CONSTELLATION REPORTS THIRD QUARTER 2026 RESULTS
Constellation Energy Corp (CEG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 News Release Contact: Linsey Wisniewski Corporate Communications 667-218-7700 Tim Flottemesch Investor Relations 833-447-2783 CONSTELLATION REPORTS THIRD QUARTER 2026 RESULTS Earnings Release Highlights • GAAP Net Income of $5.19 per share and Adjusted (non-GAAP) Ope
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst for the stock, while the acquisition expands generation capacity, supporting longer‑term growth.
Market read
The new earnings and guidance are likely to drive short‑term upside in CEG and may influence broader utility sector sentiment.
What to watch
Potential regulatory approvals for the Rhode Island acquisition may delay benefits.
Constellation reports Q3 2026 GAAP diluted EPS of $5.19 and Adjusted (non-GAAP) Operating Earnings of $5.06 per share, and raises the midpoint of full-year Adjusted Operating Earnings guidance to $12.50 - $12.80
Q3 2026 GAAP diluted EPS rose to $5.19 from $2.97 and Adjusted (non-GAAP) Operating Earnings rose to $5.06 from $3.04 per share. Operating income rose to $2,492 million from $1,086 million. The filing states that the midpoint of full-year Adjusted Operating Earnings guidance was raised and the range narrowed to $12.50 - $12.80. Nine-month operating cash flow was $4,979 million against $3,432 million a year earlier. Offsetting items include rising long-term debt, a large increase in total assets tied to the Calpine acquisition, and higher capital expenditures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenues, Q3 2026GAAP | $9.55B | – | – |
| Purchased power and fuel, Q3 2026GAAP | $4.4B | – | – |
| Operating and maintenance, Q3 2026GAAP | $1.99B | – | – |
| Depreciation and amortization, Q3 2026GAAP | $454M | – | – |
| Taxes other than income taxes, Q3 2026GAAP | $225M | – | – |
| Total operating expenses, Q3 2026GAAP | $7.07B | – | – |
| Gain (loss) on sales of assets, Q3 2026GAAP | $12M | – | – |
| Operating income, Q3 2026GAAP | $2.49B | – | – |
| Interest expense, net, Q3 2026GAAP | −$217M | – | – |
| Other, net, Q3 2026GAAP | −$44M | – | – |
| Total other income and (deductions), Q3 2026GAAP | −$261M | – | – |
| Income before income taxes, Q3 2026GAAP | $2.23B | – | – |
| Income tax (benefit) expense, Q3 2026GAAP | $405M | – | – |
| Effective tax rate, Q3 2026GAAP | 18.2% | – | – |
| Net income, Q3 2026GAAP | $1.83B | – | – |
| Net income attributable to common shareholders, Q3 2026GAAP | $1.83B | – | $905 million |
| Diluted EPS, Q3 2026GAAP | $5.19 | – | – |
| Basic EPS, Q3 2026GAAP | $5.19 | – | – |
| Average diluted common shares, Q3 2026GAAP | 354M | – | – |
| Adjusted (non-GAAP) Operating Earnings, Q3 2026non-GAAP | $1.79B | – | – |
| Adjusted (non-GAAP) Operating Earnings per share, Q3 2026non-GAAP | $5.06 | – | – |
| Operating revenues, nine months 2026GAAP | $28.18B | – | – |
| Purchased power and fuel, nine months 2026GAAP | $14.78B | – | – |
| Operating and maintenance, nine months 2026GAAP | $6.02B | – | – |
| Depreciation and amortization, nine months 2026GAAP | $1.34B | – | – |
| Taxes other than income taxes, nine months 2026GAAP | $661M | – | – |
| Total operating expenses, nine months 2026GAAP | $22.8B | – | – |
| Gain (loss) on sales of assets, nine months 2026GAAP | $28M | – | – |
| Operating income, nine months 2026GAAP | $5.40B | – | – |
| Interest expense, net, nine months 2026GAAP | −$753M | – | – |
| Other, net, nine months 2026GAAP | $605M | – | – |
| Total other income and (deductions), nine months 2026GAAP | −$148M | – | – |
| Income before income taxes, nine months 2026GAAP | $5.26B | – | – |
| Income tax (benefit) expense, nine months 2026GAAP | $1.33B | – | – |
| Effective tax rate, nine months 2026GAAP | 25.4% | – | – |
| Net income, nine months 2026GAAP | $3.95B | – | – |
| Net income attributable to common shareholders, nine months 2026GAAP | $3.94B | – | $2,051 million |
| Diluted EPS, nine months 2026GAAP | $11.06 | – | – |
| Basic EPS, nine months 2026GAAP | $11.06 | – | – |
