American Electric Power (NASDAQ:AEP) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

American Electric Power (NASDAQ:AEP) released its quarterly earnings data on Thursday. The company reported $1.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.15 by $0.04, Briefing.com reports. The business had revenue of $5.32 billion during the quarter, compared to analyst estimates of $5.07 billion. American Electric Power had a net margin of 17.23% and a return on equity of 11.00%. American Electric Power’s quarterly revenue was up 13.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.24 EPS. American Electric Power updated its FY 2026 guidance to 6.150-6.450 EPS.

Here are the key takeaways from American Electric Power’s conference call:

• AEP delivered strong 2025 results with operating earnings of $5.97 per share (Q4 $1.19), raised the quarterly dividend to $0.95, posted a 29% total shareholder return, and reaffirmed 2026 guidance of $6.15–$6.45 and a long‑term 7%–9% earnings growth target.
• Management doubled contracted incremental load to 56 GW (all backed by signed agreements), including 36 GW of LOAs in ERCOT, supported by a ~180 GW interconnection queue — materially increasing T&D demand and future revenue visibility.
• AEP is pursuing a large but framed growth plan — a conservative $72 billion five‑year capital plan (10% rate‑base CAGR) plus ~$5–8 billion identified upside, including ~$4.7 billion of transmission awards and a $2.65 billion Bloom fuel‑cell PPA, while emphasizing balance‑sheet targets (FFO/debt ~15%).
• Management acknowledged near‑term headwinds and execution risks — higher reliability O&M, rising depreciation and interest expense, plus permitting, interconnection and generation supply constraints — that could delay connections or raise costs if not resolved.

American Electric Power Price Performance

Shares of NASDAQ:AEP traded up $5.49 during trading on Thursday, reaching $127.74. 3,531,696 shares of the company traded hands, compared to its average volume of 3,325,015. The company’s 50 day moving average is $117.16 and its two-hundred day moving average is $115.72. The company has a quick ratio of 0.53, a current ratio of 0.69 and a debt-to-equity ratio of 1.41. American Electric Power has a 52 week low of $97.46 and a 52 week high of $128.92. The firm has a market capitalization of $68.22 billion, a PE ratio of 18.68, a PEG ratio of 2.89 and a beta of 0.62.

American Electric Power Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be paid a $0.95 dividend. The ex-dividend date is Tuesday, February 10th. This represents a $3.80 annualized dividend and a yield of 3.0%. American Electric Power’s payout ratio is 55.39%.

Key American Electric Power News

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: Q4 results beat expectations — operating EPS $1.19 vs. $1.15 consensus and revenue of $5.32B (up ~13% YoY); company set FY2026 operating earnings guidance of $6.15–$6.45. American Electric’s Q4 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management is expanding its five‑year capital plan (above $72B) to meet surging electricity demand — indicates meaningful growth investment and more ratebase to support long‑term earnings. AEP expands spending plan, beats profit estimates as electricity demand surges
• Positive Sentiment: Load and contract momentum — company now targets ~56 GW of incremental load by 2030 (up from 28 GW) and identified $5–8B of additional investment opportunities beyond the existing plan, supporting longer‑term growth targets. AEP Reports Fourth Quarter and Full-Year 2025 Results, Reaffirms Long-Term Growth Outlook
• Neutral Sentiment: Strategic supply deals: AEP is engaging with on‑site generation providers (e.g., supply agreement for up to 1 GW of solid‑oxide fuel cells), which can ease interconnection constraints but shifts some exposure away from traditional utility-only solutions. AI Power Crunch: Why Bloom Energy Is the Hidden Winner (AEP)
• Neutral Sentiment: Guidance nuance — FY2026 range (6.15–6.45) roughly aligns with long‑term targets but sits slightly around consensus; investors will watch how capex execution and rate cases translate to the midpoint. American Electric Power beats Q4 estimates, reaffirms 2026 outlook
• Negative Sentiment: Regulatory setback — FERC rejected AEP’s request to sell capacity in an upcoming auction, a near‑term headwind that could limit revenue/timing on specific capacity sales. FERC rejects AEP request to sell capacity in upcoming auction

Insider Buying and Selling

In other news, Director Benjamin G. S. Fowke III sold 5,000 shares of the company’s stock in a transaction dated Friday, December 12th. The shares were sold at an average price of $115.07, for a total transaction of $575,350.00. Following the transaction, the director owned 25,898 shares in the company, valued at approximately $2,980,082.86. This represents a 16.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.07% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Soroban Capital Partners LP increased its stake in shares of American Electric Power by 176.3% during the second quarter. Soroban Capital Partners LP now owns 4,004,686 shares of the company’s stock worth $415,526,000 after buying an additional 2,555,415 shares during the period. AQR Capital Management LLC increased its holdings in shares of American Electric Power by 118.2% in the 3rd quarter. AQR Capital Management LLC now owns 2,585,605 shares of the company’s stock valued at $286,692,000 after acquiring an additional 1,400,547 shares during the last quarter. Deutsche Bank AG boosted its holdings in American Electric Power by 52.3% in the fourth quarter. Deutsche Bank AG now owns 1,577,561 shares of the company’s stock valued at $181,909,000 after purchasing an additional 541,672 shares in the last quarter. State Street Corp increased its stake in American Electric Power by 1.4% in the third quarter. State Street Corp now owns 28,922,911 shares of the company’s stock valued at $3,253,827,000 after purchasing an additional 406,445 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of American Electric Power in the 3rd quarter valued at $45,408,000. Hedge funds and other institutional investors own 75.24% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Jefferies Financial Group raised shares of American Electric Power from a “hold” rating to a “buy” rating and upped their target price for the company from $128.00 to $137.00 in a research note on Monday, November 17th. BTIG Research started coverage on American Electric Power in a research report on Tuesday, October 21st. They set a “neutral” rating for the company. JPMorgan Chase & Co. boosted their price target on American Electric Power from $121.00 to $125.00 and gave the company a “neutral” rating in a research note on Friday, December 12th. BMO Capital Markets increased their price objective on American Electric Power from $123.00 to $125.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 27th. Finally, Williams Trading set a $137.00 target price on American Electric Power in a research note on Thursday, December 18th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $127.39.

American Electric Power Company Profile

American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.