Zacks Research Has Bullish Forecast for AWK FY2026 Earnings

Key Points

• Investment analysts at Zacks Research have increased their FY2026 earnings estimates for American Water Works to $6.15 per share, up from a previous estimate of $6.14.
• American Water Works recently declared a quarterly dividend of $0.8275 per share, representing a 2.3% annual yield, with a dividend payout ratio of 59.64%.
• The stock currently holds a consensus rating of "Hold" from analysts, with an average price target of $143.57.

American Water Works Company, Inc. (NYSE:AWK - Free Report) - Investment analysts at Zacks Research increased their FY2026 earnings estimates for American Water Works in a report issued on Wednesday, October 8th. Zacks Research analyst Team now expects that the utilities provider will earn $6.15 per share for the year, up from their prior estimate of $6.14. The consensus estimate for American Water Works' current full-year earnings is $5.71 per share.

Several other equities analysts have also commented on the stock. Barclays dropped their price target on shares of American Water Works from $138.00 to $128.00 and set an "underweight" rating on the stock in a research note on Thursday, July 10th. Wells Fargo & Company dropped their price target on shares of American Water Works from $147.00 to $141.00 and set an "equal weight" rating on the stock in a research note on Friday, August 1st. UBS Group dropped their price target on shares of American Water Works from $156.00 to $151.00 and set a "neutral" rating on the stock in a research note on Tuesday, August 12th. Argus increased their price target on shares of American Water Works from $155.00 to $160.00 and gave the company a "buy" rating in a research note on Thursday, August 14th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of American Water Works in a research note on Wednesday. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, American Water Works presently has a consensus rating of "Hold" and an average price target of $143.57.

American Water Works Stock Down 0.0%

AWK stock opened at $141.00 on Friday. The company's 50 day moving average price is $140.93 and its 200 day moving average price is $142.14. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.32 and a current ratio of 0.35. American Water Works has a fifty-two week low of $118.74 and a fifty-two week high of $155.50. The firm has a market capitalization of $27.51 billion, a price-to-earnings ratio of 25.41, a PEG ratio of 3.34 and a beta of 0.70.

American Water Works (NYSE:AWK - Get Free Report) last released its earnings results on Wednesday, July 30th. The utilities provider reported $1.48 earnings per share for the quarter, missing analysts' consensus estimates of $1.53 by ($0.05). American Water Works had a return on equity of 10.34% and a net margin of 21.91%.The firm had revenue of $1.28 billion for the quarter, compared to analysts' expectations of $1.22 billion. During the same quarter in the previous year, the company posted $1.42 earnings per share. The firm's quarterly revenue was up 11.1% on a year-over-year basis. American Water Works has set its FY 2025 guidance at 5.700-5.750 EPS.

American Water Works Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Tuesday, August 12th were issued a dividend of $0.8275 per share. The ex-dividend date of this dividend was Tuesday, August 12th. This represents a $3.31 annualized dividend and a dividend yield of 2.3%. American Water Works's dividend payout ratio (DPR) is currently 59.64%.

Institutional Investors Weigh In On American Water Works

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in shares of American Water Works by 1.5% during the second quarter. Vanguard Group Inc. now owns 25,629,133 shares of the utilities provider's stock worth $3,565,269,000 after purchasing an additional 380,870 shares during the period. State Street Corp raised its position in American Water Works by 2.6% in the second quarter. State Street Corp now owns 11,430,863 shares of the utilities provider's stock worth $1,590,147,000 after acquiring an additional 286,053 shares in the last quarter. Geode Capital Management LLC raised its position in American Water Works by 2.1% in the second quarter. Geode Capital Management LLC now owns 4,949,996 shares of the utilities provider's stock worth $685,662,000 after acquiring an additional 103,595 shares in the last quarter. Pictet Asset Management Holding SA raised its position in American Water Works by 24.1% in the first quarter. Pictet Asset Management Holding SA now owns 4,532,131 shares of the utilities provider's stock worth $668,566,000 after acquiring an additional 878,951 shares in the last quarter. Finally, Amundi raised its position in American Water Works by 4.8% in the second quarter. Amundi now owns 3,926,541 shares of the utilities provider's stock worth $559,951,000 after acquiring an additional 179,127 shares in the last quarter. 86.58% of the stock is owned by institutional investors and hedge funds.

About American Water Works

American Water Works Company, Inc, through its subsidiaries, provides water and wastewater services in the United States. It offers water and wastewater services to approximately 1,700 communities in 14 states serving approximately 3.5 million active customers. The company serves residential customers; commercial customers, including food and beverage providers, commercial property developers and proprietors, and energy suppliers; fire service and private fire customers; industrial customers, such as large-scale manufacturers, mining, and production operations; public authorities comprising government buildings and other public sector facilities, such as schools and universities; and other utilities and community water and wastewater systems.

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