| Net cash flows provided by operating activities, nine months 2026GAAP | $4.98B | – | – |
| Capital expenditures, nine months 2026GAAP | −$3.46B | – | – |
| Repurchases of common stock, nine months 2026GAAP | −$3.00B | – | – |
| Dividends paid on common stock, nine months 2026GAAP | −$459M | – | – |
| Nuclear generation (owned output incl. Salem and STP), Q3 2026other | 46,677 GWh | – | – |
| Nuclear generation (owned output incl. Salem and STP), nine months 2026other | 135,505 GWh | – | – |
| Nuclear capacity factor excluding Salem and STP, Q3 2026other | 97.2% | – | – |
| Equivalent Forced Outage Factor, gas, oil and pumped-storage hydro, Q3 2026other | 5.9% | – | – |
| Renewable energy capture, wind, solar and run-of-river hydro, Q3 2026other | 96.4% | – | – |
| Total supply/sales by region, Q3 2026other | 108,674 GWh | – | – |
| Refueling outage days (sites operated, excluding Salem and STP), Q3 2026other | 20 days | – | – |
| Total outage days (sites operated, excluding Salem and STP), Q3 2026other | 26 days | – | – |
| PJM West reference price, Q3 2026other | $69.97 | – | – |
| Henry Hub natural gas reference price, Q3 2026other | $2.87 | – | – |
Full year 2026 outlook
- NoteAdjusted (non-GAAP) Operating Earnings per share: $12.50 - $12.80. The filing states the midpoint was raised and the range narrowed; the prior range is not printed in this filing.
Capital returns
- Repurchases of common stock were $(3,001) million in the nine months 2026 against $(400) million in the nine months 2025.
- Dividends paid on common stock were $(459) million in the nine months 2026 against $(365) million in the nine months 2025.
- CFO Shane Smith cited a continued aggressive pace of share repurchases as part of the disciplined capital allocation strategy.
What drove it
- The filing states that Adjusted (non-GAAP) Operating Earnings in Q3 2026 primarily reflects favorable market and portfolio conditions and the addition of Calpine, partially offset by unfavorable interest and nuclear PTC portfolio.
- Agreement to acquire RISEC Holdings, LLC, owner of the 609 MW Rhode Island State Energy Center, from Shell Energy North America (US), L.P. for $715 million, subject to customary purchase price adjustments and regulatory approvals.
- A 20-year, 690 MW PPA with Amazon and a related retail supply agreement, supporting more than $3 billion of investment in Calvert Cliffs, including a 190 MW capacity expansion expected to come online between 2030 and 2032.
- A 20-year PPA with Google enabling more than $4.3 billion of investment across 11 nuclear units in Illinois, Pennsylvania and New Jersey to add approximately 890 MW of incremental capacity in PJM, with the first uprate expected in 2028. A separate 15-year financial energy load following agreement with Google covers 2,700 MW in PJM.
- First Peak+ transaction: a 20-year agreement for 270 MW of unit-contingent energy, capacity and attributes from the existing nuclear fleet, starting in 2028.
- A conditional DOE loan commitment for up to $5.0 billion, guaranteed by DOE, for an unsecured Federal Financing Bank loan to support nuclear uprates. The loan would have a 30-year term, with rates fixed at 0.375% above comparable U.S. Treasuries upon each advance. The filing says this is subject to executing a loan agreement.
- Nuclear owned output rose to 46,677 GWh from 46,477 GWh. Refueling outage days fell to 20 from 23 at operated sites.
Concerns
- Interest expense, net rose to $(217) million from $(134) million in Q3, and the filing names unfavorable interest as an offset to Adjusted Operating Earnings.
- Other, net swung to $(44) million in Q3 2026 from $443 million in Q3 2025.
- Long-term debt rose to $19,039 million from $7,250 million at year-end 2025, and short-term borrowings rose to $3,989 million from $1,650 million.
- Renewable energy capture fell to 96.4% from 96.8%.
- Net cash flows from operating activities for nine months 2026 include a $(1,099) million change in accounts payable and accrued expenses against $(25) million a year earlier. Operating cash flow still rose overall to $4,979 million.
