Entergy stock forecast
Entergy's weighted forecast is a 4% loss to $97.81 in October 2027 and an 11% gain to $108.04 in October 2029, including dividends. It hinges on approved investment becoming earnings per share after financing and dilution.
Where could Entergy's shares be by 2029?
Entergy’s weighted forecast is a 4% loss to $97.81 in October 2027 and an 11% gain to $108.04 in October 2029, including dividends; it hinges on approved investment becoming earnings per share after financing and dilution.
Management guides to adjusted EPS of $4.25–$4.45 for 2026 and $4.90–$5.20 for 2027. Its plan calls for $67 billion of investment over 2026–2030 and adjusted EPS growth above 8% annually through 2035. The forecast assigns 28% probability to the bear case, 52% to base, and 20% to bull, with 2029 prices from $68.26 to $152.31.
| Case | Probability | October 2027 | October 2028 | October 2029 |
|---|---|---|---|---|
| Bear | 28 % | 77.56 (-24 %) | 73.97 (-25 %) | 68.26 (-28 %) |
| Base | 52 % | 100.38 (-2 %) | 109.38 (+9 %) | 112.42 (+15 %) |
| Bull | 20 % | 119.50 (+16 %) | 138.43 (+37 %) | 152.31 (+53 %) |
| Weighted | 100 % | 97.81 (-4 %) | 105.28 (+5 %) | 108.04 (+11 %) |
What this means. The weighted row is the probability-based average of the three cases, not a fourth forecast.
What has to go right or wrong for Entergy's forecast?
The base earnings row is $2,347M in 2027 and $2,660M in 2028. It reaches $2,866M in 2029. The path uses midpoint guidance of $4.35 for 2026 and $5.05 for 2027, followed by 8% annual EPS growth, close to management’s stated long-term ambition. The bear row gives $2,147M in 2027 and $2,254M in 2028, then $2,309M in 2029, reflecting delayed projects and muted recovery. The bull row gives $2,414M, $2,793M and $3,036M across the same dates, requiring large loads, completed projects and timely regulatory recovery. Industrial sales growth and nuclear capability above target support the upside, but capital spending exceeded operating cash by about $2.8B in 2025.
How much cash does Entergy really make?
Free cash flow subtracts capital spending from cash generated by operations. The memo’s “real” free cash flow also subtracts stock-based compensation, because compensation paid in shares is non-cash in the period but still an economic cost. Real free cash flow was negative in every year from 2021 through 2025 as Entergy built and improved generation, transmission, distribution, and substations.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Cash from operations | 5,150,651 | 4,488,510 | 4,294,328 | 2,585,490 | 2,300,713 |
| Of which, freed from working capital | 117,640 | 368,444 | 499,965 | ||
| Of which, tied up in working capital | 794,942 | 348,229 | |||
| − Capital spending | 7,941,351 | 5,969,710 | 4,746,719 | 5,394,932 | 6,422,112 |
| = Free cash flow | -2,790,700 | -1,481,200 | -452,391 | -2,809,442 | -4,121,399 |
| − Stock pay | 43,100 | 42,900 | 40,200 | 45,400 | 45,300 |
| = Real free cash flow | -2,833,800 | -1,524,100 | -492,591 | -2,854,842 | -4,166,699 |
| Free cash flow, % of revenue | -21.6% | -12.5% | -3.7% | -20.4% | -35.1% |
| Real free cash flow, % of revenue | -21.9% | -12.8% | -4.1% | -20.7% | -35.5% |
What this means. The business generated cash from daily operations but spent even more on equipment and buildings, so free cash flow was negative, and subtracting shares given to employees makes the amount left for shareholders even lower.
What does an investor pay for Entergy today?
A P/E, or price-to-earnings ratio, compares a share price with earnings per share. Imagine paying $100 for a shop that earns $5 a year: its P/E is 20. A trailing P/E uses the last twelve months, while a forward P/E uses an estimate, so a lower forward multiple means investors expect earnings to rise. Entergy reported adjusted earnings of $3.91 per share for 2025 and reaffirmed adjusted guidance of $4.25–$4.45 for 2026. “Adjusted” removes items management considers unusual, so the valuation works only if the chosen earnings measure is repeatable.
| Today (Oct 18, 2026) | |
|---|---|
| Share price | 105.11 |
| Market value (calculated) | 49,047,637 |
| Enterprise value (calculated) | 79,942,592 |
| P/E, last 12 months (calculated) | 27.0x |
| P/E, next 12 months (calculated) | 20.6x |
| EV / revenue, last 12 months (calculated) | 5.9x |
| Price to book (calculated) | 2.7x |
| Free cash flow yield (calculated) | -5.7% |
| Real free cash flow yield (calculated) | -5.8% |
| Dividend yield (calculated) | 2.4% |
What this means. The negative free cash flow yield means the company spent more cash than it generated during the latest year.