Vistra beats fourth-quarter core profit estimates on AI-driven power demand

Feb 26 (Reuters) - Power producer Vistra Corp VST.N beat Wall Street expectations for fourth-quarter adjusted core profit on Thursday, as an AI-driven surge in electricity demand from data centers fueled earnings.

U.S. power consumption is expected to rise sharply through this year and the next, driven by the rapid expansion of data centers for artificial intelligence services and cryptocurrency, and the switch to electric heating and transportation by households and businesses.

Big Tech companies are also trying to secure long-term electricity supply contracts to power AI-led services and data centers.

Earlier this year, Meta Platforms signed a 20-year agreement to buy power from three of Vistra's nuclear plants in the U.S. heartland to build small modular reactors.

Vistra, in January, also announced a $4.7 billion agreement to acquire Cogentrix Energy and its 10 natural gas-fired plants from Quantum Capital Group to boost capacity for growing power needs.

The power producer in November forecast 2026 adjusted core profit higher than its outlook for 2025, signaling confidence in its growing power generation portfolio and strong demand across U.S. markets.

The company expects 2026 adjusted core profit between $6.8 billion and $7.6 billion, up from its 2025 forecast range of $5.7 billion to $5.9 billion, as it expands gas-fired and clean energy capacity.

However, Vistra's fourth‑quarter profit of $233 million narrowed from $490 million a year earlier.

The Irving, Texas-based company posted an adjusted core profit of $1.74 billion for the three months ended December 31, above analysts' average estimate of $1.68 billion, according to data compiled by LSEG.

Shares of the company rose 1.8% in premarket trading.