Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Constellation Energy's second quarter of fiscal 2026 was defined by the integration of the Calpine acquisition, which closed in January and propelled a 23% revenue increase. However, GAAP net income fell sharply as merger and integration costs, unfavorable unrealized hedge losses, and nuclear outage impacts weighed on the bottom line. Adjusted (non-GAAP) operating earnings per share rose to $2.55, reflecting higher capacity revenues and the contribution of Calpine's assets, though cash reserves declined while debt surged to finance the deal. The tension remains between near-term integration expenses and the long-term benefits of a diversified generation fleet and expanded retail platform.
Revenue
$7.5B
+23.00% YoY
EPS (Diluted)
$1.42
-46.82% YoY
Operating Income
$580M
-39.01% YoY
Source: SEC XBRL
Constellation Energy (CEG) reported Q2 FY2026 revenue of $7.5B, up 23.0% year over year. Operating margin was 7.7%, down 7.9 points from 15.6% a year earlier. CEG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.55 | 2.45 | Beat +4.3% |
| Mar 2026 | 2.74 | 2.59 | Beat +5.7% |
| Dec 2025 | 2.30 | 2.25 | Beat +2.3% |
| Sep 2025 | 3.04 | 3.15 | Miss -3.5% |
Adjusted (non-GAAP) EPS of $2.55 versus the $2.45 analyst consensus — a +4.3% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.42.
6 reported segments · SEC XBRL
Segment revenue totals $7.24B; with $260M of reconciling items (corporate, unallocated and eliminations) it ties to the $7.5B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
The January 7, 2026 acquisition added 23 GW of predominantly natural gas, geothermal, and solar capacity, creating the nation's largest competitive retail electric supplier and significantly diversifying the generation portfolio.
Source: 10-Q Item 2 MD&A
Constellation agreed to sell 5 natural gas plants (4.4 GW) for $5.0B and a 606 MW plant for $860M to LS Power, addressing regulatory commitments from the Calpine merger.
Source: 10-Q Item 2 MD&A
A new 380 MW agreement and an exclusive 380 MW Phase 2 option at the Freestone Energy Center highlight growing hyperscale demand, adding to existing 400 MW agreements between Calpine and CyrusOne.
Source: 10-Q Item 2 MD&A
Nuclear capacity factor fell to 93.0% from 94.8% as refueling outage days doubled to 86, reducing generation and increasing costs, partially offset by higher capacity and energy prices.
Source: 10-Q Item 2 MD&A
The 2028/2029 Base Residual Auction cleared at the $325/MW-day price cap, boosting future capacity revenue visibility in the PJM region.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Debt-to-equity ratio rose to 2.06 and long-term debt increased 162% to $19.1B following the Calpine acquisition, elevating financial risk and interest burden.
Source: 10-Q Balance Sheet (XBRL)
Cash and equivalents fell 64.7% to $0.7B while current liabilities grew 108.3%, potentially constraining operational flexibility and ability to manage unexpected expenses.
Source: 10-Q Balance Sheet (XBRL)
Operating margin declined from 15.6% to 7.7% as purchased power and fuel costs and integration expenses outpaced revenue growth, pressuring profitability.
Source: 10-Q Income Statement (XBRL)
The large-scale integration of Calpine's operations, systems, and workforce carries execution risk, and failure to realize expected synergies could negatively impact future financial performance.
Source: 10-Q Balance Sheet (XBRL)
Significant unrealized losses on economic hedges and fair value adjustments reduced GAAP net income by $340M after-tax in Q2, highlighting sensitivity to volatile energy prices.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 7.50 $B | 6.10 $B | +23.00% |
Operating Income $M | 580.00 $M | 951.00 $M | -39.01% |
Net Income $M | 513.00 $M | 839.00 $M | -38.86% |
EPS (Basic) $ | 1.42 $ | 2.67 $ | -46.82% |
EPS (Diluted) $ | 1.42 $ | 2.67 $ | -46.82% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Constellation Energy Group delivered an extraordinary Q1 2026, with revenue surging 63.8% YoY to $11.1B and net income skyrocketing 1,247.5% to $1.59B, driven by transformative growth that also reflects the impact of the Calpine acquisition.
CEG reported FY2025 revenue growth of 8.3% to $25.5B, but net income fell 38.1% to $2.3B and operating margin compressed sharply to 12.1% from 18.5%, even as operating cash flow surged to $4.2B from negative territory in the prior year.
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