NEE NextEra Energy, Inc.

NextEra Energy, Inc. · NYSE

Market Closed

82.04

▼ ⁦-0.07%⁩ (-0.06)

Market Cap$172.1B

Beta0.64

52w Low52w High

74.4198.75

Last Week

⁦+4.95%⁩

EL7 Factor Analysis

How we score this

Overall50

Balanced — near the middle of the marketFalling StarF 5/9Congress sellingBetter than 50% of Market stocks, per EL7's model

Factor	Score	Value	Avg	Rank
Valuation	35	14.8x	17.3x	Bottom tier
Growth	65	10.8%	7.1%	Around median
Quality	79	5.2%	4.5%	Top tier
Safety	47	6.6x	2.6x	Around median
Capital Return	46	2.96%	0.06%	Around median
Momentum	38	-8.7%	-1.6%	Bottom tier
Sentiment	68	14	3	Top tier

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 6 analysts setting price target

$92.64

⁦+12.9%⁩

Current Price $82.04·Median $94.00

Low

$56.00

High

$110.00

Current price

$82.04

Average target

$92.64

Street summary

Decline in Average Price Targets and Widening Range

Bearish tilt

The average price target fell to 92.64, down 0.83% over one day, 2.38% over 7 days, and 9.27% over 30 days. The monthly decline coincided with the number of analysts falling from 13 to 6, while the current range is between 56 and 110, indicating notable divergence in estimates and limiting the significance of the average on its own. The current price is 82.04, below the average; this alone does not establish a confirmed direction for the stock.

As of 2026-10-26

Revisions momentum · 30d

⁦-9.3%⁩

Average rating

★ 3.76

Buy

Analyst coverage

⁦21 (-7)⁩

Buy conviction

67%

High

Rating activity · 30d

0↑ · 0↓

Target dispersion

66%

Wide

Analyst ratings over time21 analysts rating

Strong BuyBuyHoldSellStrong Sell

Rating trend — last 12 months3.74 → 3.76

Recent analyst moves

= Reiterate2026-10-22
Bernstein
Outperform
= Reiterate2026-10-20
BMO Capital
Outperform
= Reiterate2026-10-20
BTIG
Buy

Premium content

Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range

MetricValuePosition within sectorVerdict

P/E (TTM)
14.76x
4.57x36.59x
Near median
Forward P/E
18.97x
4.45x35.63x
Above average
EV / EBITDA
17.85x
3.10x24.78x
Expensive
FCF Yield
-0.9%
-39.6%7.2%
Strong
Revenue Growth YoY
10.8%
-10.5%25.2%
Above average
EPS Growth YoY
77.1%
-39.6%118.1%
Strong
Gross Margin
62.4%
9.3%66.3%
Strong
ROIC
5.2%
-1.3%10.6%
Above average
Net Debt / EBITDA
6.59x
1.28x10.26x
High debt
Dividend Yield
3.0%
0.0%11.1%
Moderate
Payout Ratio
43.7%
23.0%167.0%
Low
Altman Z-Score
—
—

Financial Analysis

Stock Analysis

AI-generated

Last updated: 2026-10-22Based on 2026-10-21 data

Company Overview

NextEra Energy combines regulated electricity operations through Florida Power & Light, known as FPL, with the development and operation of energy and infrastructure projects through Energy Resources. FPL generates revenue by serving electricity customers in Florida within a regulatory framework, while Energy Resources relies on electricity generation under long-term contracts, renewable energy and storage, electricity and gas transmission, and fees for developing and operating certain projects. The company's investment case therefore rests on two distinct tracks: investing in a grid serving Florida's growth, and converting electricity demand into projects and contracts elsewhere; segment revenue percentages are unavailable, preventing a numerical breakdown of each segment's contribution.

In quarter 2 of fiscal year 2026, ended 2026-06-30, revenue reached $7.5 billion, up 12.4% compared with the same quarter of the previous year, while net income reached $3.1 billion and diluted earnings per share were $1.51. Gross margin as calculated by EL7 was 81.8%, compared with 64.1% in quarter 2 of fiscal year 2025, ended 2025-06-30, while operating margin as calculated by EL7 was 29.7% in quarter 2 of fiscal year 2026. Operating cash flow according to EL7 data for the same period reached $4.7 billion, adding cash support to the improvement in profitability.

