Constellation Raises 2026 Earnings Outlook to $12.50–$12.80 per Share
Key Facts
Constellation Energy on November 9 raised its 2026 adjusted operating earnings guidance range to $12.50–$12.80 per share, its second increase to the midpoint this year, after reporting stronger third-quarter results. The company began the year with guidance of $11.00–$12.00 per share in May, then raised it in August to $11.50–$12.50, before the latest revision. The chief financial officer said, "This strong performance enabled us to raise the midpoint of our adjusted operating earnings guidance for the second time this year." The guidance covers adjusted operating earnings, a measure that differs from net income calculated under generally accepted accounting principles. The revision gives investors a higher annual range after strong quarterly performance, without indicating that long-term contracts or data-center demand alone drove the higher outlook.
Net income under generally accepted accounting principles was $5.19 per share in the third quarter of 2026, up from $2.97 in the same period of 2025. Adjusted operating earnings rose to $5.06 per share from $3.04 a year earlier, reflecting growth in both measures reported by the company. Revenue was $9.55 billion, compared with $6.57 billion in the third quarter of the prior year, beating analysts' estimates of $9.35 billion. Management said favorable market and portfolio conditions and the addition of Calpine supported the quarter's performance, while higher interest costs and the nuclear production tax credit portfolio partly offset the impact. The results therefore combined higher revenue and earnings, with some costs remaining a counterweight to the gains.
Management attributed the year-over-year increase in quarterly earnings primarily to the contribution from the Calpine acquisition, saying on the earnings call that "the incremental contribution from Calpine is the primary driver of the year-over-year increase in third-quarter results." It also cited strong commercial performance and higher capacity prices in the PJM region, while lower nuclear production tax credit revenue offset some of those factors. These drivers distinguish the contribution from the acquisition, commercial performance and market conditions from revenue tied to nuclear credits, which declined. In its earnings release, the company described market and portfolio conditions and the addition of Calpine as favorable factors, offset by the unfavorable impact of interest and the credit portfolio. This places the quarterly results in the context of several operating and financial factors rather than tying them to a single cause.
Alongside its results, the company said agreements announced during the quarter would add more than 1,000 megawatts of new emissions-free generation capacity to the grid. The chief executive added that these agreements do not charge existing customers for the new capacity. These commitments provide another perspective on the company's activity, alongside Calpine's contribution and prices in the quarterly results, but do not by themselves establish that they caused the annual guidance revision. Third-quarter figures also showed a capacity factor of 97.2% for the company's nuclear plants on an ownership basis, excluding the Salem and STP plants, compared with 96.8% in the third quarter of 2025. This measure indicates the fleet's operating performance in the two periods, while the company's release also covered its activities in other generation sources, so its portfolio is not limited to nuclear power.
The annual outlook range had risen in August to $11.50–$12.50 per share, from May guidance of $11.00–$12.00, before reaching $12.50–$12.80 in November. This sequence shows that the latest revision followed two upward revisions during the year and that the current range's floor exceeded the ceiling of the May guidance. The company's shares rose more than 4% in premarket trading on Monday, November 9, after third-quarter earnings topped expectations and the company raised the midpoint of its annual outlook. The stock closed at $276.09 in the November 9 session, according to the latest closing price in the market data provided. The premarket reaction thus coincided with the results and guidance, while the daily close recorded a specific level in the same session.
The company said in its release that a conference call to discuss third-quarter results would be held on November 9, 2026, at 9:00 a.m. Eastern time. Management scheduled the call to present and discuss the results on the day the release was issued, following the announcement of the new guidance range. The company's updates focus on adjusted operating earnings for 2026, while the quarterly results also included net income and revenue figures and year-over-year comparisons. The call's timing places the release details within that day's disclosure schedule, alongside the response seen in premarket trading and at the close. The annual range announced in November remains $12.50–$12.80 per share, according to the company release.