American Water Works (NYSE:AWK) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

American Water Works (NYSE:AWK) issued its quarterly earnings data on Wednesday. The utilities provider reported $1.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.53 by $0.08, FiscalAI reports. The company had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. American Water Works had a net margin of 21.17% and a return on equity of 10.20%. The firm’s revenue was up 6.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.48 earnings per share. American Water Works updated its FY 2026 guidance to 6.020-6.120 EPS.

American Water Works Stock Performance

American Water Works stock traded down $2.00 during mid-day trading on Thursday, hitting $136.09. 790,869 shares of the company’s stock traded hands, compared to its average volume of 1,969,339. The company has a debt-to-equity ratio of 1.16, a current ratio of 0.37 and a quick ratio of 0.34. The firm has a 50 day simple moving average of $129.09 and a two-hundred day simple moving average of $130.95. American Water Works has a fifty-two week low of $120.57 and a fifty-two week high of $147.87. The stock has a market cap of $26.58 billion, a price-to-earnings ratio of 24.17, a P/E/G ratio of 2.79 and a beta of 0.61.

American Water Works Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 11th will be paid a $0.895 dividend. This represents a $3.58 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Tuesday, August 11th. American Water Works’s dividend payout ratio is 63.48%.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on AWK shares. Wall Street Zen lowered shares of American Water Works from a “sell” rating to a “strong sell” rating in a research note on Sunday. Truist Financial dropped their price target on American Water Works from $137.00 to $130.00 and set a “hold” rating on the stock in a research note on Friday, May 29th. UBS Group boosted their price target on American Water Works from $140.00 to $150.00 and gave the company a “buy” rating in a report on Thursday, July 2nd. Bank of America reaffirmed a “neutral” rating on shares of American Water Works in a research report on Thursday, July 16th. Finally, Wells Fargo & Company set a $131.00 price objective on American Water Works in a report on Tuesday, April 21st. Two investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $140.60.

Institutional Trading of American Water Works

Hedge funds and other institutional investors have recently modified their holdings of the stock. Transamerica Financial Advisors LLC increased its position in American Water Works by 82.6% during the 4th quarter. Transamerica Financial Advisors LLC now owns 199 shares of the utilities provider’s stock worth $26,000 after buying an additional 90 shares during the period. DV Equities LLC bought a new stake in shares of American Water Works in the fourth quarter valued at about $35,000. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its stake in shares of American Water Works by 81.2% in the fourth quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 290 shares of the utilities provider’s stock valued at $38,000 after acquiring an additional 130 shares in the last quarter. Darwin Wealth Management LLC acquired a new position in shares of American Water Works in the second quarter valued at about $47,000. Finally, Johnson Financial Group Inc. increased its position in American Water Works by 141.7% during the fourth quarter. Johnson Financial Group Inc. now owns 394 shares of the utilities provider’s stock worth $51,000 after acquiring an additional 231 shares during the period. Institutional investors own 86.58% of the company’s stock.

Key Headlines Impacting American Water Works

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

• Positive Sentiment: Second-quarter GAAP and adjusted earnings were $1.61 per share, up from $1.48 and above analyst estimates of approximately $1.53–$1.59. Revenue rose 6.2% year over year to roughly $1.35 billion, exceeding the $1.33 billion consensus. American Water second-quarter results
• Positive Sentiment: Management said regulatory execution remains strong, including new Pennsylvania rates scheduled to take effect August 13, 2026. The company also reaffirmed its $3.7 billion capital investment plan, which supports long-term rate-base growth. American Water second-quarter results
• Positive Sentiment: Progress continued on the proposed merger with Essential Utilities: three states have approved the transaction, a settlement in principle was reached in Texas, and integration planning is underway. American Water also added approximately 52,000 customer connections through acquisitions, including the Nexus Water systems. American Water merger and operating update
• Positive Sentiment: The board declared a quarterly dividend of $0.895 per share, payable September 1 to shareholders of record August 11. The annualized payout implies a dividend yield of approximately 2.6%, reinforcing AWK’s appeal as a defensive income investment. American Water dividend announcement
• Neutral Sentiment: American Water reaffirmed 2026 EPS guidance of $6.02 to $6.12, essentially in line with the $6.08 analyst consensus. The reaffirmation supports visibility but does not represent an increase to expectations. American Water guidance update

American Water Works Company Profile

American Water Works Company, Inc (NYSE: AWK) is a publicly traded utility company that provides water and wastewater services in the United States. Its core business is the operation, management and maintenance of regulated water and wastewater systems that deliver potable water, collect and treat wastewater, and provide related customer services to residential, commercial and industrial customers as well as municipalities. The company’s operations include water treatment and distribution, wastewater collection and treatment, meter reading and billing, emergency repairs, and long-term infrastructure planning and capital project execution.

In addition to its regulated utility operations, American Water offers complementary nonregulated services and solutions that support system reliability and customer needs.