- The Q3 2026 GAAP effective tax rate was 18.2% against 33.4% a year earlier. The filing attributes Q3 adjustments partly to income tax-related adjustments of $(108) million to deferred taxes due to changes in forecasted apportionment.
- Completion of the Rhode Island acquisition is subject to regulatory approvals, and the DOE loan is conditional.
What to watch
- Full-year 2026 Adjusted (non-GAAP) Operating Earnings against the $12.50 - $12.80 range.
- Completion of the Rhode Island State Energy Center acquisition and receipt of required regulatory approvals.
- Execution of the DOE loan agreement and the timing of advances under the conditional commitment.
- Timing of the first Google-linked uprate in 2028 and the Calvert Cliffs capacity expansion between 2030 and 2032.
- Progress of the Peak+ transaction beginning in 2028.
- Debt levels and interest expense following the increase in long-term debt and short-term borrowings.
- The EFOF of 5.9% reported for the gas, oil and pumped-storage hydro fleet, which the company has made a key operational metric from 2026. The filing does not print a prior-year comparison for this metric.
Balance sheet and cash flow
- Cash and cash equivalents were $603 million at September 30, 2026 against $3,641 million at December 31, 2025.
- Restricted cash and cash equivalents were $406 million at September 30, 2026 against $107 million at December 31, 2025.
- Total assets were $99,185 million at September 30, 2026 against $57,249 million at December 31, 2025.
- Goodwill was $11,499 million at September 30, 2026 against $420 million at December 31, 2025.
- Assets held for sale were $5,661 million at September 30, 2026 against $126 million at December 31, 2025.
- Short-term borrowings were $3,989 million at September 30, 2026 against $1,650 million at December 31, 2025.
- Long-term debt was $19,039 million at September 30, 2026 against $7,250 million at December 31, 2025. Long-term debt due within one year was $359 million against $92 million.
- Total shareholders' equity was $32,712 million at September 30, 2026 against $14,517 million at December 31, 2025.
- Capital expenditures were $(3,461) million in the nine months 2026 against $(1,963) million in the nine months 2025.
- Acquisition of Calpine, net of cash and restricted cash acquired, was $(2,537) million in the nine months 2026.
- Issuance of long-term debt was $5,001 million in the nine months 2026 against no issuance in the nine months 2025. Retirement of long-term debt was $(5,460) million against $(1,036) million.
- Net cash flows used in investing activities were $(6,064) million in the nine months 2026 against $(2,221) million in the nine months 2025.
- Cash, restricted cash and cash equivalents at the end of the nine months 2026 period were $1,009 million against $4,091 million at the end of the nine months 2025.
Analysis
Constellation reported third quarter 2026 GAAP net income attributable to common shareholders of $1,835 million, or $5.19 per diluted share, against $930 million, or $2.97 per share, in the third quarter of 2025. Adjusted (non-GAAP) Operating Earnings were $1,792 million, or $5.06 per share, against $952 million, or $3.04 per share. Operating revenues rose to $9,550 million from $6,570 million and operating income rose to $2,492 million from $1,086 million. Diluted average shares increased to 354 million from 313 million. The filing attributes the Adjusted Operating Earnings result primarily to favorable market and portfolio conditions and the addition of Calpine, partially offset by unfavorable interest and nuclear PTC portfolio. The Calpine acquisition is also reflected in the fleet statistics: Calpine generated 38,387 GWh of natural gas, oil and renewables output in the quarter, and total supply and sales rose to 108,674 GWh from 70,635 GWh.
Cost lines rose with the larger fleet. Purchased power and fuel increased to $4,400 million from $3,567 million, operating and maintenance to $1,991 million from $1,511 million, and depreciation and amortization to $454 million from $241 million. Interest expense, net rose to $(217) million from $(134) million, and Other, net moved to $(44) million from $443 million. The GAAP effective tax rate was 18.2% against 33.4% a year earlier. The reconciliation shows several adjustments between GAAP and Adjusted Operating Earnings, including unrealized gains of $(127) million, a $56 million decommissioning-related item, a $39 million amortization of acquired commodity contracts, and $73 million of Calpine merger and integration costs, each reported pre-tax in the filing on a net-of-tax basis.
