Shares of Constellation Energy (NASDAQ: CEG) tumbled sharply on Tuesday, March 31, 2026, following a disappointing investor update that featured weaker-than-expected earnings guidance and a notable absence of new data center power supply agreements. The stock fell approximately 8.3% in the session, extending its year-to-date decline to about 25% and marking a roughly 32% drop from its October 2025 highs.
The primary catalyst for the sell-off was the company's 2026 adjusted earnings per share (EPS) guidance of $11 to $12. While this range broadly aligned with market expectations, the midpoint fell below analyst consensus estimates of around $11.60 to $11.73 per share, according to LSEG data. This softer near-term outlook disappointed investors who are closely scrutinizing earnings visibility, especially for companies positioned to benefit from the artificial intelligence-driven surge in electricity demand.
Compounding the negative sentiment was the lack of anticipated announcements regarding new long-term contracts to supply power to data centers. CEO Joseph Dominguez directly addressed the delay, stating, "I recognize that the last time we spoke, I indicated that we expected to be done with an important transaction by this call, but we’re not ready to announce anything today." He added that "there is clearly more scrutiny on data center development." Analysts view such premium-priced contracts, particularly for nuclear power supplied to major technology firms, as critical for sustaining the company's valuation multiples and future earnings growth.
In response to the market reaction, Constellation announced an expansion of its share buyback program to $5 billion, up from $3 billion previously, alongside plans for $3.9 billion in capital expenditures. Management also reiterated a strong long-term growth ambition, forecasting more than 20% annual base earnings growth through 2029. Some analysts argued the sell-off presented a buying opportunity, citing the company's strategic position in powering the AI and clean energy revolution, its existing agreements with tech giants like Meta and Microsoft, and its 5,650 megawatts of long-term clean energy agreements.
However, broader headwinds added to investor concerns. These include rising political scrutiny around data center energy consumption, potential regulatory interventions in power markets, and delays related to key infrastructure projects like restarting a reactor at the Three Mile Island site (renamed the Crane Clean Energy Center). Macroeconomic pressures from the ongoing Iran conflict, which has pushed interest rates higher and raised fears of an economic slowdown, further weighed on sentiment toward growth-oriented energy stocks like Constellation.
