Utility Stocks Are Rebounding. Here Are 3 That Could Continue to Soar In 2026.

Core Viewpoint - Utility stocks are expected to deliver strong returns in 2026 due to surging electricity demand, particularly from AI data centers, with Constellation Energy, Dominion Energy, and NextEra Energy positioned to benefit significantly from this trend [1][15]. Constellation Energy - Constellation Energy's share price has increased nearly 50% this year, driven by a resurgence in nuclear energy demand [3]. - The company signed a 20-year power purchase agreement with Microsoft to restart the Three Mile Island Unit 1 facility, which will supply power for Microsoft's data centers starting in 2028 [4]. - A $26.6 billion acquisition of Calpine is expected to close in early 2026, combining Constellation's nuclear fleet with Calpine's natural gas and geothermal assets, enhancing earnings growth potential [6]. Dominion Energy - Dominion Energy has underperformed compared to peers, with a 6% increase in share price over the past year, but is well-positioned to benefit from rising power demand in Virginia, a major data center market [7][9]. - The company plans to invest $50 billion through 2029, primarily in Virginia, including the Coastal Virginia Offshore Wind project, which is expected to support 5% to 7% annual earnings-per-share growth [10]. NextEra Energy - NextEra Energy's share price has risen nearly 11% over the past year, benefiting from its position as Florida's largest electric utility and its clean energy infrastructure [11]. - The company is focused on building the largest utility-owned solar energy platform and has a growing backlog of renewable energy projects, positioning it for earnings growth at the high end of its 6% to 8% annual target range through 2027 [13][14]. - NextEra has signed a 25-year power deal with Google to support the restart of the Duane Arnold Energy Center, expected to be operational by early 2029 [14].