NEW ORLEANS, May 20, 2026, 05:05 CDT
Entergy Corp is one of the utility names getting a lift from AI-fueled demand for power. The stock has climbed 33.3% over the last 52 weeks, beating the S&P 500 and the Utilities Select Sector SPDR ETF. A market note out this week described the New Orleans-based company as a straight bet on data centers, more industrial load, and higher grid spending.
The timing is key as U.S. power demand is starting to pick up speed for utilities. The Energy Information Administration says power use will reach all-time highs in 2026 and 2027, boosted by artificial intelligence, cryptocurrency data centers, and more electric homes, businesses and vehicles.
Entergy is in the thick of the trade. Back in April, the company bumped its four-year capital spending plan up about 33% to $57 billion. Reuters reported that energy infrastructure tied to Meta data centers is the main driver. The newest spending includes seven new combined-cycle gas plants—these use heat from gas turbines to boost electricity output—adding more than 5.2 gigawatts of capacity.
Entergy stock has retreated since reaching a record $118.45 on May 1, but the decline hasn’t wiped out the run. The latest quote before Wednesday’s U.S. open put shares at $110.55, down about 7% from the high. Still, Barchart said Entergy is up 18% in 2026, ahead of the S&P 500’s 8.2% gain and ahead of the utilities ETF up 2.8%.
Entergy posts Q1 results, keeps 2026 outlook. The company put up first-quarter earnings of $385 million, or 83 cents a share. Adjusted earnings landed at $399 million, or 86 cents a share, stripping out items not in its regular business. Utility operations brought in $540 million, or $1.17 per share. Entergy said it’s still expecting 2026 adjusted EPS of $4.25 to $4.45.
Entergy chair and CEO Drew Marsh said in the earnings report that the utility landed “another major hyperscale agreement in Louisiana,” pointing to new big data-center clients. He said the deal adds about $2 billion more in savings for retail customers under Entergy’s Fair Share Plus pledge. “The fundamentals of our company have never been stronger,” Marsh said. Entergy
Entergy is moving to head off concerns over regular customers’ bills as it ramps up data center deals. At the annual meeting, CEO Marsh put the number at “an estimated $7 billion of fair share benefits” across the company’s electric service agreements. Marsh said these new contracts are long term and include minimum-bill, termination and credit terms so big data center investments don’t get passed through to ordinary ratepayers. Barchart.com
Meta isn’t the only one signing deals. Entergy Louisiana has wrapped up an electric service agreement with HYUNDAI-POSCO Louisiana Steel for a planned $5.8 billion steel mill in Donaldsonville. The mill is projected to need more than 1,300 direct hires and could generate around 4,100 indirect jobs. “Reliable, affordable and forward-looking energy service is essential,” HYUNDAI-POSCO Louisiana Steel President Chul Soon Jang said. Entergy
Scotiabank lifted its Entergy price target to $129 from $114 and kept a Sector Outperform call, citing “yet another beat-and-raise.” Barchart reported J.P. Morgan’s Jeremy Tonet reaffirmed his buy rating and is also at $129. UBS stayed at the top with a $135 target. Analysts are still constructive overall, if not fully bullish. TipRanks
The financing part won’t get easier. Entergy set its price for a registered offering of 19.25 million shares at $113 apiece, using forward sale agreements. That locks in the equity price now, but lets settlement happen later, which the company expects on or before April 30, 2028. Entergy said it could use proceeds from the physical settlement for general corporate needs, such as paying down debt.
Risks for Entergy include slower-than-expected load growth from data centers and industrial clients, tough regulatory reviews on cost recovery, and higher financing costs that could cut into gains. Entergy said its first-quarter EPS was held back by a higher diluted share count. Reuters noted Entergy’s debt jumped 10% to $34.18 billion and operating costs were up almost 22% for the quarter. Entergy has also flagged storms, nuclear operations, cost recovery fights and the risk that predicted load growth falls short as possible hits to results.
Utilities are grabbing for growth tied to AI. Dominion Energy has its business tied to the “data center alley” in northern Virginia, while investors have focused on Constellation Energy and Vistra as officials consider getting more output from existing nuclear reactors, called uprates. Entergy is now among a small group of utilities with real potential to turn AI demand into regulated earnings, beyond just making news. Reuters
