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

A. O. Smith (NYSE:AOS) issued an update on its FY 2026 earnings guidance on Friday morning. The company provided earnings per share (EPS) guidance of 3.850-4.150 for the period, compared to the consensus estimate of 4.070. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $4.0 billion.

Wall Street Analyst Weigh In

Several brokerages have weighed in on AOS. Weiss Ratings reiterated a “hold (c)” rating on shares of A. O. Smith in a research note on Wednesday, December 24th. Wall Street Zen raised shares of A. O. Smith from a “hold” rating to a “buy” rating in a report on Saturday, October 18th. Jefferies Financial Group set a $75.00 price target on A. O. Smith and gave the company a “hold” rating in a research note on Friday, January 9th. Stifel Nicolaus set a $85.00 price objective on A. O. Smith and gave the stock a “buy” rating in a research note on Friday. Finally, Citigroup reaffirmed a “neutral” rating and issued a $78.00 price objective (up from $72.00) on shares of A. O. Smith in a report on Friday. Two research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $78.00.

A. O. Smith Stock Performance

NYSE:AOS opened at $73.49 on Friday. A. O. Smith has a twelve month low of $58.83 and a twelve month high of $77.31. The company has a quick ratio of 0.95, a current ratio of 1.50 and a debt-to-equity ratio of 0.06. The stock’s 50-day simple moving average is $68.82 and its 200 day simple moving average is $69.70. The firm has a market capitalization of $10.23 billion, a PE ratio of 19.04, a price-to-earnings-growth ratio of 1.50 and a beta of 1.35.

A. O. Smith (NYSE:AOS) last posted its earnings results on Thursday, January 29th. The industrial products company reported $0.90 EPS for the quarter, topping analysts’ consensus estimates of $0.84 by $0.06. The firm had revenue of $912.50 million during the quarter, compared to analysts’ expectations of $928.97 million. A. O. Smith had a net margin of 14.26% and a return on equity of 29.51%. The business’s revenue for the quarter was up .0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.85 earnings per share. On average, analysts anticipate that A. O. Smith will post 3.76 EPS for the current fiscal year.

A. O. Smith Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Stockholders of record on Friday, January 30th will be paid a $0.36 dividend. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, January 30th. A. O. Smith’s dividend payout ratio is presently 37.31%.

More A. O. Smith News

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Q4 EPS beat and record full-year EPS — AOS reported $0.90 in Q4 vs. $0.84 expected and announced record 2025 diluted EPS of $3.85, driven by margin improvement and strong profitability metrics that support valuation. A. O. Smith Reports Record 2025 Diluted Earnings Per Share
• Positive Sentiment: Strength in North America and margin expansion — Management cited strong North American demand and 80 bps of operating margin improvement, helping EPS outperformance despite flat sales. A.O. Smith quarterly profit rises on strong North America demand
• Positive Sentiment: Capital returns and M&A — Company returned ~$597M to shareholders via dividends and buybacks in 2025 and closed the Leonard Valve acquisition to expand its water-management platform, both supportive of longer-term growth and EPS accretion. Press Release — 2025 results & 2026 guidance
• Neutral Sentiment: Analyst/style recognition — Zacks flags AOS as a top-ranked growth stock under its Style Scores, which can attract momentum and factor-based flows but is not an operational driver by itself. A.O. Smith is a Top-Ranked Growth Stock
• Neutral Sentiment: Earnings call detail available — Management commentary and the call transcript provide color on end-market trends and margin drivers for investors who want to dig deeper. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue missed and guidance slightly soft — Q4 sales were $912.5M vs. ~$929M expected (flat YoY), and management set FY2026 EPS guidance of $3.85–$4.15 (consensus ~4.07) and revenue guidance around $3.9–$4.0B, a touch below Street assumptions — a cap on upside. A. O. Smith Earnings Surpass Estimates in Q4, Sales Miss
• Negative Sentiment: Mixed market reaction — Coverage notes the earnings beat was offset by the revenue miss and conservative guide, moderating gains; near-term performance will track execution against the 2026 targets and demand trends. Earnings beat offset by revenue miss

Institutional Trading of A. O. Smith

Several hedge funds and other institutional investors have recently made changes to their positions in AOS. CIBC Bancorp USA Inc. acquired a new stake in A. O. Smith during the 3rd quarter worth approximately $856,000. Danske Bank A S bought a new position in shares of A. O. Smith during the third quarter valued at $964,000. Advisory Services Network LLC lifted its holdings in shares of A. O. Smith by 2.9% during the third quarter. Advisory Services Network LLC now owns 28,717 shares of the industrial products company’s stock worth $2,108,000 after purchasing an additional 822 shares during the period. Morningstar Investment Management LLC bought a new stake in shares of A. O. Smith in the third quarter worth $911,000. Finally, Parvin Asset Management LLC increased its holdings in A. O. Smith by 1,104.8% in the third quarter. Parvin Asset Management LLC now owns 3,735 shares of the industrial products company’s stock valued at $274,000 after purchasing an additional 3,425 shares during the period. 76.10% of the stock is currently owned by institutional investors.

A. O. Smith Company Profile

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.