Constellation Signed 920 Megawatts of New Power Deals, Including a Walmart PPA. Here's What It Means for CEG Stock.
Key Points
Constellation Energy just raised its guidance for fiscal year 2026.
The power and nuclear energy giant has made crucial progress on a major contract.
Constellation's contract with Walmart reflects the kind of growth opportunities ahead.
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The world’s largest retailer, Walmart (NASDAQ:WMT) has signed Constellation Energy (NASDAQ:CEG) to buy 176 megawatts (MW) of nuclear power over two 15‑year terms, beginning in 2029 and 2030.
That’s just one of the big highlights from Constellation Energy’s latest quarterly earnings report, signaling how the rush for stable, reliable clean power is no longer just a hyperscale story.
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Constellation’s latest long-term earnings growth forecast could make your jaw drop.
Image source: Getty Images.
The numbers don’t lie
Constellation just revealed that it locked in 920 MW of long-term power purchase agreements (PPA), including the Walmart contract, in the second quarter. The average contract duration is 18.5 years, offering exceptional cash flow visibility.
Constellation is the world’s largest private-sector power producer and the largest producer of clean energy in the U.S. It owns 55 gigawatts of capacity across nuclear, natural gas, oil, geothermal, wind, solar, and hydropower, including the nation’s largest nuclear energy fleet.
That asset base alone can power nearly 27 million homes and provide 10% of the nation’s clean energy, giving Constellation near-unrivaled scale and advantage as demand for 24/7 baseload power explodes amid the artificial intelligence (AI) data center and electrification boom.
That structural advantage is showing up directly in Constellation’s numbers. It reported adjusted earnings of $2.55 per share for Q2, a significant improvement over the year-ago figure of $1.91 per share.
Constellation also provided two crucial updates in its latest earnings report.
Huge progress on the Microsoft contract
Constellation has applied for license renewals for two nuclear units in New York to extend their operational lives by 20 years, all the way out to 2049.
At the same time, the Nuclear Regulatory Commission (NRC) approved the fuel license amendment for the Crane Clean Energy Center, formerly known as the Three Mile Island Unit 1.
Paired with a critical Federal Energy Regulatory Commission (FERC) waiver that transfers existing grid connection rights from another plant to the Crane nuclear unit, Constellation just cleared major hurdles to bring the unit back online to deliver power to Microsoft (NASDAQ:MSFT) under a 20-year PPA.
What this means for Constellation Energy investors
With big-ticket contracts steadily rolling in, Constellation projects adjusted earnings to grow at an annualized rate of 20% through 2029 off its guided 2026 base of $11.50–$12.50 per share.
Here’s the real kicker: That 20% projection does not include additional long-term contracts.
That simply means on top of the already impressive projected growth rate, every new PPA Constellation signs from here on out is pure upside on top of an already massive earnings baseline growth.
For investors, Constellation’s latest earnings report and PPAs, such as those with Walmart, are yet another reminder that this isn’t just a utility stock. It’s a potential compounder in the making amid the nuclear energy renaissance, fueled largely by the data center build-out.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Constellation Energy, Microsoft, and Walmart. The Motley Fool has a disclosure policy.
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