American Water Works (NYSE:AWK) Issues FY 2026 Earnings Guidance

Key Points

• American Water Works issued FY 2026 EPS guidance of $6.07–$6.12, broadly in line with the analyst consensus estimate of $6.08.
• The company declared a quarterly dividend of $0.895 per share, equivalent to $3.58 annually and a 2.5% yield; the dividend payout ratio is 62.05%.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and a $136.75 price target. Recent targets ranged from $127 to $153, while the stock was trading at $141.69.

American Water Works (NYSE:AWK - Get Free Report) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided earnings per share guidance of 6.070-6.120 for the period, compared to the consensus earnings per share estimate of 6.080.

American Water Works Trading Up 1.4%

NYSE:AWK opened at $141.69 on Friday. American Water Works has a 52 week low of $120.57 and a 52 week high of $144.14. The firm has a 50-day moving average price of $135.42 and a two-hundred day moving average price of $132.37. The company has a debt-to-equity ratio of 1.20, a quick ratio of 0.49 and a current ratio of 0.52. The firm has a market cap of $28.16 billion, a price-to-earnings ratio of 24.56, a price-to-earnings-growth ratio of 2.85 and a beta of 0.58.

American Water Works (NYSE:AWK - Get Free Report) last released its earnings results on Wednesday, October 28th. The utilities provider reported $2.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.04 by ($0.04). American Water Works had a net margin of 21.26% and a return on equity of 10.31%. The business had revenue of $1.51 billion during the quarter, compared to the consensus estimate of $1.58 billion. During the same period in the prior year, the company earned $1.94 earnings per share. The business's revenue was up 4.1% on a year-over-year basis. On average, equities analysts expect that American Water Works will post 6.08 earnings per share for the current fiscal year.

American Water Works Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Thursday, November 12th will be issued a dividend of $0.8950 per share. This represents a $3.58 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Thursday, November 12th. American Water Works's dividend payout ratio (DPR) is 62.05%.

Analysts Set New Price Targets

Several brokerages have commented on AWK. 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. UBS Group decreased their price target on shares of American Water Works from $162.00 to $153.00 and set a "buy" rating for the company in a research note on Friday, October 16th. Barclays lowered their price target on shares of American Water Works from $130.00 to $127.00 and set an "underweight" rating on the stock in a report on Monday, October 19th. Truist Financial set a $139.00 target price on American Water Works in a research report on Tuesday, August 4th. Finally, Mizuho increased their price target on American Water Works from $130.00 to $140.00 and gave the stock a "neutral" rating in a research note on Friday, July 31st. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, American Water Works currently has a consensus rating of "Hold" and a consensus target price of $136.75.

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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