3 Utility Stocks Poised to Surge Even Higher in 2026
Utility Stocks Are Rebounding. Here Are 3 That Could Continue to Soar In 2026.
Surging electricity demand could enable utility stocks to deliver even more powerful returns in 2026.
Utility stocks have climbed nearly 10% on average in 2025, with some companies outperforming the sector. Rising power demand, particularly from AI data centres, is driving growth. Several major firms have announced expansions, deals, and investments to meet this surge.
NextEra Energy has seen its share price jump almost 11% this year. The company’s strong position in Florida’s electric utility market and its clean energy projects have boosted performance. It also signed a 25-year power agreement with Google to restart the Duane Arnold Energy Center, set to resume operations by early 2029. Management expects earnings to grow 6% to 8% annually through 2027 and plans to raise dividends by about 10% each year until at least 2026.
Dominion Energy, meanwhile, has lagged behind peers in 2025. However, its $50 billion investment plan through 2029—focusing on Virginia—could change that. A key project is the Coastal Virginia Offshore Wind farm, due to begin construction in 2026. The state’s data centre demand is forecast to double over the next decade, positioning Dominion to benefit from rising electricity needs.
Constellation Energy has stood out with a nearly 50% share price increase in 2025. The company’s nuclear energy operations have seen strong demand, leading to deals with Microsoft and Meta Platforms for data centre power. In 2023, it announced a $16.4 billion acquisition of Calpine, combining nuclear assets with natural gas and geothermal plants. Regulators approved the deal, now valued at $26.6 billion, with closure expected in early 2026. The merger is projected to lift earnings by over 10% annually through 2028.
The utility sector’s growth in 2025 reflects higher power demand, especially from data centres. NextEra, Dominion, and Constellation are expanding capacity through investments, acquisitions, and long-term contracts. These moves aim to secure future revenue as electricity needs continue to rise.
