Constellation lifts guidance as nuclear deals exceed $7 billion

By Daniel Okafor

Constellation Energy Corporation reported third-quarter 2026 net income of $1.835 billion, compared with $930 million a year earlier.

What changed in the third quarter?

Constellation reported GAAP earnings of $5.19 per share for the quarter ended September 30, 2026, up from $2.97 in the prior-year period. Adjusted operating earnings rose to $1.792 billion, or $5.06 per share, from $952 million, or $3.04.

• Constellation narrowed its full-year adjusted operating earnings guidance to $12.50-$12.80 per share. The company raised the midpoint for the second time in 2026.
• Constellation attributed the quarterly gain primarily to favorable market and portfolio conditions and its acquisition of Calpine in January 2026. Higher interest costs and unfavorable nuclear production tax credit portfolio effects partly offset those benefits.

How do the Amazon and Google contracts expand capacity?

Constellation said the agreements are designed to expand electricity generation and serve growing demand from technology companies and other large energy customers. The disclosed structure pairs long-term power purchases with investment in specified generating assets.

• Amazon: In September 2026, Constellation announced a 20-year, 690-megawatt power purchase agreement and a related retail supply agreement supporting Amazon's operations in the PJM electricity market. The arrangement will enable more than $3 billion of infrastructure investment at the Calvert Cliffs Clean Energy Center, including facility improvements and a 190-megawatt expansion expected between 2030 and 2032.
• Google: In October 2026, Constellation announced a separate 20-year power purchase agreement supporting more than $4.3 billion of investment across 11 nuclear generating units in Illinois, Pennsylvania, and New Jersey. Constellation expects the agreement to add approximately 890 megawatts of incremental nuclear generation to the PJM grid, with the first uprate scheduled for 2028.
• Google load agreement: Constellation also entered a 15-year financial energy load-following agreement with Google covering 2,700 megawatts.

Together, the Amazon and Google arrangements support more than 1,000 megawatts of additional nuclear generating capacity.

Constellation also signed a conditional loan commitment with the U.S. Department of Energy for up to $5 billion to finance nuclear uprates. The financing would require a final loan agreement and would involve a 30-year Federal Financing Bank loan backed by a federal guarantee.

Joe Dominguez, Chairman, President And Chief Executive Officer, Constellation Energy, said:

“This past quarter Constellation announced agreements that are helping meet one of the nation’s greatest challenges – powering a growing economy while protecting existing customers.

These agreements add more than 1,000 megawatts of new, emissions-free generation to the grid and help ensure the continued operations of existing clean power for generations to come.

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.

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.

Our approach proves we can power the growing digital economy while strengthening our electric grid – all with private investment.”

What else changes the portfolio?

• Shell transaction: Constellation agreed to acquire the Rhode Island State Energy Center from Shell Energy North America for $715 million, subject to customary adjustments and regulatory approvals. The 609-megawatt natural gas-fired facility operates in the ISO New England wholesale electricity market and would join Constellation's merchant generation portfolio.
• Peak+ contract: Constellation signed its first Peak+ agreement, a 20-year arrangement covering 270 megawatts of energy, capacity, and nuclear attributes beginning in 2028. Peak+ combines additional generation and demand-response capabilities with energy products tailored to large customers.

How did the nuclear fleet perform?\n

Constellation reported that its nuclear fleet generated 46,677 gigawatt-hours during the quarter, compared with 46,477 gigawatt-hours a year earlier. Excluding its Salem and South Texas Project interests, the company's nuclear facilities achieved a 97.2% capacity factor, up from 96.8% in the comparable period.

Constellation operates a diversified portfolio of approximately 55 gigawatts spanning nuclear, natural gas, oil, geothermal, hydroelectric, wind, and solar facilities.

How does management frame the capital plan?

Shane Smith, Executive Vice President And Chief Financial Officer, Constellation Energy, said:

“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.

Our disciplined capital allocation strategy, including accretive organic growth through nuclear uprates, the acquisition of Rhode Island State Energy Center and our continued aggressive pace of share repurchases, positions us to deliver sustained earnings growth.”

What must happen next?

For Constellation, the next execution tests are specific: sign the federal loan agreement, obtain regulatory approvals for the $715 million Shell purchase, deliver Google's first uprate in 2028, and begin the 270-megawatt Peak+ arrangement. The Calvert Cliffs expansion follows between 2030 and 2032. If those steps occur, the announced contracts would convert planned capacity into operating generation and enlarge Constellation's merchant portfolio.