Shares of NuScale Power (SMR) sank in after-hours trading after the nuclear power company reported earnings for its first quarter of Fiscal Year 2026. Earnings per share came in at -$0.14, which missed analysts’ consensus estimate of -$0.13 per share. In addition, sales decreased from $13.375 million a year ago to just $565,000. This missed analysts’ expectations of $7 million.
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Forget margin or options. Here's how the pros trade SMRThis decline mainly occurred because last year included revenue from the RoPower technology license agreement and work tied to Fluor’s Phase 2 front-end engineering and design services for the RoPower project. Since that work was completed in late 2025, there was no similar activity in the first quarter of 2026. Meanwhile, investment income rose by $5.6 million due to NuScale’s stronger cash position and additional investments.
Nevertheless, NuScale’s expenses increased as the company continued getting ready for future commercial projects. R&D expenses rose by $3.7 million because NuScale spent more money improving the readiness and design of its NuScale Power Module components. However, that increase was partly offset by lower regulatory costs after the company received SDA approval in May 2025. In addition, other expenses increased by $10 million, as engineers and project staff worked on fewer commercial projects than last year. The company also spent more to prepare its supply chain for future projects.
Is SMR Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SMR stock based on five Buys, seven Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average SMR price target of $16.30 per share implies 30.1% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
