NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $187.37B
• Dividend Yield: 2.84%
• Average Volume (3M): 7.91M
• Price to Earnings (P/E): 26.9
• Beta (1Y): 0.39
• Revenue Growth: 26.96%
• EPS Growth: -6.80%
• Country: US
• Employees: 16,800
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.54
• Shares Outstanding: 2,082,609,600
• 10 Day Avg. Volume: 10,649,440
• 30 Day Avg. Volume: 7,905,903
• PEG Ratio: -11.85
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 6.10
• P/FCF Ratio: -13.84
• Enterprise Value/Market Cap: 1.49
• Enterprise Value/Revenue: 10.14
• Enterprise Value/Gross Profit: 16.15
• Enterprise Value/Ebitda: 17.23
• 1Y Price Target: $94.07
• Price Target Upside: 4.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $98.00 ▲(8.93% Upside)

The score is driven primarily by solid underlying profitability and a strong, confidence-leaning earnings outlook with sizable growth investments, partially offset by elevated leverage and sharply negative 2025 free cash flow. Technicals are supportive but appear overbought, and valuation looks premium for the sector despite a moderate dividend yield.

Positive Factors

Regulated FPL rate agreement

A multi‑year regulatory settlement at an allowed ROE near 11% and a rate stabilization mechanism gives durable earnings visibility for the FPL utility. That predictable return profile supports steady cash generation, underpins large regulated capex plans and reduces revenue volatility versus merchant exposures.

Large renewables & storage pipeline

A ~30 GW backlog and a disclosed 95 GW storage pipeline create long‑duration development optionality and contracting leverage. Scale in origination, construction and secured supply (panels, batteries, turbine slots) supports competitive advantage, contract pricing power and multi‑year visibility into asset additions and future contracted cash flows.

Strong operating cash flow & margins

Consistently strong operating cash flow combined with high gross and net margins signals durable earnings quality across regulated and contracted renewable businesses. Reliable OCF funds reinvestment and dividend programs, supporting execution of capital‑intensive growth while underpinning long‑term shareholder returns if capex stays productive.

Negative Factors

Rising leverage

A meaningful increase in absolute debt levels reduces financial flexibility and raises interest expense sensitivity, particularly during a multi‑year capex cycle. Higher leverage can pressure credit metrics and raise marginal financing costs, constraining the ability to opportunistically fund growth or absorb adverse shocks without dilutive financing.

Deeply negative free cash flow in 2025

A sharp FCF decline driven by heavy reinvestment means the company must rely more on external funding to cover capex and growth. Persistent negative FCF during elevated rates raises refinancing and dilution risk, and could limit room for discretionary returns if OCF growth doesn’t outpace capital intensity over the medium term.

Regulatory and timing uncertainty for projects

Project timing and conversion risk from unresolved PJM reforms and pending Florida legislative/approval processes can delay monetization of the large‑load pipeline and capacity additions. Such regulatory uncertainty compresses near‑term visibility on revenue recognition, slows project cash flows and can push capital deployment timetables beyond planning horizons.

NextEra Energy Business Overview & Revenue Model

Company Description

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations. It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010. The company was founded in 1925 and is headquartered in Juno Beach, Florida.

How the Company Makes Money

NextEra Energy generates revenue through several key streams. The Florida Power & Light Company segment earns money primarily by providing utility services to residential, commercial, and industrial customers in Florida, charging them for electricity consumption. This segment benefits from a regulated rate structure, allowing it to earn a return on investment for infrastructure improvements approved by state regulators. The NextEra Energy Resources segment makes money by developing, owning, and operating renewable energy projects, including wind and solar farms, which sell electricity to utilities and other customers under long-term power purchase agreements (PPAs). Additionally, NextEra Energy benefits from tax incentives and credits associated with renewable energy production, further enhancing its profitability. Strategic partnerships and investments in innovative technologies also play a significant role in driving revenue growth and expanding its market presence.

