# Entergy (ETR)

Sector: Electric utility

| Field | Value |
|---|---|
| Price | $111.71 |
| Market cap | $51B |
| Intrinsic value source | Analysts |
| Data as of | 2026-11-11 |
| Next earnings | 2027-02-02 (estimate) |

Analysts: Bullish

Picks: Research only

Discount category: Far above intrinsic value

## In short

Investors pay for Entergy's fast growth in power demand from data centers and industry, and only EPS growth that keeps pace with its $54.8 billion capital plan can support this price.

## Themes and gap

- Themes: Power and energy (power-energy), AI supplier (ai-supplier), Interest rates (interest-rates)
- Gap type: Can close (closable)
- Why: The 2027 guidance in February 2027 and the next rate decisions show whether data center demand turns into the planned EPS growth.

## About

Entergy generates, transmits and distributes electricity to more than 3 million customers through its utility companies in Arkansas, Louisiana, Mississippi and Texas, including Entergy New Orleans. Its plants use natural gas, nuclear power and renewable energy. Industrial customers, such as data centers and metals producers, buy a large part of its power: in Q3 2026, industrial sales were 17,055 GWh of 39,864 GWh of retail sales. Large new customers include a Google data center in Arkansas and Evest LLC, a subsidiary of Meta Platforms, in Louisiana. The shares trade on the New York Stock Exchange and NYSE Texas. The head office is in New Orleans, and Entergy has about 12,000 employees. Drew Marsh is Chair and Chief Executive Officer.

## Thesis

Investors pay for Entergy's fast growth in electricity demand from data centers and industry on the Gulf Coast, and for regulation that lets it earn a return on new plants and lines. Weather-adjusted retail sales grew 4.5% in Q3 2026, with industrial sales up 4.9%, and Entergy plans capital investments of about $54.8 billion from 2027 to 2030. For the price to hold, three things must be true. Regulators in Arkansas, Louisiana, Mississippi, New Orleans and Texas must keep approving new plants, lines and rates on time. Entergy must fund the plan with debt and new shares without too much dilution: in May 2026, it sold $2.175 billion of shares with forward sale agreements. And large customers such as Google and Meta Platforms must use the power that their contracts expect. The Q4 2026 report and the 2027 guidance, expected in February 2027, are the next test. Delays of large customers or higher interest rates can slow EPS growth.

## Checkpoints

- Nov 2, 2026: Q3 2026 results and the 2026 guidance. Status: Passed. Watch: 2026 guidance kept at $4.25 to $4.45 or raised passes; a cut fails. Outcome: EPS was $1.98, and Entergy narrowed its 2026 adjusted EPS guidance to $4.35 to $4.45.
- Feb 2, 2027 (estimate): Q4 2026 results and the 2027 guidance. Status: Pending. Watch: 2026 adjusted EPS of $4.35 to $4.45 and 2027 guidance above the 2026 result pass; flat guidance fails.
- Aug 2029 (estimate): Babel to Webre transmission line in service. Status: Pending. Watch: Service by August 2029 near the $1,238 million cost estimate passes; a long delay or a large cost overrun fails.

## Balance sheet

- Cash: $4.2B
- Debt: $34.9B
- Net debt: $30.7B
- Undrawn credit line: $4.3B

Entergy funds itself with debt at its utility companies and at the parent, junior subordinated debentures, new shares and cash flow. At September 30, 2026, cash and cash equivalents were $4,205 million, and total debt was $34,936 million, including $4,000 million of junior subordinated debentures, $213 million of securitization debt and $105 million of commercial paper. Available revolver capacity was $4,346 million. Total debt was 63% of total capital, and FFO to adjusted debt was 16.8%. In June and September 2026, Entergy settled forward sales of 19,854,227 shares for about $1.59 billion, and it still has the forward sale agreements of May 2026 for 19,247,788 shares. At October 30, 2026, there were 477,827,121 shares. The quarterly dividend is 68 cents per share.

As of 2026-09-30.

Sources:

- https://www.sec.gov/Archives/edgar/data/65984/000006598426000322/earningsrelease3q26_ex991.htm
- https://www.sec.gov/Archives/edgar/data/65984/000006598426000325/etr-20260930.htm
- https://www.sec.gov/Archives/edgar/data/65984/000006598426000312/etr-20260902.htm
- https://www.sec.gov/Archives/edgar/data/65984/000006598426000265/etr-20260622.htm
- https://www.sec.gov/Archives/edgar/data/65984/000119312526339472/d42703d8k.htm

## Dividends

- Dividend yield: 2.3% (last 12 months, at the current price)
- Paid per share, last 12 months: $2.56 (4 payments)
- Current annual rate: $2.56 ($0.64 x 4 a year)
- Payout ratio: 62% of the earnings of the last fiscal year (the year ended 2025-12-31)
- Latest ex-dividend date: 2026-08-13, $0.64 per share
- Growth from 2020 to 2025: 5.5% a year
- Growth from 2015 to 2025: 3.9% a year

Dividends per share by year: 2016: $1.71, 2017: $1.75, 2018: $1.79, 2019: $1.83, 2020: $1.87, 2021: $1.93, 2022: $2.05, 2023: $2.17, 2024: $2.295, 2025: $2.44.

