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

Key Points

• A. O. Smith issued FY 2026 guidance calling for EPS of $3.70–$3.85 and revenue of approximately $3.9 billion, broadly in line with analyst consensus.
• Analyst sentiment remains cautious: the stock carries an average “Reduce” rating and a consensus price target of $68.62, while shares recently opened at $61.85.
• The company declared a quarterly dividend of $0.36 per share, equivalent to $1.44 annually and a 2.3% yield; institutional investors own approximately 76.1% of the stock.

A. O. Smith (NYSE:AOS - Get Free Report) 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 earnings per share 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.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the stock. Weiss Ratings cut shares of A. O. Smith from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, May 27th. DA Davidson set a $67.00 price target on A. O. Smith and gave the company a "neutral" rating in a research report on Monday, May 4th. Citigroup dropped their price objective on A. O. Smith from $74.00 to $65.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Stifel Nicolaus set a $76.00 target price on A. O. Smith and gave the company a "buy" rating in a research note on Monday, July 20th. Finally, JPMorgan Chase & Co. restated an "underweight" rating and set a $60.00 target price (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average price target of $68.62.

A. O. Smith Price Performance

AOS opened at $61.85 on Thursday. The company has a current ratio of 1.56, a quick ratio of 1.00 and a debt-to-equity ratio of 0.31. The company has a market cap of $8.52 billion, a price-to-earnings ratio of 16.45, a price-to-earnings-growth ratio of 1.43 and a beta of 1.16. The stock has a fifty day simple moving average of $59.45 and a two-hundred day simple moving average of $65.50. A. O. Smith has a 12-month low of $54.16 and a 12-month high of $81.86.

A. O. Smith (NYSE:AOS - Get Free Report) last released its earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share for the quarter, topping analysts' consensus estimates of $0.96 by $0.07. A. O. Smith had a net margin of 13.84% and a return on equity of 28.42%. The firm had revenue of $1 billion for the quarter, compared to the consensus estimate of $994.89 million. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. Research analysts predict that A. O. Smith will post 3.74 earnings per share for the current fiscal year.

A. O. Smith Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Investors of record on Friday, July 31st will be paid a $0.36 dividend. The ex-dividend date is Friday, July 31st. This represents a $1.44 annualized dividend and a dividend yield of 2.3%. A. O. Smith's dividend payout ratio is presently 38.30%.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in AOS. Goldman Sachs Group Inc. raised its stake in shares of A. O. Smith by 19.6% in the first quarter. Goldman Sachs Group Inc. now owns 939,302 shares of the industrial products company's stock worth $61,393,000 after purchasing an additional 154,201 shares during the last quarter. EverSource Wealth Advisors LLC lifted its position in A. O. Smith by 78.0% during the second quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company's stock valued at $63,000 after purchasing an additional 422 shares during the period. Marshall Wace LLP purchased a new stake in A. O. Smith during the 2nd quarter valued at $5,212,000. California Public Employees Retirement System lifted its holdings in shares of A. O. Smith by 11.4% during the 2nd quarter. California Public Employees Retirement System now owns 211,176 shares of the industrial products company's stock valued at $13,847,000 after buying an additional 21,657 shares during the period. Finally, Bank of Nova Scotia boosted its stake in shares of A. O. Smith by 165.3% in the 2nd quarter. Bank of Nova Scotia now owns 32,874 shares of the industrial products company's stock worth $2,156,000 after buying an additional 20,485 shares during the last quarter. Hedge funds and other institutional investors own 76.10% of the company's stock.

About A. O. Smith

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.

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