A. O. Smith (NYSE:AOS) Issues FY 2026 Earnings Guidance
by Amy Steele · The Cerbat GemA. O. Smith (NYSE:AOS – Get Free Report) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share guidance of 3.600-3.900 for the period, compared to the consensus earnings per share estimate of 3.980. The company issued revenue guidance of $3.9 billion-$4.0 billion, compared to the consensus revenue estimate of $4.0 billion.
Analyst Upgrades and Downgrades
Several equities analysts recently issued reports on AOS shares. Stifel Nicolaus set a $78.00 price target on A. O. Smith and gave the company a “buy” rating in a research report on Tuesday, April 14th. Wall Street Zen downgraded A. O. Smith from a “buy” rating to a “hold” rating in a research note on Saturday, February 14th. The Goldman Sachs Group dropped their target price on A. O. Smith from $69.00 to $61.00 and set a “sell” rating on the stock in a report on Monday, April 13th. Citigroup cut their price target on A. O. Smith from $78.00 to $74.00 and set a “neutral” rating for the company in a research note on Monday, April 13th. Finally, Jefferies Financial Group set a $75.00 price target on A. O. Smith and gave the stock a “hold” rating in a report on Friday, January 9th. Two equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $74.89.
View Our Latest Stock Analysis on A. O. Smith
A. O. Smith Stock Performance
NYSE:AOS traded down $1.77 during mid-day trading on Thursday, reaching $61.91. The stock had a trading volume of 4,557,026 shares, compared to its average volume of 1,394,376. A. O. Smith has a twelve month low of $59.83 and a twelve month high of $81.86. The business has a 50 day simple moving average of $67.68 and a 200 day simple moving average of $68.96. The firm has a market capitalization of $8.56 billion, a price-to-earnings ratio of 16.04, a PEG ratio of 1.33 and a beta of 1.35. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.94 and a current ratio of 1.50.
A. O. Smith (NYSE:AOS – Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $0.85 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.94 by ($0.09). The business had revenue of $945.60 million for the quarter, compared to analyst estimates of $976.86 million. A. O. Smith had a return on equity of 29.51% and a net margin of 14.26%.The business’s revenue for the quarter was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.95 EPS. A. O. Smith has set its FY 2026 guidance at 3.600-3.900 EPS. On average, analysts expect that A. O. Smith will post 3.98 earnings per share for the current fiscal year.
A. O. Smith Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Thursday, April 30th will be issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Thursday, April 30th. A. O. Smith’s dividend payout ratio is currently 37.31%.
Insider Transactions at A. O. Smith
In other A. O. Smith news, SVP Darrell W. Schuh sold 1,104 shares of the firm’s stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $74.39, for a total value of $82,126.56. Following the completion of the sale, the senior vice president owned 2,201 shares of the company’s stock, valued at approximately $163,732.39. This trade represents a 33.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.50% of the company’s stock.
Key Headlines Impacting A. O. Smith
Here are the key news stories impacting A. O. Smith this week:
- Positive Sentiment: Strong cash generation — operating cash flow of $129M and free cash flow of $119M improved materially in Q1, supporting balance‑sheet strength and financial flexibility. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
- Positive Sentiment: Acquisition contribution — the Leonard Valve acquisition and pricing helped North America sales rise ~1%, partially offsetting weaker industry volumes. A. O. Smith Reports First Quarter 2026 Results and Lowers Full Year 2026 Outlook
- Neutral Sentiment: Full Q1 disclosure and investor materials published — the company released its earnings press release, slide deck and call transcript for review (useful for deeper due diligence). Q1 Earnings Call Transcript
- Negative Sentiment: Earnings and revenue miss — AOS reported Q1 EPS $0.85 vs. consensus ~$0.94 and revenue $945.6M vs. ~$976.9M, with revenue down 1.9% year‑over‑year. MarketBeat Q1 Results
- Negative Sentiment: China weakness and lowered guidance — Rest‑of‑World sales fell ~11% due to persistent China softness; the company trimmed FY2026 EPS guidance to $3.60–$3.90 (below the ~$3.98 consensus) and narrowed revenue guidance near $3.9–$4.0B. That guidance cut is the main driver of the negative sentiment. Zacks: Misses and Lowers View
Institutional Trading of A. O. Smith
A number of institutional investors have recently added to or reduced their stakes in AOS. Larson Financial Group LLC increased its holdings in A. O. Smith by 67.9% in the third quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company’s stock valued at $36,000 after buying an additional 197 shares in the last quarter. Los Angeles Capital Management LLC acquired a new stake in shares of A. O. Smith during the 4th quarter valued at approximately $35,000. Johnson Financial Group Inc. boosted its stake in shares of A. O. Smith by 398.1% during the 3rd quarter. Johnson Financial Group Inc. now owns 782 shares of the industrial products company’s stock worth $57,000 after acquiring an additional 625 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of A. O. Smith by 78.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company’s stock worth $63,000 after acquiring an additional 422 shares in the last quarter. Finally, Headlands Technologies LLC acquired a new stake in shares of A. O. Smith in the 2nd quarter worth approximately $72,000. Hedge funds and other institutional investors own 76.10% of the company’s stock.
About A. O. Smith
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.