Electric Utilities

Schneider Electric SE agreed to acquire U.S.-based engineering software developer PTC Inc. for $22.6 billion, or €20.1 billion, paying $205 per share in an all-cash deal. The transaction was among a string of major deals reported across sectors this week. Viatris said it will acquire all outstanding shares of Pacira BioSciences for $36.50 per share in cash, an aggregate equity value of $1.65 billion, while CD&R and McKesson agreed to acquire Option Care Health for $32.05 per share, valuing it at approximately $5.8 billion including debt, sending its shares up 34% in early trading Tuesday. Energy Transfer agreed to acquire Vaquero Midstream in a $2.625 billion deal consisting of $1.95 billion in cash and about 33.3 million newly issued Energy Transfer common units, and Cenovus Energy agreed to acquire Athabasca Oil in a cash-and-stock deal valued at about C$5.7 billion, a 14% premium to Athabasca's 20-day volume-weighted average trading price. Canadian utilities Emera and Canadian Utilities agreed to an all-stock merger worth C$14.3 billion, or US$10 billion, creating a combined company with a C$72 billion enterprise value and a regulated rate base of C$45 billion serving roughly 6 million customers. Separately, TKO LLC proposed to acquire Service Properties Trust's entire hospitality portfolio for $2.0 billion, and CCC Intelligent Solutions soared 13% in after-hours trading on a report that GTCR and Elliott Investment Management are in advanced discussions to purchase the car-insurance software firm.

Duke Energy declared quarterly cash dividends of US$1.085 per common share and US$359.375 per Series A preferred share, payable on December 16, 2026, to shareholders of record on November 13, 2026. The utility also reached agreements with Amazon, Google, Meta and Microsoft to broaden financial safeguards for North Carolina data centers, tying directly into its multi gigawatt data center pipeline. If regulators approve the framework, it would sit alongside existing electric service agreements as part of the story investors are watching around large load growth, capital spending and how much external funding Duke must raise to build out the grid and new generation. Duke's narrative projects $38.3 billion in revenue and $6.5 billion in earnings by 2029, requiring 5.3% yearly revenue growth and about a $1.3 billion earnings increase from $5.2 billion today. The company's rising capital needs could still collide with a period of persistently higher borrowing costs.

Google and Constellation Energy announced a long-term clean energy collaboration that will add 890 megawatts of new nuclear capacity to the PJM grid under a 20-year power purchase agreement. The deal also includes a 15-year, 2,700 megawatt supply agreement and more than US$4.30 billion of nuclear fleet investments supported by Google Cloud's AI technology. The Google contracts follow a separate 20-year agreement with Amazon backing over US$3.00 billion of upgrades and a 190 megawatt uprate at Maryland's Calvert Cliffs plant. Together the contracts show how hyperscale customers are directly underwriting incremental nuclear capacity, life extensions and digital optimization across Constellation's fleet. Constellation Energy's narrative projects $39.9 billion revenue and $6.5 billion earnings by 2029, requiring 8.5% yearly revenue growth and a $3.0 billion earnings increase from $3.5 billion today.

Pinnacle West Capital Corp. is reaffirming its 2026 earnings guidance of $4.55-$4.75 per share and its long-term earnings growth target of 5-7%, citing rising electricity demand across its service territory. Its Arizona Public Service subsidiary saw customer growth of 2.1% in the second quarter of 2026, with weather-normalized sales up 5.6%, total sales up 9.6%, and commercial and industrial sales up 12.7% as data centers and advanced manufacturing customers ramped up. The company expects retail customer growth of 1.5-2.5% in 2026 and weather-normalized retail electricity sales growth of 4-6%, with new large manufacturing facilities and data centers projected to contribute 3-5% to sales growth, and through 2030 it forecasts weather-normalized retail sales growth of 5-7%, with large commercial and industrial customers accounting for 4-6%. Pinnacle West aims to invest $7.95 billion through 2028 in generation, transmission and distribution infrastructure. The Zacks Consensus Estimate points to a 6.34% year-over-year decrease in 2026 EPS and an 18.21% increase in 2027 EPS, and the stock carries a Zacks Rank #3 (Hold).

