NextEra Energy (NEE) AI Stock Analysis

• Market Cap: $193.31B
• Dividend Yield: 2.84%
• Average Volume (3M): 9.80M
• Price to Earnings (P/E): 24.5
• 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: 2,083,522,000
• 10 Day Avg. Volume: 9,568,698
• 30 Day Avg. Volume: 9,797,999
• PEG Ratio: -11.85
• Price to Book (P/B): 3.07
• Price to Sales (P/S): 6.10
• P/FCF Ratio: 52.23
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 10.42
• Enterprise Value/Gross Profit: 16.59
• Enterprise Value/Ebitda: 17.70
• 1Y Price Target: $95.27
• Price Target Upside: 2.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 4.02
• Revenue Forecast (FY): $31.22B

• Rating: 67 Neutral
• Price Target: $99.00 ▲(6.70% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is driven primarily by solid underlying profitability and a constructive price trend, but it is held back by 2025’s sharply negative free cash flow and higher leverage, alongside a valuation that is somewhat rich for a regulated utility.

Positive Factors

Business model diversification

NextEra's dual model mixes predictable, rate‑regulated utility earnings at FPL with growth-oriented renewable generation and storage at Energy Resources. That structural diversification smooths cash flows, reduces merchant exposure and supports long-term capital allocation across cycles.

Large renewable backlog & pipeline

A sizable origination backlog and multi-year storage pipeline provide visible, contracted development throughput and optionality. This backlog underpins future contracted cash flows, supports scale economics in storage/solar/wind, and sustains multi-year growth in generation earnings.

Regulatory win and long-term investment program

A multi-year rate agreement with an allowed ROE and a large regulated capex program creates durable rate‑base growth and predictable returns. Continued FPL investments feed regulated earnings, supporting dividend targets and the company's medium‑term EPS growth objectives.

Negative Factors

Rising leverage

Material debt growth weakens financial flexibility and increases interest expense exposure. As leverage trends higher during an intensive investment cycle, the company faces greater sensitivity to funding costs and reduced headroom for opportunistic investments or adverse shocks to cash flow.

Negative free cash flow in heavy capex year

A large negative FCF reflects intense reinvestment and necessitates external financing to fund growth. Persistent or repeated negative FCF raises refinancing risk, can elevate financing costs, and may limit the firm's ability to de‑risk the balance sheet while sustaining dividend and growth commitments.

Risk oversight / leadership gap

Loss of the head risk executive amid aggressive expansion and complex financings introduces governance and oversight uncertainty. A gap or delay in succession could weaken project risk controls and compliance during a period when disciplined risk management is critical for execution and credit stability.

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 primarily makes money through two major operating segments: (1) regulated utility earnings at Florida Power & Light (FPL) and (2) competitive power generation and related energy infrastructure earnings at NextEra Energy Resources. 1) Regulated utility revenue and earnings (FPL): FPL sells electricity to retail customers in its Florida service territory under state regulation. Revenue is largely set through regulatory rate structures designed to allow recovery of prudently incurred costs (such as fuel, purchased power, operations and maintenance, depreciation) plus an allowed return on invested capital (rate base). As FPL invests in and places utility infrastructure into service (generation, transmission, distribution, storm hardening, etc.), its rate base can grow, which can increase the opportunity to earn regulated returns, subject to regulatory approvals and rate mechanisms. 2) Competitive generation and energy infrastructure (NextEra Energy Resources): This business develops, owns, and operates renewable generation (notably wind and solar) and energy storage, and also engages in transmission and other energy-related investments. It earns revenue primarily by selling electricity and/or capacity to counterparties (often utilities, municipalities, or corporate customers) under contracts such as power purchase agreements (PPAs) and other structured offtake arrangements; in some cases it may also sell into wholesale power markets where applicable. It can also earn revenue from related energy infrastructure and services associated with developing and operating these assets. Other factors that can contribute to earnings: NEE’s results can be influenced by the availability and terms of long-term contracted cash flows for renewable projects, development and execution of new projects, wholesale power price conditions for any merchant exposure, and the regulatory environment affecting its utility operations. Specific material partnerships beyond customer/offtaker relationships and market counterparties: null.

