stockrowWhat it does
Entergy is an integrated energy company that produces and delivers electricity. Its utilities generate power, carry it over transmission lines, distribute it through local networks and sell it to customers. They serve homes, businesses, industrial facilities and other customers, as well as selling electricity at wholesale.
The company delivers electricity to approximately 3.1 million Utility customers in Arkansas, Louisiana, Mississippi and Texas. Its power plants have approximately 25,000 MW of generating capacity, with a mix that includes nuclear, hydroelectric, solar and natural gas generation. Entergy operates mainly through its Utility segment, which includes five retail electric utilities and System Energy, a wholesale power supplier to affiliated utilities.
The retail utilities operate under rates and other terms approved by regulators. They also invest in power plants, transmission and distribution infrastructure to serve customers and maintain their systems. In Louisiana and New Orleans, Entergy previously distributed natural gas as well as electricity, but sold those gas distribution businesses on July 1, 2025.
Entergy was founded in 1913 and is headquartered in New Orleans. Andrew S. Marsh is its chief executive officer.
How it makes money
Entergy earns most of its revenue by selling and delivering regulated electricity. The Utility segment includes generation, transmission, distribution and sales, with five retail subsidiaries serving customers in their respective territories. System Energy also sells power and capacity from Grand Gulf at wholesale to affiliated Entergy utilities.
Retail rates are set through state or local regulatory processes, while the Federal Energy Regulatory Commission regulates wholesale electricity rates and interstate transmission. The utilities regularly participate in rate proceedings. Some use formula rate plans that allow annual adjustments between broader rate cases, subject to caps or other conditions. Entergy Texas uses a historical test-year rate case and interim cost-recovery mechanisms.
Customer bills also include mechanisms, often called riders, designed to recover particular costs. For example, Entergy Arkansas has an energy cost recovery rider for fuel and purchased power, with adjustments for prior over- or under-recovery. Entergy Louisiana has a fuel adjustment clause that reconciles fuel costs with amounts billed. Recovery can be delayed or disallowed in regulatory proceedings.
For FY2025, the Utility segment generated $12.9 billion of revenue, and regulated electricity accounted for 98.7% of company revenue. Electricity service produces recurring customer bills, although usage varies with weather and other conditions; the normal peak sales period is the third quarter. Natural gas distribution contributed revenue before the Louisiana and New Orleans businesses were sold in July 2025.
In 2025, Entergy’s annual revenue was $12.9 billion; in Q3 2026, adjusted earnings per share were $1.98.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Electricity, US Regulated | $12.8 billion | 98.7% | 9.87% |
| Natural Gas, US Regulated | $112.6 million | 0.87% | −36.8% |
| Product and Service, Other | $58.8 million | 0.45% | −20.4% |
Customers and how it sells
Entergy’s retail electric customers are in portions of Arkansas, Louisiana, Mississippi and Texas, including the City of New Orleans. Each of its five retail utility subsidiaries serves customers in its own area. The utilities provide electricity directly to retail customers and also sell power to wholesale customers.
The customer base includes residential, commercial, industrial and governmental users. Major industrial customers are primarily in petroleum refining and chemicals. Electricity sales are seasonal, with the normal peak in the third quarter. Weather, economic conditions and technological developments can affect usage.
Data centers are a source of new demand. Entergy Mississippi has service agreements for campuses in which Amazon Web Services is investing, and Entergy Louisiana has proposed generation and transmission assets associated with a data center developed by a Meta Platforms subsidiary. Entergy Arkansas has amended its service agreement with Google for the expansion of its West Memphis campus.
Entergy says its planned infrastructure investments for large data centers are primarily connected to agreements with a small number of new customers. It also sells through wholesale arrangements: System Energy supplies Grand Gulf power and capacity to affiliated utilities.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Utility | $12.9 billion | 99.5% | 9.17% |
| Corporate Segment and Other Operating Segment | $58.9 million | 0.45% | −20.4% |
Suppliers and costs
Entergy’s costs include fuel, purchased power, plant operation and maintenance, transmission and distribution infrastructure, and financing. Its nuclear operations also require uranium fuel and services to convert, enrich and fabricate it. Nuclear plants face costs for refueling, spent-fuel storage and eventual decommissioning.
The utility operating companies use rate mechanisms to recover fuel and purchased-power costs, but recovery is subject to regulatory review and can be delayed or disallowed. Storm restoration is another cost that utilities seek to recover; delays or failures in that process can affect the companies.
