Entergy Raises Profit Forecast on AI-Driven Power Demand

Entergy (ETR), a New Orleans-based electric utility serving nearly 3 million customers across Arkansas, Louisiana, Mississippi, and Texas, is strategically positioning itself to benefit from the surging demand for electricity. This demand is primarily driven by the expansion of AI data centers and the broader electrification of homes and businesses.

The company has raised its adjusted profit forecast for 2027 to a range of $4.70 to $5.00 per share, up from $4.65 to $4.95 per share. For 2028, it anticipates profit between $5.20 and $5.50 per share, compared to its previous forecast of $5.10 to $5.40 per share.

Entergy's pipeline of data center projects ranges between 5 and 10 gigawatts. To meet this demand and harden its infrastructure against extreme weather, Entergy has increased its four-year capital expenditure plan to $40 billion. This includes adding 3 gigawatts of solar, 1.4 gigawatts of battery storage, and 8 gigawatts of natural gas-fired power plants.

In the second quarter of 2025, Entergy reported revenues of $3.33 billion, beating estimates by 3.4%, and an adjusted profit of $1.05 per share, exceeding analysts' expectations of 92 cents. Total retail sales rose to 35,534 gigawatt hours (GWh), including nearly 12% industrial growth.

The increased profit forecast is primarily driven by rising electricity demand from AI data centers and electrification trends.

Entergy is increasing its four-year capital expenditure plan to $40 billion.

Entergy provides electricity to nearly 3 million customers across Arkansas, Louisiana, Mississippi, and Texas.

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