Is Constellation Energy Stock’s Drop A Chance To Buy?

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Bulls may be betting on Constellation Energy (CEG) selling its nuclear power years ahead to large companies under long-term contracts. You may still view Constellation as a power producer whose profit swings from quarter to quarter. Long-term agreements change one part of that picture by securing buyers for years. Yet the stock lost 34.3% over the past year, while the S&P 500 returned 11.3%. That is the contradiction. So how much of its nuclear power has Constellation already sold ahead?

How Much Power Has Constellation Sold Years Ahead?

Management said on the August 6, 2026 call that long-term agreements now cover roughly 30% of Constellation’s clean baseload output, the steady power its nuclear plants produce around the clock. The company has signed approximately 920 megawatts of long-term nuclear deals since the previous call. These contracts run 18.5 years on average, and the buyers are investment-grade customers, companies with strong credit.

Contract signing continued after the call. Constellation and Amazon announced a 20-year agreement on September 30, 2026, adding about 190 megawatts of nuclear capacity at Calvert Cliffs, Maryland’s only nuclear plant. So the Amazon deal does more than sell existing output: it also expands the plant behind it. A larger deal followed on October 6, 2026, when Google signed a 20-year agreement for 890 megawatts of new nuclear capacity from upgrades at 11 Constellation reactors.

Constellation’s Contract Signing Has Picked Up Again

Management itself raised the main doubt. Management said in March 2026 that Constellation was behind its targeted timeline for long-term agreements because of new uncertainty in the regulatory environment. By the August call, management said clearer rules from PJM, the grid operator that covers most of Constellation’s business, were fueling a resumption of contracting activity.

The new deals also come with investment in the plants. The company said the Amazon agreement will enable more than $3 billion of infrastructure investment in Maryland. Constellation is also working on financing for more output. On October 27, 2026, it announced a conditional loan commitment of up to $5 billion from the U.S. Department of Energy to raise output at select nuclear plants.

The payoff from these deals comes late. Management said the agreements announced in August have later start dates and are not expected to materially affect 2029 earnings. The latest quarter was also weak on reported figures. Constellation posted an operating loss of $47 million in Q2 FY2026, against operating income of $502 million a year earlier. On the same call, management still raised its full-year operational earnings guidance by $0.50, to $11.50 to $12.50 per share.

Where Could Constellation’s Contracts Fall Short?

You cannot see what the contracts earn. Management said it cannot disclose pricing, noting only that the deals value existing nuclear energy as a premium product. It did say it is keeping the range of contract value disclosed in March. The rules are not final either. In August, management said it expected a response from PJM around November 2026 and an order from FERC, the federal power regulator, in the first half of 2027.

Debt raises the stakes for a holder. Constellation’s debt stood at $24.7 billion at June 30, 2026, up from $8.3 billion a year earlier. That rise spans the purchase of Calpine, which Constellation completed on January 7, 2026. That debt equals 26.1% of the company’s market value, against 19.1% for the S&P 500.

You can judge whether the drop is a chance to buy by watching if Constellation keeps selling more of its nuclear power years ahead to companies with strong credit. New long-term nuclear megawatts signed since the August call are the figure to watch when Constellation reports in November 2026.

What Would Another Fall In Constellation Energy Do To Your Plan?

A fall hurts most when one stock is a large part of what you own, and selling it to spread the risk can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to put a floor under a large position and unwind it with less tax.

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