The 2026-10-21 call showed continued expansion in operating activity: Energy Resources added 3.7 gigawatts of renewable energy and storage projects during quarter 3 of fiscal year 2026, bringing its backlog to approximately 36.7 gigawatts. Meanwhile, the financial scale of the balance sheet remains a decisive factor; at the end of quarter 2 of fiscal year 2026, total debt according to EL7 data was approximately $110.2 billion, compared with cash and short-term investments of $2.9 billion. The pending Dominion Energy transaction adds an opportunity to expand operations, but involves a regulatory process separate from the execution of the company's existing projects.

Key numbers

Q2 FY2026

Revenue: $7.5B; +12.4%vs a year earlier
Gross margin: 81.8%; +17.6ppvs a year earlier
Operating margin: 29.7%
Net income: $3.1B; +55.0%vs a year earlier
Diluted EPS: 1.51; +54.1%vs a year earlier
Net cash (cash + short-term investments − debt): -$107.3B

What changed since the last analysis

On 2026-10-21, the company reaffirmed adjusted earnings per share guidance for fiscal year 2026 at $3.92 to $4.02, targeting the upper end.
On 2026-09-30, U.S.-Korean investment was announced in the Star project, which NextEra Energy is helping develop to provide 6.47 gigawatts of gas-fired generation.
On 2026-09-30 and 2026-10-06, legislative and political objections to the Dominion Energy transaction emerged, increasing the regulatory uncertainty surrounding its completion.
Since the 2026-08-26 analysis, the average analyst target has declined from $102.11 to $92.91.

What's Driving the Stock

On 2026-10-21, NextEra Energy reaffirmed its adjusted earnings per share guidance for fiscal year 2026 at $3.92 to $4.02, targeting the upper end; achieving $4.02 has therefore become a specific test of whether growth at FPL and Energy Resources can absorb fluctuations in wind generation and financing costs.
Energy Resources added approximately 3.7 gigawatts in quarter 3 of fiscal year 2026, according to the 2026-10-21 call, including 2.4 gigawatts of battery storage, with more than 1.8 gigawatts entering service since the previous call; this links backlog growth to contracted demand and actual execution, rather than relying solely on potential development opportunities.
FPL raised its large-load forecast to 8 gigawatts by 2032, from 6 gigawatts, and confirmed on the 2026-10-21 call that it was targeting an agreement announcement before the end of 2026; however, signing the agreement, which had not been announced on the call, is what separates customer interest from a commercial commitment.
Energy Resources signed definitive agreements for three federated campuses in Texas and Pennsylvania totaling approximately 16.5 gigawatts, according to the 2026-10-21 call, under a model in which it receives development, construction, and operating fees without investing capital in those projects; it expected to begin serving substantial loads in 2028 and 2029, then ramp up to full requirements during 2030 to 2032.

Buying & Selling Case

▲ Buying Case8 pts

+Improved operating profitability is supported by clear figures; gross margin as calculated by EL7 reached 81.8% in quarter 2 of fiscal year 2026, ended 2026-06-30, compared with 64.1% in quarter 2 of fiscal year 2025, ended 2025-06-30, alongside revenue growth of 12.4% compared with the same quarter of the previous year.
+Earnings are supported by strong cash generation; over the last 12 months through 2026-06-30, operating cash flow according to EL7 data reached approximately $13.8 billion, equivalent to 148% of net income of $9.3 billion, while free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months was approximately $3.0 billion.
+FPL's operating efficiency enables the company to serve Florida's growth while maintaining competitive bills; on the 2026-10-21 call, management said that non-fuel operating and maintenance expenses per megawatt-hour were more than 70% below the industry average, and that a typical residential customer's bill was approximately 37% below the national average.
+Energy Resources' backlog provides a broad execution base; it reached approximately 36.7 gigawatts on the

What would change this view

When: 2027-01-26

Adjusted earnings per share for fiscal year 2026 reaching $4.02
▲ Positive
Reaching at least $4.02 at the expected earnings announcement supports the buying case by confirming achievement of the upper end targeted by management despite expected wind weakness.
▼ Negative
Reporting less than $4.02 strengthens reservations about execution by failing to reach the targeted upper end, with a guidance miss becoming clearer if earnings fall below $3.92.
Renewal of Energy Resources' backlog at the 36.7-gigawatt level
▲ Positive
Maintaining a backlog of at least 36.7 gigawatts after accounting for projects entering service supports the ability of new contracts to offset execution and preserve the growth base.
▼ Negative
A decline in the backlog below 36.7 gigawatts, with additions unable to offset projects entering service, raises questions about the pace of renewal of the growth base.

