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NextEra Energy
(NYSE:NEE)
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Rating:72Outperform
Price Target:
$91.00
â–²(8.05% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by strong reported profitability and a very constructive earnings outlook (maintained 2026 guidance with high-end targeting and 8%+ long-term growth targets). Offsetting this is weaker near-term cash generation (negative TTM free cash flow) alongside elevated and rising leverage, which increases financing sensitivity. Valuation is supportive (P/E ~14 and ~3.1% yield), while technicals are mixed with longer-term trend pressure despite better near-term positioning.
Positive Factors
Regulated utility strength
FPL combines regulated revenue visibility with strong customer economics, reliability, and service performance. Lower bills and efficient operations can support customer growth, regulatory credibility, and continued capital investment, strengthening the durable earnings base over the next several years.
Negative Factors
Elevated and rising leverage
Debt growth has materially outpaced the earlier capital base and leaves NextEra more sensitive to financing conditions. Elevated leverage can constrain financial flexibility, increase interest obligations, and make funding large infrastructure investments more dependent on capital-market access.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated utility strength
FPL combines regulated revenue visibility with strong customer economics, reliability, and service performance. Lower bills and efficient operations can support customer growth, regulatory credibility, and continued capital investment, strengthening the durable earnings base over the next several years.
Read all positive factors
NextEra Energy Key Performance Indicators (KPIs)
Any
FPL Customers
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.
Monitors the number of customers served by Florida Power & Light, highlighting market reach and stability in the utility sector.
Data provided by:
The Fly
The FlyNextEra Energy (NEE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$172.19B
Dividend Yield2.97%
Average Volume (3M)12.52M
Price to Earnings (P/E)14.7
Beta (1Y)0.24
Revenue Growth13.47%
EPS Growth76.73%
CountryUS
Employees17,400
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)5.58
Shares Outstanding2,097,306,200
10 Day Avg. Volume12,095,036
30 Day Avg. Volume12,521,449
Financial Highlights & Ratios
PEG Ratio-11.71
Price to Book (P/B)3.07
Price to Sales (P/S)6.10
P/FCF Ratio52.23
Enterprise Value/Market Cap1.62
Enterprise Value/Revenue9.60
Enterprise Value/Gross Profit15.38
Enterprise Value/Ebitda16.25
Forecast
1Y Price Target
$93.86Price Target Upside11.44% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)4.03
Revenue Forecast (FY)$30.74B
NextEra Energy Business Overview & Revenue Model
Company Description
NextEra Energy, Inc., operating through its diverse subsidiaries, is a prominent electric power provider in North America. The company's operations encompass the generation, transmission, distribution, and sale of electricity to both individual co...
How the Company Makes Money
NextEra Energy primarily makes money through two major business segments: (1) regulated electric utility operations and (2) competitive energy generation and renewable project development/ownership.
1) Regulated utility revenues (Florida Power & ...
NextEra Energy Earnings Call Summary
Earnings Call Date:Oct 21, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 26, 2027
Earnings Call Sentiment Positive
The call was strongly constructive, with 2026 adjusted earnings guidance maintained at $3.92 to $4.02 per share and management targeting the high end, solid year-over-year earnings growth at both FPL and Energy Resources, significant renewables, storage, transmission, and large-load execution, and multiple long-term growth initiatives. The principal challenges were Hurricane Isaias' community impact, expected fourth-quarter wind-generation headwinds, modest initial federal-hub payments, lower customer-supply and corporate contributions, and ongoing regulatory and approval requirements for the Dominion combination and other projects. Highlights significantly outweighed the lowlights.Positive Updates
Strong Third-Quarter and Year-to-Date Earnings Growth
Adjusted earnings per share increased 9.7% year over year in the third quarter and 9.5% year over year through the first nine months of 2026. Management said strong financial and operational performance at FPL and Energy Resources positions the company to meet its objectives for the year.
Negative Updates
Hurricane Isaias Caused Significant Community Damage
Hurricane Isaias was described as a high-end Category 2 storm that caused destructive wind, torrential rain, and toppled trees across Northwest Florida. Although FPL restored power to all customers able to safely accept service, management said it would take months for life to truly recover for many affected homes and businesses.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter and Year-to-Date Earnings Growth
Adjusted earnings per share increased 9.7% year over year in the third quarter and 9.5% year over year through the first nine months of 2026. Management said strong financial and operational performance at FPL and Energy Resources positions the company to meet its objectives for the year.