NextEra Energy Financial Statement Overview

Summary

Profitability is strong for the industry with stable net income and solid operating cash flow, but rising leverage (debt up materially in 2025) and a sharp swing to deeply negative 2025 free cash flow increase funding risk during a heavy capex cycle.

Income Statement

Revenue has been choppy (down in 2024, rebound in 2025), but profitability remains strong for the industry: gross profit and operating profitability are consistently high (2024 gross margin ~60% and net margin ~28%). Net income is solid and fairly stable (~$6.8–$7.3B in 2023–2025), though the 2025 step-up in revenue did not translate into higher net income, suggesting some cost/financing pressure or mix impact.

Balance Sheet

The balance sheet is sizeable and growing (assets and equity rising), but leverage is meaningful and trending higher: total debt increased to ~$95.6B in 2025 from ~$82.3B in 2024, and prior years show debt running around ~1.5–1.7x equity (based on provided ratios). Returns on equity are decent for a regulated utility (~14–15% in 2023–2024), but the rising debt load increases financial risk and reduces flexibility if rates or funding conditions tighten.

Cash Flow

Operating cash flow is consistently strong (~$11–$13B in 2023–2025), supporting core earnings quality. However, free cash flow is volatile and turned sharply negative in 2025 (-$12.1B) after being positive in 2023–2024, indicating a heavy reinvestment/capex cycle and likely greater reliance on external financing. The swing in free cash flow is the main weak point versus otherwise steady operating cash generation.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	27.48B	24.75B	28.11B	20.96B	17.07B
Gross Profit	17.25B	14.87B	17.98B	10.14B	8.56B
EBITDA	16.16B	14.03B	16.76B	9.21B	8.66B
Net Income	6.83B	6.95B	7.31B	4.15B	3.57B
Balance Sheet
Total Assets	212.72B	190.14B	177.49B	158.94B	140.91B
Cash, Cash Equivalents and Short-Term Investments	2.81B	1.49B	2.69B	1.60B	639.00M
Total Debt	95.62B	82.33B	73.21B	64.97B	54.83B
Total Liabilities	146.24B	129.28B	118.47B	109.50B	95.24B
Stockholders Equity	54.61B	50.10B	47.47B	39.23B	37.20B
Cash Flow
Free Cash Flow	-12.12B	4.75B	1.75B	-1.48B	-277.00M
Operating Cash Flow	12.48B	13.26B	11.30B	8.26B	7.55B
Investing Cash Flow	-23.86B	-22.26B	-23.47B	-18.36B	-13.59B
Financing Cash Flow	12.98B	7.00B	12.15B	12.23B	5.81B

NextEra Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 89.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEE, the sentiment is Positive. The current price of 89.97 is above the 20-day moving average (MA) of 84.35, above the 50-day MA of 82.90, and above the 200-day MA of 75.98, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 73.02 is Negative, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NEE.

NextEra Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEP	70 Outperform	$64.08B	17.66	12.85%	3.25%	7.66%	37.42%
DUK	70 Outperform	$95.04B	19.13	9.92%	3.61%	4.80%	14.44%
NEE	68 Neutral	$187.37B	26.91	13.05%	2.84%	26.96%	-6.80%
SO	68 Neutral	$99.42B	22.40	13.06%	3.40%	9.40%	-6.05%
EXC	67 Neutral	$43.88B	15.75	10.31%	3.68%	6.07%	15.20%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
D	65 Neutral	$53.22B	20.90	9.27%	4.59%	12.72%	4.90%

NextEra Energy Corporate Events

NextEra Energy Subsidiary Issues $1.3B Long-Term Debentures

On February 5, 2026, NextEra Energy Capital Holdings, Inc., a wholly owned subsidiary of NextEra Energy, Inc., completed the sale of $700 million of 4.40% debentures due March 1, 2031, and $600 million of 5.85% debentures due March 1, 2056, both series fully guaranteed by the parent company and registered under the Securities Act of 1933. The issuance enhances the group’s long-term funding profile and provides additional capital flexibility for NextEra’s ongoing operational and investment needs, and the company reported the transaction in a current report filing to formally document the new debt instruments.

