American Water Works Co. Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did AWK Beat Earnings? Q1 2026 Results
American Water Works delivered a mixed first quarter for 2026, clearing the revenue bar while falling short on the bottom line. The regulated water utility posted adjusted EPS of $1.01, coming in 7.40% below the $1.09 consensus estimate, even as revenue climbed 5.7% year over year to $1.21 billion, beating expectations of $1.12 billion by 8.01%. The earnings shortfall traced primarily to rising costs below the operating line, with interest expense increasing $12.00 million and depreciation charges up $21.00 million from a year ago, squeezing net income attributable to common shareholders to $196.00 million from $205.00 million despite operating income improving to $391.00 million from $371.00 million. The revenue strength reflected authorized rate increases from completed general rate cases and infrastructure proceedings, consistent with the company's $3.70 billion full-year capital investment program. Management affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12 and maintained long-term EPS and dividend growth targets of 7-9%, signaling confidence in the regulated earnings trajectory ahead.
- Authorized revenue increases from completed general rate cases and infrastructure proceedings
- Incremental revenue from closed acquisitions
- Recovery of capital and acquisition investments through new rates
“The company has delivered solid first quarter results and we are affirming our long-term targets for both earnings and dividend growth at 7 to 9 percent.”
American Water Works CEO, on the earnings call
Forward Guidance & Outlook
American Water affirmed its 2026 adjusted EPS guidance range of $6.02 to $6.12 (non-GAAP), excluding transaction costs related to the proposed Essential Utilities merger, weather impacts, and incremental HOS seller note interest income. The company also affirmed its long-term EPS and dividend growth rate targets of 7-9%. Total capital investment is planned at approximately $3.7 billion for 2026, including acquisitions. The company has general rate cases in progress in five jurisdictions and has filed for an infrastructure surcharge in one jurisdiction, reflecting a total annualized revenue request of $518 million.
AWK YoY Financials
Figures from SEC filings and company reports. Not investment advice.