Brokers Offer Predictions for AWK FY2026 Earnings

Key Points

• Huntington Securities projects American Water Works’ FY2026 EPS at $6.09, matching consensus, with earnings expected to rise to $6.58 in FY2027 and $7.12 in FY2028.
• American Water Works’ latest quarterly results fell slightly short of expectations, with EPS of $2.00 versus $2.04 expected and revenue of $1.51 billion versus $1.58 billion forecast, though revenue increased 4.1% year over year.
• Analysts maintain a consensus “Hold” rating with an average price target of $137.88; the company also declared a quarterly dividend of $0.895 per share, representing a 2.4% annualized yield.

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Equities researchers at Huntington Sec issued their FY2026 earnings per share (EPS) estimates for American Water Works in a research note issued to investors on Thursday, October 29th. Huntington Sec analyst M. Gaugler forecasts that the utilities provider will earn $6.09 per share for the year. The consensus estimate for American Water Works' current full-year earnings is $6.09 per share. Huntington Sec also issued estimates for American Water Works' Q4 2026 earnings at $1.47 EPS, Q1 2027 earnings at $1.09 EPS, Q2 2027 earnings at $1.67 EPS, Q3 2027 earnings at $2.27 EPS, Q4 2027 earnings at $1.54 EPS, FY2027 earnings at $6.58 EPS, Q1 2028 earnings at $1.18 EPS, Q2 2028 earnings at $1.81 EPS, Q3 2028 earnings at $2.60 EPS and FY2028 earnings at $7.12 EPS.

American Water Works (NYSE:AWK - Get Free Report) last announced its quarterly earnings results on Wednesday, October 28th. The utilities provider reported $2.00 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.04 by ($0.04). The business had revenue of $1.51 billion for the quarter, compared to analysts' expectations of $1.58 billion. American Water Works had a return on equity of 10.31% and a net margin of 21.26%. The firm's quarterly revenue was up 4.1% on a year-over-year basis. During the same period last year, the firm earned $1.94 earnings per share.

A number of other analysts have also recently weighed in on the stock. UBS Group cut their price objective on shares of American Water Works from $162.00 to $153.00 and set a "buy" rating on the stock in a report on Friday, October 16th. Truist Financial set a $139.00 target price on shares of American Water Works in a report on Tuesday, August 4th. Wall Street Zen raised shares of American Water Works from a "strong sell" rating to a "sell" rating in a research report on Monday, August 3rd. Bank of America reiterated a "neutral" rating on shares of American Water Works in a research note on Thursday, July 16th. Finally, JPMorgan Chase & Co. boosted their price target on shares of American Water Works from $138.00 to $147.00 and gave the company a "neutral" rating in a research report on Wednesday, July 8th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, American Water Works presently has a consensus rating of "Hold" and an average price target of $137.88.

American Water Works Price Performance

AWK stock opened at $147.57 on Tuesday. The business has a 50 day moving average price of $135.80 and a 200 day moving average price of $132.52. The company has a quick ratio of 0.49, a current ratio of 0.52 and a debt-to-equity ratio of 1.20. The stock has a market cap of $29.38 billion, a price-to-earnings ratio of 25.58, a PEG ratio of 2.85 and a beta of 0.58. American Water Works has a fifty-two week low of $120.57 and a fifty-two week high of $148.15.

Institutional Investors Weigh In On American Water Works

Large investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in shares of American Water Works during the second quarter valued at $2,712,173,000. GQG Partners LLC acquired a new position in American Water Works during the 2nd quarter valued at about $1,171,477,000. Wellington Management Group LLP boosted its stake in American Water Works by 35.2% during the 2nd quarter. Wellington Management Group LLP now owns 14,911,963 shares of the utilities provider's stock valued at $1,962,116,000 after purchasing an additional 3,883,057 shares during the period. Legal & General Group Plc acquired a new position in American Water Works during the 2nd quarter valued at about $443,787,000. Finally, Bank of America Corp DE bought a new position in American Water Works in the 2nd quarter worth about $367,632,000. Hedge funds and other institutional investors own 86.58% of the company's stock.

American Water Works Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Thursday, November 12th will be issued a $0.8950 dividend. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $3.58 dividend on an annualized basis and a dividend yield of 2.4%. American Water Works's payout ratio is presently 62.05%.

More American Water Works News

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

• Positive Sentiment: Huntington Securities forecasts earnings per share of $6.58 in fiscal 2027 and $7.12 in fiscal 2028, compared with $6.09 for fiscal 2026. The projected increase suggests continued earnings growth and supports the recent strength in AWK shares.
• Positive Sentiment: The firm expects quarterly EPS to rise from $1.09 in the first quarter of 2027 to $2.27 in the third quarter, and from $1.18 in the first quarter of 2028 to $2.60 in the third quarter. These estimates indicate improving earnings momentum over the next two years.
• Neutral Sentiment: Huntington’s $6.09 fiscal 2026 EPS estimate is in line with the current consensus, suggesting no immediate change to near-term earnings expectations.
• Neutral Sentiment: Wall Street brokerages have assigned American Water Works a “Hold” rating, signaling that analysts see a relatively balanced risk-reward profile despite the longer-term earnings growth forecast. American Water Works Stock Rated Hold by Wall Street Brokerages

About American Water Works

American Water Works Company, Inc is a public water and wastewater utility that provides essential services to residential, commercial, industrial and institutional customers. Through its regulated businesses, the company supplies drinking water, collects and treats wastewater, and manages related infrastructure, including treatment plants, pipelines, storage facilities and customer service systems.

Founded in 1886, American Water has grown into one of the largest water and wastewater service providers in the United States.

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