Over the past three months, a consensus of 12 Wall Street brokerage firms has maintained a Buy or Outperform rating on CEG, with seven firms raising their target valuations following Constellation Energy’s 2025 fourth-quarter earnings release. Analysts cited a 4% year-over-year increase in nuclear generation output and a 15% rise in annual free cash flow to $2.8 billion as key drivers for their bullish outlook. Notably, two major sell-side teams increased their conviction levels after Constellation announced the successful integration of the Calpine assets in October 2025, boosting combined generation capacity by 3 GW and expanding the company’s footprint into fast-growing gas-fired markets.

CEG’s management projects mid-single-digit revenue growth through 2027, underpinned by long-term contracts with data centers and AI compute facilities that now account for 18% of total power sales. The company’s carbon-free nuclear fleet logged an 89% average capacity factor last year—among the highest in the U.S.—while standardized operating costs fell 6% compared to 2024 levels. With net debt to EBITDA at a conservative 3.1x post-Calpine acquisition and a policy support pipeline exceeding $1 billion in state and federal incentives, Constellation Energy is positioned to fund $1 billion in annual capital returns without compromising its investment-grade credit ratings.