Constellation Energy has landed two 20-year contracts with tech giants in about a week, with Google committing to 890 MW of new nuclear capacity on PJM days after Amazon signed a deal tied to a 190 MW expansion at Calvert Cliffs. Constellation, the largest nuclear operator in the US, runs 55 gigawatts of capacity across nuclear, gas, geothermal, hydro, wind and solar since buying Calpine earlier this year, and sells power to about 2.5 million customer accounts, including 80% of the Fortune 100. The company will invest more than $4.3 billion to upgrade 11 nuclear units across Illinois, Pennsylvania and New Jersey, with the first uprate due by 2028, while a separate 15-year agreement covers 2,700 MW from existing plants. Adjusted operating earnings rose to $2.55 a share from $1.91 a year earlier and management raised full-year adjusted guidance to $11.50 to $12.50 a share, though GAAP earnings fell to $1.42 from $2.67. The quarter's 920 MW of new agreements run 15 to 20 years with investment-grade buyers and start between 2029 and 2032, and the Crane Clean Energy Center restart now has its fuel license and a key grid-connection approval, with the company still targeting 2027.

Kansai Electric Power announced on the 9th that it will restart the No. 3 reactor at the Mihama nuclear plant on the 10th, after the unit was shut down in September when water droplets were found leaking from pipe insulation. Commercial operation will resume on November 4. According to Kansai Electric, the pipe in question is made of corrosion-prone carbon steel, and a cover on a bent section was mistakenly installed upside down, allowing rainwater to seep in and possibly accelerating corrosion. The company is proceeding with replacement using corrosion-resistant stainless steel and has also circulated guidance on how the cover should be installed.

Constellation Energy Corporation signed a 3,590 megawatt power agreement with Google, sending its shares up roughly 12% on October 6. The deal is unusually large for a company whose nuclear fleet cannot be replicated quickly, since licensing and building a nuclear plant in the United States takes more than a decade before a single megawatt is sold. Revenue grew 23.00% in the most recent quarter, but earnings fell 38.90% over the same period, and operating cash flow of $4.21 billion against capital expenditure of $3.90 billion left only $309.00 million in free cash flow to service $24.70 billion of debt. The stock traded at around $300 on October 7, down 0.27% on the day and 21.61% lower over twelve months, giving it a market value of $106.15 billion. Constellation was held by 73 hedge funds with a combined stake value of about $2.67 billion at the end of Q2 2026, down from 79 holders and roughly $3.38 billion in the previous quarter.

ATCO has agreed to a CAD 6.6b takeover by Emera, paired with a spin off of its industrial services arm, a deal that turns one ATCO share into Emera plus New ATCO. The announcement has flipped ATCO from a slow mover into a deal-driven story, with a 7 day share price return of 7.89%, a 30 day gain of 8.28%, and a year to date share price return of 40.60%. The 1 year total shareholder return of 62.45% and 3 year total shareholder return of 157.42% show the latest surge comes on top of a longer run rerating as investors reassess both growth potential in the utilities assets and the risk profile of a more focused industrial services business after the spin off. ATCO last closed at CA$79.54, while the most followed narrative pegs fair value at CA$91.00, suggesting the deal news sits on top of an already optimistic long term earnings story leaning heavily on its modular housing and infrastructure platform. On the other side of that CA$91 fair value story, ATCO trades on a P/E of 49.2x, against a peer average of 40.2x and a fair ratio pointing to 39.5x.

