Vistra Corp. VST is expected to deliver an improvement in both top and bottom lines when it reports second-quarter 2026 results on Aug. 7, before market open.
The Zacks Consensus Estimate for VST’s second-quarter revenues is pegged at $6.29 billion, indicating an increase of 48.07% from the year-ago reported figure.
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The consensus mark for VST’s second-quarter earnings is pegged at $1.54 per share, indicating a 52.48% increase from the year-ago reported figure.
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What the Zacks Model Unveils
Our model does not predict an earnings beat for Vistra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Vistra has an Earnings ESP of 0.00%.
Zacks Rank: VST currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
A few utilities reported positive earnings surprises this season and they have nuclear assets like VST, which are utilized to produce reliable clean energy.
Ameren Corporation AEE reported second-quarter 2026 earnings of $1.13 per share, which beat the Zacks Consensus Estimate of $1.08 by 4.6%. Duke Energy Corporation's DUK second-quarter 2026 earnings of $1.43 per share surpassed the Zacks Consensus Estimate of $1.29 by 10.9%. NextEra Energy NEE reported second-quarter 2026 results with adjusted earnings per share of $1.15 and beat the Zacks Consensus Estimate of $1.09 by 5.5%.
The Zacks Consensus Estimate for AEE, DUK and NEE’s 2026 earnings per share reflects an increase of 0.56%, 0.15% and 0.25%, respectively, in the past 60 days.
Factors Likely to Have Shaped VST’s Q2 Earnings
Vistra's second-quarter results are likely to benefit from rising clean electricity demand, fueled by the rapid expansion of U.S. data centers, industrial reshoring and Permian Basin electrification. With a diversified generation portfolio and a high-quality nuclear fleet, the second-quarter earnings are likely to have benefited from accelerating load growth across key markets such as PJM and ERCOT.
Vistra's comprehensive hedging program is expected to support second-quarter results, with nearly 100% of its 2026 generation volume hedged against market and price volatility. Contributions from acquired Lotus assets are expected to have boosted second-quarter earnings.
Vistra’s share repurchase program has boosted shareholder value and supported EPS growth, aiding its second-quarter performance. As of May 1, 2026, Vistra has nearly $158 billion available for share repurchases, which might have further supported earnings growth.
Vistra's long-term nuclear PPAs are likely to have supported second-quarter earnings by providing stable cash flows, while its highly efficient generation fleet further contributed to performance.
VST’s Return on Equity
VST’s current ROE is pegged at 105.64% compared with its industry’s 11.21%.
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VST Stock Trading at a Discount
Vistra is currently valued at a discount compared with its industry on a forward 12-month P/E basis. VST is trading at a P/EF12M of 13.62X compared with the industry’s 15.8X.
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Investment Thesis
Vistra is expanding its generation capacity through organic investments and strategic acquisitions, while its integrated business model provides a competitive advantage over non-integrated peers.
The extension of licenses for its nuclear plants enables the company to continue delivering large volumes of carbon-free electricity. Strong free cash flow generation further supports shareholder returns through share repurchases and dividends.
Summing Up
Vistra is well positioned to benefit from accelerating demand for clean electricity through continued expansion of its clean generation portfolio via acquisitions and organic growth. The company’s disciplined hedging strategy and rising power demand from data centers further strengthen its long-term outlook.
Given its compelling valuation and industry-leading ROE, the stock warrants consideration from long-term investors.
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Vistra Corp. (VST): Free Stock Analysis Report
Ameren Corporation (AEE): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Duke Energy Corporation (DUK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).