Entergy Corporation (ETR) AI Stock Analysis
ETR AI stock analysis summary
AI ResearchEntergy Corporation (NYSE: ETR) is a regulated electric utility operating roughly 24,000 MW of generating capacity across four southern states. TTM revenue reached $13.48B with an operating margin of 24.5%, though net debt stands at $30.77B amid elevated capital spending. The stock trades at a forward P/E of 19.6x and offers a 2.44% dividend yield.
- Market cap
- $50.22B
- Revenue (TTM)
- $13.48B
- P/E
- 26.9x fwd 19.6x
- 1Y return
- 12.2% S&P 500 16.8%
- Avg. target
- $121.17 15.3% vs last close
Bull case
- Consensus forecasts model double-digit EPS expansion, projecting 12.6% growth to $4.40 in FY2026 and 15.9% growth to $5.10 in FY2027.
- Entergy has maintained 37 consecutive years of dividend payments, backed by a 5-year annualized dividend growth rate of 5.5%.
- The stock delivered a 5-year return of 144.9%, substantially outperforming the S&P 500 return of 83.0%.
Bear case
- Heavy capital spending of $7.94B in FY2025 resulted in negative free cash flow of -$2.79B.
- Valuation is elevated against peers, with a forward P/E of 19.6x compared to the S&P 500 Utilities median of 16.0x.
- Total debt stands at $34.63B against cash of $3.85B, with equity dilution indicated by a 15.0% increase in share count over 5 years.
What Entergy does
Entergy Corporation, founded in 1913 and based in New Orleans, Louisiana, provides electric power and natural gas services across Arkansas, Louisiana, Mississippi, and Texas, serving 3 million utility customers. Its Utility segment handles electric generation, transmission, distribution, retail sales, and natural gas distribution. The Entergy Wholesale Commodities segment focuses on the ownership, operation, and eventual decommissioning of nuclear facilities, alongside non-nuclear power interests that supply electricity to wholesale clients. The company operates approximately 24,000 megawatts (MW) of total electric generating capacity, including 5,000 MW of nuclear power, utilizing gas, nuclear, coal, hydro, and solar energy resources.
Growth and profitability
Entergy's annual revenue rose from $11.74B in FY2021 to $13.76B in FY2022, before retreating to $12.15B in FY2023 and $11.88B in FY2024. Top-line growth rebounded in FY2025 to $12.95B, an increase of 9.0%, delivering a 5-year revenue CAGR of 5.1%. Net income reached $1.77B in FY2025 with an operating margin of 23.6%, up from $1.06B in FY2024. Over the trailing twelve months, revenue reached $13.48B with EPS of $3.91 and a profit margin of 13.3%. In the latest quarter ended June 30, 2026, revenue increased 5.9% year-over-year, while quarterly earnings fell 1.9%.
Balance sheet and cash flow
As of June 30, 2026, Entergy held $3.85B in cash and short-term investments against total debt of $34.63B, resulting in net debt of $30.77B. Shareholders' equity was $18.45B, corresponding to a debt-to-equity ratio of 1.88 and a current ratio of 0.88. Operating cash flow totaled $5.15B in FY2025, but capital expenditures of $7.94B caused free cash flow to register at -$2.79B. During FY2025, the company distributed $1.09B in dividends and raised $1.17B via share issuance, contributing to a 15.0% increase in share count over 5 years.
Valuation and performance
At $105.11 per share, Entergy has a market capitalization of $50.22B and an enterprise value of $78.18B. The company trades at a trailing P/E of 26.9x and a forward P/E of 19.6x, compared to the median of its S&P 500 Utilities peers at 20.9x trailing and 16.0x forward. Its price-to-sales multiple is 3.7x versus the peer median of 2.9x, and EV/EBITDA is 12.3x compared to the peer median of 12.2x. Entergy stock returned 12.2% over the past year, trailing the S&P 500 return of 16.8%, but its 5-year return of 144.9% exceeded the benchmark's 83.0%.
ETR dividend
Entergy pays a quarterly dividend totaling $2.56 annually per share, reflecting a 2.44% dividend yield and a payout ratio of 65.1%. The company has paid dividends for 37 consecutive years, with an annualized 5-year dividend growth rate of 5.5%. The last ex-dividend date occurred on August 13, 2026.
What analysts expect
Wall Street coverage consists of 13 Strong Buy, 4 Buy, 5 Hold, 1 Sell, and 0 Strong Sell ratings. The mean price target of $121.17 represents a 15.3% premium over the last close of $105.11. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $13.98B and EPS of $4.40, reflecting 12.6% earnings growth. Next fiscal year estimates project EPS of $5.10 on revenue of $15.31B across 21 analysts. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 4, 2026.
Key risks and what to watch
- The balance sheet carries high leverage, marked by a debt-to-equity ratio of 1.88 and a current ratio of 0.88 as of June 30, 2026.
- Free cash flow has remained negative across all five annual periods shown, including -$2.79B in FY2025 and -$1.48B in FY2024.
- Quarterly earnings growth slipped 1.9% year-over-year in the quarter ended June 30, 2026, even as revenue grew 5.9%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this ETR AI stock analysis
This page is an AI-written research summary of Entergy Corporation (ETR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: ETR income statement, ETR balance sheet, ETR key metrics, ETR analyst forecast, ETR chart. See the ETR stock overview for the latest quote and news.
ETR AI stock analysis FAQ
What is Entergy Corporation's dividend yield and track record?
Entergy offers a forward dividend yield of 2.44% with an annual dividend of $2.56 per share. It has paid dividends for 37 consecutive years and grown them at an annualized rate of 5.5% over the past 5 years.
How do analysts rate ETR stock?
Analysts hold 13 Strong Buy, 4 Buy, 5 Hold, and 1 Sell recommendations on ETR. The mean price target is $121.17, which is 15.3% above the close of $105.11.
How much debt does Entergy carry?
As of June 30, 2026, Entergy had $34.63B in total debt and $3.85B in cash, producing net debt of $30.77B and a debt-to-equity ratio of 1.88.
When is Entergy's next earnings report?
Entergy's next earnings announcement date is scheduled for November 4, 2026.
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