What Has Contributed to NextEra's (NEE) 4.6% Increase Since Its Last Earnings Report?
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Earnings Performance: NextEra Energy reported Q3 2025 adjusted earnings of $1.13 per share, exceeding estimates, with a year-over-year increase of nearly 9.7%. However, operating revenues of $7.96 billion fell short of expectations, despite a 5.3% year-over-year improvement.
Business Segments: Florida Power & Light Company saw a revenue increase of 7% to $5.29 billion, while NextEra Energy Resources reported a slight decline in revenues to $2.56 billion but improved earnings per share. The corporate segment also showed growth in revenues.
Future Plans and Guidance: NextEra Energy reaffirmed its 2025 earnings guidance of $3.45-$3.70 per share and expects continued earnings growth of 6-8% through at least 2026. The company plans to add significant renewable power projects in the coming years.
Market Position and Stock Outlook: NextEra holds a Zacks Rank #3 (Hold) with a flat trend in estimate revisions, while its stock scores poorly on growth, momentum, and value. Comparatively, CenterPoint Energy has a better outlook with a Zacks Rank #2 (Buy).
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Analyst Views on NEE
Wall Street analysts forecast NEE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEE is 92.50 USD with a low forecast of 84.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 88.180
Low
84.00
Averages
92.50
High
100.00
Current: 88.180
Low
84.00
Averages
92.50
High
100.00
About NEE
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC (collectively, NEER) and Florida Power & Light Company (FPL). Its segments include NEER and FPL. FPL segment is a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines and 921 substations. The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs and operates rate-regulated transmission facilities in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
NextEra Energy Reports Strong 2025 Earnings Growth Amid Rising Energy Demand
- Strong Financial Performance: NextEra Energy's adjusted earnings per share rose 8.2% in 2025, exceeding the upper end of guidance, reflecting the company's robust profitability amid surging energy demand.
- Florida Power Growth: Florida Power & Light's net income surpassed $5 billion, growing over 10% due to $8.9 billion in capital investments, supporting the state's rapidly growing economy and solar initiatives.
- Renewable Energy Expansion: The company added 3.6 gigawatts of renewable energy projects in the last three months, driving 13% earnings growth, demonstrating its adaptability to the strong demand from data center developers.
- Future Growth Outlook: NextEra expects earnings per share to grow to $3.92 to $4.02 in 2026, with plans to increase dividends by 6% annually from 2026 to 2028, showcasing strong long-term growth potential.
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NextEra Energy's Future Growth Potential Analysis
- Earnings Growth Outlook: NextEra Energy reported an 8.2% growth in earnings per share (EPS) for Q4 2025, with expectations for a compound annual growth rate in adjusted EPS to remain above 8% through 2032, providing investors with a stable growth outlook.
- Dividend Growth Strategy: The company anticipates a 10% annual increase in dividends per share through 2026, tapering to 6% through 2028, reflecting confidence in future cash flows and a commitment to shareholder returns.
- Diversified Business Model: As a hybrid of a regulated utility and a rapidly growing renewable energy business, NextEra offers a natural hedge against the volatility of the renewable sector, supporting both growth and income, which enhances its investment appeal.
- Strategic Partnerships: Collaborations with Google Cloud and Meta Platforms indicate that NextEra Energy will play a vital long-term role in supplying power to major AI and tech companies, further solidifying its position in the rapidly growing electricity demand market.
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