Google and Constellation Energy Corporation announced a 20-year power purchase agreement on October 6 that will bring 890 megawatts of new nuclear capacity to the PJM Interconnection grid. The deal supports more than $4.3 billion of new investment by Constellation in 11 of its nuclear units across Illinois, Pennsylvania, and New Jersey, funding equipment and technology upgrades to improve thermal and electrical efficiency and unlock additional generation capacity without building new reactors. Beyond the 890 megawatts of new capacity, Google agreed to purchase another 2,700 megawatts for 15 years from the PJM fleet, giving Constellation greater long-term revenue visibility and a long-term customer relationship with one of the world's largest technology companies. Constellation shares jumped around 12% following the announcement, and of the 24 analysts covering the company, 88% rate the stock a Buy, with a median 12-month price target of $350 implying roughly 20% upside from the stock's price as of October 6. Hedge fund interest declined in the second quarter, with 73 hedge funds holding the stock at the end of the quarter, down from 79 in the first quarter, and the companies did not disclose the pricing or immediate earnings contribution of the agreement.

ATCO has agreed to merge its regulated utilities with Emera in a transaction that will create a top 20 North American power and gas provider, while spinning off New ATCO as an independent industrial services company focused on non regulated operations. Under the deal, holders of ATCO shares will receive 0.865 of an Emera common share plus one share in New ATCO for each ATCO share. The combined utilities business is expected to sit among the largest Canadian-listed power and gas players by asset base and customer footprint, and ATCO is expected to retain a 20% stake in the Emera and Canadian Utilities entity that will house the regulated operations. ATCO operates a CA$9.1b integrated utilities and services platform across energy, logistics, transportation, shelter, and real estate, and the separation of New ATCO isolates the non regulated, higher variability industrial services side focused on housing, defence, and investments. The deal now hinges on regulatory and shareholder approvals ahead of a targeted closing in the third or fourth quarter of 2027, with bodies including the Alberta Utilities Commission and U.S., Mexican, and Australian competition and foreign investment authorities needing to sign off broadly in line with that timeline.

Google and Constellation Energy have agreed a 20-year nuclear power deal worth US$4.30 billion to add 890 megawatts of new capacity to the PJM grid, securing long-term clean electricity for Google's expanding AI and cloud data centers. The long-horizon power purchase links Alphabet's AI ambitions directly to physical energy infrastructure, underlining how data center growth now depends on locked-in, carbon-free power supplies. The deal tightens the link between Alphabet's AI buildout and long-term energy costs, though it does not fundamentally change the biggest immediate risk, which remains return on AI capex. Alphabet's narrative projects $795.9 billion revenue and $243.1 billion earnings by 2029, requiring 21.3% yearly revenue growth and a $1.0 billion earnings decrease from $244.1 billion today. The article was produced by Simply Wall St.

Jim Cramer named Constellation Energy Corporation and Vistra Corp. as power stocks worth revisiting on Mad Money on October 1, citing their share-price declines and demand for nuclear electricity. Constellation announced a 20-year agreement with Amazon on September 30 covering 690 megawatts, including roughly 190 megawatts of additional capacity at Calvert Cliffs expected between 2030 and 2032, supporting more than $3 billion in infrastructure investment and the plant's proposed license extension. Constellation also raised its full-year adjusted operating earnings outlook to $11.50 to $12.50 per share after second-quarter adjusted earnings of $2.55, up from $1.91 a year earlier, helped by the addition of Calpine and favorable market conditions. Vistra reported approximately $1.77 billion in ongoing-operations adjusted EBITDA, an increase of $418 million, and reaffirmed its full-year range of $6.8 billion to $7.6 billion, though its quarterly net income declined to $305 million. Cramer noted Constellation and Vistra have pulled back 37% and 36% from their highs, respectively, and said they look cheap at these levels.

Emera has agreed to acquire Canadian Utilities in an all-share merger of equals, turning the steady Alberta-based utility into the center of a planned Canadian energy heavyweight. Canadian Utilities now trades at CA$49.85, with the share price easing over the past quarter even as the year-to-date share price return of 16.5% sits against a much stronger 1-year total shareholder return of 33.8% and a 3-year total shareholder return above 90%. The stock carries a price-to-sales multiple of 3.6x against CA$3,761.0m in revenue, well above the estimated fair P/S ratio of 2.7x, the 1.6x for the global integrated utilities industry and 1.7x for its immediate peer group, while a CA$538.0m non-recurring loss left net margins at 1.2% versus 12% a year earlier. A discounted cash flow model flags the shares as trading 64.1% below an estimated future cash flow value of CA$139, and the dividend yield of 3.71% is not fully backed by current profits, though forecasts call for 42.1% annual earnings growth and 4.3% revenue growth. Sentiment could shift quickly if the Emera merger timetable slips or regulators attach conditions that weaken the appeal of the all-share tie-up.

