American Electric Power (NASDAQ:AEP) Posts Earnings Results, Beats Expectations By $0.04 EPS

American Electric Power (NASDAQ:AEP) released its quarterly earnings results on Thursday. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.15 by $0.04, Briefing.com reports. American Electric Power had a return on equity of 11.00% and a net margin of 17.23%.The business had revenue of $5.32 billion during the quarter, compared to the consensus estimate of $5.07 billion. During the same quarter in the previous year, the business earned $1.24 EPS. The company’s quarterly revenue was up 13.2% on a year-over-year basis. American Electric Power updated its FY 2026 guidance to 6.150-6.450 EPS.

Here are the key takeaways from American Electric Power’s conference call:

• AEP delivered strong 2025 results with operating earnings of $5.97 per share (Q4 $1.19), raised the quarterly dividend to $0.95, posted a 29% total shareholder return, and reaffirmed 2026 guidance of $6.15–$6.45 and a long‑term 7%–9% earnings growth target.
• Management doubled contracted incremental load to 56 GW (all backed by signed agreements), including 36 GW of LOAs in ERCOT, supported by a ~180 GW interconnection queue — materially increasing T&D demand and future revenue visibility.
• AEP is pursuing a large but framed growth plan — a conservative $72 billion five‑year capital plan (10% rate‑base CAGR) plus ~$5–8 billion identified upside, including ~$4.7 billion of transmission awards and a $2.65 billion Bloom fuel‑cell PPA, while emphasizing balance‑sheet targets (FFO/debt ~15%).
• Management acknowledged near‑term headwinds and execution risks — higher reliability O&M, rising depreciation and interest expense, plus permitting, interconnection and generation supply constraints — that could delay connections or raise costs if not resolved.

American Electric Power Stock Performance

AEP stock opened at $126.43 on Friday. The stock’s 50 day simple moving average is $117.33 and its 200 day simple moving average is $115.80. The company has a current ratio of 0.69, a quick ratio of 0.53 and a debt-to-equity ratio of 1.41. American Electric Power has a 12-month low of $97.46 and a 12-month high of $128.92. The stock has a market capitalization of $67.52 billion, a PE ratio of 18.43, a price-to-earnings-growth ratio of 2.92 and a beta of 0.62.

American Electric Power Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Tuesday, February 10th will be issued a $0.95 dividend. This represents a $3.80 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Tuesday, February 10th. American Electric Power’s payout ratio is presently 55.39%.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AEP. The Goldman Sachs Group lifted their price objective on American Electric Power from $128.00 to $133.00 in a report on Thursday, October 30th. Weiss Ratings reissued a “buy (b)” rating on shares of American Electric Power in a report on Wednesday, January 21st. Bank of America lowered shares of American Electric Power from a “buy” rating to a “neutral” rating and cut their price objective for the company from $131.00 to $122.00 in a research report on Monday, January 12th. Barclays upped their price target on shares of American Electric Power from $117.00 to $121.00 and gave the stock an “equal weight” rating in a report on Thursday, January 22nd. Finally, TD Cowen upgraded American Electric Power to a “strong-buy” rating in a research note on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $128.13.

American Electric Power News Roundup

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: Q4 results beat and guidance reaffirmed: AEP reported operating EPS of $1.19 vs. consensus $1.15 and revenue of $5.32B (up 13% YoY). Management reaffirmed 2026 operating earnings guidance of $6.15–$6.45 and reiterated long‑term 7%–9% earnings growth, supporting the bullish tone. AEP Reports Fourth Quarter and Full-Year 2025 Results, Reaffirms Long-Term Growth Outlook
• Positive Sentiment: Surging demand and bigger capex opportunity: AEP doubled its contracted load outlook to ~56 GW by 2030 and said it will expand its five‑year capital plan beyond $72B, identifying $5–$8B of additional investment opportunities to serve data centers and other large customers — a growth catalyst for regulated utility investment and future earnings. AEP doubles contracted load outlook to 56 GW by 2030 while reaffirming 7%-9% earnings growth through 2030
• Positive Sentiment: Market reaction: Traders favored AEP after the upbeat print and growth moves, with coverage noting shares gained amid a broader market pullback — momentum that likely amplified the intraday uptick. S&P 500 Falls Over 1%; American Electric Power Shares Gain After Upbeat Earnings
• Neutral Sentiment: Earnings call details and transcript available for deeper read: The Q4 earnings call transcript and slides provide management color on load wins, project timelines and capital allocation — useful if you want to validate execution risk and timing. American Electric Power Company, Inc. (AEP) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst/value context: Recent comparisons and analyst notes (Zacks, others) revisit valuation vs. peers after the print — helpful for investors weighing AEP’s yield and growth profile against alternatives. FE vs. AEP: Which Stock Is the Better Value Option?
• Negative Sentiment: Regulatory setback: FERC rejected AEP’s request to sell capacity in an upcoming auction, a near‑term headwind that could affect revenue timing or market participation assumptions for specific projects. FERC rejects AEP request to sell capacity in upcoming auction
• Negative Sentiment: New macro risk disclosure: A TipRanks item highlights management acknowledgment of trade‑policy shifts and geopolitical risks that could raise costs, pressure cash flows or affect supply chains — a reminder to monitor inflation, interest rates and tariff policy exposure. Trade Policy Shifts and Geopolitical Risks Threaten AEP’s Costs, Cash Flows and Financial Health

Insider Buying and Selling at American Electric Power

In other news, Director Benjamin G. S. Fowke III sold 5,000 shares of the company’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $115.07, for a total transaction of $575,350.00. Following the transaction, the director directly owned 25,898 shares of the company’s stock, valued at $2,980,082.86. This represents a 16.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.07% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On American Electric Power

Several institutional investors and hedge funds have recently modified their holdings of AEP. Measured Wealth Private Client Group LLC purchased a new position in shares of American Electric Power in the 3rd quarter worth $29,000. Osterweis Capital Management Inc. boosted its position in shares of American Electric Power by 3,000.0% during the second quarter. Osterweis Capital Management Inc. now owns 310 shares of the company’s stock valued at $32,000 after buying an additional 300 shares during the period. Imprint Wealth LLC bought a new position in shares of American Electric Power during the third quarter valued at approximately $35,000. Advocate Investing Services LLC purchased a new stake in shares of American Electric Power in the fourth quarter worth approximately $37,000. Finally, Wealth Watch Advisors INC bought a new stake in shares of American Electric Power during the 3rd quarter worth approximately $39,000. Institutional investors own 75.24% of the company’s stock.

American Electric Power Company Profile

American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.