Constellation Q3 2026 Earnings: Adjusted EPS Rises as Calpine Expands Scale

Constellation Energy (Nasdaq: CEG) reported Q3 2026 revenue of $9.55 billion, up about 45% from $6.57 billion a year earlier, while GAAP diluted EPS rose about 75% to $5.19 from $2.97. Adjusted operating EPS increased to $5.06 from $3.04, driven primarily by favorable market and portfolio conditions and the addition of Calpine, partly offset by unfavorable interest impacts and the nuclear PTC portfolio. For the quarter ended September 30, 2026, the company also raised the midpoint and narrowed its full-year adjusted operating EPS guidance.

Core Earnings Results

The year-over-year comparison reflects Constellation’s expanded business following its January 2026 acquisition of Calpine. Revenue grew faster than operating expenses, which increased about 29% to $7.07 billion, helping GAAP operating income more than double and materially widening operating margin.

Adjusted operating earnings also rose faster than adjusted EPS because the average diluted share count increased to 354 million from 313 million.

Adjusted operating earnings is a non-GAAP measure that excludes items including fair-value changes, decommissioning activities, Calpine integration costs and certain tax adjustments.

Operations and Growth Commitments

Constellation’s nuclear fleet produced 46,677 GWh during the quarter, about 0.4% more than a year earlier. The capacity factor for owned nuclear plants excluding Salem and the South Texas Project improved to 97.2% from 96.8%, while planned refueling outage days declined to 20 from 23. Non-refueling outage days edged up to six from five.

For the natural gas, oil and pumped-storage hydro fleet, the equivalent forced outage factor was 5.9%. Constellation did not provide a comparable 2025 figure because it began treating the measure as a key operating metric following the Calpine acquisition. Renewable energy capture slipped to 96.4% from 96.8%.

The company also disclosed several long-term growth and customer agreements:

• Rhode Island State Energy Center: Constellation agreed to acquire the 609 MW natural gas-fired facility for $715 million, subject to adjustments, regulatory approvals and other closing conditions.
• Amazon and Calvert Cliffs: A 20-year, 690 MW power purchase agreement supports more than $3 billion of infrastructure investment, including a 190 MW expansion expected between 2030 and 2032.
• Google nuclear agreement: A 20-year PPA is expected to support more than $4.3 billion of investment across 11 nuclear units and add approximately 890 MW of capacity to the PJM grid. The first uprate is expected in 2028. Constellation also signed a 15-year financial energy load-following agreement covering 2,700 MW.
• Peak+: The first transaction under this customer solution covers 270 MW of energy, capacity and nuclear attributes for 20 years beginning in 2028.
• DOE financing: A conditional commitment could provide a guarantee for up to $5 billion of 30-year financing for nuclear uprates. The loan remains subject to execution of a final agreement and would carry a spread of 0.375% above comparable U.S. Treasuries.

Management said the Amazon and Google agreements would add more than 1,000 MW of emissions-free generation while supporting continued operation and investment at existing nuclear facilities.

Wider Margins Were Partly Offset by Share Count and Interest Pressure

Revenue growth outpaced the increase in operating costs, lifting GAAP operating margin to about 26.1% from 16.5%. However, adjusted operating earnings grew 88%, compared with 66% growth in adjusted EPS, as the average diluted share count increased about 13%.

Net interest expense also rose to $217 million from $134 million, an increase of about 62%. This aligns with management’s statement that unfavorable interest impacts partly offset the benefits of market conditions, portfolio performance and Calpine.

GAAP earnings additionally benefited from an effective tax rate of 18.2%, down from 33.4%. The reconciliation from $1.835 billion of GAAP net income to $1.792 billion of adjusted operating earnings included $127 million related to unrealized fair-value gains and a $108 million tax-related adjustment. These were partly offset by adjustments of $73 million for Calpine merger and integration costs, $56 million for decommissioning activities and $39 million for acquired commodity contract amortization.

FY2026 Guidance

Constellation raised the midpoint and narrowed its full-year adjusted operating EPS guidance to $12.50-$12.80. CFO Shane Smith said this was the second midpoint increase during the year, although the release did not provide the previous numerical range.

The implied midpoint is $12.65 per share. Constellation did not provide a GAAP reconciliation because future fair-value adjustments and other items cannot be projected with sufficient certainty.

Recent Insider Transactions

The supplied transaction log lists one purchase and nine stock awards among the ten latest reported transactions. All were classified as direct ownership, and all listed insiders were directors.

The source’s recent-transaction summary identifies Crandall’s purchase as 1,500 shares totaling $417,930.90. However, its separate six-month aggregate table reports zero purchases and zero net shares purchased, creating an unresolved inconsistency between the two source tables.

Risks Investors Need to Watch

• Integration and acquisition execution: The adjusted reconciliation included $73 million of Calpine merger and integration costs. The proposed $715 million Rhode Island acquisition also remains subject to approvals and closing conditions.
• Interest expense and financing: Net interest expense increased substantially year over year, and management identified interest as an offset to adjusted earnings. The DOE loan commitment is conditional rather than finalized.
• Long-dated project schedules: The first Google-supported nuclear uprate is expected in 2028, while the Calvert Cliffs expansion is scheduled for 2030 to 2032. Execution against these timelines will determine when the additional capacity contributes.
• Operational availability: The natural gas, oil and pumped-storage fleet reported a 5.9% forced outage factor, while nuclear non-refueling outage days increased slightly and renewable capture declined.
• Market and policy exposure: Favorable market and portfolio conditions supported this quarter’s earnings, but the nuclear PTC portfolio was an offset, leaving results exposed to changes in both market conditions and policy-linked economics.

Summary

Constellation’s Q3 2026 results reflected a larger operating base following the Calpine acquisition, favorable market conditions and improved cost leverage, producing substantial growth in operating income and adjusted earnings. Higher interest expense and a larger diluted share count tempered the per-share benefit, while the next phase of the company’s growth depends on integrating acquired assets and executing its Amazon, Google, Peak+ and nuclear uprate commitments within their planned timelines.