American Water Works (NYSE:AWK) Posts Earnings Results, Misses Expectations By $0.04 EPS

American Water Works (NYSE:AWK) issued its quarterly earnings results on Wednesday. The utilities provider reported $2.00 EPS for the quarter, missing the consensus estimate of $2.04 by ($0.04), Zacks reports. American Water Works had a net margin of 21.35% and a return on equity of 10.20%. The firm had revenue of $1.51 billion during the quarter, compared to analysts’ expectations of $1.58 billion.

American Water Works Stock Down 0.9%

NYSE:AWK traded down $1.29 during mid-day trading on Wednesday, reaching $139.81. The stock had a trading volume of 2,138,356 shares, compared to its average volume of 1,997,475. The stock has a market cap of $27.78 billion, a P/E ratio of 24.23, a PEG ratio of 2.91 and a beta of 0.58. The business’s 50 day moving average is $135.29 and its 200 day moving average is $132.25. The company has a debt-to-equity ratio of 1.20, a current ratio of 0.52 and a quick ratio of 0.49. American Water Works has a fifty-two week low of $120.57 and a fifty-two week high of $144.14.

American Water Works Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Thursday, November 12th will be paid a $0.8950 dividend. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $3.58 annualized dividend and a dividend yield of 2.6%. American Water Works’s payout ratio is presently 62.05%.

Wall Street Analyst Weigh In

Several analysts have issued reports on AWK shares. Truist Financial set a $139.00 target price on shares of American Water Works in a research note on Tuesday, August 4th. JPMorgan Chase & Co. raised their target price on American Water Works from $138.00 to $147.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 8th. Weiss Ratings raised American Water Works from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, October 2nd. Barclays lowered their price target on American Water Works from $130.00 to $127.00 and set an “underweight” rating on the stock in a report on Monday, October 19th. Finally, UBS Group dropped their price target on American Water Works from $162.00 to $153.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, American Water Works presently has an average rating of “Hold” and a consensus price target of $136.75.

American Water Works News Roundup

Here are the key news stories impacting American Water Works this week:

• Positive Sentiment: American Water reported third-quarter adjusted EPS of $2.00, up from $1.89 a year earlier, while year-to-date adjusted EPS rose to $4.63 from $4.40. Management also narrowed its 2026 adjusted EPS outlook to $6.07-$6.12, concentrating the range near its upper end, and initiated 2027 EPS guidance of $6.53-$6.63, implying approximately 8% growth. American Water third-quarter 2026 results
• Positive Sentiment: Regulatory execution improved, with new rates taking effect in Pennsylvania and New Jersey, while the company remains on track with its $3.7 billion capital investment plan and added approximately 81,000 customer connections through acquisitions. Progress on the Essential Utilities merger continued, with approvals in three states and settlements reached in Pennsylvania, North Carolina, and Texas. Merger and guidance update
• Neutral Sentiment: The board declared a quarterly dividend of $0.895 per share, or $3.58 annualized. The continued payout supports income-oriented investors but does not represent a change in the dividend rate. American Water dividend announcement
• Negative Sentiment: Third-quarter GAAP EPS was $1.94, $0.10 below the $2.04 analyst consensus, and unchanged from the prior-year quarter. The headline miss likely weighed on the stock despite the stronger adjusted results. American Water earnings release

American Water Works Company Profile

American Water Works Company, Inc is a public water and wastewater utility that provides essential services to residential, commercial, industrial and institutional customers. Through its regulated businesses, the company supplies drinking water, collects and treats wastewater, and manages related infrastructure, including treatment plants, pipelines, storage facilities and customer service systems.

Founded in 1886, American Water has grown into one of the largest water and wastewater service providers in the United States.