When: Quarter 4 of fiscal year 2026

Valuation

The median target from 6 analysts was $94, within a range of $56 to $110 in the 2026-10-21 snapshot, a method reflecting their expectations for growth and future performance. The industry-multiple valuation was $75, within a range of $61 to $82, based on next year's earnings and a median multiple of 17.4 across 36 companies, measuring the result of pricing NextEra Energy's earnings like those of its peers. The ranges of the two methods overlap, but the median analyst target is higher than the industry-multiple valuation, reflecting greater allowance for expected growth in analysts' estimates compared with relative earnings valuation. Analyst targets tend to be optimistic by nature, while their wide range of $56 to $110 illustrates differing estimates regarding growth execution and transaction and financing risks.

BuyAnalyst target: $92.91(+13.2%)

Figures in the text are as of 2026-10-22; the live price is shown at the top of the page.

FAQ

How does FPL differ from Energy Resources within NextEra Energy?

FPL serves electricity customers in Florida through a regulated business, while Energy Resources develops generation, storage, and energy transmission projects and enters into long-term contracts. On the 2026-10-21 call, management said that FPL's typical residential bill was approximately 37% below the national average, illustrating the importance of operating efficiency to its regulated business. Energy Resources' backlog, meanwhile, reached approximately 36.7 gigawatts, making the pace of bringing projects into operation a key element of its growth.

Do cash flows support NEE's earnings?

Over the last 12 months through 2026-06-30, operating cash flow according to EL7 data reached approximately $13.8 billion, compared with net income of $9.3 billion. This represents earnings-to-cash conversion of 148% for the same period. Free cash flow as calculated by EL7 (operating cash flow minus capital expenditure) for the last 12 months was approximately $3.0 billion, illustrating that capital expenditure absorbs a large portion of operating cash flow.

What could disrupt NextEra Energy's merger with Dominion Energy?

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

Last 12 months to 2026-06-30

Revenue: $29.0B
Net income: $9.3B; 32.0%of revenue
Free cash flow (operating cash flow − capex): $3.0B; 10.5%of revenue

The Dominion Energy transaction balances expanded operating capacity against the risks of approval conditions: a 2026-10-19 news report cited the Virginia governor's demand for a 6-year electricity rate freeze, while management expected regulatory decisions in Virginia and South Carolina during January 2027 and completion of the transaction in the second half of 2027 on the 2026-10-21 call.

call, after adding 3.7 gigawatts during quarter 3 of fiscal year 2026, with additions exceeding 3.5 gigawatts for the fourth consecutive quarter, demonstrating continued renewal of contracted demand.

+The federated campus model allows earnings to expand without ownership of the generation assets themselves; the definitive agreements announced on the 2026-10-21 call covered three projects with approximately 16.5 gigawatts of capacity, and management expected their contribution to equal approximately 50% of the adjusted earnings per share Energy Resources would have generated had it owned them during the first 20 years of operation.

+Contract renewals support the continuity of existing assets; on the 2026-10-21 call, the company announced a 20-year power purchase agreement for approximately 1 gigawatt from Point Beach, with regulatory approval still required, and clarified that the agreement recontracts existing capacity and does not represent a plant expansion.

+Management's guidance provides a publicly stated growth benchmark extending beyond individual projects; on 2026-10-21, it reaffirmed its target of the upper end of the $3.92 to $4.02 adjusted earnings per share range for fiscal year 2026, and expected compound annual growth exceeding 8% through 2032, while targeting the same pace from 2032 to 2035.

