Takeaways From NextEra Energy (NEE) Q3 Earnings Beat

Courtesy of NextEra Energy Resources

NextEra Energy (NYSE: NEE) delivered an earnings beat on adjusted EPS this morning, though revenue fell short of expectations. The stock climbed to a 52-week high of $87.29 yesterday and continued higher in pre-market trading after the company announced a major partnership with Google to recommission a nuclear facility in Iowa. Adjusted earnings per share came in at $1.13, beating the $1.05 consensus by 7.6%, while revenue of $7.97 billion missed the $8.12 billion estimate by $157 million.

Earnings Beat Driven by Operational Efficiency

Adjusted EPS grew 9.7% year-over-year, a meaningful acceleration that reflects both core business performance and the company's capital deployment strategy. GAAP net income of $2.44 billion jumped 32% from the prior year's $1.85 billion, signaling strong bottom-line momentum. FPL, NextEra's regulated utility segment, generated $1.46 billion in net income, driven by continued rate base expansion and investment in grid modernization.

Operating cash flow through the first nine months reached $9.99 billion against capital expenditures of $6.74 billion. The company also added 3 gigawatts to its renewables and storage backlog during the quarter, maintaining its position as a leading developer of wind and solar capacity.

Revenue Miss Reflects Timing, Not Weakness

The $157 million revenue shortfall represents a 1.9% miss against consensus. This gap appears tied to project timing and seasonal factors rather than fundamental demand weakness. Management's maintained 2025 guidance of $3.45 to $3.70 adjusted EPS, along with raised 2026 and 2027 outlooks, suggests confidence in underlying business momentum.

The company projects 2026 adjusted EPS of $3.63 to $4.00 and 2027 adjusted EPS of $3.85 to $4.32. Dividend growth is expected to continue at approximately 10% annually through at least 2026.

Key Figures

Adjusted EPS: $1.13 (vs. $1.05 expected); up 9.7% year-over-year Revenue: $7.97B (vs. $8.12B expected); up 10.4% year-over-year GAAP Net Income: $2.44B; up 32% year-over-year FPL Net Income: $1.46B Operating Cash Flow (9 months): $9.99B Renewables Backlog Addition: 3 gigawatts

The earnings beat on a per-share basis, combined with robust cash generation, underscores NextEra's ability to convert capital investments into shareholder returns despite the revenue miss.

Google Partnership

The most significant development came this morning when NextEra announced a partnership with Alphabet to revive the Duane Arnold Energy Center in Iowa. The facility, decommissioned five years ago, will be restarted to supply power for Google's data center operations. This deal positions NextEra at the intersection of two major trends: the artificial intelligence infrastructure boom and the nuclear energy renaissance.

Story Continues

CEO John Ketchum stated that "NextEra Energy delivered strong third-quarter results, with adjusted earnings per share increasing by 9.7% year-over-year," and added that the company believes it is "well positioned to continue delivering for our customers and shareholders." Management expressed confidence in delivering financial results "at or near the top of our adjusted earnings per share expectations ranges in each year through 2027, while maintaining our strong balance sheet and credit ratings."

The nuclear recommissioning announcement reflects broader market recognition that NextEra's portfolio of regulated utilities, renewables, and now nuclear assets positions the company to capture demand from both traditional power consumers and the emerging AI infrastructure sector.

What Investors Should Watch Next

The stock trades at a 52-week high with RSI readings in overbought territory, suggesting near-term consolidation is possible. Investors should monitor whether NextEra can execute on its capital deployment plans and whether additional technology partnerships emerge.

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