Baltimore-based Constellation Energy Corporation (NASDAQ: CEG) on Monday raised the midpoint of its 2026 earnings forecast for the second time this year, after third-quarter adjusted operating earnings rose 66% to $5.06 per share from $3.04 a year earlier. Revenue rose 45% to $9.55 billion.
The power producer now expects full-year adjusted operating earnings of $12.50 to $12.80 per share, up from the $11.50 to $12.50 range it set in August. The new midpoint of $12.65 is 65 cents higher, and the update comes as Constellation signs long-term power deals with technology companies including Google and Amazon.
“This strong performance allowed us to raise the midpoint of our adjusted operating earnings guidance range for the second time this year,” Shane Smith, executive vice president and chief financial officer, said in the earnings release.
Executives told analysts on a conference call that the January acquisition of Calpine was the main driver of the year-over-year gain. The company said results also reflected favorable market and portfolio conditions, partly offset by unfavorable interest and nuclear production tax credit effects.
Net income attributable to common shareholders rose to $1.84 billion, or $5.19 per share, from $930 million, or $2.97 per share. The gap with adjusted earnings came mainly from unrealized gains on hedges and an income tax adjustment, partly offset by Calpine merger and integration costs.
#Calpine Plants and Higher Power Prices Lift Constellation’s Quarter
Constellation, which describes itself as the largest nuclear energy company in the U.S., has 55 gigawatts of capacity across nuclear, natural gas, oil, geothermal, hydro, wind and solar plants. The former Calpine plants produced 38,387 gigawatt-hours in the quarter, taking gas, oil and renewables output to 44,982 gigawatt-hours from 6,174 a year earlier.
Market prices also moved in the company’s favor. Its reference price for PJM West power averaged $69.97 in the quarter versus $46.77 a year earlier, though Constellation notes reference prices may not match the prices it actually realized.
Nuclear output was little changed at 46,677 gigawatt-hours. The fleet’s capacity factor, the share of maximum possible output a plant actually delivers, was 97.2% compared with 96.8% a year earlier.
#Google and Amazon Deals Support More Than $7 Billion in Nuclear Work
In October, Constellation signed a 20-year power purchase agreement, a long-term contract to buy electricity, with Google. The company said it will enable more than $4.3 billion of investment across 11 reactors in Illinois, Pennsylvania and New Jersey, adding about 890 megawatts through uprates, changes that raise a reactor’s power output. The first uprate is expected in 2028.
A 20-year, 690-megawatt agreement with Amazon announced in September will support more than $3 billion of investment at the Calvert Cliffs Clean Energy Center, the company said. That includes a 190-megawatt expansion expected to come online between 2030 and 2032.
“The new megawatts, which are the equivalent of a new large-scale nuclear plant, are coming online with no costs being borne by existing customers,” Joe Dominguez, chairman, president and chief executive officer, said in the release.
“We have moved from strategy to execution and now have more than 90 million megawatt-hours supported by long-term agreements with high-quality customers extending into the 2040s,” Dominguez told analysts on the call.
Constellation also signed a conditional commitment with the U.S. Department of Energy for a guarantee of up to $5 billion on a 30-year loan from the Federal Financing Bank to fund nuclear uprates, subject to a final loan agreement. It separately signed its first deal under Peak+, a product pairing new capacity with energy supply, for 270 megawatts over 20 years from 2028.
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#Constellation to Buy Rhode Island Gas Plant From Shell for $715 Million
Constellation agreed to buy the 609-megawatt Rhode Island State Energy Center, a natural gas-fired plant, from Shell Energy North America for $715 million, subject to adjustments. The plant sells power into the ISO New England wholesale market and would join Constellation’s merchant fleet, which sells at market prices rather than under long-term contracts.
The company has also been buying back stock. It repurchased $3 billion of shares in the first nine months of the year and told analysts it had bought back about 11 million shares since its March business update.
The growth has come with higher borrowing. Long-term debt stood at $19 billion at Sept. 30, up from $7.25 billion at the end of 2025, and net interest expense rose to $217 million in the quarter from $134 million.
Several projects remain years from completion. The Rhode Island deal requires regulatory approvals and other customary closing conditions, the DOE financing depends on a final agreement, and the first Google-backed uprate is not expected until 2028.
Management expects 2026 adjusted operating earnings of $12.50 to $12.80 per share, though regulatory approvals, the timing of uprate projects, higher interest costs and wholesale market conditions remain key risks to the outlook.