Power utility affirms 2025 profit outlook despite earnings miss; Calpine acquisition on track
Constellation Energy (CEG) jumped nearly 10% on Tuesday after the nuclear power giant reported stronger-than-expected first-quarter revenue and reaffirmed its full-year profit forecast, fueled by growing electricity demand tied to artificial intelligence (AI).
The company posted Q1 operating revenue of $6.79 billion, a more than 10% year-over-year increase, beating analyst estimates of $5.44 billion compiled by Visible Alpha. While adjusted earnings per share came in at $2.14, below expectations, Constellation maintained its 2025 adjusted EPS guidance of $8.90 to $9.60, reinforcing investor confidence in its long-term growth outlook.
CEO Joe Dominguez credited the company’s performance to surging energy needs driven by AI technologies. “We are working hard to meet the power needs of customers nationwide, including powering the new AI products that Americans increasingly are using in their daily lives,” he said. Dominguez added that both current and former U.S. presidents have emphasized the importance of AI leadership for national security and economic strength, and that Constellation is proud to be a key enabler in that mission.
AI data centers and high-performance computing facilities require massive amounts of electricity, often sourced from stable, low-emission energy providers. Constellation, the largest producer of carbon-free electricity in the U.S. through its fleet of nuclear plants, has positioned itself as a key supplier to meet this rising demand.
In addition to its strong revenue results, Constellation said it remains on track to close its $26.6 billion acquisition of Calpine—a major natural gas and geothermal power provider—by the end of 2025. The deal, first announced in January, is expected to further diversify Constellation’s generation portfolio and strengthen its ability to support AI-driven energy demands with reliable and flexible power sources.
With Tuesday’s rally, Constellation shares are now up over 20% year-to-date, reflecting growing investor optimism around the company’s role in powering the digital economy. Despite the Q1 earnings miss, the company’s robust revenue growth, consistent guidance, and strategic expansion efforts are helping it solidify its position at the center of the AI-energy intersection.
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