American Water Works (NYSE:AWK) Announces FY 2026 Earnings Guidance

American Water Works (NYSE:AWK) issued an update on its FY 2026 earnings guidance on Friday. The company provided EPS guidance of 6.070-6.120 for the period, compared to the consensus estimate of 6.080.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on AWK. Bank of America reaffirmed a “neutral” rating on shares of American Water Works in a research note on Thursday, July 16th. Truist Financial set a $139.00 target price on American Water Works in a research note on Tuesday, August 4th. UBS Group decreased their target price on American Water Works from $162.00 to $153.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. JPMorgan Chase & Co. boosted their price target on American Water Works from $138.00 to $147.00 and gave the stock a “neutral” rating in a report on Wednesday, July 8th. Finally, Weiss Ratings upgraded American Water Works from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, October 2nd. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and an average target price of $137.88.

American Water Works Trading Up 1.5%

Shares of American Water Works stock opened at $144.31 on Friday. The firm has a market cap of $28.73 billion, a price-to-earnings ratio of 24.27, a PEG ratio of 2.90 and a beta of 0.58. The business has a 50-day moving average price of $135.56 and a 200-day moving average price of $132.44. The company has a quick ratio of 0.49, a current ratio of 0.39 and a debt-to-equity ratio of 1.17. American Water Works has a twelve month low of $120.57 and a twelve month high of $146.62.

American Water Works (NYSE:AWK) last issued its earnings results on Wednesday, October 28th. The utilities provider reported $2.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.04 by ($0.04). The firm had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.58 billion. American Water Works had a return on equity of 10.14% and a net margin of 21.26%. The company’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period last year, the firm posted $1.94 earnings per share. Equities research analysts anticipate that American Water Works will post 6.09 EPS for the current fiscal year.

American Water Works Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Thursday, November 12th will be issued a dividend of $0.8950 per share. This represents a $3.58 annualized dividend and a yield of 2.5%. The ex-dividend date is Thursday, November 12th. American Water Works’s dividend payout ratio (DPR) is currently 62.05%.

More American Water Works News

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

• Positive Sentiment: AWK issued fiscal 2026 EPS guidance of $6.07-$6.12, with the midpoint slightly above the current consensus estimate of $6.08. The outlook reflects expected benefits from rate increases, acquisitions and ongoing capital investment.
• Positive Sentiment: Investor attention is also focused on progress involving a merger, which one analysis suggests could support material upside to the stock’s estimated fair value. American Water Works Stock Could Be 25% Above Fair Value on Merger Progress
• Positive Sentiment: California American Water, an AWK subsidiary, plans to invest approximately $1.68 million to rehabilitate the Isleton 3B Well. The project should improve system reliability and extend the useful life of critical infrastructure, supporting the company’s regulated-utility growth strategy. California American Water Invests $1.68 Million in Isleton Water System
• Neutral Sentiment: AWK continues to attract interest as a defensive dividend utility, with regulated water operations providing relatively stable demand and cash flow. However, the pace of future dividend growth remains dependent on regulatory approvals and capital requirements. These 4 Boring Dividend Stocks Get Paid Every Time America Turns on the Tap
• Negative Sentiment: Third-quarter adjusted EPS was $2.00, below estimates ranging from $2.05 to $2.11. Higher costs and unfavorable weather more than offset revenue growth, creating near-term pressure on margins. American Water Q3 Earnings Miss on Higher Costs Despite Revenue Growth
• Negative Sentiment: The earnings shortfall indicates that AWK must control operating expenses and execute planned rate increases and investments to convert revenue growth into stronger profits.

About American Water Works

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.