NextEra Energy (NEE) Stock Drops on $2B Equity Offering

NextEra Energy, Inc. (NYSE: NEE) saw its stock slide in premarket trading on Thursday, February 26, 2026, after announcing plans to raise $2 billion through a public offering of equity units. The news sent shares down roughly 1.82% in premarket hours to $93.38, following a closing price of $95.11 the prior session.

The offering, which also includes an underwriter option to purchase up to an additional $300 million in units, signals the company’s continued push to fund large-scale energy infrastructure investments. While the capital raise reflects NextEra’s ambitious growth strategy, markets reacted cautiously to the prospect of future dilution.

Details of the $2B Equity Offering

NextEra Energy announced that each equity unit will be issued at a stated amount of $50, comprising a forward contract to purchase NextEra common stock in the future alongside undivided beneficial ownership interests in two series of debentures issued by its wholly owned subsidiary, NextEra Energy Capital Holdings.

The debentures consist of a Series P Debenture due February 15, 2031, and a Series Q Debenture due February 15, 2034, each with a principal amount of $1,000, and both guaranteed by NextEra Energy. Wells Fargo Securities, BofA Securities, Citigroup, and Mizuho are serving as joint book-running managers for the offering.

In approximately three years, equity unit holders will be required to purchase NextEra Energy common stock for cash, at a price based on a range of 0% to 25% premium over the NYSE closing price of NEE on February 26, 2026.

The mandatory stock purchase must be completed by February 15, 2029, with the exact price determined by the average closing price over 20 consecutive trading days ending February 12, 2029. This structure effectively defers dilution while locking in future capital commitments from investors.

Net proceeds will be added to the general funds of NextEra Energy Capital Holdings and are expected to be used primarily to finance investments in energy and power projects. The company also noted that funds may be used for general corporate purposes, including the repayment of a portion of outstanding commercial paper obligations.

This capital raise comes as the company carries a substantial total debt load of $97.2 billion, consistent with the capital-intensive nature of its energy infrastructure business.

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NEE Stock Snapshot: Price, Trends, and Key Levels

As of premarket trading at 8:58 AM EST on February 26, 2026, NEE shares were down 1.82% to $93.38, pulling back from the prior session’s close of $95.11. The stock had been trading near its 52-week high of $95.91, buoyed by a strong 38% gain over the past year and an impressive year-to-date return of approximately 18.47%, significantly outpacing the S&P 500’s 1.47% gain over the same period.

Despite the short-term pressure from the offering announcement, the stock’s broader momentum has remained firmly positive heading into 2026.

From a valuation standpoint, NEE trades at a trailing P/E of 28.82 with an EPS of $3.30 and a market cap of approximately $198 billion. The analyst consensus average price target sits at $93.05, slightly below the current price, with a range spanning from $55 on the low end to $111 on the high end.

Morgan Stanley maintains an Overweight rating on the stock, while Mizuho most recently kept a Neutral rating, raising its price target from $88 to $90 in late January 2026.

On the fundamental side, NextEra reported Q4 FY2025 revenue of $6.5 billion and earnings of $1.13 billion, narrowly beating the normalized EPS estimate of $0.53 with an actual of $0.54. The company also announced a 10% increase in its quarterly dividend to $0.6232 per share, payable March 16, 2026, to shareholders of record as of February 27, 2026.

Looking ahead, NextEra is targeting an 8% or more compound annual growth rate in earnings per share through 2035, underpinned by its partnership with Xcel Energy and continued expansion into renewable energy, storage, and data center power infrastructure.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.