Entergy (ETR) AI Stock Analysis

• Market Cap: $45.73B
• Dividend Yield: 2.64%
• Average Volume (3M): 2.68M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.26
• Revenue Growth: 6.71%
• EPS Growth: -0.12%
• Country: US
• Employees: 12,000
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.51
• Shares Outstanding: 446,596,900
• 10 Day Avg. Volume: 3,045,285
• 30 Day Avg. Volume: 2,679,034
• PEG Ratio: 0.38
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 3.16
• P/FCF Ratio: -14.64
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 5.97
• Enterprise Value/Gross Profit: 15.41
• Enterprise Value/Ebitda: 13.44
• 1Y Price Target: $107.15
• Price Target Upside: 3.70% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.39
• Revenue Forecast (FY): $13.77B

• Rating: 64 Neutral
• Price Target: $109.00 ▲(5.49% Upside)

The score is driven by constructive earnings-call fundamentals (multi-year >8% EPS growth target supported by industrial/data-center demand and a large capital plan) and strong technical uptrend signals. Offsetting these positives are weaker financial quality factors—persistently negative free cash flow and high leverage—and a valuation that looks relatively rich for a regulated utility, with momentum indicators also suggesting the stock is near-term overbought.

Positive Factors

Large customer-focused capital plan

A $43B multi-year capital program creates durable rate‑base growth and capacity to serve rising load. Over time this supports regulated returns and the company's >8% EPS CAGR target by converting investment into recoverable assets and multi-year earnings streams.

Data center & industrial pipeline

A deep, contracted pipeline of large customers provides structural load growth and predictable long-term demand. ESAs, minimum bills and signed capacity reduce volumetric volatility and underpin sustained retail/industrial sales growth and incremental returns on invested capital.

Credit metrics & liquidity actions

Key credit ratios above agency thresholds and partial equity contracting lower financing risk for heavy capex. Monetization of PTCs and pre-contracted equity improve liquidity and the company's ability to access markets without immediate material credit deterioration.

Negative Factors

High leverage

Sustained high leverage limits financial flexibility during a capital-intensive expansion. Elevated debt-to-equity raises interest burden sensitivity, constrains ability to absorb shocks, and increases reliance on external financing as capex ramps, pressuring long-term resilience.

Consistently negative free cash flow

Persistent negative FCF amid heavy investment means Entergy must continually tap debt, equity or hybrids. This structural funding gap can dilute shareholders, increase financing costs, and leave the company exposed to market conditions when raising capital for long‑lived utility projects.

Execution & regulatory/timing risk

The business depends on successful approvals and timely customer ramps; delays or adverse regulatory outcomes defer cost recovery and returns. Given large, lumpy projects and reliance on big customers, execution risk can create stranded costs, rate pressure, and earnings volatility.

Entergy Business Overview & Revenue Model

Company Description

Entergy Corporation, together with its subsidiaries, engages in the production and retail distribution of electricity in the United States. The company operates in two segments, Utility and Entergy Wholesale Commodities. The Utility segment generates, transmits, distributes, and sells electric power in portions of Arkansas, Louisiana, Mississippi, and Texas, including the City of New Orleans; and distributes natural gas. The Entergy Wholesale Commodities segment engages in the ownership, operation, and decommissioning of nuclear power plants; and ownership of interests in non-nuclear power plants that sell electric power to wholesale customers, as well as provides services to other nuclear power plant owners. It generates electricity through gas, nuclear, coal, hydro, and solar power sources. The company sells energy to retail power providers, utilities, electric power co-operatives, power trading organizations, and other power generation companies. The company's power plants have approximately 26,000 megawatts (MW) of electric generating capacity, which include 6,000 MW of nuclear power. It delivers electricity to 3 million utility customers in Arkansas, Louisiana, Mississippi, and Texas. The company was founded in 1913 and is headquartered in New Orleans, Louisiana.

How the Company Makes Money

Entergy generates revenue primarily through its utility operations by charging customers for electricity consumption. The company earns money from residential, commercial, and industrial customers based on regulated rates set by state public utility commissions. Additionally, Entergy's Wholesale Commodities segment contributes to its revenue by selling electricity generated from its nuclear and gas-fired plants to wholesale markets. The company also engages in energy trading and provides ancillary services, further diversifying its revenue streams. Strategic partnerships with renewable energy developers and investments in sustainable practices are enhancing Entergy's earnings potential in the evolving energy landscape.

Entergy Financial Statement Overview

Summary

Income statement trends are generally solid for a regulated utility (revenue recovery in 2025 and stronger net income vs. 2024), but results have shown year-to-year volatility. The balance sheet remains highly leveraged (elevated debt-to-equity), and the biggest weakness is consistently negative free cash flow—especially sharply negative in 2025—implying ongoing external financing needs.

Income Statement

Entergy shows steady top-line performance overall, with revenue rising in 2025 after a modest decline in 2024. Profitability is generally solid for a regulated utility: 2024 delivered healthy operating and EBITDA margins, and net income rebounded strongly in 2025 versus 2024. The main weakness is earnings volatility across years (notably the higher 2023 net margin versus the much lower 2024 level), which suggests results can swing meaningfully despite the regulated profile.

