacity factor by 1.8% vs. Q2 2025, contributing to lower utilization in the period (quarterly fleet capacity factor 93%).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Earnings
GAAP EPS of $1.42 and adjusted operating EPS of $2.55 in Q2 2026, an increase of $0.64 year-over-year (approximately +33.5% vs. prior-year adjusted EPS of $1.91).
Read all positive updates
Company Guidance
Constellation raised its full-year 2026 adjusted operating earnings guidance by $0.50 to $11.50–$12.50 per share (midpoint now equals prior top end) and will revisit the outlook on the Q3 call; Q2 results were $1.42 GAAP EPS and $2.55 adjusted operating EPS (up $0.64 year-over-year). Management highlighted ~920 MW of long‑term nuclear contracts signed this quarter (average duration 18.5 years), now contracting roughly 30% of clean baseload output, and said the nuclear fleet produced 40 TWh in Q2 at a 93% capacity factor while completing six refueling outages with a 23‑day average outage duration (40% better than the industry). Capital returns and portfolio actions include ~$2.2 billion of share repurchases year‑to‑date (with ~$2.8 billion of authorization remaining), an agreed sale of Brazos Valley for $860 million (~$1,420/kW), and DOJ‑required divestitures expected to generate about $5.9 billion gross; other financial impacts noted: Q2 Illinois ZEC bank credits of $85 million (vs. $200M LY), a 2030 PTC strike price update to $50.88/MWh (vs. $49.88) adding ~ $0.30 of 2030 base EPS, and a 2029 capital‑allocation sensitivity floor of $0.20/share with upside >$0.75/share.Constellation Energy Corporation Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
73
Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 31.27B | 25.53B | 23.57B | 24.92B | 24.44B | 19.65B |
| Gross Profit | 6.94B | 4.69B | 5.99B | 3.23B | 2.14B | 2.75B |
| EBITDA | 7.98B | 5.63B | 6.97B | 4.16B | 2.92B | 3.81B |
| Net Income | 3.46B | 2.32B | 3.75B | 1.62B | -160.00M | -205.00M |
Balance Sheet | ||||||
| Total Assets | 98.25B | 57.25B | 52.93B | 50.76B | 46.91B | 48.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.08B | 3.75B | 3.02B | 368.00M | 422.00M | 504.00M |
| Total Debt | 24.70B | 8.99B | 8.41B | 9.26B | 5.77B | 8.20B |
| Total Liabilities | 65.93B | 42.40B | 39.39B | 39.47B | 35.54B | 36.47B |
| Stockholders Equity | 31.98B | 14.52B | 13.17B | 10.93B | 11.02B | 11.22B |
Cash Flow | ||||||
| Free Cash Flow | 309.00M | 1.29B | -5.03B | -7.72B | -4.04B | -2.67B |
| Operating Cash Flow | 4.21B | 4.24B | -2.46B | -5.30B | -2.35B | -1.34B |
| Investing Cash Flow | -6.54B | -3.20B | 7.43B | 3.03B | 3.10B | 3.28B |
| Financing Cash Flow | 1.35B | -420.00M | -2.29B | 2.20B | -799.00M | -1.70B |
Constellation Energy Corporation Technical Analysis
Negative
278.42
Price Trends
274.18
Negative
267.29
Negative
281.27
Negative
Market Momentum
-3.09
Positive
40.68
Neutral
15.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CEG, the sentiment is Negative. The current price of 278.42 is above the 20-day moving average (MA) of 273.16, above the 50-day MA of 274.18, and below the 200-day MA of 281.27, indicating a bearish trend. The MACD of -3.09 indicates Positive momentum. The RSI at 40.68 is Neutral, neither overbought nor oversold. The STOCH value of 15.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CEG.
Constellation Energy Corporation Risk Analysis
Constellation Energy Corporation disclosed 1 risk factors in its most recent earnings report. Constellation Energy Corporation reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Constellation Energy Corporation Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $47.04B | 23.36 | 41.48% | 0.65% | -20.55% | -6.51% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
65 Neutral | $89.80B | 24.61 | 14.69% | 0.66% | 20.74% | 7.00% | |
63 Neutral | $45.86B | 16.22 | 9.61% | 3.74% | 6.56% | 3.72% | |
59 Neutral | $51.28B | 27.11 | 10.41% | 2.38% | 10.19% | -2.59% | |
58 Neutral | $57.35B | 22.56 | 8.89% | 4.10% | 21.98% | -0.39% | |
50 Neutral | $19.40B | 24.29 | 25.38% | 2.02% | 12.70% | 54.89% |
* Utilities Sector Average
CEG
Constellation Energy Corporation
253.45
-135.53
-34.84%
D
Dominion Energy
65.20
6.89
11.82%
ETR
Entergy
107.34
12.35
13.00%
EXC
Exelon
44.43
-1.94
-4.18%
NRG
NRG Energy
92.31
-78.17
-45.85%
VST
Vistra Corp
140.16
-57.99
-29.26%
Constellation Energy Corporation Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Constellation Energy Raises 2026 Earnings Guidance After Strong Quarter
Positive
Aug 6, 2026
Constellation Energy reported second-quarter 2026 GAAP net income of $1.42 per share, down from $2.67 a year earlier, while adjusted operating earnings rose to $2.55 from $1.91, driven largely by the addition of Calpine and favorable market condit...
Business Operations and StrategyExecutive/Board Changes
Constellation Energy reshapes board with new leadership appointments
Positive
Aug 5, 2026
On Aug. 4, 2026, longtime board chair Robert J. Lawless retired from Constellation’s Board of Directors, concluding more than two decades of leadership that spanned the legacy Constellation Energy Group, its merger with Exelon and Constellat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.