Entergy Corp.

Strong Q3/quarter performance; 2026 guidance narrowed upward - Adjusted EPS: $1.98, driven by a hot summer and strong sales growth (residential + industrial), plus operational and investment-driven factors. - Management is narrowing 2026 adjusted EPS guidance range and raising the bottom by ~$0.10 (bottom increased due to better-than-planned retail sales year-to-date and ability to flex spending). - Longer-term outlook reaffirmed; no change to growth expectations beyond 2026 (management continues to target >8% trajectory in its outlook discussion).

Big growth/CapEx catalyst: Entergy Arkansas deal with Google (fair-share plus) - Entergy Arkansas announced a service agreement amendment for Google’s West Memphis campus expansion. - Structure ensures Google covers its “fair share,” including new investments and system costs, supporting customer bill protections consistent with Entergy’s pledges. - Expected impact: - Incremental customer bill benefits and at least $500M increase in expected Arkansas fair share plus savings. - Capital add: Entergy added ~$600M (primarily two batteries) plus broader “puts and takes” in normal capital planning; management said total capital added is about ~$1.5B from 2026–2030 inclusive of the Google development. - Timing: Pending commission approval targeted for 1H 2026; expansion expected to ramp starting in 2028. - Opportunity/risk note: This is a clear upside lever for sales/capacity, but it remains subject to regulatory approval and timing.

Plan shows continued heavy infrastructure buildout; major execution innovations - CEO highlights large-scale pipeline to support data centers + traditional industrial growth: - Generation queue: 2.3 GW (3 natural gas plants) in queue after OCAS completion; 10 plants in construction, 9 plants in Louisiana regulatory review later this year, plus supply plan units. - Transmission: >1,000 miles of lines, mostly 500kV, with ~70% of investment already approved; some projects currently under regulatory review expected to conclude in 2026; ~~1/3 already under construction. - Execution progress: - OCASS complete and operational in Texas, delivering ~1.2 GW at cost “far less” than building from scratch today. - Standardized design and scale show improvements, including ~50% reduction in engineering time, plus use of drones/robotic welding to improve safety, quality, and speed. - Risks/challenges embedded: labor/material cost pressures remain industry-wide, and long lead times + remote terrain raise execution/regulatory exposure.