Duke Energy and a group of stakeholders have reached an agreement that further protects existing customers from the costs of serving data centers and other large-load customers in North Carolina. The settlement, filed between Duke Energy Carolinas and Duke Energy Progress and the North Carolina Public Staff, also includes Amazon, Google, Meta, Microsoft, the Carolina Industrial Group for Fair Utility Rates and the U.S. Department of Defense. Under the terms, large-load customers must make nonrefundable upfront payments for grid facilities serving only them, such as a substation, and post upfront deposits and security guarantees for grid upgrades that serve all customers, such as transmission lines. New large-load customers, including new data centers, must also take service under a High Load Factor rate schedule. If approved by state regulators, the agreement would apply to all large-load customers of 50 megawatts or more with an 80% load factor that sign an electric service agreement in North Carolina after June 1, 2026, expanding on protections Duke Energy first required in 2024 for loads of 100 megawatts or more. The North Carolina Utilities Commission is expected to decide on the agreement by mid-November.

Google has contracted 3,590 megawatts of power from Constellation Energy in the largest US power grid, PJM Interconnection, with new nuclear energy accounting for about a quarter of that supply, or 890 megawatts. The 20-year power purchase agreement will fund more than $4.3 billion of new investments at 11 Constellation-owned nuclear units in Illinois, Pennsylvania, and New Jersey, boosting thermal and electrical efficiency, with electricity from the first upgraded plants delivered in 2028. The deal responds to PJM's "bring your own power" proposal, which followed a more than 11-fold increase in PJM capacity prices since 2024 and a power shortfall driven largely by data center expansion. It is the latest in a string of nuclear power announcements involving "Magnificent Seven" tech companies, following Constellation's 20-year agreements with Amazon for 690 megawatts from Calvert Cliffs and with Meta for 1,121 MW, and Google's contract to restart NextEra Energy's Iowa nuclear plant. Data center power consumption is projected to double globally by 2030, reaching around 945-980 terawatt-hours annually, and could account for up to 12% of total US electricity consumption by 2030.

Constellation Energy announced a 20-year power purchase agreement with Google on Oct. 6, 2026, to add 890 megawatts of new nuclear capacity to the PJM grid. The agreement will support more than $4.3 billion of investment in upgrades to 11 Constellation-owned nuclear units, with the first uprate expected in 2028. The deal also includes a 15-year energy supply agreement covering 2,700 megawatts of existing PJM generation, and Constellation will use Google Cloud and Gemini Enterprise to enhance asset performance and optimize power dispatch. In the second quarter of 2026, Constellation signed 920 megawatts of long-term power purchase agreements with investment-grade customers at an average duration of 18.5 years, expected to be fully ramped by 2032, and recently signed a 20-year agreement with Amazon covering 690 megawatts, including 190 megawatts of new nuclear capacity. Constellation expects nearly $5.7 billion in capital expenditures in 2026 and $4.7 billion in 2027.

Alphabet agreed a 20-year, US$4.3 billion nuclear power supply deal with Constellation Energy to support its AI data centers. Under the agreement, Constellation will provide carbon-free nuclear electricity to Google facilities, targeting growing AI-related power needs. The long-term contract signals greater reliance on nuclear generation as large tech platforms seek cleaner power sources for cloud and AI infrastructure. The deal deepens the long-duration power side of Alphabet's AI spending, which sits alongside custom TPUs, data center expansion and a cloud backlog that analysts already frame as heavily AI weighted. Viewed against Microsoft and Amazon, both racing to secure generation for their own AI campuses, the deal looks less like a one-off and more like table stakes.

