Entergy (ETR) Stock Forecast & Price Target

Entergy is benefiting from rare beat-and-raise execution among regulated utilities, with 1Q26 EPS of $0.86 topping consensus and management repeatedly lifting its outlook as demand from Meta expands. The late March partnership to scale to 5GW of data center capacity drove a $14B, or 33%, increase in the 2026-2029 capex plan to $57B, while nearly $3B of customer savings tied to Meta and about $7B overall strengthen the affordability case. With 2027-2029 EPS midpoint increases of 4.1%, 6.5%, and 8.5% and a 2025-2029 EPS CAGR of 13.1%, the company combines unusually fast regulated growth, supportive recovery mechanisms, and disciplined financing with equity needs of $6.6B.

Entergy is viewed negatively because its growth story has become increasingly dependent on a concentrated Meta relationship and a likely AP1000 nuclear new build, both of which heighten execution, regulatory, and customer-concentration risk. The company’s large generation and transmission capex program, plus elevated climate exposure along the Gulf Coast, could strain affordability in Louisiana and Texas and complicate recovery of spending even after more than $3.7 billion of deferred storm costs was securitized. While a 20-year ESA, accelerated depreciation, and a longer non-renewal notice reduce some risk, the stock already trades at a 20%+ P/E premium to average electric utilities on 2028 estimates, leaving limited margin of safety.