Balance Sheet

The balance sheet reflects a capital-intensive utility with high leverage. Debt-to-equity improved from 2021–2023 and remained elevated in 2024 (about 1.9x), while total debt continued to climb into 2025 alongside asset growth and higher equity. Returns on equity have been uneven—stronger in 2023, much lower in 2024—highlighting sensitivity to rate cases, costs, and financing despite a growing equity base.

Cash Flow

Operating cash flow has improved materially from 2021–2025, which supports ongoing operations and investment needs. However, free cash flow is consistently negative across all reported years and was sharply negative in 2025, indicating heavy capital spending and/or timing pressures that likely require ongoing external financing. The gap between free cash flow and reported earnings is a key weakness and increases reliance on debt and capital markets.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.95B	11.88B	12.15B	13.76B	11.74B
Gross Profit	3.87B	5.74B	5.33B	5.28B	4.87B
EBITDA	5.59B	5.04B	4.92B	4.24B	4.39B
Net Income	1.77B	1.06B	2.36B	1.10B	1.12B
Balance Sheet
Total Assets	71.89B	64.79B	59.70B	58.60B	59.45B
Cash, Cash Equivalents and Short-Term Investments	1.93B	859.70M	132.55M	224.16M	442.56M
Total Debt	30.93B	29.31B	26.54B	27.02B	27.37B
Total Liabilities	54.62B	49.39B	44.74B	45.31B	47.53B
Stockholders Equity	17.14B	15.30B	14.84B	13.19B	11.86B
Cash Flow
Free Cash Flow	-2.79B	-1.48B	-417.30M	-2.70B	-4.12B
Operating Cash Flow	5.15B	4.49B	4.29B	2.59B	2.30B
Investing Cash Flow	-7.11B	-5.85B	-4.63B	-5.71B	-6.18B
Financing Cash Flow	3.03B	2.09B	243.03M	2.91B	2.56B

Entergy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETR, the sentiment is Positive. The current price of 103.33 is above the 20-day moving average (MA) of 97.95, above the 50-day MA of 94.76, and above the 200-day MA of 89.37, indicating a bullish trend. The MACD of 2.56 indicates Negative momentum. The RSI at 68.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETR.

Entergy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEC	71 Outperform	$36.99B	23.64	11.96%	3.38%	11.88%	29.76%
ED	67 Neutral	$40.28B	19.50	8.84%	3.44%	10.35%	7.64%
PEG	66 Neutral	$42.11B	20.27	12.58%	3.13%	18.29%	2.40%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
XEL	65 Neutral	$47.13B	23.30	9.36%	3.09%	3.32%	-2.30%
ETR	64 Neutral	$45.73B	26.19	10.90%	2.64%	6.71%	-0.12%
EXC	62 Neutral	$48.32B	17.27	9.94%	3.68%	6.07%	15.20%

Entergy Corporate Events

Entergy Reports Strong 2025 Results, Advances Grid Projects

Entergy reported its fourth-quarter and full-year 2025 results on Feb. 12, 2026, posting earnings of $0.51 per share for the quarter and $3.91 per share for the year on both a reported and adjusted basis, with full-year earnings rising sharply from 2024 despite softer fourth-quarter performance. The Utility segment drove the improvement through favorable regulatory actions, higher retail sales and lower nuclear outage costs, while multiple approvals for major generation and 500 kV transmission projects, new large-customer agreements such as a special rate contract with Google, and continued recognition for economic development and corporate citizenship underscore Entergy’s ongoing transformation and its strategic push to support data center growth and grid resilience in its service territories.

For full-year 2025, Utility earnings rose to $2.28 billion, or $5.06 per share, helped by regulatory outcomes, weather-aided demand and returns on construction work in progress, partly offset by higher interest, operations and maintenance, depreciation and tax expenses. Parent & Other narrowed its loss versus 2024 as the drag from prior pension and legacy power contract costs eased, and 2024 results were also weighed by several non-recurring regulatory charges and tax effects that distorted year-on-year comparisons but are excluded from adjusted earnings metrics.

The most recent analyst rating on (ETR) stock is a Buy with a $112.00 price target. To see the full list of analyst forecasts on Entergy stock, see the ETR Stock Forecast page.

Entergy Signs Agreement for New Power Plant Construction

On December 9, 2025, Entergy Texas, Inc. entered into agreements for the construction and leasing of a 754-megawatt combined cycle gas power plant, Legend Power Station, in Jefferson County, Texas. The construction cost is expected not to exceed $1.450 billion, with Entergy Texas acting as the Construction Agent. The lease is set to commence approximately 26 months from the agreement date, with a term of up to 58 months. Entergy Texas has options to purchase the facility or extend the lease, and must adhere to certain covenants, including maintaining a consolidated debt ratio of 65% or less.

The most recent analyst rating on (ETR) stock is a Sell with a $59.00 price target. To see the full list of analyst forecasts on Entergy stock, see the ETR Stock Forecast page.