American Water Works (NYSE:AWK) Announces Quarterly Earnings Results, Misses Estimates By $0.12 EPS

Key Points

• Q1 miss: American Water reported adjusted EPS of $1.01 (vs. $1.13 expected) and revenue of $1.21B (vs. $1.28B expected), sending the stock down about 0.4% intraday.
• Guidance affirmed: management reiterated FY 2026 EPS guidance of $6.02–$6.12 despite the quarterly shortfall.
• Dividend increase: the board raised the quarterly payout to $0.895 (from $0.83), implying a $3.58 annualized dividend and ~2.7% yield.

American Water Works (NYSE:AWK - Get Free Report) posted its quarterly earnings results on Wednesday. The utilities provider reported $1.01 EPS for the quarter, missing analysts' consensus estimates of $1.13 by ($0.12), FiscalAI reports. The business had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.28 billion. American Water Works had a net margin of 21.61% and a return on equity of 10.38%. American Water Works updated its FY 2026 guidance to 6.020-6.120 EPS.

American Water Works Stock Down 0.4%

NYSE AWK traded down $0.59 during midday trading on Wednesday, hitting $132.08. 1,811,594 shares of the company traded hands, compared to its average volume of 1,826,269. The company has a debt-to-equity ratio of 1.18, a current ratio of 0.46 and a quick ratio of 0.44. The company has a market cap of $25.79 billion, a PE ratio of 23.21, a price-to-earnings-growth ratio of 2.91 and a beta of 0.74. The company's 50-day simple moving average is $135.09 and its 200-day simple moving average is $132.69. American Water Works has a 52 week low of $121.28 and a 52 week high of $150.51.

American Water Works Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 12th will be given a dividend of $0.895 per share. This is a boost from American Water Works's previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Tuesday, May 12th. This represents a $3.58 annualized dividend and a yield of 2.7%. American Water Works's payout ratio is 58.17%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on AWK shares. Bank of America raised American Water Works from an "underperform" rating to a "neutral" rating and raised their price target for the company from $117.00 to $139.00 in a report on Monday, January 12th. Wall Street Zen raised American Water Works from a "strong sell" rating to a "sell" rating in a research note on Sunday. Weiss Ratings reissued a "hold (c)" rating on shares of American Water Works in a research note on Friday, March 27th. Wells Fargo & Company set a $131.00 target price on American Water Works in a research note on Tuesday, April 21st. Finally, Truist Financial started coverage on American Water Works in a research note on Tuesday, April 21st. They set a "hold" rating and a $137.00 target price on the stock. One analyst has rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $141.20.

Institutional Trading of American Water Works

Hedge funds and other institutional investors have recently made changes to their positions in the business. Sivia Capital Partners LLC purchased a new stake in shares of American Water Works during the 2nd quarter valued at $302,000. SmartHarvest Portfolios LLC purchased a new position in American Water Works in the 4th quarter worth $274,000. Laurel Oak Wealth Management LLC purchased a new position in shares of American Water Works during the 4th quarter valued at about $252,000. 71 West Capital Partners purchased a new position in shares of American Water Works during the 4th quarter valued at about $233,000. Finally, Virtue Capital Management LLC purchased a new position in shares of American Water Works during the 4th quarter valued at about $226,000. Hedge funds and other institutional investors own 86.58% of the company's stock.

More American Water Works News

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

• Positive Sentiment: Board raised the quarterly cash dividend to $0.8950 (8.2% increase); payable June 2 with ex‑dividend May 12 — supports income investors and signals management confidence. American Water Announces Dividend Increase
• Positive Sentiment: Company affirmed 2026 EPS guidance range of $6.02–$6.12 and reiterated long‑term targets, providing guidance stability despite the quarterly miss. AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS
• Neutral Sentiment: Several community grants announced by the American Water Charitable Foundation across NJ, MD, VA and MO — positive PR but unlikely to move the stock materially. New Jersey American Water Proudly Recognizes American Water Charitable Foundation 2026 Water and Environment Grantees
• Neutral Sentiment: Senior engineering leader Suzanne Chiavari received an industry award (AWWA George Warren Fuller) — positive for reputation but not a stock driver. American Water's Suzanne Chiavari Named 2026 AWWA George Warren Fuller Award Recipient
• Neutral Sentiment: Analyst/valuation coverage questioning whether recent share weakness is justified — useful context for investors but not a company action. Is American Water Works Company (AWK) Price Justified After Recent Share Price Weakness
• Negative Sentiment: Quarterly results missed estimates: adjusted EPS $1.01 vs. consensus $1.13 and revenue $1.21B vs. $1.28B expected — the primary near‑term catalyst for the share decline. AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS
• Negative Sentiment: Company completed a $700M offering of 5.200% senior notes due 2036 — increases long‑term debt and interest obligations (context: transaction costs tied to the proposed Essential Utilities merger also impacted GAAP results). AMERICAN WATER REPORTS FIRST QUARTER 2026 RESULTS ON TRACK; AFFIRMS 2026 EPS GUIDANCE AND LONG-TERM TARGETS

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.

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