Constellation Energy’s Microsoft Deal Adds 835 MW Capacity and Aims for 10–13% EPS Growth
Constellation Energy has delivered a 3.14% three-year revenue CAGR and yields a 0.5% dividend that’s grown for three straight years. Its 20-year deal with Microsoft to restart Three Mile Island adds 835 MW of nuclear capacity and targets 10%–13% annual base EPS growth through 2030.
1. Constellation Energy’s Nuclear Leadership and AI Partnerships
Constellation Energy is the largest nuclear power producer in the United States and supplies roughly 10% of the nation’s clean energy. Over the past three years, the company has grown revenue at a compound annual growth rate (CAGR) of 3.14%, sustained a gross profit margin of 20.13% and a net income margin of 11.00%, and increased its dividend for three consecutive years to yield approximately 0.5%. In a landmark deal with Microsoft, Constellation will rebuild the Three Mile Island nuclear site in Pennsylvania, adding 835 megawatts of capacity to power Microsoft’s data centers under a 20-year purchase agreement. Management projects this partnership will drive annual base earnings-per-share growth of 10%–13% through 2030.
2. Recent Share Price Movement and Investor Considerations
In the most recent trading session, Constellation Energy’s shares declined by 2.38% despite broad market advances, reflecting sector rotation pressures and investors repricing utility exposure. This pullback underscores the importance of monitoring contract execution timelines, regulatory approvals for the Three Mile Island restart and quarterly earnings trends as potential catalysts for price recovery.