American Water Works (NYSE:AWK) Releases Earnings Results, Misses Expectations By $0.12 EPS

American Water Works (NYSE:AWK) posted its earnings results on Wednesday. The utilities provider reported $1.01 EPS for the quarter, missing analysts’ consensus estimates of $1.13 by ($0.12), FiscalAI reports. American Water Works had a net margin of 21.61% and a return on equity of 10.38%. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.28 billion. American Water Works updated its FY 2026 guidance to 6.020-6.120 EPS.

American Water Works Stock Down 0.4%

Shares of AWK stock traded down $0.59 on Wednesday, reaching $132.08. 1,811,594 shares of the stock were exchanged, compared to its average volume of 1,826,269. The company has a current ratio of 0.46, a quick ratio of 0.44 and a debt-to-equity ratio of 1.18. The business’s 50 day moving average price is $135.09 and its 200 day moving average price is $132.69. The company has a market capitalization of $25.79 billion, a price-to-earnings ratio of 23.21, a PEG ratio of 2.91 and a beta of 0.74. American Water Works has a twelve month low of $121.28 and a twelve month high of $150.51.

American Water Works Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Tuesday, May 12th will be paid a dividend of $0.895 per share. The ex-dividend date is Tuesday, May 12th. This is an increase from American Water Works’s previous quarterly dividend of $0.83. This represents a $3.58 dividend on an annualized basis and a dividend yield of 2.7%. American Water Works’s payout ratio is presently 58.17%.

Hedge Funds Weigh In On American Water Works

Large investors have recently bought and sold shares of the stock. Transamerica Financial Advisors LLC boosted its stake in American Water Works by 82.6% in the fourth quarter. Transamerica Financial Advisors LLC now owns 199 shares of the utilities provider’s stock valued at $26,000 after acquiring an additional 90 shares in the last quarter. DV Equities LLC purchased a new stake in shares of American Water Works in the fourth quarter valued at about $35,000. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its holdings in shares of American Water Works by 81.3% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 290 shares of the utilities provider’s stock valued at $38,000 after buying an additional 130 shares during the last quarter. Darwin Wealth Management LLC purchased a new position in American Water Works during the second quarter worth about $47,000. Finally, Johnson Financial Group Inc. raised its holdings in American Water Works by 141.7% during the fourth quarter. Johnson Financial Group Inc. now owns 394 shares of the utilities provider’s stock worth $51,000 after purchasing an additional 231 shares in the last quarter. Institutional investors and hedge funds own 86.58% of the company’s stock.

American Water Works News Summary

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

• Positive Sentiment: Board raised the quarterly cash dividend to $0.8950 (8.2% increase); payable June 2 with ex‑dividend May 12 — supports income investors and signals management confidence. American Water Announces Dividend Increase
• Positive Sentiment: Company affirmed 2026 EPS guidance range of $6.02–$6.12 and reiterated long‑term targets, providing guidance stability despite the quarterly miss. AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS
• Neutral Sentiment: Several community grants announced by the American Water Charitable Foundation across NJ, MD, VA and MO — positive PR but unlikely to move the stock materially. New Jersey American Water Proudly Recognizes American Water Charitable Foundation 2026 Water and Environment Grantees
• Neutral Sentiment: Senior engineering leader Suzanne Chiavari received an industry award (AWWA George Warren Fuller) — positive for reputation but not a stock driver. American Water’s Suzanne Chiavari Named 2026 AWWA George Warren Fuller Award Recipient
• Neutral Sentiment: Analyst/valuation coverage questioning whether recent share weakness is justified — useful context for investors but not a company action. Is American Water Works Company (AWK) Price Justified After Recent Share Price Weakness
• Negative Sentiment: Quarterly results missed estimates: adjusted EPS $1.01 vs. consensus $1.13 and revenue $1.21B vs. $1.28B expected — the primary near‑term catalyst for the share decline. AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS
• Negative Sentiment: Company completed a $700M offering of 5.200% senior notes due 2036 — increases long‑term debt and interest obligations (context: transaction costs tied to the proposed Essential Utilities merger also impacted GAAP results). AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS

Wall Street Analyst Weigh In

AWK has been the topic of several research analyst reports. Bank of America upgraded American Water Works from an “underperform” rating to a “neutral” rating and lifted their price objective for the stock from $117.00 to $139.00 in a report on Monday, January 12th. Barclays lifted their price target on shares of American Water Works from $122.00 to $124.00 and gave the company an “underweight” rating in a research report on Monday, April 20th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of American Water Works in a research report on Friday, March 27th. Wells Fargo & Company set a $131.00 target price on American Water Works in a research report on Tuesday, April 21st. Finally, Wall Street Zen raised American Water Works from a “strong sell” rating to a “sell” rating in a research report on Sunday. One investment analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, American Water Works has an average rating of “Hold” and an average target price of $141.20.

About American Water Works

American Water Works Company, Inc (NYSE: AWK) is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company’s operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.