Louisville Gas and Electric Company and Kentucky Utilities Company, units of PPL Corporation, issued a request for proposals on Oct. 5, 2026 for at least 50 megawatts of firm, dispatchable thermal capacity through power purchase agreements, asset purchases and build-transfer arrangements. The RFP is intended to supplement approved generation plans and support rising electricity demand. PPL's Kentucky non-coal portfolio comprises approximately 2,000 MW of natural-gas, 240 MW of solar and more than 500 MW of battery storage, alongside $5.7 billion of planned generation investments through 2029. Invitium Energy, PPL's 51%-owned joint venture with Blackstone, has sites capable of supporting 8-14 gigawatts of generation capacity, while more than 5 GW of combined-cycle gas turbine projects have entered PJM's interconnection queue and over 5 GW of turbine reservations could support $12.5-$15 billion of investment through 2032. In the second quarter, PPL Electric's data center pipeline reached 31.8 GW, with more than 11 GW under signed electric service agreements and over 6.5 GW under construction.

Constellation Energy Corporation shares rallied 12.2% in the last trading session to close at $300.4, a move driven by heavy volume and its long-term agreement with Google. That agreement supports 890 megawatts of incremental nuclear capacity across PJM, backed by a $4.3 billion investment to boost output from existing plants, while a separate 2,700 MW, 15-year supply deal enhances revenue visibility and supports the economics of Constellation's operating fleet. The company is expected to post quarterly earnings of $3.99 per share in its upcoming report, a year-over-year change of +31.3%, on revenues of $8.69 billion, up 32.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days, and the stock currently carries a Zacks Rank #2 (Buy).

Constellation Energy signed a 20-year power purchase agreement with Google tied to upgrades at 11 existing nuclear units in Illinois, Pennsylvania and New Jersey. Constellation plans to spend more than $4.3 billion on the work, which is expected to add 890 megawatts of nuclear capacity to the PJM grid, with the first added output expected in 2028 and the full amount scheduled before the end of 2032. Constellation Energy shares climbed more than 12% following the announcement, while Talen Energy also posted a double-digit gain, Oklo Inc. rose more than 7% and NuScale Power advanced more than 4%. Talen Energy was not directly involved in the agreement but sells electricity into the same PJM market, while Oklo and NuScale Power are developing new reactor technologies rather than selling power from established nuclear fleets. The deal gives investors a real example of a large technology company committing long-term capital to nuclear generation to meet rising electricity demand from data centers.

Morgan Stanley kept its overweight rating on Engie but cut its price target to €29 from €31, while lowering its targets on Veolia and Voltalia, as French utility shares fell on a widening French-German bond yield gap. The brokerage expects Engie to report 2026 recurring net income in the top half of its €4.9 billion to €5.5 billion guidance range, and forecasts 2026 recurring net income of €5.33 billion, about 2% above consensus and 3% above the midpoint of that range. Its 2027-29 estimates are about 6% above consensus, and it sees average total shareholder returns of about 12% over 2026-29. Morgan Stanley identified three potential catalysts: the value of Engie's French gas networks, an update on talks over a Belgian nuclear deal, and new asset sales under the company's €6 billion 2026-28 plan. It kept Veolia at equal-weight but cut its price target to €35 from €38, and raised Voltalia to equal-weight from underweight after a 40% share price fall, cutting its target to €5 from €7. Engie is due to report nine-month results on Nov. 5.

Morgan Stanley reiterated an Overweight rating on Engie, calling the French utility a tactical opportunity into year-end even as it trimmed its price target to €29 from €31. Analyst Arthur Sitbon said recent weakness in French utility shares, driven by a widening OAT spread, has created the opening, though he cautioned it is too early to call a trough for the sector with about seven months until the 2027 presidential election. Sitbon expects Engie's 2026 recurring net income in the top half of its guidance range, roughly 2% above consensus, and sees 2027-29 estimates about 6% above consensus on higher commodity prices, favorable currency moves and cost savings. He flagged three catalysts: more visibility in 2027 on the value of Engie's French gas networks, where recent European deals imply 10-12 times EV/EBITDA versus about 8 times in its model; a possible November update on the Belgian nuclear deal; and further disposals under a €6 billion 2026-28 plan. Elsewhere, Morgan Stanley kept Veolia at Equal-weight and cut its target to €35 from €38, and upgraded Voltalia to Equal-weight from Underweight while trimming its target to €5 from €7.

