Talen Energy Corporation (TLN) AI Stock Analysis

Talen Energy Corporation is an independent power producer and infrastructure company incorporated in 2014 and headquartered in Houston, Texas. The company produces and sells electricity, capacity, and ancillary services into wholesale power markets across the United States. Talen Energy Corporation owns and operates approximately 13.1 GW of power infrastructure. Its generation fleet produces electricity utilizing a diverse set of fuel sources, including nuclear, fossil, oil, natural gas, and coal power plants. As of the latest reporting, the business employed 1,880 people.

Talen Energy Corporation delivered a 5-year revenue CAGR of 7.9% from FY2020 to FY2025. Annual revenue grew 26.7% in FY2025 to $2.63B, rebounding from a 15.0% decline in FY2024 to $2.07B and $2.44B in FY2023. Gross margin reached 38.1% in FY2025, while operating margin narrowed to 0.6% from 8.0% in FY2024 and 3.4% in FY2023. Net income stood at -$219.0M in FY2025, down from $998.0M in FY2024 and $613.0M in FY2023. For the latest quarter ended June 30, 2026, quarterly revenue growth accelerated to 111.2% year-over-year, while quarterly earnings growth reached 34.5% year-over-year. TTM revenue totaled $3.74B with an operating margin of -4.8% and EPS of -$4.13.

As of June 30, 2026, Talen Energy Corporation held $231.0M in cash and short-term investments against $9.57B in total debt, resulting in net debt of $9.34B. Total assets stood at $15.07B against shareholders' equity of $1.62B, yielding a debt-to-equity ratio of 5.92 and a current ratio of 0.78. In FY2025, operating cash flow reached $615.0M and free cash flow was $409.0M. The company deployed $206.0M to capital expenditures and $103.0M to share buybacks in FY2025, with its 5-year share count change at -64.7%.

At a last close of $354.81 on October 16, 2026, Talen Energy Corporation had an enterprise value of $23.73B and a market cap of $16.78B. The stock trades at a forward P/E of 9.9x, which is lower than the median of 17.2x for its US-listed Utilities peers. However, its EV/EBITDA of 30.8x and price-to-sales of 4.5x trade above peer medians of 12.1x and 2.4x, respectively. The stock posted a 1-year return of -15.1%, underperforming the SPY return of 16.8%, and stands 1.0% above its 200-day average.

Wall Street coverage consists of 9 Strong Buy, 6 Buy, and 2 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $457.94, representing a 29.1% premium over the last close of $354.81. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $22.08 and revenue of $4.53B. Talen beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is scheduled for November 3, 2026.

This page is an AI-written research summary of Talen Energy Corporation (TLN). 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.

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