Source: company filings and market data, read on 2026-11-11.

## Recent events

- 2026-11-02: Entergy reported Q3 2026 results. EPS was $1.98 on an as-reported and an adjusted basis, against $1.53 a year earlier. Entergy narrowed its 2026 adjusted EPS guidance to $4.35 to $4.45 and raised the quarterly dividend by 6% to 68 cents per share. Orange County Advanced Power Station began to serve Entergy Texas customers, and the LPSC approved the $1.2 billion Babel to Webre transmission project.
- 2026-09-02: Entergy settled its remaining 2025 forward sale agreements and delivered 11,145,984 shares for about $913 million.
- 2026-08-07: Entergy issued $1.5 billion of junior subordinated debentures due 2056 and 2058, with an initial interest rate of 6.500%.
- 2026-07-29: Entergy reported Q2 2026 results, with EPS of $1.03 against $1.05 a year earlier, and it affirmed its 2026 guidance and outlooks.
- 2026-05-05: Entergy sold 19,247,788 shares for $2.175 billion through forward sale agreements at an initial forward price of $110.74 per share. It can settle them by April 30, 2028.
- 2026-04-29: Entergy reported Q1 2026 results, with adjusted EPS of 86 cents, and it updated its four-year capital plan and raised its longer-term outlooks. Entergy Louisiana filed for approval of investments for a new 20-year service agreement with Evest LLC, a subsidiary of Meta Platforms.
- 2026-02-12: Entergy reported 2025 results. EPS was $3.91 on an as-reported and an adjusted basis, and it gave 2026 adjusted EPS guidance of $4.25 to $4.45.

## Latest news and filings

- Last earnings: 2026-11-02 (8-K: https://www.sec.gov/Archives/edgar/data/65984/000006598426000322/)
- Next earnings: 2027-02-02 (expected; the company has not confirmed it)

| Filed | Form | Headline | Period end | XBRL document | Link |
| --- | --- | --- | --- | --- | --- |
| 2026-11-02 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | etr-20260930 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000325/etr-20260930.htm |
| 2026-11-02 | 8-K | Earnings release and Investor disclosure |  | etr-20261102 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000322/ |
| 2026-09-02 | 8-K | Other company news |  | etr-20260902 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000312/etr-20260902.htm |
| 2026-08-07 | 8-K | Other company news |  |  | https://www.sec.gov/Archives/edgar/data/65984/000119312526339472/d42703d8k.htm |
| 2026-07-31 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | etr-20260630 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000283/etr-20260630.htm |
| 2026-07-29 | 8-K | Earnings release and Investor disclosure |  | etr-20260729 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000279/ |
| 2026-06-23 | 8-K | Other company news |  | etr-20260622 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000265/etr-20260622.htm |
| 2026-05-12 | 8-K | Shareholder vote results |  | etr-20260508 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000232/etr-20260508.htm |
| 2026-05-12 | 8-K | Change of directors or officers |  | etr-20260507 | https://www.sec.gov/Archives/edgar/data/65984/000006598426000231/etr-20260507.htm |
| 2026-05-07 | 8-K | New material agreement and Other company news |  |  | https://www.sec.gov/Archives/edgar/data/65984/000119312526211827/d52765d8k.htm |

Every filing on SEC EDGAR (CIK 65984): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000065984&type=&dateb=&owner=include&count=40

## Risks

- Medium: Regulators set Entergy's rates. If the commissions in Arkansas, Louisiana, Mississippi, New Orleans or Texas allow lower returns or delay cost recovery, earnings can grow more slowly.
- Medium: The capital plan is large, about $54.8 billion from 2027 to 2030. Entergy funds it with debt and new shares, and total debt rose to $34.9 billion at September 30, 2026, from $30.6 billion a year earlier.
- Medium: Much of the growth comes from a few large customers such as data centers. If a large customer delays or cancels a project, plants and lines built for it can earn less than planned.
- Medium: Hurricanes and winter storms can damage the grid on the Gulf Coast. Winter Storm Fern in January 2026 cost about $450 million to restore power, and Entergy must ask regulators to recover such costs.
- Low: Entergy operates nuclear plants. An outage or a safety problem can raise costs and lower earnings.

## Links

- Page: https://picks.utilarium.app/company/ETR/
- History of changes: https://picks.utilarium.app/company/ETR/history/
- JSON with full history: https://picks.utilarium.app/data/company/ETR.json

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