Constellation Energy says its new agreements with Google and Amazon “add more than 1,000 megawatts of new, emissions-free generation to the grid”, and it raised the midpoint of its 2026 adjusted operating earnings guidance for the second time this year, according to its third-quarter results release on 9 November.
The narrowed range is $12.50 to $12.80 a share. Third-quarter adjusted operating earnings were $5.06 a share, against $3.04 a year earlier; GAAP net income was $5.19 a share, against $2.97.
Business Pill · Who Pays for the Grid
An evergreen Business Engineer explainer on how grid costs are shared. It teaches the general idea only and does not discuss Constellation.
The key insight: Constellation Energy raised the midpoint of its 2026 adjusted earnings guidance for the second time this year, to $12.50 to $12.80 a share, and says its Google and Amazon agreements add more than 1,000 megawatts of new nuclear generation; it is also buying a 609-megawatt gas plant for $715 million, about $1,174 per kilowatt by our arithmetic.
The release credits the quarter to favourable market and portfolio conditions and the addition of Calpine, acquired in January 2026, partly offset by interest and the nuclear production tax credit portfolio. Its nuclear plants at ownership ran at a 97.2% capacity factor, excluding Salem and South Texas Project, against 96.8% a year earlier.
A post on X by Wall St Engine put third-quarter revenue at $9.55 billion against a $9.37 billion estimate, and adjusted earnings per share against a $3.85 estimate; those revenue and consensus figures are the poster’s, not the release’s.
CONSTELLATION ENERGY $CEG Q3’26 EARNINGS HIGHLIGHTS
Megawatt figures are from Constellation Energy’s third-quarter 2026 results release. The price per kilowatt for the Rhode Island plant is our arithmetic; load-following and PPA figures are contract sizes, not new plants.
The Technology Deals
Amazon signed a 20-year, 690-megawatt power purchase agreement and a related retail supply deal in September, which the release says will enable more than $3 billion of investment at the Calvert Cliffs plant, including a 190-megawatt expansion expected online between 2030 and 2032.
New in this release is Constellation’s first Peak+ transaction: a 20-year agreement for 270 megawatts of unit-contingent energy, capacity and attributes from its existing nuclear fleet, starting in 2028. Peak+ is described as “an integrated solution that brings together new capacity, including new generation and demand response, with energy products to help large customers meet their evolving needs”.
A Gas Plant Bought, a Gas Fleet Sold
Constellation agreed to buy the 609-megawatt Rhode Island State Energy Center, a gas-fired combined-cycle plant, from Shell Energy North America for $715 million, subject to approvals. That is about $1,174 per kilowatt, by our arithmetic.
The same morning, NRG Energy said it will sell six gas plants totalling 4.9 GW to LS Power for $4 billion in cash. For reference, Reuters cited Aurora Energy Research putting new turbines at about $2 million to $2.5 million per megawatt, in Used Turbines Cost Up to 48% Less as New Ones Take 6 Years; operating plants and turbines are not like-for-like.
As we read the release, Constellation is adding capacity on two tracks at once: nuclear uprates paid for by 20-year technology-company contracts, and an existing gas plant bought outright in New England.
As we read the timing, the Rhode Island purchase lands on the same morning NRG agreed to sell six gas plants totalling 4.9 GW to LS Power for $4 billion; the two releases do not refer to each other.
Joe Dominguez, chairman, president and CEO of Constellation, in the results release
“The new megawatts, which are the equivalent of a new large-scale nuclear plant, are coming online with no costs being borne by existing customers,”
Three Implications
FOR HYPERSCALERS Constellation says its first Peak+ deal is a 20-year agreement for 270 MW from its existing nuclear fleet starting in 2028; the customer is not named.
FOR GRID CUSTOMERS Constellation says the new megawatts come with no costs borne by existing customers, a claim made as a study links data centres to about 4% of US home power price rises.
FOR POWER INVESTORS Constellation says the DOE loan guarantee of up to $5.0 billion would carry a fixed rate 0.375% above comparable US Treasuries, subject to a loan agreement.
The framework argues: “Big Tech’s hyperscalers are racing to build gigawatt-scale AI data centers, with five facilities set to exceed 1GW by 2026, each requiring a nuclear reactor’s worth of power.”
As we read it, Constellation’s chief executive describes the Google and Amazon megawatts as the equivalent of a new large-scale nuclear plant. The framework predates these deals and does not discuss Constellation.
What Is Not Established
Constellation did not name the Peak+ customer or disclose prices for the Google or Amazon power. The Rhode Island deal and the DOE loan guarantee of up to $5.0 billion are subject to approvals and a loan agreement. Revenue and consensus figures above are from a post on X, not the release we read.
This Week In The AI Supercycle
The Great Convergence of Capital, Power, and Geopolitics
This week’s issue: for two years the AI build-out was priced as a supply story, and last week as a credit story. This week it was priced as a permission story, and the answer arrived as a cost, not a ban.
Constellation raised its 2026 guidance midpoint again, to $12.50 to $12.80 a share, on agreements it says add more than 1,000 megawatts of new nuclear generation for Google and Amazon, plus a first 270-megawatt Peak+ deal and a $715 million gas plant, about $1,174 per kilowatt by our arithmetic.
A note on sourcing. Results, guidance, agreements and quotations are from Constellation Energy’s third-quarter 2026 results release of 9 November 2026; the NRG sale is from NRG’s release of the same day. Revenue and consensus figures are as posted by Wall St Engine on X. The price per kilowatt is our arithmetic.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
