American Electric Power (NASDAQ:AEP) Posts Earnings Results, Misses Estimates By $0.12 EPS

American Electric Power (NASDAQ:AEP) posted its quarterly earnings results on Thursday. The company reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.48 by ($0.12), Zacks reports. American Electric Power had a net margin of 16.29% and a return on equity of 10.21%. During the same quarter in the prior year, the business posted $1.43 EPS. The firm’s quarterly revenue was up 7.0% on a year-over-year basis. American Electric Power updated its FY 2026 guidance to 6.250-6.550 EPS.

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

• AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share from $6.15–$6.45, while reaffirming 7%–9% annual earnings growth and an operating EPS CAGR above 9% through 2030.
• Contracted large-load additions increased by 6 gigawatts to 69 gigawatts through 2030, including 45 gigawatts in Texas, supported by executed agreements and nearly $2 billion of customer cash or collateral commitments.
• AEP continues to expand its long-term investment pipeline, with a $78 billion 2026–2030 capital plan, approximately 11% rate-base CAGR, 13 gigawatts of secured turbine capacity, and more than $10 billion of potential incremental investments.
• The company completed a $3 billion marketed equity transaction to address anticipated financing needs for its base capital plan and secured a DOE loan guarantee of up to $3.3 billion, which AEP expects will generate approximately $685 million in customer savings.
• Second-quarter operating earnings declined to $1.36 per share from $1.43 a year earlier, reflecting the 2025 transmission minority-interest sale, tax timing items, prior-year favorable weather, and higher reliability-related O&M spending; management also acknowledged that ERCOT reviews and transmission or generation availability could delay some load interconnections.

American Electric Power Price Performance

Shares of American Electric Power stock traded down $1.62 during trading on Thursday, hitting $127.78. The stock had a trading volume of 5,723,955 shares, compared to its average volume of 4,067,045. The company has a current ratio of 0.53, a quick ratio of 0.39 and a debt-to-equity ratio of 1.42. American Electric Power has a 12 month low of $105.70 and a 12 month high of $140.58. The firm has a market cap of $69.53 billion, a price-to-earnings ratio of 18.76, a P/E/G ratio of 2.39 and a beta of 0.52. The business’s 50-day moving average is $131.91 and its 200 day moving average is $129.69.

American Electric Power Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be issued a $0.95 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $3.80 annualized dividend and a dividend yield of 3.0%. American Electric Power’s dividend payout ratio is presently 55.80%.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. The Goldman Sachs Group upped their price objective on American Electric Power from $141.00 to $142.00 and gave the company a “buy” rating in a research note on Wednesday, April 15th. Scotiabank boosted their price objective on American Electric Power from $131.00 to $140.00 and gave the company a “sector perform” rating in a research note on Wednesday, May 6th. Citigroup increased their price objective on American Electric Power from $132.00 to $148.00 and gave the stock a “neutral” rating in a report on Wednesday, May 6th. Mizuho raised their target price on American Electric Power from $130.00 to $141.00 and gave the stock a “neutral” rating in a research note on Wednesday, May 6th. Finally, Jefferies Financial Group lifted their target price on American Electric Power from $147.00 to $154.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Thirteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $141.71.

Hedge Funds Weigh In On American Electric Power

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Soroban Capital Partners LP raised its holdings in shares of American Electric Power by 176.3% in the 2nd quarter. Soroban Capital Partners LP now owns 4,004,686 shares of the company’s stock valued at $415,526,000 after acquiring an additional 2,555,415 shares in the last quarter. State Street Corp raised its stake in American Electric Power by 5.2% in the fourth quarter. State Street Corp now owns 30,437,776 shares of the company’s stock valued at $3,509,780,000 after purchasing an additional 1,514,865 shares in the last quarter. AQR Capital Management LLC lifted its position in American Electric Power by 118.2% during the third quarter. AQR Capital Management LLC now owns 2,585,605 shares of the company’s stock valued at $286,692,000 after purchasing an additional 1,400,547 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in American Electric Power by 27.4% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,896,125 shares of the company’s stock worth $333,952,000 after buying an additional 623,340 shares in the last quarter. Finally, Deutsche Bank AG grew its stake in American Electric Power by 52.3% in the 4th quarter. Deutsche Bank AG now owns 1,577,561 shares of the company’s stock worth $181,909,000 after buying an additional 541,672 shares in the last quarter. 75.24% of the stock is currently owned by hedge funds and other institutional investors.

American Electric Power News Roundup

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

• Positive Sentiment: AEP raised its 2026 operating earnings guidance to $6.25-$6.55 per share, with the midpoint above the current analyst consensus of $6.35. Management cited robust demand from data centers and other large customers. American Electric Power lifts forecast as AI fuels electricity surge
• Positive Sentiment: The utility expanded expected new load additions to 69 gigawatts through 2030 and secured approximately 13 gigawatts of gas-fired turbine capacity, with another 10 gigawatts under evaluation. These plans could support long-term earnings and rate-base growth. AEP Reports Second-Quarter 2026 Earnings, Raises Full-Year Guidance
• Positive Sentiment: AEP said load growth could generate up to $16 billion in expected cost offsets, while federal loan guarantees and grants could provide approximately $1.4 billion in customer savings, potentially improving affordability and project economics. AEP Reports Second-Quarter 2026 Earnings, Raises Full-Year Guidance
• Neutral Sentiment: Second-quarter revenue increased 7% year over year, indicating continued business growth, although the earnings benefit was not sufficient to meet expectations.
• Negative Sentiment: Operating EPS was $1.36, below the $1.48-$1.49 consensus and down from $1.43 a year earlier. Management attributed pressure partly to tax timing and the impact of a prior transaction. American Electric’s Q2 Earnings Lag Estimates, Revenues Increase Year Over Year
• Negative Sentiment: GAAP earnings fell to $1.31 per share from $2.29 a year earlier, reinforcing near-term concerns about earnings quality and volatility despite the improved outlook.

About American Electric Power

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.