Talen Energy (NASDAQ:TLN) Releases Earnings Results, Misses Expectations By $10.49 EPS

Talen Energy (NASDAQ:TLN) issued its earnings results on Thursday. The utilities provider reported ($7.75) EPS for the quarter, missing the consensus estimate of $2.74 by ($10.49), FiscalAI reports. The business had revenue of $749.00 million during the quarter, compared to analyst estimates of $696.74 million. Talen Energy had a return on equity of 13.52% and a net margin of 9.83%.

Here are the key takeaways from Talen Energy’s conference call:

• The company reaffirmed 2026 guidance with adjusted EBITDA of $1.75–$2.05 billion and adjusted free cash flow of $980 million–$1.18 billion, noting the range excludes the pending Cornerstone deal.
• Talen expects the Cornerstone acquisition (3 assets in OH/IN) to close this summer and projected it will add more than $4 of incremental adjusted free cash flow per share annually upon closing.
• Management highlighted the Talen Flywheel strategy — including the Amazon front‑of‑meter 1.9 GW PPA, the Freedom and Guernsey acquisitions (≈2.8 GW), and an active pipeline of powered‑land and new‑build opportunities to support data center demand.
• Talen is actively engaging on PJM policy (the RBP/backstop procurement) and supports mechanisms intended to preserve existing contracts, but PJM allocation and implementation details remain uncertain.
• Strong 2025 results (adjusted EBITDA $1.035 billion; adjusted free cash flow $524 million, with Q4 free cash flow > all of 2024), >$2 billion liquidity, and a target net leverage below 3.5x underpin the company’s ability to pursue buybacks, M&A, or disciplined new‑build opportunities.

Talen Energy Stock Down 0.4%

TLN stock traded down $1.38 during trading hours on Thursday, hitting $390.05. The company’s stock had a trading volume of 629,307 shares, compared to its average volume of 801,970. The stock has a 50 day moving average price of $370.34 and a two-hundred day moving average price of $383.49. Talen Energy has a 12 month low of $158.08 and a 12 month high of $451.28. The company has a market capitalization of $17.82 billion, a PE ratio of 84.43, a price-to-earnings-growth ratio of 0.59 and a beta of 1.98. The company has a quick ratio of 1.72, a current ratio of 2.29 and a debt-to-equity ratio of 2.02.

Institutional Investors Weigh In On Talen Energy

Several institutional investors and hedge funds have recently modified their holdings of TLN. Invesco Ltd. increased its position in Talen Energy by 35.6% during the fourth quarter. Invesco Ltd. now owns 1,441,381 shares of the utilities provider’s stock worth $540,287,000 after buying an additional 378,357 shares during the last quarter. State Street Corp boosted its stake in shares of Talen Energy by 88.2% during the 3rd quarter. State Street Corp now owns 1,338,698 shares of the utilities provider’s stock worth $569,455,000 after acquiring an additional 627,467 shares in the last quarter. Carronade Capital Management LP boosted its stake in shares of Talen Energy by 2.9% during the 4th quarter. Carronade Capital Management LP now owns 577,239 shares of the utilities provider’s stock worth $216,372,000 after acquiring an additional 16,496 shares in the last quarter. Ameriprise Financial Inc. increased its holdings in shares of Talen Energy by 2.2% during the 3rd quarter. Ameriprise Financial Inc. now owns 448,827 shares of the utilities provider’s stock valued at $190,922,000 after acquiring an additional 9,748 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. raised its stake in shares of Talen Energy by 4.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 369,098 shares of the utilities provider’s stock valued at $138,353,000 after acquiring an additional 14,513 shares in the last quarter. Institutional investors and hedge funds own 0.38% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on TLN shares. Barclays decreased their price objective on Talen Energy from $457.00 to $425.00 and set an “overweight” rating for the company in a research report on Wednesday, February 11th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Talen Energy in a research report on Wednesday, January 21st. Morgan Stanley set a $474.00 price objective on shares of Talen Energy in a research note on Friday, February 20th. Finally, Wells Fargo & Company lifted their target price on shares of Talen Energy from $445.00 to $506.00 and gave the company an “overweight” rating in a research note on Tuesday, January 20th. Eleven research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $410.92.

Talen Energy Company Profile

Talen Energy Inc is an independent power producer that develops and operates a diversified portfolio of thermal and renewable generation facilities across the United States. The company supplies wholesale electricity and related services to utilities, large industrial customers, and power marketers, participating actively in regional markets such as PJM Interconnection and the Electric Reliability Council of Texas (ERCOT). Talen’s asset base comprises a mix of natural gas-fired, coal-fired and nuclear generation, supplemented by battery storage and other flexible resources designed to support the evolving needs of the grid.

Established in December 2015 through the combination of the competitive generation businesses previously held by two major utility groups, Talen Energy was structured as a standalone, publicly traded entity on the NASDAQ stock exchange (TLN).