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

American Water Works (NYSE:AWK) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 6.020-6.120 for the period, compared to the consensus estimate of 6.080. The company issued revenue guidance of -.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the stock. Truist Financial dropped their price target on shares of American Water Works from $137.00 to $130.00 and set a “hold” rating on the stock in a research note on Friday, May 29th. Wells Fargo & Company set a $131.00 target price on American Water Works in a research report on Tuesday, April 21st. Barclays lifted their price target on American Water Works from $124.00 to $130.00 and gave the company an “underweight” rating in a report on Wednesday, July 15th. UBS Group raised their price objective on shares of American Water Works from $140.00 to $150.00 and gave the company a “buy” rating in a research report on Thursday, July 2nd. Finally, Wall Street Zen cut shares of American Water Works from a “sell” rating to a “strong sell” rating in a research note on Sunday. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $140.60.

American Water Works Stock Performance

Shares of NYSE:AWK traded down $0.87 during trading on Thursday, reaching $137.22. The stock had a trading volume of 2,056,993 shares, compared to its average volume of 1,978,476. The stock has a fifty day simple moving average of $129.09 and a two-hundred day simple moving average of $130.95. The company has a quick ratio of 0.34, a current ratio of 0.37 and a debt-to-equity ratio of 1.16. American Water Works has a 52 week low of $120.57 and a 52 week high of $147.87. The firm has a market capitalization of $26.80 billion, a price-to-earnings ratio of 24.34, a P/E/G ratio of 2.79 and a beta of 0.61.

American Water Works (NYSE:AWK) last posted its earnings results on Wednesday, July 29th. The utilities provider reported $1.61 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.53 by $0.08. The business had revenue of $1.35 billion for the quarter, compared to analyst estimates of $1.33 billion. American Water Works had a net margin of 21.17% and a return on equity of 10.20%. American Water Works’s revenue was up 6.2% compared to the same quarter last year. During the same period last year, the business posted $1.48 EPS. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. As a group, analysts anticipate that American Water Works will post 6.09 earnings per share for the current fiscal year.

American Water Works Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Tuesday, August 11th will be issued a dividend of $0.895 per share. The ex-dividend date is Tuesday, August 11th. This represents a $3.58 dividend on an annualized basis and a dividend yield of 2.6%. American Water Works’s payout ratio is 63.48%.

American Water Works News Roundup

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

• Positive Sentiment: AWK reported second-quarter GAAP and adjusted earnings of $1.61 per share, up from $1.48 and $1.49, respectively, a year earlier. Revenue increased 6.2% year over year to approximately $1.35 billion, exceeding analyst expectations. American Water Reports Solid Second Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its $3.7 billion capital investment plan and long-term growth targets. Regulatory progress, including new Pennsylvania rates scheduled to take effect August 13, could support future revenue and earnings growth. American Water Reports Solid Second Quarter 2026 Results
• Positive Sentiment: Progress continued on the proposed merger with Essential Utilities, with approvals in three states, a settlement in principle reached in Texas, and integration planning underway. Acquisitions also added approximately 52,000 customer connections through June 30. AWK Q2 2026 Earnings Call Transcript
• Positive Sentiment: The board declared a quarterly dividend of $0.895 per share, payable September 1 to shareholders of record August 11, reinforcing AWK’s income appeal. American Water Announces Quarterly Dividend
• Neutral Sentiment: Full-year 2026 EPS guidance remains $6.02-$6.12. The range is consistent with the company’s outlook, but management did not raise expectations despite the quarterly earnings and revenue beats. American Water Works Q2 Earnings and Revenues Beat Estimates
• Negative Sentiment: The guidance midpoint of $6.07 is slightly below the approximately $6.08 analyst consensus, which may have limited enthusiasm following the earnings beat. Investors also continue to monitor regulatory approvals and execution risks surrounding the Essential Utilities merger.

Institutional Investors Weigh In On American Water Works

Hedge funds have recently made changes to their positions in the stock. Empowered Funds LLC raised its stake in American Water Works by 11.5% during the first quarter. Empowered Funds LLC now owns 5,912 shares of the utilities provider’s stock worth $872,000 after acquiring an additional 609 shares in the last quarter. Woodline Partners LP increased its position in shares of American Water Works by 40.7% during the 1st quarter. Woodline Partners LP now owns 16,466 shares of the utilities provider’s stock worth $2,429,000 after purchasing an additional 4,762 shares in the last quarter. Sivia Capital Partners LLC bought a new position in American Water Works during the 2nd quarter valued at about $302,000. Cresset Asset Management LLC boosted its holdings in shares of American Water Works by 1.5% in the 2nd quarter. Cresset Asset Management LLC now owns 5,865 shares of the utilities provider’s stock worth $816,000 after acquiring an additional 85 shares in the last quarter. Finally, Gamco Investors INC. ET AL lifted its stake in shares of American Water Works by 184.4% during the second quarter. Gamco Investors INC. ET AL now owns 5,492 shares of the utilities provider’s stock valued at $764,000 after acquiring an additional 3,561 shares during the period. Institutional investors own 86.58% of the company’s stock.

American Water Works Company Profile

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.