Constellation Energy unveiled a 20-year power purchase agreement with Google supporting the addition of 890 MW of new nuclear generation through uprates of 11 existing reactors, sending its shares up 12.2% on Tuesday as one of the top two gainers on the S&P 500. The deal is the largest-ever uprate project between a nuclear power provider and a tech company, and will provide additional power to the grid roughly equivalent to building a large new reactor. Along with the nuclear deal, which will be backed by $4.3B in new investment by Constellation, the two companies also entered into a 15-year supply agreement for another 2,700 MW across the PJM power market. KeyBanc analyst Sophie Karp said the news validates a key pillar of her bullish case for the stock, calling it high-quality, low-risk growth that enhances earnings visibility and derisks the company's capital deployment strategy. Constellation's news lifted other power producers, with Talen Energy up 12.4%, Vistra up 10.7%, and NRG Energy up 7%, while the State Street Utilities Select Sector SPDR ETF jumped 3%.

Constellation Energy surged more than 12% after Alphabet's Google agreed to buy nuclear power from the company under a 20-year power purchase agreement that will drive more than 4.3 billion dollars of investment to upgrade systems at 11 Constellation reactors. The deal made Constellation the second-biggest gainer in the S&P 500 and the top gainer in the Nasdaq 100, lifting utilities and uranium-linked names on hyperscaler demand for clean, reliable baseload power. The S&P 500 closed at a record high of 7,819.04, up 45 points or about six-tenths of a percent, while the Nasdaq 100 also set a record and the Dow Jones Industrial Average added about 253 points, or half a percent. Nvidia rose to another record high and moved toward becoming the first company with a 6 trillion dollar market cap, while Marvell Technology finished just under 6% higher after raising its fiscal 2028 revenue guidance to 20 billion dollars, topping the average analyst estimate. On the downside, Seagate Technology fell 9% and Western Digital dropped almost 7%, while Moderna slid about 7.7%.

Google and Constellation Energy have signed a $1 billion deal, putting nuclear energy back in focus as a power source for AI. On a Market Hang panel, one analyst noted Constellation had already secured five plant approvals, letting it reach market faster than competitors, which is why the news was likely already priced in. The panel flagged that the biggest obstacle for the sector is that the United States has not built these plants, citing one Georgia reactor that was meant to take three years but took seven. The analyst said the government will probably get involved after the election to push-start more nuclear plant construction, calling it one of the fastest ways to deliver large amounts of safe, clean power. The panel also raised the unresolved problem of nuclear waste, noting that Yucca Mountain in Nevada never came together and that growing nuclear output will produce more radioactive rods that cannot stay on site.

Alphabet's Google agreed to buy nuclear power from Constellation Energy Corp. under a 20-year power-purchase agreement that will drive more than $4.3 billion in investments to upgrade systems at 11 Constellation reactors. The deal follows a similar agreement Constellation signed with Amazon, and the company is now near the end of its available capacity for such hyperscaler contracts, with only a few small facilities potentially remaining. Power from the upgrades is expected to become available starting in 2028, roughly a year and a half to two years out, which is fast for a nuclear project; the Amazon deal's output is not due online until 2030. Constellation has also restarted the Crane Clean Energy Center, formerly known as Three Mile Island, and is involved in restart projects at Palisades in Michigan and the Duane Arnold facility in Iowa owned by NextEra. Data center demand is pushing electricity prices higher, particularly around the Washington D.C. area known as data center alley, where prices have risen by double digits in some cases.

