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

American Water Works (NYSE:AWK) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 6.020-6.120 for the period, compared to the consensus estimate of 5.950. The company issued revenue guidance of -.

Wall Street Analyst Weigh In

Several analysts have recently commented on the company. Wells Fargo & Company reduced their price target on American Water Works from $142.00 to $126.00 and set an “equal weight” rating for the company in a report on Tuesday, January 20th. Barclays dropped their price objective on American Water Works from $134.00 to $122.00 and set an “underweight” rating on the stock in a report on Wednesday, December 17th. Jefferies Financial Group raised American Water Works from an “underperform” rating to a “hold” rating and raised their target price for the company from $114.00 to $124.00 in a report on Wednesday, November 5th. Mizuho set a $145.00 target price on shares of American Water Works in a research report on Tuesday, October 28th. Finally, Bank of America raised shares of American Water Works from an “underperform” rating to a “neutral” rating and upped their price target for the stock from $117.00 to $139.00 in a research note on Monday, January 12th. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $140.89.

American Water Works Price Performance

Shares of AWK stock traded up $0.19 during mid-day trading on Thursday, reaching $131.35. The stock had a trading volume of 266,198 shares, compared to its average volume of 1,705,999. The company has a market cap of $25.64 billion, a P/E ratio of 23.10, a price-to-earnings-growth ratio of 3.10 and a beta of 0.77. The company has a current ratio of 0.42, a quick ratio of 0.39 and a debt-to-equity ratio of 1.19. American Water Works has a 12-month low of $121.28 and a 12-month high of $155.50. The business has a 50-day simple moving average of $129.94 and a 200 day simple moving average of $134.70.

American Water Works (NYSE:AWK) last released its quarterly earnings data on Wednesday, February 18th. The utilities provider reported $1.24 EPS for the quarter, missing the consensus estimate of $1.28 by ($0.04). The business had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.29 billion. American Water Works had a return on equity of 10.48% and a net margin of 21.93%.American Water Works’s quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.15 earnings per share. American Water Works has set its FY 2026 guidance at 6.020-6.120 EPS. On average, sell-side analysts anticipate that American Water Works will post 5.71 earnings per share for the current year.

American Water Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 3rd. Investors of record on Tuesday, February 10th will be paid a $0.8275 dividend. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $3.31 dividend on an annualized basis and a yield of 2.5%. American Water Works’s dividend payout ratio is presently 58.17%.

More American Water Works News

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

• Positive Sentiment: Shareholders overwhelmingly approved merger?related proposals with Essential Utilities, advancing a deal that expands scale, rate base and potential cost synergies — a structural growth story investors typically reward. American Water Works (AWK) Expands Scale with Essential Utilities Merger
• Positive Sentiment: AWK raised FY?2026 EPS guidance to $6.020–$6.120, above the Street consensus (~$5.95), which supports upside to valuation and reinforces earnings visibility for investors. FY2026 Guidance/PR Slides
• Positive Sentiment: Company reported strong full?year 2025 operating results (adjusted EPS up ~8.9% y/y), delivered 8.2% dividend growth, invested $3.2B in capital and reaffirmed long?term EPS/dividend targets — supporting the income/growth thesis. American Water Reports Strong 2025 Results
• Neutral Sentiment: A new company grant program is being debated by analysts as a valuation factor — it may affect investor perception of capital allocation and fair value but is not an immediate cash?flow driver. American Water Works Grant Program Adds New Angle To Valuation Debate
• Negative Sentiment: Q4 EPS of $1.24 missed consensus (~$1.28) and revenue came in slightly below expectations; Reuters highlights higher expenses as a near?term headwind, which tempers the reaction to positive forward guidance. American Water Works misses quarterly results estimates on higher expenses

Hedge Funds Weigh In On American Water Works

A number of institutional investors have recently modified their holdings of the company. Wellington Management Group LLP increased its holdings in shares of American Water Works by 3,274.6% during the 4th quarter. Wellington Management Group LLP now owns 7,092,757 shares of the utilities provider’s stock worth $925,605,000 after buying an additional 6,882,575 shares during the last quarter. GQG Partners LLC grew its position in American Water Works by 64.2% during the fourth quarter. GQG Partners LLC now owns 6,493,161 shares of the utilities provider’s stock valued at $847,361,000 after acquiring an additional 2,539,683 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in American Water Works by 383.0% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,596,125 shares of the utilities provider’s stock worth $361,355,000 after acquiring an additional 2,058,656 shares during the last quarter. State Street Corp raised its holdings in shares of American Water Works by 4.2% in the 4th quarter. State Street Corp now owns 12,037,823 shares of the utilities provider’s stock worth $1,570,936,000 after purchasing an additional 486,090 shares during the period. Finally, Raymond James Financial Inc. raised its holdings in shares of American Water Works by 81.8% in the 2nd quarter. Raymond James Financial Inc. now owns 1,043,899 shares of the utilities provider’s stock worth $145,217,000 after purchasing an additional 469,641 shares during the period. Institutional investors and hedge funds own 86.58% of the company’s stock.

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.