3 Utility Stocks Poised to Surge in 2026 as Energy Demand Soars
Utility Stocks Are Rebounding. Here Are 3 That Could Continue to Soar In 2026.
Surging electricity demand could enable utility stocks to deliver even more powerful returns in 2026.
2025-12-06T17:45:00+00:00
finance, investing, money, finance, investing, technology
Utility stocks have seen strong gains over the past year, with many companies outperforming broader market trends. NextEra Energy and Constellation Energy have led the sector, while Dominion Energy prepares for long-term growth in Virginia’s power market.
Constellation Energy’s share price has climbed nearly 50% in 2024, boosted by rising demand for nuclear energy. The company also agreed in 2023 to acquire Calpine Corporation for $16.4 billion in cash and stock. If approved, the merger should close by late 2025, helping Constellation grow earnings by over 10% annually through 2028.
The company has also secured power deals with tech giants Microsoft and Meta Platforms to support their data centres. Meanwhile, NextEra Energy has risen nearly 11% over the past year, driven by its utility operations and clean energy projects. It recently signed a 25-year power agreement with Google to restart the Duane Arnold Energy Center, which is set to resume operations by early 2029.
Dominion Energy, though lagging behind peers, plans to invest $50 billion by 2029 to meet growing power needs in Virginia. Its Coastal Virginia Offshore Wind project is on track to begin generating electricity in 2026, supporting annual earnings growth of 5% to 7% through 2030.
The sector’s growth comes as AI data centres are expected to drive higher power demand by 2026. NextEra Energy aims for 6% to 8% annual earnings growth until 2027, along with a 10% dividend increase next year. Constellation Energy’s merger and new contracts position it for further expansion in the coming years.
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