Constellation raises 2026 earnings outlook to $12.50–$12.80 per share
Key Facts
Constellation Energy on Nov. 9 raised its 2026 adjusted operating earnings outlook to $12.50–$12.80 per share, saying the midpoint had increased for the second time this year. The new range narrows the annual outlook from the previous $11.50–$12.50 per share. The announcement came as the company reported adjusted operating earnings of $5.06 per share in the third quarter, compared with $3.04 in the same period of 2025. The chief financial officer said strong quarterly performance allowed the company to raise the midpoint of its outlook for the second time this year. This is the central development; the available closing prices for both stocks are from the Nov. 6 session and do not establish a move on Nov. 9 or a direct cause of any move in GE Vernova shares.
Constellation attributed the earnings improvement to favorable market and portfolio conditions and the addition of Calpine, while interest costs and its nuclear production tax credit portfolio offset some of the gains. The company said its nuclear plants, excluding Salem and South Texas Project, recorded a 97.2% capacity factor in the third quarter, compared with 96.8% in the third quarter of 2025. The factor measures the share of the energy plants produced relative to the maximum they could have generated during the period. These figures support the picture of strong operating performance accompanying the higher outlook, alongside the effects of market and portfolio conditions. They do not break down how much each factor contributed to the earnings increase or the guidance change.
The company’s results come amid new commitments to expand nuclear power generation. In October, Constellation announced a 20-year power purchase agreement with Google, enabling more than $4.3 billion in investment across 11 nuclear units in Illinois, Pennsylvania and New Jersey. The agreement targets adding about 890 megawatts to the PJM grid, with the first capacity increase expected in 2028. The company said agreements announced through Nov. 9 add more than 1,000 megawatts of new emissions-free generation to the grid. The chief executive said private investment makes it possible to meet growth in the digital economy while strengthening the grid, linking generation commitments to rising electricity demand.
The U.S. Department of Energy on Oct. 27 announced a conditional commitment for a loan of up to $5 billion to fund upgrades and capacity increases at Constellation’s nuclear plants. The projects are expected to add about 1.1 gigawatts, but final financing is contingent on meeting technical, legal, environmental and financial conditions. Constellation said the proposed loan has a 30-year term and that its guarantee depends on a financing agreement being finalized. The potential loan represents a parallel track to the Google agreement, combining plant upgrades and higher output with long-term purchase contracts. The expected capacity increase remains contingent on completing those conditions and projects.
GE Vernova’s quarterly results provide independent context on power equipment activity, after the company reported on Oct. 28 third-quarter orders of $29.3 billion, up 96% organically year over year. Revenue was $12.6 billion, up 27% overall and 18% organically. In the Power segment, orders reached $21.8 billion, up 178% organically, while revenue was $6.1 billion, an increase of 25%. The company attributed the segment’s growth mainly to Gas Power equipment and higher volume and prices. The backlog stood at $197 billion at quarter-end, after a sequential increase of $20 billion, and the board raised its share repurchase authorization to $20 billion from $10 billion.
GE Vernova said in its results that it raised its 2026 financial guidance for revenue, adjusted EBITDA margin and free cash flow after its quarterly performance. The company expects backlog to exceed $200 billion in the fourth quarter, with improved margins, and to end 2026 with gas equipment contracts of at least 130 gigawatts. Its chief executive said the company raised guidance on the strength of its performance and confidence in its trajectory. The latest closing prices available in EL7 data, on Nov. 6, were $774.11 for GE Vernova shares and $249.95 for Constellation shares. These are prices from a session before the Nov. 9 announcement and alone do not provide evidence of a market response to it.