+The Star project expands NextEra Energy's exposure to electricity demand from digital infrastructure; the news report published on 2026-09-30 described the project's development in partnership with Related Companies and in collaboration with Lewis Energy Group, to provide 6.47 gigawatts of natural gas generation for a 5-gigawatt digital infrastructure campus.

▼ Selling Case7 pts

−The scale of debt creates significant financing sensitivity; at the end of quarter 2 of fiscal year 2026, ended 2026-06-30, total debt according to EL7 data was approximately $110.2 billion, compared with cash and short-term investments of $2.9 billion, with the comparison limited to cash and short-term marketable instruments, excluding long-term securities.
−The expansion plan also depends on issuing shares; management confirmed on the 2026-10-21 call that equity financing needs would continue through 2032, making the effect of issuance on earnings per share a factor separate from growth in projects' total earnings.
−Regulatory approvals could change the economics or timing of the Dominion Energy transaction; alongside the political opposition reported on 2026-10-06, the 2026-10-19 news report included a request for a 6-year rate freeze, while the expected closing in the second half of 2027 remained conditional on completing the reviews.
−Generation earnings remain exposed to variations in wind resources; on the 2026-10-21 call, management expected production equivalent to 90% to 95% of the long-term average during quarter 4 of fiscal year 2026 because of El Niño effects, making achievement of the upper end of guidance dependent on absorbing this expected weakness.
−Not all data center demand has been converted into contracts and operating revenue; on the 2026-10-21 call, FPL was still targeting the announcement of its first large-load agreement before the end of 2026, while the federated campuses were advancing construction and soliciting power purchase agreements alongside completion of permitting, with full loads not expected until 2030 to 2032.
−Analyst revisions reflect lower price expectations; the ninety-day period recorded 3 downward revisions versus two upward revisions, including BTIG's reduction on 2026-10-20 to $105 from $112, and BMO Capital's reduction on the same date to $88.
−EL7's momentum score was approximately 21 out of 100 within the industry using data as of 2026-06-30. This dimension measures the strength of the stock's trend and places its performance on this measure below most industry peers, despite the strength of certain operating indicators.

Wind production relative to the range of 90% to 95% of the long-term average

▲ Positive: Wind production reaching at least 95% of the long-term average supports Energy Resources' ability to limit El Niño's effect on performance.
▼ Negative: Wind production falling below 90% of the long-term average indicates weakness beyond the expected range and increases pressure on generation's contribution to earnings.

The transaction faces regulatory reviews and political opposition, and a 2026-10-19 news report cited the Virginia governor's demand for a 6-year electricity rate freeze as a condition of her acceptance. On the 2026-10-21 call, management expected decisions in Virginia and South Carolina during January 2027, and the start of expert witness hearings in North Carolina during February 2027. Management's expected closing date remained the second half of 2027, so shareholder approval of the transaction on 2026-09-03 does not represent completion of the approvals.

How does NextEra Energy benefit from data centers without financing every power plant?

For the federated campuses, the company uses a development, construction, and operating fee model, without investing capital in the generation projects themselves. The definitive agreements discussed on the 2026-10-21 call covered three projects totaling approximately 16.5 gigawatts. Management expected to serve substantial loads beginning in 2028 and 2029, then reach full requirements during 2030 to 2032, with permitting and contracting remaining part of execution.

Does the Point Beach agreement mean building new nuclear capacity?

Management clarified on the 2026-10-21 call that the Point Beach agreement recontracts the plant's existing capacity and does not represent an upgrade or expansion. The agreement covers approximately 1 gigawatt for 20 years and remains subject to approval by the Public Service Commission of Wisconsin. It takes effect as existing contracts expire during 2031 to 2033, so its impact relates to renewing the revenue of an existing asset over the long term.

Which figures warrant attention at NEE's earnings announcement expected on 2027-01-26?

Adjusted earnings per share for fiscal year 2026 warrant comparison with the guidance range of $3.92 to $4.02, which management reaffirmed on 2026-10-21 while targeting the upper end. Energy Resources' backlog warrants monitoring against the approximately 36.7 gigawatts announced on the same call, considering both additions and projects entering service. Wind production during quarter 4 of fiscal year 2026 also represents a test of management's expectation of 90% to 95% of the long-term average. The earnings announcement date of 2027-01-26 is expected.

Company Profile