Entergy has signed firm natural gas transportation agreements with midstream and pipeline companies for 1.325 billion cubic feet of natural gas per day. The company says that is enough fuel for 10 new combined cycles in Louisiana. No transportation supplier is named in that announcement.
Construction projects require materials, equipment, contractors and labor. Entergy says standardized designs and batch purchases have helped it manage construction costs and schedules. It also faces potential supply-chain disruptions and shortages or delays involving components and materials, including steel, aluminum and solar panels.
- Revenue$12.9B
- Cost of revenue−$3.6B
- Selling, general and administrative−$4.0B
- Other operating costs−$2.2B
- Operating income$3.2B
Competitive position
Entergy’s retail utilities serve designated areas under state or local regulation. Their rates and terms of service are determined through regulatory proceedings, and the Federal Energy Regulatory Commission regulates wholesale electricity rates and interstate transmission. Mississippi Power Company is named alongside Entergy Mississippi in a state review of utility rate-setting methods, but no direct competitor to Entergy is identified.
Entergy also faces changes in electricity use from distributed energy resources, energy storage, demand-side management and rooftop solar. The company identifies risks from competitive and large-scale transmission projects built by others and connected to its systems. In discussing potential customer partnerships, Entergy says it has generation-building capability and competes to build generation in its service territory.
Our reading: Entergy’s established local networks and regulated service relationships are meaningful sources of protection, because providing electricity requires generation, transmission and distribution infrastructure. That protection is qualified by regulatory control over rates and cost recovery.
Our reading: The company’s integrated operations and construction experience can support its position when customers need new power, but competing projects, distributed resources and customer choices limit the protection those capabilities provide.
Growth opportunities
Entergy is investing in generation, transmission, distribution and resilience to support customer growth and service reliability. Large data centers and traditional industrial customers are part of that plan. The company says its data-center interest pipeline is in the range of 7 to 12 gigawatts, with discussions for 3 to 5 gigawatts in traditional industrial segments. Those opportunities are at varying stages and are not all included in its base plan.
Entergy Arkansas has amended its agreement with Google for the expansion of the West Memphis campus. In connection with the agreement, it requested approval of the contract, $600 million of battery storage investment and a power purchase agreement for Big Island Solar. Entergy says Google will cover the cost of the new investments and its share of system costs.
The company also plans more than 1 thousand miles of transmission lines, primarily in Louisiana and Texas, to support industrial and data-center growth. It says approximately 70% of the investment is already approved and about a third of the line miles are under construction.
Entergy increased its capital plan by approximately $1.5 billion from 2026 through 2030, including investments for the Google expansion and updates from its annual planning cycle. It is also exploring battery storage, power-plant uprates and solar as options for serving customers.
- $11.7BFY2021
- $13.8BFY2022
- $12.1BFY2023
- $11.9BFY2024
- $12.9BFY2025
Structural risks
- Regulation and recovery: Rate proceedings can be lengthy and subject to appeal. Fuel, purchased-power and other costs may be recovered late or disallowed, while changes in laws, regulation or government programs can affect the utilities.
- Storms and climate: Severe weather can damage infrastructure and create restoration costs. A delay or failure in recovering those costs, or an inability to finance future storm costs through securitization, could materially affect Entergy and its utilities.
- Data-center investment: New generation and transmission investments depend on a limited number of large customers, continued demand for data-center electricity and successful project completion. Reduced demand, delays or unexpected costs may harm results and growth prospects.
- Nuclear operations: Unplanned outages or longer refueling outages can affect results. Entergy also faces fuel-supply, licensing, spent-fuel storage and decommissioning risks, including the possibility that decommissioning trust assets are insufficient.
- Capital and execution: Entergy depends on capital-market access and can face liquidity constraints or higher financing costs. Supply-chain disruptions, component shortages and construction delays can affect projects and operations.
Bottom line
Our reading
Entergy is a regulated electricity business built around owned generation and delivery networks, with customer bills and investment returns shaped by regulatory decisions. [item1] Its growth opportunity increasingly includes infrastructure for large data centers and industrial users, while the associated spending depends on approvals, project execution and sustained customer demand. [item1; call_prepared] Storm recovery, nuclear operations and access to capital remain material exposures alongside that expansion. [item1a]