Duke Energy is positioned to extend its earnings-beat streak when it reports next, with a positive Zacks Earnings ESP of +0.54% and a Zacks Rank #3 (Hold). The electric utility has topped consensus estimates in each of its last two quarters, with an average surprise of 9.34%. In the most recent quarter, Duke Energy was expected to post earnings of $1.29 per share but reported $1.43 per share, a surprise of 10.85%. The prior quarter saw a consensus estimate of $1.79 per share against actual earnings of $1.93 per share, a surprise of 7.82%. Zacks research shows that stocks combining a positive Earnings ESP with a Zacks Rank #3 or better produce a positive surprise nearly 70% of the time.

Google and Constellation Energy announced a 20-year deal to bring 890 MW of new nuclear capacity onto the PJM grid in Illinois, Pennsylvania and New Jersey, with Constellation spending more than $4.3 billion on the build-out. The deal follows Amazon's similar agreement with Constellation, as surging electricity demand from AI revives interest in nuclear power. Separately, Option Care Health shares jumped after the Financial Times reported that McKesson and private equity firm Clayton Dubilier & Rice are closing in on a deal to buy the medical infusion provider for $32.50 a share, or a total enterprise value of about $5.8 billion including debt, representing a 37% premium to the prior close. Under the deal, CD&R would hold a 51% majority interest and McKesson would invest $1.4 billion for a 49% stake, with Option Care remaining a separate company led by its own management. SpaceX shares were the most actively traded in the premarket as NASA nears announcing a bulk purchase of rocket launches to fuel its $30 billion drive to build a permanent base on the moon.

Google has signed a $1 billion nuclear energy agreement with Constellation Energy, under which Alphabet will buy 20 years of nuclear power from Constellation, covering 890 megawatts of new power coming online. Constellation still has to build out that power further and will spend $4.3 billion on it, with the power feeding into the PJM grid. The deal is the latest in a string of similar arrangements, following Amazon's 690 megawatt deal with Constellation last week, and Google's standing agreements with NextEra Energy to support a restart of the Duane Arnold reactor and to upgrade some of Southern Co's nuclear plants. Data center operators are turning to nuclear because they want reliable, consistent power, and Constellation and NextEra shares have gotten a bump off the trend. The larger question for these companies is how to secure enough power for their data centers, which is becoming, along with regulation, the biggest bottleneck they face, especially with turbine makers sold out for 8 to 10 years and grid connections potentially taking 20 years.

Xcel Energy, SEMCO ENERGY Gas Company and Upper Peninsula Power Company announced the sale of Xcel Energy's Michigan natural gas operations to SEMCO and its Michigan electric operations to UPPCO. If regulators approve, Xcel Energy's 6,000 natural gas customers will be served by SEMCO and 9,000 electric customers will be served by UPPCO, with those customers in Gogebic and Ontonagon counties transitioning to providers with deep local roots in the Upper Peninsula. Service will continue without interruption, and there will be no immediate changes to billing, rates or customer service processes, with customers notified well in advance of any future changes. The transition will happen gradually and only after required state and federal regulatory approvals, and the companies expect the transaction to close in 2027. Karl Hoesly, president of Xcel Energy–Wisconsin and Michigan, said the deal ensures Upper Peninsula customers benefit from focused investments by SEMCO and UPPCO, while SEMCO president Marc Simone and UPPCO president and CEO Gradon Haehnel each cited their companies' regional experience in serving the newly added customers.

Google said Tuesday it has signed a $4.3 billion deal with Constellation Energy to bring 890 megawatts of nuclear energy online through a 20-year power purchasing agreement. The new capacity will come from upgrades at six existing nuclear plants in Illinois, New Jersey, and Pennsylvania, including modernized turbines, steam generators, and digital control systems. Google said the agreement gives Constellation the revenue certainty to invest in updates to 11 of its reactors while ensuring customers do not bear additional costs from the AI boom. Under the deal, Constellation will use Google's Gemini Enterprise software for site selection, outage management, and infrastructure protection. Google has also invested in nuclear projects in Georgia, Iowa, and Tennessee, joining Amazon, Microsoft, and Meta in turning to nuclear power for the AI buildout.