Read all positive updates
Company Guidance
NextEra Energy’s 2026 adjusted earnings per share expectations range of $3.92 to $4.02 remains unchanged, and it is targeting the high end of that range, including expected Q4 wind generation of 90%-95% of the long-term average; it expects adjusted earnings per share to grow at a compound annual growth rate of 8%+ through 2032 and is targeting the same from 2032 through 2035, all off the 2025 base of $3.71, with average annual operating cash flow growth from 2025 to 2032 at or above its adjusted earnings per share compound annual growth rate range, dividends per share growing roughly 10% per year through 2026 off a 2024 base and 6% per year from year-end 2026 through 2028, and combined with Dominion, growth of 9%+; FPL expects full year capital investments of approximately $12 billion, FPL’s large load expectations are 8 gigawatts by 2032 with a transaction expected by the end of the year, Energy Resources expects 4-8 gigawatts of natural gas development by 2032 and 6-11 gigawatts of incremental battery storage at federal hubs, with significant load served as early as 2028 and 2029 and full requirements ramping from 2030 through 2032, while federal hub operating fees are expected from 2032 to 2052 and roughly half the earnings per share as if the facilities were owned; equity needs through 2032 remain roughly $12 billion-$17 billion, capital recycling is expected at $7 billion-$12 billion, transmission rate base growth is expected at 20% to 25% CAGR from 2025 through 2032, Duane Arnold is expected to reenter service no later than Q1 2029, and the Dominion combination is expected to close in the second half of 2027.NextEra Energy Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
63
Positive
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.14B | 27.48B | 24.75B | 28.11B | 20.96B | 17.07B |
| Gross Profit | 18.19B | 17.25B | 14.87B | 17.98B | 10.14B | 8.56B |
| EBITDA | 17.22B | 16.04B | 14.03B | 16.76B | 9.21B | 8.66B |
| Net Income | 11.64B | 6.83B | 6.95B | 7.31B | 4.15B | 3.57B |
Balance Sheet | ||||||
| Total Assets | 245.05B | 212.72B | 190.14B | 177.49B | 158.94B | 140.91B |
| Cash, Cash Equivalents and Short-Term Investments | 5.58B | 2.81B | 1.49B | 2.69B | 1.60B | 639.00M |
| Total Debt | 113.93B | 95.62B | 82.33B | 73.21B | 64.97B | 54.83B |
| Total Liabilities | 170.71B | 146.24B | 129.28B | 118.47B | 109.50B | 95.24B |
| Stockholders Equity | 61.50B | 54.61B | 50.10B | 47.47B | 39.23B | 37.20B |
Cash Flow | ||||||
| Free Cash Flow | -1.62B | 3.21B | 4.75B | 1.75B | -1.48B | -277.00M |
| Operating Cash Flow | 14.82B | 12.48B | 13.26B | 11.30B | 8.26B | 7.55B |
| Investing Cash Flow | -32.20B | -23.86B | -22.26B | -23.47B | -18.36B | -13.59B |
| Financing Cash Flow | 20.52B | 12.98B | 7.00B | 12.15B | 12.23B | 5.81B |
NextEra Energy Technical Analysis
Neutral
84.22
Price Trends
80.47
Positive
83.44
Negative
86.31
Negative
Market Momentum
0.16
Negative
62.94
Neutral
76.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Neutral. The current price of 84.22 is above the 20-day moving average (MA) of 77.97, above the 50-day MA of 80.47, and below the 200-day MA of 86.31, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 76.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NEE.
NextEra Energy Risk Analysis
NextEra Energy disclosed 52 risk factors in its most recent earnings report. NextEra Energy reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NextEra Energy Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $172.19B | 14.71 | 20.37% | 2.97% | 13.47% | 76.73% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $70.60B | 22.28 | 10.01% | 2.93% | 8.63% | -14.89% | |
63 Neutral | $97.45B | 18.77 | 9.88% | 3.42% | 6.33% | 8.98% | |
62 Neutral | $106.86B | 22.28 | 12.61% | 3.23% | 6.40% | 6.90% | |
60 Neutral | $48.75B | 21.27 | 9.64% | 3.01% | 4.57% | 1.46% | |
58 Neutral | $57.35B | 22.56 | 8.89% | 4.10% | 21.98% | -0.39% |
* Utilities Sector Average
NEE
NextEra Energy
82.04
-1.59
-1.90%
AEP
American Electric Power
129.22
16.33
14.47%
D
Dominion Energy
65.10
6.79
11.64%
DUK
Duke Energy
124.44
1.27
1.03%
SO
Southern Co
92.57
0.22
0.24%
XEL
Xcel Energy
77.86
-0.40
-0.51%
NextEra Energy Corporate Events
Legal Proceedings
NextEra Energy faces court review of derivative settlement
Neutral
Oct 6, 2026
On September 22, 2026, the Circuit Court of the 15th Judicial Circuit in Palm Beach County, Florida set a December 14, 2026 hearing to consider approval of a proposed derivative settlement involving multiple shareholder derivative actions and dema...
Business Operations and StrategyM&A Transactions
NextEra Energy unveils Virginia-focused merger benefits package
Positive
Sep 14, 2026
On Sept. 14, 2026, NextEra Energy and Dominion Energy announced a transformational Virginia benefits package tied to their proposed merger, aimed at delivering long-term residential bill relief and strengthening the Commonwealth’s energy lea...
Business Operations and StrategyM&A TransactionsShareholder Meetings
NextEra Shareholders Approve Key Steps for Dominion Merger
Positive
Sep 3, 2026
On September 3, 2026, NextEra Energy held a special shareholder meeting to consider matters related to its pending merger with Dominion Energy, with more than 1.62 billion of the company’s over 2.08 billion outstanding shares represented, co...
Legal ProceedingsM&A TransactionsRegulatory Filings and Compliance
NextEra Energy issues disclosures on Dominion merger
Neutral
Aug 25, 2026
On May 15, 2026, NextEra Energy and Dominion Energy signed a merger agreement under which Dominion will be merged into a NextEra subsidiary and then into a NextEra LLC, leaving Dominion as part of a wholly owned NextEra entity. The First Merger re...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
NextEra Energy Moves to Acquire Dominion Energy
Positive
Aug 11, 2026
On May 15, 2026, NextEra Energy entered into a merger agreement with Dominion Energy that outlines a two-step transaction to make Dominion a wholly owned subsidiary. A Florida subsidiary of NextEra will first merge into Dominion, followed by a sec...
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.