Is Constellation Energy a Buy After Their Latest Earnings Report?

Constellation Energy (NASDAQ: CEG) was spun disconnected from Exelon in 2022. At the time, fewer investors viewed the separation arsenic transformative. Constellation was, aft all, a utility. A unchangeable but unexciting concern inheriting a fleet of atomic plants and power-generation assets from Exelon.

Four years later, the communicative looks dramatically different, with Constellation sitting close astatine the halfway of the artificial quality (AI) roar and the contention to unafraid reliable powerfulness for hyperscale information centers. Constellation's latest net reenforce the view, and if there's immoderate uncertainty whether the banal is simply a buy, its numbers and outlook should wide that up for investors.

The large Calpine boost

Constellation reported its first-quarter numbers connected May 11. Its Q1 adjusted net per stock (EPS) of $2.74 roseate sharply from $2.14 a twelvemonth ago, portion GAAP nett income surged to $1.6 cardinal from a paltry $118 cardinal successful Q1 2025. Revenue surged 64% twelvemonth implicit twelvemonth to $11 billion.

The header numbers look dramatic, but overmuch of that surge tin mostly beryllium traced backmost to the Calpine acquisition.

Constellation was already the largest atomic vigor institution successful the U.S. In January 2026, it made a immense maturation leap erstwhile it acquired Calpine, the largest generator of energy from earthy state and geothermal assets successful the U.S., successful a $16.4 cardinal deal.

With this move, Constellation has go the largest private-sector powerfulness shaper successful the satellite . This was the archetypal afloat 4th with Calpine afloat baked in, and it delivered, arsenic those numbers prove.

Moreover, 2 projects reached important milestones during the quarter.

The 105 megawatt (MW) Pastoria Solar Project, the largest-ever renewable vigor task contracted by the California Department of Water Resources (DWR), was commissioned connected April 16. The Pin Oak Creek Energy Center, meanwhile, began commercialized operations connected April 30. It is simply a earthy state installation providing powerfulness Electric Reliability Council of Texas (ERCOT) grid.

Notably, Calpine oversees some projects.

More and much information centers are signing up for Constellation

In Q1, Constellation besides signed a 380 MW statement with information halfway developer and operator, CyrusOne, for a information halfway successful Texas. It has already secured different 380 MW declaration for signifier 2, and these agreements are successful summation to the 400 MW agreements CyrusOne signed with Calpine successful 2025.