NextEra Energy (NEE) opened 2026 on the back of a steady run of results, with Q4 2025 revenue at about US$6.5b, basic EPS of US$0.73 and net income of roughly US$1.5b. The trailing twelve months show revenue of about US$27.4b, EPS of US$3.31 and net income of around US$6.8b. Over recent quarters, the company has seen revenue move from about US$5.4b in Q4 2024 to US$6.5b in Q4 2025, with basic EPS shifting from US$0.58 to US$0.73 over the same period. This sets up a results season where investors will be weighing the profit picture against a net margin that has eased from 28.1% to 24.9% and considering what that means for the durability of the business.

See our full analysis for NextEra Energy.

With the headline numbers on the table, the next step is to see how these results line up against the most common bullish and bearish storylines around growth, risk and dividends.

Margins Ease Back From 28.1% To 24.9%

• Net profit margin sits at 24.9% over the last year compared with 28.1% previously, alongside trailing twelve month net income of about US$6.8b on revenue of roughly US$27.4b.
• Consensus narrative expects margins to step up over time, yet the recent margin move gives you a mixed picture:
  • Bulls highlight multi year earnings growth of about 18% per year and forecast revenue growth of around 8.6% a year as signs the business can support higher margins.
  • Bears point to the current 24.9% margin and recent negative earnings growth versus that 5 year trend as a concrete sign that margin expansion is not automatic.

TTM EPS At US$3.31 Versus 5 Year 18% Growth Story

• Trailing twelve month EPS is US$3.31, backed by roughly US$6.8b of net income. The most recent quarterly EPS figures in 2025 ranged from about US$0.41 in Q1 to US$1.18 in Q3.
• The bullish view leans on that long run 18% annual earnings growth, and these numbers partly support but also test that stance:
  • Bulls argue that forecast earnings growth of around 9.1% a year, on top of the existing EPS base of US$3.31, reflects demand and project backlog.
  • At the same time, the latest year of negative earnings growth against that 5 year history shows why bulls need to watch how quickly EPS moves away from recent quarterly volatility.

Investors who want to see how those growth assumptions compare with detailed earnings projections can go deeper into the bullish case with 🐂 NextEra Energy Bull Case

P/E Of 29.4x And US$96.25 Price Versus US$75.82 DCF Value

• The shares trade at US$96.25 with a trailing P/E of 29.4x, above peers at 27.7x and the US electric utilities industry at 21.9x. DCF fair value is flagged at about US$75.82.
• Bears focus heavily on this valuation gap and the cash coverage profile, and the latest figures give them clear talking points:
  • Critics highlight the dividend yield of 2.59% not being well covered by free cash flow and interest expense not being well covered by earnings as balance sheet pressures alongside the premium P/E.
  • They also point out that with earnings forecast to grow around 9.1% a year, slower than the broader US market forecast, paying above both peer P/E levels and DCF fair value leaves less room for disappointment.

If you are weighing those valuation and balance sheet concerns, it is worth seeing how skeptics frame the numbers in the detailed cautious case via 🐻 NextEra Energy Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for NextEra Energy on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both risks and rewards on the table, the real question is how the balance looks to you. Move quickly, review the latest figures and then weigh up the 1 key reward and 2 important warning signs

See What Else Is Out There

NextEra Energy’s premium 29.4x P/E, DCF value of about US$75.82 and weaker cash coverage for its 2.59% dividend all put pressure on its current valuation.

If you are uneasy about paying up when margins have eased and free cash flow coverage looks tight, you can quickly compare alternatives using the solid balance sheet and fundamentals stocks screener (42 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.