FirstEnergy Corporation

Peter Thiel's Thiel Macro LLC disclosed a $418.7 million portfolio across eight positions as of June 30, 2026, with seven of the eight bets focused on the physical energy bottleneck constraining AI buildout. The largest disclosed positions are Amazon at $118.0 million, Vista Energy at $75.9 million, Vistra at $59.1 million, American Electric Power at $42.2 million, DTE Energy at $40.3 million, FirstEnergy at $39.9 million, CMS Energy at $39.6 million, and X-Energy at $3.7 million. The filing reflects long US equity positions only and excludes shorts, derivatives, private stakes, and non-US listings. The thesis centers on power supply rather than chips, with utilities like American Electric Power disclosing 69 gigawatts of contracted load additions through 2030 and a $78 billion five-year capital plan, while Vistra leverages its nuclear fleet and the pending Cogentrix deal. Amazon's AWS revenue surged 36.7% year-over-year to $42.2 billion in Q2, and its roughly $500 million investment in X-Energy positions it as both a creator and solver of the AI power bottleneck.

Twelve of the 16 S&P 500 utility companies that reported quarterly results this week surpassed earnings expectations, while 10 beat revenue forecasts and six missed. CenterPoint Energy raised its 10-year capital investment plan by $1.2 billion to $66.7 billion, citing rising power demand in Houston. FirstEnergy forecast 25 gigawatts of total data center demand and reaffirmed its $36 billion five-year plan. Exelon lowered its high-probability data center pipeline to 11 gigawatts from 18 gigawatts and cut its overall future pipeline through 2027 to 25 gigawatts from 43 gigawatts. American Electric Power missed earnings estimates but raised its full-year 2026 operating earnings guidance, and Dominion Energy reaffirmed its 2026 guidance while targeting the final turbine for its Coastal Virginia Offshore Wind project by the end of 2027 at a cost estimate of $11.65 billion.

FirstEnergy reported second-quarter 2026 adjusted earnings of 50 cents per share, beating the Zacks Consensus Estimate of 49 cents by 2.04%. GAAP earnings were 50 cents per share, up from 46 cents a year ago. Operating revenues rose 8.82% to $3.68 billion, exceeding the $3.56 billion consensus. Stand-Alone Transmission segment revenues grew 19.30% to $544 million, driven by an 11% increase in transmission rate base, while Distribution segment core earnings declined 6 cents due to higher maintenance expenses. The company reaffirmed its 2026 core earnings guidance of $2.62 to $2.82 per share and its $36 billion capital plan for 2026-2030, with total contracted and pipeline data center demand reaching 24.8 gigawatts, up about 30% from the first quarter.

Goldman Sachs has raised its forecast for worldwide data center capacity to 217 gigawatts by 2030, up from a prior estimate of 168 gigawatts and more than double the 101 gigawatts expected in 2025. The additional 116 gigawatts of capacity would require roughly $6 trillion in capital spending, a level the bank believes can be supported by current hyperscaler investment plans. Goldman favors utilities including FirstEnergy, Xcel Energy, Duke Energy and Sempra, as well as independent power producers Talen Energy, Vistra and NRG Energy, which it expects to benefit from rising power prices and growing data center-related power contracts. Among data center operators, Goldman maintained a Buy rating on Digital Realty, citing persistent supply-demand tightness and AI infrastructure spending. The bank estimates data center capacity will grow at a 17% compound annual rate between 2025 and 2030, with 60% to 70% of new capacity additions located in the United States, and projects global data center power consumption will rise 170% by 2030 compared with 2025 levels.

FirstEnergy shares may be modestly undervalued, with a widely followed narrative pegging fair value at $52.15 compared to a recent close of $48.43, implying a 7.1% discount. The valuation is supported by a $28 billion investment plan through 2029 and a 15% compound annual growth rate in transmission rate base, which are expected to boost returns on equity and earnings growth. However, the stock's current price-to-earnings ratio of 26.3 times sits above both the US Electric Utilities industry average of 22.3 times and a fair ratio of 24.1 times, signaling potential valuation risk. The average analyst price target stands at roughly $52.38, about 8% above the current trading level.

FirstEnergy is benefiting from surging electricity demand driven by data center development, with its 2035 pipeline demand reaching 14.9 gigawatts, a 15% increase since February 2026. The company's West Virginia service territory has nearly 1.8 gigawatts of highly credible data center projects in the pipeline, up 50% from earlier expectations, and is advancing negotiations for more than 6 gigawatts of potential load, with nearly 4 gigawatts expected to be contracted soon. FirstEnergy plans to invest 6 billion dollars in 2026 and 36 billion dollars during 2026 through 2030 under its Energize365 grid investment plan to modernize infrastructure and accommodate expanding data center demand. The Zacks Consensus Estimate for 2026 and 2027 earnings per share indicates year-over-year increases of 7.45% and 7.57%, respectively. The stock carries a Zacks Rank of 2, or Buy, and is trading at a forward 12-month price-to-earnings of 17.1 times, a premium to the industry average of 15.87 times.

The Illuminating Company has delivered the first of two new transformers to its Lakewood Substation, marking a key milestone in efforts to improve electric reliability for nearly 11,000 customers in Lakewood and West Cleveland. The 55-ton transformer traveled nearly 500 miles from Roanoke, Virginia, and was lifted into place by crane at the Athens Avenue facility. A second identical transformer will arrive the week of June 29 and be installed later this summer, with each unit representing an approximately $1.85 million investment. Once both are energized—the first later this year and the second by early next year—customers can expect reduced outage durations, faster restoration times, and greater backup capacity that may also benefit surrounding communities. The upgrades are part of a broader reliability push that has already included substation breaker replacements, pole equipment work on 167 poles, smart meter installations, and proactive tree trimming, contributing to a 98% drop in total customer outage time in December 2025 compared to December 2024.

FirstEnergy Corporation benefits from its regulated structure and rising data center demand, driving load growth and earnings visibility. The company has proposed a 1.2-gigawatt natural gas facility in West Virginia to meet surging data-center demand, which has increased 50% since February 2026 to nearly 1.8 gigawatts, while its long-term demand pipeline has expanded to 14.9 gigawatts, up 15% from February 2026 and more than double the February 2025 level. FirstEnergy plans to invest $6 billion in 2026 and $36 billion from 2026 to 2030, a 30% increase over its prior plan, under its Energize365 platform aimed at enhancing grid reliability and supporting renewable expansion. The company targets adding 1,200 megawatts of natural gas combined cycle generation by 2031 and 70 megawatts of utility-scale solar generation in 2028, with a goal of 100% carbon neutrality by 2050. However, uncertainties in base rate case approvals and environmental compliance costs for its coal-fired plants pose potential headwinds.

FirstEnergy Corp. has appointed three senior leaders to strengthen operational performance, advance its safety culture, and accelerate enterprise-wide technology transformation. Chris Beam becomes President of West Virginia/Maryland Operations, overseeing Mon Power and Potomac Edison along with the company's regulated generation business, reporting to Wade Smith. Hanneke Counts joins as Vice President of Environmental Health and Safety, tasked with standardizing safety practices and expanding field coaching programs, reporting to Chief Operating Officer Toby Thomas. Daniel Puscas takes the role of Chief Information Officer, responsible for enterprise technology, digital, and cybersecurity strategy, reporting to Board Chair, President and CEO Brian X. Tierney. The appointments are part of FirstEnergy's strategy to improve reliability, accountability, and customer experience across its electric system serving more than 6 million customers in six states.