Vistra beats Q4 profit estimates as AI boosts demand

Vistra Corp. reported fourth-quarter adjusted core profit that exceeded analyst expectations, driven by a significant increase in electricity demand from data centers supporting artificial intelligence. The power producer, based in Irving, Texas, recorded an adjusted core profit of $1.74 billion for the three months ended December 31, surpassing the average estimate of $1.68 billion.

Electricity consumption across the United States is projected to climb sharply through the next two years. This growth is being propelled by the rapid expansion of infrastructure for AI services and cryptocurrency mining, alongside a broader transition toward electric heating and transportation in residential and commercial sectors. Major technology firms are increasingly seeking long-term supply agreements to ensure reliable energy for their operations.

Earlier this year, Meta Platforms, Inc. entered into a 20-year power purchase agreement involving three of the company's nuclear facilities to support the development of small modular reactors. To further meet rising capacity requirements, the company announced a $4.7 billion deal in January to acquire Cogentrix Energy and its 10 natural gas-fired plants from Quantum Capital Group.

While the company is expanding its gas-fired and clean energy capacity, its fourth-quarter net profit narrowed to $233 million from $490 million in the prior year. However, management signaled strong confidence in future performance, forecasting 2026 adjusted core profit between $6.8 billion and $7.6 billion. This outlook represents a substantial increase from the 2025 projected range of $5.7 billion to $5.9 billion. Following the announcement, shares of the company rose 1.8% in premarket trading.