Constellation Energy Corp. (CEG) First Take EPS beat GS and consensus, 2026 EPS guidance raised

Equity Research 6 August 2026 | 7:59AM EDT

Constellation Energy Corp. (CEG): First Take: EPS beat GS and consensus, 2026 EPS guidance raised

Constellation Energy (CEG, Neutral) reported ongoing 2Q26 EPS of $2.55 beating Carly Davenport | our estimate of $2.47 and FactSet consensus estimates of $2.34. CEG also raised Goldman Sachs & Co. LLC 2026 adjusted EPS guidance range to $11.50-$12.50 from $11.00-$12.00 before Beatriz Abreu, CFA (GSe at $11.77 and consensus at $11.70). The company also announced it signed | 744 MW of additional PPAs (920 MW considering the previously announced 176 MW Goldman Sachs & Co. LLC

signed with Walmart) with a set of investment grade customers for 15-20 years, set Jaya Patel | to begin in 2029 through 2031 and be fully ramped by 2032. Management expects Goldman Sachs & Co. LLC ~30% of its clean baseload generation to be contracted by 2032. CEG also reported Ananya Jaison that it has repurchased ~$2.2bn in shares year to date, with ~$2.8 bn still remaining | in its buyback program. Goldman Sachs India SPL

We expect the focus of the conference call to be around 1) outlook on the PJM RBP and Connect and Manage proposals, 2) updates on ERCOT’s Batch Zero and impacts from Governor Abbott’s directive, and 3) commentary on operational execution and commercial progress.

Analysis What were the key drivers of the quarterly variance?

On a pre-tax basis, results were only marginally above our numbers. Lower than expected cost of revenues was partly offset by lower operating revenues, resulting in higher gross margin, which was mostly offset by higher total expenses when compared to our estimates. Lower than expected income taxes drove the bottom line beat to our numbers.

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Goldman Sachs Constellation Energy Corp. (CEG)

Exhibit 1: On a pre-tax basis, results were only marginally above our numbers, mostly as lower cost of revenues was offset by lower operating revenues and higher total expense vs our estimates Income Statement Variance ($mn)

2Q26 Income Statement Variance $2.47 $2.55 $0.08 Income Statement GS est Actual Variance

Operating Revenues Energy Revenues $3,135 ($3,135) Capacity Revenues $444 ($444) Other Revenues $4,669 ($4,669) Total Operating Revenues $8,248 $8,029 ($219)

Cost of Revenues Fuel ($925) ($3,909) ($2,984) Purchased Power ($3,460) $0 $3,460 Total Cost of Revenues ($4,385) ($3,909) $476

Gross Income $3,863 $4,120 $257

Other Expenses Operation & Maintenance ($1,788) ($2,039) ($251) Depreciation & Amortization ($486) ($429) $57 Taxes Other Than Income ($143) ($204) ($61) Total Other Expenses ($2,416) ($2,672) ($256) Gains on sales of assets $0 $2 $2 Operating Income $1,446 $1,450 $4

Other Income and Deductions Interest Expense ($244) ($267) ($23) Other, net $0 $29 $29 Total Other Income and Deductions ($244) ($238) $6

Income before Income Taxes $1,203 $1,212 $9 Income (Taxes) / Benefit ($313) ($303) $10 Equity in losses of unconsolidated affiliate $0 $6 $6 Net Income- GAAP $890 $915 $25 Minority Interest $0 $5 $5 Preferred Dividends $0 $0 $0 Net Income- Available to common shareh $890 $920 $30 Adjustments to net income $0 $0 $0 Income from Continuing Operations $890 $920 $30

Source: Company data, Goldman Sachs Global Investment Research

What are key questions for the conference call?

1. How are hyperscalers evaluating the trade-off between participating in PJM’s RBP Phase 1 bilateral matchmaking versus executing direct, standard bilateral PPAs?

2. Do you expect any significant interconnection delays or cancellations in ERCOT stemming from the Governor’s August 3 directive to verify and audit any data center large loads before advancing through the interconnection process?

3. How has…