- Price
- $299.00
- Fair value
- $332.00
- Discount
- 9.9%
- Uncertainty
- Medium
- LSEG rating
- 2.00
- Moat
- Narrow
- Next earnings
- 2026-11-09
- Next earnings is estimate
- No
- Company name
- Constellation Energy
- Sector
- Power generation (nuclear & clean energy)
- About
- Constellation Energy owns and operates the largest fleet of nuclear power plants in the United States. In January 2026, it completed a $26.6 billion acquisition of Calpine, adding natural gas and geothermal power plants to its fleet. The combined company now generates electricity from about 55 gigawatts of capacity. Constellation sells this electricity through long-term contracts and in wholesale power markets.
- Thesis
- The market worries about delays in Constellation's nuclear growth plans. In early 2026, grid operator PJM warned that Crane Clean Energy Center, the restarted Three Mile Island reactor, might not connect to the grid until 2031 instead of 2027. This raised doubt about the 20-year power deal tied to this plant with Microsoft. In June 2026, the Federal Energy Regulatory Commission approved a faster grid connection path for Crane, and PJM moved to finalize new rules for connecting large data centers to power plants. Constellation keeps signing new long-term power deals with data center and corporate customers, which shows real demand behind the AI power story.
- Risks
- Grid operator PJM warned in 2026 that the Crane Clean Energy Center, the former Three Mile Island reactor, might not connect to the grid until 2031 instead of 2027. A further delay could push back revenue from the 20-year power deal with Microsoft at this site.
In July 2026, New York state ordered a one-year pause on new large data centers, over concerns about ratepayer costs from new transmission lines. Other states could follow, which would slow new long-term power contracts with data center customers.
The Calpine acquisition added about $12.7 billion in assumed debt, and required Constellation to sell several power plants to satisfy antitrust regulators. Integrating a much larger and more diverse fleet raises execution risk for the company's growth targets.
- Recent events
- 2026-08-06: Constellation reported Q2 2026 results. Adjusted operating earnings per share were $2.55, up from $1.91 a year earlier. The company raised its full-year 2026 guidance to $11.50-$12.50 per share.
2026-01-09: Constellation completed its $26.6 billion acquisition of Calpine, creating the largest electricity producer in the United States, with about 55 gigawatts of combined generating capacity.