Google said Tuesday it has signed a $4.3 billion deal with Constellation Energy to bring 890 megawatts of nuclear energy online through a 20-year power purchasing agreement. The new capacity will come from upgrades at six existing nuclear plants in Illinois, New Jersey, and Pennsylvania, including modernized turbines, steam generators, and digital control systems. Google said the agreement gives Constellation the revenue certainty to invest in updates to 11 of its reactors while ensuring customers do not incur additional costs from the AI boom. Under the deal, Constellation will use Google's Gemini Enterprise software for site selection, outage management, and infrastructure protection. Google has also invested in nuclear projects in Georgia, Iowa, and Tennessee, joining other Big Tech firms including Amazon, Microsoft, and Meta in turning to nuclear power for AI-driven capacity needs.

Google announced a major long-term power agreement with Constellation Energy, under which it will buy power tied to 890 megawatts of new nuclear capacity alongside a separate 2,700-megawatt supply agreement, supporting more than $4.3 billion in new Constellation investment. Constellation Energy shares jumped more than 6% premarket on the news, while Alphabet rose about 0.5%. Separately, Option Care Health shares surged more than 20% following a Financial Times report that McKesson and private equity firm Clayton Dubilier & Rice are in advanced talks to jointly acquire the infusion services provider in a transaction valued at more than $5 billion; McKesson stock is up 1.5%. Berkshire Hathaway disclosed in a regulatory filing that it purchased about 2.4 million shares of Lennar, sending Lennar up 1.5%. NeoGenomics rose 5% after announcing that current President and COO Warren Stone will take the helm from Tony Cook in January 2027, and reporting preliminary third-quarter total revenue of $209 million, topping the $205.9 million consensus estimate, per FactSet. Advanced Micro Devices rose nearly 2% after Citi raised its price target to $800, citing greater CPU demand driven by Meta's Muse AI agent, while Procter & Gamble rose 1.2% on an Evercore ISI upgrade to outperform and a price target increase to $166 from $161, and Corteva rose nearly 3% after JPMorgan upgraded the stock to overweight from neutral with a $19 price target.

Zscaler shares gained 2.2% in premarket trading after the cybersecurity company reaffirmed its revenue and earnings guidance for fiscal 2027, maintaining its full-year revenue forecast of $3.91 billion to $3.94 billion and adjusted earnings per share guidance of $4.86 to $4.90. Nike shares fell more than 1% after Berenberg downgraded the sportswear maker to Sell from Hold and cut its price target to $27.50 from $49, arguing that the company has accepted a smaller place in sportswear. Constellation Energy stock climbed 3% after a major deal with Amazon, under which Amazon will purchase 690 megawatts of output from Constellation's Calvert Cliffs Clean Energy Center in Maryland under a 20-year contract supporting more than $3 billion in plant investment, and reports that Google is nearing a separate nuclear power supply agreement worth $1 billion or more. Vaxcyte stock fell 3.7% as investors weighed the dilutive implications of a $1 billion capital raise announced after Monday's close, consisting of $500 million in common stock and pre-funded warrants and $500 million in convertible senior notes due 2032. Freshworks stock climbed 3.9% after S&P Dow Jones Indices announced the company will be added to the S&P SmallCap 600 index effective before the market open on October 8, replacing BioLife Solutions.

Emera and Canadian Utilities said Tuesday they agreed to merge in an all-stock transaction, creating a combined company with roughly 6 million customers and an enterprise value of about C$72 billion, or US$50.4 billion. Based on the implied enterprise value of Canadian Utilities, the deal is expected to be the largest merger in history between two Canadian companies and will form a top 20 North American utility. Under the terms, Emera will acquire all issued and outstanding shares of Canadian Utilities and ATCO, with ATCO's industrial services business spun out as New ATCO. Emera shareholders are expected to own about 60% of the merged entity and Canadian Utilities shareholders about 40%. The new company will operate as Emera, keep its public company headquarters in Halifax, maintain Canadian Utilities' corporate and operational headquarters in Calgary and Edmonton, and continue to base Emera's U.S. operations in Tampa, Florida. The merged company will be led by Emera President and CEO Scott Balfour, with a board of six directors put forward by Canadian Utilities and seven by Emera.