NYSEUtilitiesRegulated ElectricSnapshot 2026-08-31
Reading ETR? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Warn: Primary pillar under pressure — Affirm 2026 EPS guidance of $4.25 to $4.45: EPS guidance $4.25-$4.45 vs $4.25 target.
Entergy aims to grow earnings with a 2026 EPS target of $4.25 to $4.45. It plans to return capital through a buyback of over 19 million shares. The company is expanding electric service agreements with data centers, supporting future growth. Profit margins and earnings remain robust despite recent guidance cuts.
Entergy faces pressure from a recent guidance cut and mixed management signals. The stock trades expensive with a PE of 29.16, above peers. Growth may slow as industrial load gains and data center deals may not meet expectations. Free cash flow remains negative, limiting financial flexibility.
The market prices Entergy about 41% above our fair value near $82, expecting nearly 10% revenue growth. Our fair value is 33% below the Street median, reflecting skepticism on growth sustainability. We see the current price as unjustified given risks to guidance and cash flow.
Breaks if: No material new data center agreements secured over next 12 months
Continue to secure significant electric service agreements with hyperscale data centers and large customers to drive growth.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on stable earnings from utility operations. The current thesis is cautious, as recent performance has not matched industry peers, but there are signs of potential improvement.
The market currently prices ETR at a premium compared to its peers, reflecting expectations of stable earnings. However, this premium is justified by the company's recent earnings beats and ongoing capital allocation efforts.
Fundamentally, ETR is on track to meet its adjusted EPS guidance for 2026, supported by recent earnings growth. However, there are mixed results in executing share buybacks and securing new service agreements, which could impact future performance.
The thesis hinges on the performance of sector bellwethers like NEE, SO, and DUK. If these companies continue to perform well, it could provide a favorable backdrop for ETR. Conversely, any negative guidance from these peers could lead to downward pressure on ETR's performance.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports our view. Entergy Arkansas started construction on a new power station. This project will secure electric service agreements with data centers. The company also affirmed its 2026 EPS guidance of $4.25 to $4.45.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Entergy emphasized securing electric service agreements with data centers including a major hyperscale agreement in 2026-Q1 estimated to save $2 billion for customers. This priority is consistently highlighted and supported by specific contract announcements, indicating delivering progress.
“We provided a comprehensive update on our differentiated growth story that starts with our customers.”
“We announced another major hyperscale agreement in Louisiana that includes an additional estimated $2 billion of savings for retail customers.”
“We continued to secure significant electric service agreements with data centers and traditional industrial customers.”
Breaks if: EPS guidance falls below $4.25 for FY26
Entergy continues to affirm its 2026 adjusted earnings per share guidance range of $4.25 to $4.45.
Breaks if: Buyback agreement not executed or materially reduced within 12 months
Entergy announced a share buyback agreement involving forward sale agreements for 19,247,788 shares.
Over the next 1 to 3 years, ETR's outlook will depend on its ability to navigate sector challenges and execute on its strategic priorities. Not investment advice.