For the first nine months of 2026, operating revenues were $28,176 million against $19,459 million, operating income was $5,404 million against $2,488 million, and GAAP diluted EPS was $11.06 against $6.02. Operating cash flow was $4,979 million against $3,432 million. Capital expenditures were $(3,461) million against $(1,963) million, and the Calpine acquisition used $(2,537) million net of cash acquired. Repurchases of common stock were $(3,001) million against $(400) million, and dividends were $(459) million against $(365) million. Total assets increased to $99,185 million from $57,249 million at year-end 2025, and goodwill increased to $11,499 million from $420 million, reflecting the acquisition. Long-term debt increased to $19,039 million from $7,250 million, and the company issued $5,001 million of long-term debt in the period.
The guidance update is the main forward-looking item. The filing states that the midpoint of full-year 2026 Adjusted (non-GAAP) Operating Earnings guidance was raised and the range narrowed to $12.50 - $12.80 per share. The filing does not print the prior range, so the size of the change cannot be read from this document. Management also disclosed a set of contracting and investment items: the Rhode Island State Energy Center acquisition for $715 million, the Amazon PPA for Calvert Cliffs, the Google PPA and load following agreement, the first Peak+ transaction, and a conditional DOE loan commitment of up to $5.0 billion. These items point to growth in contracted and new capacity, but the filing gives no revenue or earnings contribution for them. Readers should note that the increase in debt and the Calpine integration are both present in the balance sheet and cash flow figures.
Management, verbatim
Third quarter adjusted operating earnings were $5.06 per share, compared with $3.04 a year ago. 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
We're building on that progress with Peak+, an integrated solution that brings together new capacity, including new generation and demand response, with energy products to help large customers meet their evolving needs.
Joe Dominguez, Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-period guidance range for full-year 2026 Adjusted Operating Earnings; the filing states the midpoint was raised and the range narrowed but does not print the previous range, so vs_prior_guidance is empty.
- Full-year 2026 revenue, gross margin, operating expense, tax rate or other guidance beyond the Adjusted Operating Earnings per share range.
- Revenue or earnings split by segment or business line; the filing prints generation and supply volumes by region but no revenue by segment.
- Q2 2026 (prior quarter) results for sequential comparison.
- Year-over-year percentage change for operating revenues, operating income and most other lines; the filing prints the figures but not the changes, except the $905 million and $2,051 million changes in net income attributable to common shareholders.
- Prior-year comparison for the Equivalent Forced Outage Factor of 5.9%.
- Nine-month 2026 and 2025 Adjusted (non-GAAP) Operating Earnings totals; the nine-month reconciliation prints adjustment lines only, with no adjusted total or per-share amount.
- Adjusted (non-GAAP) Operating Earnings for nine months 2026 and 2025 per share.
- Free cash flow, EBITDA and adjusted EBITDA, which the filing does not print.
- Calpine's revenue and earnings contribution in dollars; the filing gives Calpine generation volumes only.
- Pro forma or combined figures for the Calpine acquisition.
- Gain on sales of assets for the prior-year periods, which the statement of operations does not print.
- Purchase price allocation and contribution from the Rhode Island State Energy Center acquisition, which is not yet complete.
- Contribution of the Amazon, Google and Peak+ agreements to revenue or earnings; the filing gives contracted capacity and investment amounts only.
- Comparison of Q3 2026 and Q3 2025 balance sheet items beyond the December 31, 2025 comparison printed in the filing.
- Share-price reaction, consensus estimates and analyst expectations, which are not in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Constellation Energy filed a Form 8‑K reporting its Q3 2026 results, including earnings per share, guidance update, and a $715 million acquisition of the Rhode Island State Energy Center.
Ticker impact
Constellation Energy reported Q3 2026 GAAP net income of $5.19 per share and raised its full-year adjusted operating earnings guidance to $12.50‑$12.80 per share.
likely upward pressure as the market prices in higher earnings outlook and the $715M acquisition.
The company disclosed higher earnings, an expanded guidance range, and a sizable acquisition, all of which are new primary information that typically boost investor sentiment.
Market effects
Higher guidance may lift other utility and power generation stocks as investors reassess sector earnings potential.
Positive for U.S. energy sector indices.
Limited to U.S. energy markets; no direct global macro effect.
Counterpoint
The acquisition could strain balance sheet if integration costs exceed expectations.
Key entities
- companyConstellation Energy Corp
U.S. power generation and retail electricity provider.
- assetRhode Island State Energy Center
Natural‑gas combined‑cycle plant being acquired for $715 million.
