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

A. O. Smith (NYSE:AOS) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 3.700-3.850 for the period, compared to the consensus EPS estimate of 3.770. The company issued revenue guidance of $3.9 billion-$3.9 billion, compared to the consensus revenue estimate of $3.9 billion.

A. O. Smith Trading Up 0.8%

Shares of AOS traded up $0.47 on Friday, hitting $60.27. 820,046 shares of the stock traded hands, compared to its average volume of 1,604,203. A. O. Smith has a 1 year low of $54.16 and a 1 year high of $81.86. The stock’s 50 day moving average is $59.50 and its two-hundred day moving average is $65.43. The firm has a market capitalization of $8.31 billion, a P/E ratio of 16.02, a P/E/G ratio of 1.38 and a beta of 1.16. The company has a quick ratio of 1.00, a current ratio of 1.56 and a debt-to-equity ratio of 0.31.

A. O. Smith (NYSE:AOS) last issued its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.96 by $0.07. The company had revenue of $1 billion during the quarter, compared to the consensus estimate of $994.89 million. A. O. Smith had a return on equity of 28.42% and a net margin of 13.84%.A. O. Smith’s revenue was down .7% on a year-over-year basis. During the same period in the previous year, the firm posted $1.07 EPS. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. As a group, sell-side analysts predict that A. O. Smith will post 3.74 earnings per share for the current year.

A. O. Smith Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Stockholders of record on Friday, July 31st will be issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, July 31st. A. O. Smith’s dividend payout ratio is presently 38.30%.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on AOS. Robert W. Baird set a $70.00 target price on shares of A. O. Smith in a report on Friday, May 1st. The Goldman Sachs Group dropped their price objective on A. O. Smith from $69.00 to $61.00 and set a “sell” rating for the company in a report on Monday, April 13th. DA Davidson set a $67.00 target price on A. O. Smith and gave the company a “neutral” rating in a report on Monday, May 4th. Weiss Ratings lowered A. O. Smith from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 27th. Finally, Zacks Research downgraded A. O. Smith from a “hold” rating to a “strong sell” rating in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $67.88.

A. O. Smith News Roundup

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

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported adjusted EPS of $1.03 versus the $0.96 consensus estimate, while sales of approximately $1.0 billion also topped forecasts. North America sales rose 5% to $820.5 million, supported by 21% boiler sales growth, pricing actions and the Leonard Valve acquisition. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: Cash generation and capital returns improved. Year-to-date operating cash flow increased 42% to $254 million, while free cash flow rose 67% to $233 million. Management also raised its 2026 share-repurchase target to $300 million and declared a quarterly dividend of $0.36. A. O. Smith Declares Dividend
• Positive Sentiment: Stifel maintained a Buy rating. Although it reduced its price target from $76 to $70, the new target still implies roughly 16.8% potential upside from the current share price, providing some analyst support. Benzinga
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. A. O. Smith reaffirmed adjusted EPS guidance of $3.70 to $3.85 and sales growth of 2% to 3%, with revenue expected near $3.9 billion. The guidance midpoint is close to the analyst consensus.
• Negative Sentiment: Growth and profitability remain pressured. Overall revenue declined 0.7% year over year, adjusted EPS was below the prior-year $1.07, and Rest of World sales fell 19% because of continued weakness in China’s consumer-appliance market. Higher input costs and lower residential water-heater volumes also weighed on results. A. O. Smith Q2 Earnings Analysis

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in AOS. Pacer Advisors Inc. grew its stake in shares of A. O. Smith by 3.2% in the fourth quarter. Pacer Advisors Inc. now owns 9,672 shares of the industrial products company’s stock valued at $647,000 after buying an additional 302 shares in the last quarter. Compound Planning Inc. acquired a new position in A. O. Smith during the 4th quarter worth approximately $207,000. Invesco Ltd. boosted its holdings in A. O. Smith by 0.8% in the 4th quarter. Invesco Ltd. now owns 4,559,612 shares of the industrial products company’s stock worth $304,947,000 after acquiring an additional 37,621 shares during the period. Corient Private Wealth LLC grew its position in A. O. Smith by 351.7% in the fourth quarter. Corient Private Wealth LLC now owns 152,713 shares of the industrial products company’s stock valued at $10,213,000 after acquiring an additional 118,901 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV raised its stake in shares of A. O. Smith by 52.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 36,755 shares of the industrial products company’s stock valued at $2,458,000 after purchasing an additional 12,706 shares during the period. 76.10% of the stock is owned by hedge funds and other 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.