Constellation Energy (CEG) Is Up 10.9% After Expanded Data Center Power Deals And Dividend Update – Has The Bull Case Changed?

• In February 2026, Constellation Energy reported fourth-quarter and full-year 2025 results showing higher sales but lower net income year over year, while also closing its Calpine acquisition, announcing a quarterly dividend of US$0.4265 per share, and expanding long-term data center power agreements including a 380 MW deal with CyrusOne in Texas.
• Together, the stronger revenue, dividend increase plans, and growing roster of data center and tech customers highlight how Constellation is tying its clean-energy and gas portfolio more tightly to long-duration, AI-driven electricity demand.
• We’ll now assess how the expanded data center power agreements may influence Constellation Energy’s existing investment narrative and future risk-reward balance.

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Constellation Energy Investment Narrative Recap

To own Constellation Energy, you need to believe its enlarged clean and gas fleet can convert long-term, AI and data center driven power demand into durable cash flows, despite cyclicality in earnings and a rich valuation. The latest results, with higher sales but lower net income, do not materially change that core thesis. Near term, the key catalyst is how Calpine integration and new contracts feed into the upcoming 2026 guidance, while execution and regulatory costs on the nuclear side remain a central risk.

The Calpine acquisition and the new 380 MW CyrusOne agreement in Texas look most relevant here, because they show how Constellation is using its broadened generation base to anchor multi-year data center deals above 1,100 MW in that state alone. Those contracts sit squarely in the middle of the current catalyst stack, but they also concentrate exposure to a handful of hyperscale buyers and grid bottlenecks in fast-growing regions.

Yet even with this growth story, investors should be aware of how rising nuclear compliance and decommissioning costs could eventually pressure...

Read the full narrative on Constellation Energy (it's free!)

Constellation Energy's narrative projects $26.7 billion revenue and $3.6 billion earnings by 2028. This requires 2.5% yearly revenue growth and about a $0.6 billion earnings increase from $3.0 billion today.

Uncover how Constellation Energy's forecasts yield a $399.93 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were far more pessimistic, previously assuming revenue could shrink toward about US$21.6 billion and earnings to around US$1.6 billion, which contrasts sharply with the cleaner power and Calpine driven upside that others see; as you weigh this new data center news, it is worth recognising how widely views can differ and considering more than one version of the future.

Explore 13 other fair value estimates on Constellation Energy - why the stock might be worth as much as 49% more than the current price!

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Constellation Energy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Constellation Energy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Constellation Energy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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