American Electric Power (NASDAQ:AEP) Releases Earnings Results

American Electric Power (NASDAQ:AEP) announced its earnings results on Thursday. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12), Zacks reports. The company had revenue of $5.45 billion for the quarter, compared to analyst estimates of $5.34 billion. American Electric Power had a return on equity of 10.03% and a net margin of 13.78%.American Electric Power’s revenue for the quarter was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.43 earnings per share. American Electric Power updated its FY 2026 guidance to 6.250-6.550 EPS.

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

• AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share from $6.15–$6.45, while reaffirming 7%–9% annual earnings growth and an operating EPS CAGR above 9% through 2030.
• Contracted large-load additions increased by 6 gigawatts to 69 gigawatts through 2030, including 45 gigawatts in Texas, supported by executed agreements and nearly $2 billion of customer cash or collateral commitments.
• AEP continues to expand its long-term investment pipeline, with a $78 billion 2026–2030 capital plan, approximately 11% rate-base CAGR, 13 gigawatts of secured turbine capacity, and more than $10 billion of potential incremental investments.
• The company completed a $3 billion marketed equity transaction to address anticipated financing needs for its base capital plan and secured a DOE loan guarantee of up to $3.3 billion, which AEP expects will generate approximately $685 million in customer savings.
• Second-quarter operating earnings declined to $1.36 per share from $1.43 a year earlier, reflecting the 2025 transmission minority-interest sale, tax timing items, prior-year favorable weather, and higher reliability-related O&M spending; management also acknowledged that ERCOT reviews and transmission or generation availability could delay some load interconnections.

American Electric Power Price Performance

Shares of NASDAQ AEP opened at $127.85 on Friday. American Electric Power has a fifty-two week low of $105.70 and a fifty-two week high of $140.58. The stock has a market capitalization of $69.56 billion, a price-to-earnings ratio of 21.93, a PEG ratio of 2.29 and a beta of 0.52. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.53 and a quick ratio of 0.39. The business has a 50-day moving average of $131.80 and a 200-day moving average of $129.76.

American Electric Power Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Monday, August 10th will be issued a dividend of $0.95 per share. The ex-dividend date is Monday, August 10th. This represents a $3.80 annualized dividend and a yield of 3.0%. American Electric Power’s dividend payout ratio is presently 55.80%.

Wall Street Analysts Forecast Growth

AEP has been the subject of a number of research reports. Seaport Research Partners upgraded American Electric Power from a “neutral” rating to a “buy” rating and set a $145.00 price objective for the company in a research report on Monday, April 20th. Wall Street Zen cut shares of American Electric Power from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Weiss Ratings restated a “buy (b)” rating on shares of American Electric Power in a research report on Monday, June 1st. Jefferies Financial Group lifted their price objective on American Electric Power from $147.00 to $154.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Finally, BMO Capital Markets cut their target price on American Electric Power from $141.00 to $139.00 and set a “market perform” rating on the stock in a research note on Wednesday, July 22nd. Thirteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $141.43.

Trending Headlines about American Electric Power

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

• Positive Sentiment: AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share, citing robust demand from data centers, artificial-intelligence infrastructure and other large customers. Reuters article
• Positive Sentiment: Management expanded contracted and prospective load additions to approximately 69 gigawatts through 2030 and outlined a roughly $78 billion capital plan. AEP also secured about 13 GW of gas-fired turbine capacity, positioning it to serve rising power demand and potentially drive long-term revenue growth. Zacks article
• Positive Sentiment: Second-quarter revenue increased 7% year over year to $5.45 billion, exceeding the $5.34 billion analyst estimate. The company also expects load growth to help offset costs and provide customer savings through federal loan guarantees and grants. AEP earnings release
• Neutral Sentiment: Mizuho lowered its AEP price target from $141 to $135 and moved to a “neutral” rating. The revised target still implies potential upside, but the reduction signals more cautious expectations after the recent earnings update. Benzinga article
• Negative Sentiment: Operating earnings came in at $1.36 per share, below the $1.48–$1.49 consensus and down from $1.43 a year earlier. Tax timing and the impact of a prior transaction contributed to the shortfall, creating near-term pressure despite the stronger outlook. Zacks earnings article

Institutional Trading of American Electric Power

Several institutional investors and hedge funds have recently added to or reduced their stakes in AEP. Brighton Jones LLC increased its position in American Electric Power by 11.5% during the fourth quarter. Brighton Jones LLC now owns 10,601 shares of the company’s stock worth $978,000 after buying an additional 1,095 shares during the last quarter. Acadian Asset Management LLC bought a new position in shares of American Electric Power in the first quarter valued at about $320,000. Sivia Capital Partners LLC boosted its holdings in shares of American Electric Power by 149.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 4,891 shares of the company’s stock worth $507,000 after buying an additional 2,931 shares during the period. Gamco Investors INC. ET AL raised its holdings in American Electric Power by 4.4% in the 2nd quarter. Gamco Investors INC. ET AL now owns 2,505 shares of the company’s stock valued at $260,000 after acquiring an additional 105 shares during the period. Finally, AXA S.A. grew its position in shares of American Electric Power by 95.7% in the second quarter. AXA S.A. now owns 79,111 shares of the company’s stock valued at $8,209,000 after purchasing an additional 38,684 shares during the last quarter. 75.24% of the stock is owned by institutional investors.

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.