Entergy (ETR)
NYSEUtilitiesRegulated ElectricSnapshot 2026-09-04
$107.27-0.47%
Close 2026-09-04 · 1-day change
NYSEUtilitiesRegulated ElectricSnapshot 2026-09-04
Warn: Primary pillar under pressure — Affirm 2026 EPS guidance of $4.25 to $4.45: EPS guidance $4.25 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 cautious view on a utility company facing sector challenges. The current thesis is characterized by mixed execution in management priorities and a premium valuation compared to peers.
The market appears to have priced in a durable premium for ETR, reflecting expectations of stable performance despite recent mixed results. The current valuation suggests that investors are aware of the potential fragility in execution quality and sector conditions.
Management has reaffirmed its earnings guidance for 2026, which supports a stable outlook for the near term. However, the company has a history of missing earnings expectations, which adds some risk to its fundamental trajectory.
The long-term thesis hinges on key factors such as the Federal Reserve's interest rate decisions and the performance of sector peers like NEE, SO, and DUK. Any guidance cuts from management would also significantly impact sentiment and expectations.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a positive outlook. Entergy secured electric service agreements with data centers, which boosts growth potential. The company reaffirmed its 2026 adjusted EPS guidance range of $4.25 to $4.45. There are no new threats impacting the thesis.
as of 2026-09-04
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.
Overall, ETR's outlook remains cautious with a focus on execution and external economic factors. Not investment advice.