American Water Works (NYSE:AWK) Releases Quarterly Earnings Results, Misses Estimates By $0.04 EPS

American Water Works (NYSE:AWK) announced its 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. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.58 billion. American Water Works had a return on equity of 10.20% and a net margin of 21.35%.

American Water Works Stock Performance

NYSE AWK traded down $1.29 on Wednesday, hitting $139.81. 2,138,356 shares of the company traded hands, compared to its average volume of 1,997,475. American Water Works has a 52-week low of $120.57 and a 52-week high of $144.14. The company has a current ratio of 0.52, a quick ratio of 0.49 and a debt-to-equity ratio of 1.20. The company has a market capitalization of $27.78 billion, a price-to-earnings ratio of 24.23, a P/E/G ratio of 2.91 and a beta of 0.58. The business’s 50 day moving average price is $135.29 and its 200-day moving average price is $132.25.

American Water Works Dividend Announcement

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

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

Wall Street Analysts Forecast Growth

AWK has been the topic of a number of research analyst reports. Mizuho increased their price target on American Water Works from $130.00 to $140.00 and gave the stock a “neutral” rating in a report on Friday, July 31st. UBS Group decreased their price objective on American Water Works from $162.00 to $153.00 and set a “buy” rating for the company in a report on Friday, October 16th. JPMorgan Chase & Co. boosted their target price on shares of American Water Works from $138.00 to $147.00 and gave the stock a “neutral” rating in a research report on Wednesday, July 8th. Barclays lowered their price target on 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. Finally, Wall Street Zen upgraded shares of American Water Works from a “strong sell” rating to a “sell” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, American Water Works presently has an average rating of “Hold” and a consensus price target of $136.75.

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.