By Samiat May, 07, 2025 Business

Constellation Energy (CEG) Stock Jumps as AI-Driven Power Demand Fuels Q1 Revenue Growth

Constellation Energy (NASDAQ: CEG) shares surged nearly 10% on Tuesday after the company reported better-than-expected first-quarter revenue, driven by soaring energy demand from the artificial intelligence (AI) sector. Despite missing earnings estimates, the nuclear power utility reaffirmed its full-year profit guidance and emphasized continued momentum tied to AI growth.

Key Q1 2025 Highlights:

• Revenue: $6.79 billion, up more than 10% year-over-year, beating analyst expectations of $5.44 billion (Visible Alpha).

• Adjusted EPS: $2.14, below consensus estimates.

• Full-Year EPS Guidance: Reaffirmed at $8.90 to $9.60.

• Stock Movement: Shares gained 9%, bringing the year-to-date increase to over 20%.

• Strategic Update: The company confirmed its $26.6 billion acquisition of Calpine is on track for completion by year-end.

AI Electricity Demand Boosts Growth

CEO Joe Dominguez highlighted Constellation’s critical role in supporting the AI boom by supplying reliable, carbon-free nuclear energy to meet rising computing power needs. He remarked:

“Constellation is working hard to meet the power needs of customers nationwide, including powering the new AI products that Americans increasingly are using in their daily lives and that businesses and government are using to provide better products and services.”

Dominguez also emphasized bipartisan recognition of AI’s strategic importance, stating:

“Both President Biden and former President Trump have stressed that it is vital for our national security and economy that America lead the AI race—and I’m proud Constellation is playing a central role.”

Looking Ahead

The company’s acquisition of Calpine Corporation, a major producer of natural gas and geothermal energy, is expected to strengthen Constellation’s position as a leading clean-energy provider. The $26.6 billion deal, announced in January, is progressing on schedule and expected to close by the end of 2025.

Investor Outlook

Despite a miss on profit, Wall Street responded positively to the revenue beat and the reaffirmed guidance, viewing AI-related electricity demand as a key growth catalyst. With strong top-line performance and long-term energy strategy alignment, Constellation Energy continues to position itself as a leader in the evolving AI-powered energy landscape.

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