Constellation Energy Shares Plunge 8% on Disappointing 2026 Earnings Outlook

Constellation Energy (CEG) shares fell 8.3% after providing 2026 EPS guidance of $11 to $12, with the lower end missing the $11.60 analyst consensus. Despite the immediate sell-off, the company unveiled an ambitious $3.9 billion capital investment plan to bolster its infrastructure. Management is now targeting annual EPS growth exceeding 20% through 2029, signaling strong long-term confidence. A key pillar of this strategy is a strategic focus on meeting the surging energy demands of AI infrastructure and data centers. This pivot aims to position the company as a primary power provider for the next generation of technology hubs. While the 2026 outlook initially weighed on the utilities sector and the XLU fund, market participants are now weighing the short-term miss against these robust long-term growth targets.