NextEra Energy Financial Statement Overview

Summary

Strong and steady profitability with solid operating cash flow, but rising leverage and a sharp swing to deeply negative free cash flow in 2025 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	3.21B	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: 92.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 92.78 is above the 20-day moving average (MA) of 92.31, above the 50-day MA of 87.63, and above the 200-day MA of 78.71, indicating a bullish trend. The MACD of 1.04 indicates Positive momentum. The RSI at 58.74 is Neutral, neither overbought nor oversold. The STOCH value of 56.80 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	80 Outperform	$72.26B	16.71	12.06%	3.25%	7.66%	37.42%
DUK	71 Outperform	$103.55B	18.33	9.69%	3.61%	4.80%	14.44%
SO	68 Neutral	$109.71B	22.16	12.50%	3.40%	9.40%	-6.05%
NEE	67 Neutral	$193.31B	24.54	13.05%	2.84%	26.96%	-6.80%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
EXC	65 Neutral	$50.96B	15.92	9.87%	3.68%	6.07%	15.20%
D	63 Neutral	$55.55B	16.69	10.77%	4.59%	12.72%	4.90%

NextEra Energy Corporate Events

NextEra Energy Chief Risk Officer Resigns for CFO Role

On March 5, 2026, NextEra Energy said Executive Vice President and Chief Risk Officer Terrell Kirk Crews II had notified the company he will resign, effective March 20, 2026, to become chief financial officer at another company. The departure removes a top risk executive from NextEra’s leadership team, marking a notable change in its senior management structure, although the company publicly thanked Crews for his leadership and contributions.

The transition may prompt investors and stakeholders to watch how NextEra manages risk oversight and succession in this critical role, given the importance of risk management in a heavily regulated and capital‑intensive energy business. The company has not yet disclosed a successor, leaving open questions about interim arrangements and any potential impact on internal controls and governance processes.

The most recent analyst rating on (NEE) stock is a Buy with a $104.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Raises $2.3 Billion via Equity Units

On March 3, 2026, NextEra Energy sold $2.3 billion of equity units, including those issued upon full exercise of the underwriters’ overallotment option, as part of a complex equity-linked financing. Each unit combines a stock purchase contract for NextEra common shares, interests in Series P and Series Q debentures due 2031 and 2034, respectively, and carries total annual distributions of 7.375%.

Investors will be required to purchase common stock by no later than February 15, 2029, at a price range of $91.99 to $115.00 per share, potentially using proceeds from a future remarketing of the embedded debentures. The transaction, backed by a guarantee from NextEra, is structured to deliver cash proceeds to the company upon settlement while providing investors with income and a defined path to equity ownership, reinforcing NextEra’s long-term capital structure and funding flexibility.

The most recent analyst rating on (NEE) stock is a Hold with a $103.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Raises €1.75 Billion in Hybrid Debentures

On February 26, 2026, NextEra Energy Capital Holdings, a wholly owned subsidiary of NextEra Energy, raised €1.75 billion through the sale of junior subordinated debentures, split between €1.0 billion of Series X notes and €750 million of Series Y notes, both maturing in 2056. The issuance, guaranteed on a subordinated basis by NextEra Energy, provides long-dated hybrid-like capital that can support the group’s financing needs while preserving senior debt capacity and potentially enhancing its capital structure from a credit perspective.

The Series X debentures carry a 4.20% coupon until 2032, after which the rate resets every five years based on the prevailing five-year swap rate plus an increasing margin, and they are callable at the issuer’s option beginning in 2031. The Series Y debentures pay 4.75% until 2036, then also reset every five years over the swap rate with a set margin, and become callable from 2035, giving the company flexibility to refinance depending on market conditions and interest rate movements.

The most recent analyst rating on (NEE) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

NextEra Energy Raises Euro Debentures for Long-Term Funding

On February 10, 2026, NextEra Energy Capital Holdings, a subsidiary of NextEra Energy, issued €650 million of 2.989% debentures due 2030 and €650 million of 3.624% debentures due 2034, both guaranteed by the parent company. The euro-denominated offering, registered under the Securities Act of 1933, underscores the group’s continued use of global debt markets to secure long-term funding and support its capital needs.

The most recent analyst rating on (NEE) stock is a Buy with a $99.00 price target. To see the full list of analyst forecasts on NextEra Energy stock, see the NEE Stock Forecast page.

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.