Constellation Energy (CEG) is an energy giant, and it has grabbed attention lately thanks to its big moves in clean energy, especially after signing a huge 20-year nuclear power deal with Meta Platforms (META). This agreement is a big deal not just for Constellation, but also for Meta, as it comes at a time when the U.S. is using more electricity than ever. The main reason for this jump is the rapid growth of AI and data centers, which need a lot of power.

Worldwide, nuclear energy is also seeing more demand, with global use expected to hit 515.5 gigawatts by 2034, up from 442.9 gigawatts in 2025. After the Meta deal was announced, Constellation’s stock price rose to $342 briefly. 

Still, not everyone is convinced this growth will last. Let’s dive in.

Constellation’s Financial Performance

Constellation’s (CEG) annual dividend is $1.55 per share, which works out to a yield of 0.54%. That’s lower than what you’d get from the average S&P 500 Index ($SPX), but it shows the company is focusing more on growth than on big payouts right now. 

So far this year, the stock is up 30.3%, with a 52-week gain of 35.9%. 

The company’s market value has climbed to $93.9 billion. Its price-earnings ratio is 33.2x for the past year and 31.9x looking forward, which means people are willing to pay more now in hopes of bigger profits down the road.

On May 6, 2025, Constellation shared its first-quarter results. Net income fell to $118 million, or $0.38 per share, from $2.78 last year, mostly because of less favorable nuclear tax credits and higher costs. Still, adjusted earnings went up to $2.14 per share from $1.82, thanks to better market conditions and a strong portfolio. CEO Joe Dominguez said, “We are exactly where we want to be through the first quarter, and we will meet our commitments this year.”

When it comes to operations, Constellation’s nuclear plants, including those at Salem and South Texas, produced 45,582 gigawatt-hours in the first quarter, a bit more than last year. Their owned nuclear plants ran at a 94.1% capacity factor. The natural gas and pumped storage fleet hit a 99.2% dispatch rate, and renewables captured 96.2% of available energy, almost the same as last year.

Constellation’s Energy Ambitions

Constellation Energy has some big plans and isn’t shy about going after them. The company just signed a huge 20-year deal with Meta Platforms (META) to provide 1,121 megawatts of clean nuclear power from its Clinton Clean Energy Center starting in June 2027. 

That’s enough electricity to power about a million homes, and it means 1,100 good jobs in Illinois will stick around. The deal also keeps the Clinton plant running after the state’s zero-emission credit program ends, bumps up the plant’s output by 30 megawatts, brings in $13.5 million in local tax money every year, and promises $1 million to local charities over five years.

But that’s not all. In January, Constellation said it would buy Calpine Corp. for $16.4 billion in cash and stock and take on another $12.7 billion in Calpine’s debt. That puts the total price at $26.6 billion. This move will bring together Constellation’s strong nuclear fleet with Calpine’s natural gas and geothermal power, making Constellation the biggest clean energy company in the country and the top competitive retail electric supplier for 2.5 million customers.

Texas regulators have already given the green light, and the deal should close by the end of the year. This will help Constellation reach more customers across the country and meet the growing need for steady, clean energy. CEO Joe Dominguez says these steps are about building the top platform for reliable, clean power for families and businesses all over America.

Wall Street’s Verdict

For the quarter ending June 2025, analysts think Constellation will earn $2.28 per share, and for the whole year, they expect $9.43 per share. This means they see the company growing by 35.71% this quarter and 8.77% for the year. These are solid numbers, especially since Constellation is sticking with its full-year 2025 adjusted operating earnings guidance of $8.90 to $9.60 per share.

Not everyone is excited as Citi recently downgraded Constellation to “Neutral” right after the Meta deal, saying the agreement was a “disappointment” for investors. Their main issue is that the 20-year contract, which puts nuclear power at about $75 to $90 per megawatt-hour, doesn’t bring the higher prices for clean energy that some hoped for. 

Citi’s Ryan Levine says the deal adds about $12 per share in value compared to having no deal, but it doesn’t give a big extra boost, especially since the stock has already jumped nearly 80% from its lowest point this year. 

Still, most analysts are positive. The 16 analysts surveyed give CEG a consensus “Moderate Buy” rating, with an average price target of $314.80, which is about 8% higher than where the stock is now.

Conclusion

Constellation Energy’s stock sits at a crossroads. While its Meta deal and Calpine acquisition position it as a clean energy powerhouse, Citi’s downgrade highlights real risks such as, overvaluation and execution hurdles. Shares could see short-term swings, but long-term investors might find dips attractive as AI-driven power demand grows. For now, the stock’s fate hinges on delivering those promised earnings.