Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 6, 2026 · Beat 5 of last 7 quarters
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Constellation's strong quarter and raised guidance underscore the accelerating demand for clean, firm power from AI data centers. The signing of ~920 MW of long-term nuclear contracts, including a landmark Walmart PPA, signals that hyperscalers and large corporates are locking in baseload nuclear supply to meet 24/7 carbon-free goals. Regulatory progress in PJM and FERC, including co-location and backstop procurement, is critical to unlocking the AI infrastructure buildout, and Constellation's existing fleet and new capacity pipeline position it as a key enabler.
Constellation delivered strong Q2 results with adjusted EPS of $2.55, up $0.64 YoY, driven by Calpine accretion, higher PJM capacity prices, and strong commercial performance. The company signed ~920 MW of long-term nuclear contracts with investment-grade customers, averaging 18.5 years, and announced a nuclear PPA with Walmart. Progress on Crane restart included NRC approval for new fuel licensing and FERC waiver for capacity injection rights transfer. The company agreed to sell Brazos Valley Energy Center to LS Power for $860 million, satisfying the final DOJ requirement for the Calpine acquisition. Management raised full-year guidance by $0.50 to $11.50-$12.50 per share.
Management raised full-year 2026 adjusted operating earnings guidance by $0.50 to $11.50-$12.50 per share, citing strong commercial execution and capital allocation benefits. They expect continued regulatory clarity from PJM and FERC, with RBP auction results expected by year-end. The company sees robust customer demand for long-term nuclear contracts, with a transactional pipeline that is 'robust and active.' They updated the 2029 capital allocation sensitivity to a floor of $0.20 per share with upside greater than $0.75, reflecting completed buybacks. Management also highlighted the nuclear PTC inflation adjustment, raising the 2030 strike price to $50.88/MWh, adding ~$0.30 to 2030 base earnings, supporting double-digit base earnings growth into the 2030s.
“we have signed approximately 920 megawatts of long-term nuclear deals that are consistent with our view of long-term value. These contracts have an average duration of 18.5 years and are with investment-grade customers.”
on Long-term nuclear contracts
“The fact that smart private equity buyers with long track records and competitive power markets are willing to pay over $1,400 a kW for Texas assets in a soft ERCOT market should tell you everything you need to know about the value of the efficient gas fleet that we now own.”
on Brazos Valley sale
“We are raising our full year adjusted operating earnings guidance range to $11.50 per share to $12.50 per share, up from our prior range of $11 to $12 per share.”
on Guidance raise
Can you talk about the new long-term nuclear deal—is it acceptable in terms of long-term value, price and term? Is it a hyperscaler or traditional C&I? Is it one deal incremental to Walmart?
Joe declined to disclose specifics, citing customer confidentiality, but confirmed the deal is consistent with long-term value for the nuclear fleet and is one of many opportunities in the market.
Should we assume the new contracts are in PJM? And have they incorporated potential outcomes from Connect and Manage or IRAS?
Joe confirmed most nuclear is in PJM but didn't pinpoint origin. He explained customers can use batteries or backup generation to manage peaks while still needing energy for the other 99% of hours, where existing generation provides quick solutions. He emphasized that waiting for new plants would cede competitiveness.
On Slide 13, is the capital allocation floor new? And how have customer conversations changed with PJM improvements?
Shane explained the $0.20 floor reflects the $2.2B of accretive buybacks completed. Joe noted that regulatory clarity is fueling a resumption of contracting activity, and once clarity is achieved, deal flow could 'kick off with a bit of a bang.'