The most recent analyst rating on (NEE) stock is a Hold with a $85.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Reaffirms Long-Term Earnings and Dividend Growth Outlook

NextEra Energy said its senior management will hold investor meetings throughout January 2026 to reiterate that the company’s financial outlook remains intact, with no changes to its expectations for adjusted earnings per share (EPS) growth through 2032, its long-term EPS growth targets for 2032 to 2035, or its dividend growth plans for 2026 to 2028. The company continues to project adjusted EPS of $3.62 to $3.70 for 2025 and $3.92 to $4.02 for 2026, and is maintaining targets of at least 8% compound annual growth in adjusted EPS through both 2032 and 2035 based on the 2025 range, while also expecting dividend per share growth of about 10% annually through 2026 from a 2024 base and about 6% annually for 2027 and 2028 from a 2026 base, underscoring management’s confidence in its long-term growth trajectory and capital return strategy despite acknowledging a wide range of regulatory, market, operational and macroeconomic risks that could affect future results.

The most recent analyst rating on (NEE) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Launches $4 Billion Equity Distribution Program

On December 31, 2025, NextEra Energy, Inc. entered into an equity distribution agreement with a syndicate of major financial institutions that allows the company to offer and sell, from time to time, up to $4 billion of its common stock either through the agents or to them as principal under an existing shelf registration. The transaction, which implements the $4 billion at-the-market equity issuance program announced at the company’s December 2025 investor conference, provides NextEra Energy with additional flexibility to raise capital in public markets, supporting its financing capacity for ongoing operations and potential growth initiatives, and signaling an active approach to balance sheet and capital structure management for investors and other stakeholders.

The most recent analyst rating on (NEE) stock is a Hold with a $88.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Updates Earnings and Growth Targets

At the 2025 Investor Conference held on December 8, 2025, in New York, NextEra Energy announced updates to its adjusted earnings per share expectations, tightening the 2025 range and increasing the 2026 range. The company also extended its growth expectations through 2032 and set a long-term growth target through 2035. Additionally, NextEra Energy outlined its dividend per share growth expectations for 2027 and 2028. These updates reflect the company’s strategic focus on sustained growth and shareholder returns, with implications for its market positioning and stakeholder interests.

The most recent analyst rating on (NEE) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Subsidiary Sells $1.8 Billion in Bonds

On December 5, 2025, Florida Power & Light Company, a subsidiary of NextEra Energy, completed the sale of $650 million in 4.70% First Mortgage Bonds due in 2036 and $1,150 million in 5.60% First Mortgage Bonds due in 2066. This transaction is part of the company’s financial strategy to secure long-term funding, potentially impacting its financial stability and market position.

The most recent analyst rating on (NEE) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy’s FPL Settlement Approved by Regulators

On November 20, 2025, the Florida Public Service Commission approved a settlement agreement between Florida Power & Light Company (FPL) and several intervenor groups regarding FPL’s base rate proceeding. The agreement, effective from January 2026 to December 2029, includes new retail base rates resulting in significant revenue increases, provisions for solar and battery projects, and a regulatory return on equity mechanism. This settlement is expected to impact FPL’s financial operations, allowing for adjustments in response to economic needs and regulatory changes, while also addressing future storm restoration costs and potential tax changes.

The most recent analyst rating on (NEE) stock is a Buy with a $97.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Secures €2.5 Billion in Debentures

On November 12, 2025, NextEra Energy Capital Holdings, Inc., a subsidiary of NextEra Energy, Inc., successfully sold €2.5 billion in junior subordinated debentures, divided equally between Series V and Series W, both due in 2056. This strategic financial move, with interest rates set to reset periodically, underscores the company’s efforts to secure long-term funding, potentially enhancing its financial stability and market competitiveness.

The most recent analyst rating on (NEE) stock is a Buy with a $96.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.