A. O. Smith (NYSE:AOS) Releases FY 2026 Earnings Guidance

A. O. Smith (NYSE:AOS) updated its FY 2026 earnings guidance on Friday. The company provided EPS guidance of 3.850-4.150 for the period, compared to the consensus EPS estimate of 4.070. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $4.0 billion.

Analysts Set New Price Targets

Several research analysts have issued reports on the stock. DA Davidson restated a “neutral” rating and issued a $75.00 price target on shares of A. O. Smith in a research report on Thursday, November 13th. Robert W. Baird set a $77.00 target price on A. O. Smith in a research report on Friday. Citigroup reiterated a “neutral” rating and issued a $78.00 price target (up previously from $72.00) on shares of A. O. Smith in a research report on Friday. Jefferies Financial Group set a $75.00 price objective on shares of A. O. Smith and gave the company a “hold” rating in a research note on Friday, January 9th. Finally, Stifel Nicolaus set a $85.00 target price on shares of A. O. Smith and gave the stock a “buy” rating in a research report on Friday. Two analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $78.00.

A. O. Smith Price Performance

NYSE AOS opened at $73.49 on Friday. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.50 and a quick ratio of 0.95. The firm has a market capitalization of $10.23 billion, a price-to-earnings ratio of 19.04, a price-to-earnings-growth ratio of 1.50 and a beta of 1.35. The company has a 50 day simple moving average of $68.82 and a 200-day simple moving average of $69.71. A. O. Smith has a 52-week low of $58.83 and a 52-week high of $77.31.

A. O. Smith (NYSE:AOS) last posted its quarterly earnings results on Thursday, January 29th. The industrial products company reported $0.90 EPS for the quarter, beating the consensus estimate of $0.84 by $0.06. A. O. Smith had a net margin of 14.26% and a return on equity of 29.51%. The business had revenue of $912.50 million for the quarter, compared to analysts’ expectations of $928.97 million. During the same period in the previous year, the company posted $0.85 EPS. A. O. Smith’s revenue was up .0% on a year-over-year basis. Equities research analysts predict that A. O. Smith will post 3.76 earnings per share for the current fiscal year.

A. O. Smith Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Stockholders of record on Friday, January 30th will be paid a dividend of $0.36 per share. The ex-dividend date is Friday, January 30th. This represents a $1.44 annualized dividend and a dividend yield of 2.0%. A. O. Smith’s dividend payout ratio is 37.31%.

A. O. Smith News Roundup

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Q4 EPS beat and record full-year EPS — AOS reported $0.90 in Q4 vs. $0.84 expected and announced record 2025 diluted EPS of $3.85, driven by margin improvement and strong profitability metrics that support valuation. A. O. Smith Reports Record 2025 Diluted Earnings Per Share
• Positive Sentiment: Strength in North America and margin expansion — Management cited strong North American demand and 80 bps of operating margin improvement, helping EPS outperformance despite flat sales. A.O. Smith quarterly profit rises on strong North America demand
• Positive Sentiment: Capital returns and M&A — Company returned ~$597M to shareholders via dividends and buybacks in 2025 and closed the Leonard Valve acquisition to expand its water-management platform, both supportive of longer-term growth and EPS accretion. Press Release — 2025 results & 2026 guidance
• Neutral Sentiment: Analyst/style recognition — Zacks flags AOS as a top-ranked growth stock under its Style Scores, which can attract momentum and factor-based flows but is not an operational driver by itself. A.O. Smith is a Top-Ranked Growth Stock
• Neutral Sentiment: Earnings call detail available — Management commentary and the call transcript provide color on end-market trends and margin drivers for investors who want to dig deeper. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue missed and guidance slightly soft — Q4 sales were $912.5M vs. ~$929M expected (flat YoY), and management set FY2026 EPS guidance of $3.85–$4.15 (consensus ~4.07) and revenue guidance around $3.9–$4.0B, a touch below Street assumptions — a cap on upside. A. O. Smith Earnings Surpass Estimates in Q4, Sales Miss
• Negative Sentiment: Mixed market reaction — Coverage notes the earnings beat was offset by the revenue miss and conservative guide, moderating gains; near-term performance will track execution against the 2026 targets and demand trends. Earnings beat offset by revenue miss

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. Fiduciary Trust Co raised its holdings in A. O. Smith by 5.0% in the 3rd quarter. Fiduciary Trust Co now owns 4,072 shares of the industrial products company’s stock worth $299,000 after acquiring an additional 193 shares during the period. Larson Financial Group LLC boosted its stake in A. O. Smith by 67.9% during the 3rd quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company’s stock valued at $36,000 after purchasing an additional 197 shares during the period. Polymer Capital Management US LLC boosted its stake in A. O. Smith by 7.8% during the 3rd quarter. Polymer Capital Management US LLC now owns 5,265 shares of the industrial products company’s stock valued at $387,000 after purchasing an additional 382 shares during the period. Glenmede Investment Management LP lifted its holdings in shares of A. O. Smith by 11.3% during the third quarter. Glenmede Investment Management LP now owns 4,075 shares of the industrial products company’s stock worth $299,000 after buying an additional 414 shares during the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in shares of A. O. Smith by 78.0% in the second quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company’s stock valued at $63,000 after acquiring an additional 422 shares during the period. 76.10% of the stock is owned by institutional investors.

A. O. Smith Company Profile

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.