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

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

American Water Works Stock Performance

Shares of AWK opened at $144.31 on Friday. The firm has a market capitalization of $28.73 billion, a P/E ratio of 25.01, a PEG ratio of 2.94 and a beta of 0.58. The company has a debt-to-equity ratio of 1.17, a current ratio of 0.39 and a quick ratio of 0.49. American Water Works has a one year low of $120.57 and a one year high of $146.62. The business has a fifty day moving average of $135.56 and a 200 day moving average of $132.44.

American Water Works (NYSE:AWK) last posted its earnings results on Wednesday, October 28th. The utilities provider reported $2.00 earnings per share for the quarter, missing analysts’ consensus estimates 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 net margin of 21.26% and a return on equity of 10.14%. The firm’s revenue was up 4.1% compared to the same quarter last year. During the same period in the prior year, the company posted $1.94 EPS. As a group, sell-side analysts anticipate that American Water Works will post 6.09 EPS for the current year.

American Water Works Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Thursday, November 12th will be paid a $0.8950 dividend. This represents a $3.58 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Thursday, November 12th. American Water Works’s dividend payout ratio is 62.05%.

Analyst Ratings Changes

Several brokerages have recently weighed in on AWK. Truist Financial set a $139.00 price objective on shares of American Water Works in a research note on Tuesday, August 4th. Barclays cut their target price on shares of American Water Works from $130.00 to $127.00 and set an “underweight” rating for the company in a research report on Monday, October 19th. Mizuho set a $149.00 target price on shares of American Water Works in a report on Friday. UBS Group decreased their price target on shares of 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. Finally, Bank of America reiterated a “neutral” rating on shares of American Water Works in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $137.88.

Key Headlines Impacting American Water Works

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.