DTE Energy Beats Q4 Estimates, Secures 1.4GW OpenAI Stargate Contract
DTE Energy reported fourth-quarter operating earnings of $1.65 per share versus consensus of $1.52 and revenue of $4.43 billion, topping estimates by 8% and 31%, respectively. The company secured a 1.4 GW take-or-pay contract for OpenAI’s Stargate campus, raised its five-year capex to $36.5 billion and guided 6%-8% EPS growth for 2026.
1. Q4 Earnings Beat
DTE Energy delivered operating earnings of $1.65 per share in the fourth quarter, surpassing the $1.52 consensus by 8.6%, while revenue climbed to $4.43 billion against forecasts of $3.39 billion. Shares jumped roughly 2.8% on the report, driven by the utility’s defensive positioning in the AI-powered economy.
2. Landmark Stargate Contract
DTE confirmed a 1.4 GW commitment to power the Stargate OpenAI data center campus in Saline Township, representing a 25% increase in its total electric load. The take-or-pay structure guarantees 80% of billing demand revenue, insulating DTE from utilization risk and anchoring future rate-base growth.
3. Investment Plan and Guidance
Management boosted its five-year capital investment plan by $6.5 billion to $36.5 billion through 2030 to support AI loads and grid upgrades. It projected 2026 operating EPS of $7.59 to $7.73, implying 6%-8% growth, and declared a quarterly dividend of $1.165 per share, yielding about 3.2%.
4. Regulatory and Legal Risks
Michigan’s attorney general filed to reopen approval of the Stargate contracts over cost-coverage language, potentially delaying the project. DTE also faces a $100 million civil penalty for environmental violations and must meet a July 2026 construction deadline to secure key renewable tax credits.