Constellation Energy Corporation (CEG) has seen its shares increase by 2% over the past month, in contrast to a 13% growth within the Zacks Alternate Energy – Other industry. The company is positioned to benefit from a surge in demand for data centers, supported by its nuclear fleet, which provides consistent and clean energy.
In February 2026, Constellation’s Calpine unit entered into a 380-megawatt (MW) agreement with CyrusOne, aiming to serve a new data center near the Freestone Energy Center in Freestone County, Texas. This agreement enhances their operational efficiency and complements CEG’s goal of achieving 95% carbon-free electricity by 2030 and 100% by 2040. Currently, nearly 90% of Constellation Energy’s annual output comes from carbon-free sources.
CEG’s trailing 12-month return on equity is 21.59%, significantly above the industry average of 6.39%. The company’s board has authorized a $3 billion share repurchase program, with approximately $593 million remaining as of September 30, 2025. Despite a premium valuation compared to its industry peers, investors are encouraged to hold their positions for regular dividends and share buybacks while awaiting a more favorable entry point.
