American Water Works (NYSE:AWK) Issues Quarterly Earnings Results

19 Feb 2026, 16:30 by Mitch Edgeman · The Markets Daily

American Water Works (NYSE:AWK – Get Free Report) released its quarterly earnings data on Wednesday. The utilities provider reported $1.24 EPS for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.04), FiscalAI reports. American Water Works had a return on equity of 10.48% and a net margin of 21.93%.The firm had revenue of $1.27 billion during the quarter, compared to analysts’ expectations of $1.29 billion. During the same quarter last year, the business earned $1.15 earnings per share. The business’s revenue for the quarter was up 5.8% compared to the same quarter last year. American Water Works updated its FY 2026 guidance to 6.020-6.120 EPS.

American Water Works Stock Down 0.3%

Shares of AWK stock traded down $0.40 during mid-day trading on Thursday, reaching $130.77. 322,298 shares of the company were exchanged, compared to its average volume of 1,707,754. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.39 and a current ratio of 0.42. The business’s 50 day simple moving average is $129.94 and its 200 day simple moving average is $134.70. The company has a market capitalization of $25.52 billion, a P/E ratio of 23.02, a P/E/G ratio of 3.10 and a beta of 0.77. American Water Works has a fifty-two week low of $121.28 and a fifty-two week high of $155.50.

American Water Works Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 3rd. Stockholders of record on Tuesday, February 10th will be given a dividend of $0.8275 per share. The ex-dividend date of this dividend is Tuesday, February 10th. This represents a $3.31 dividend on an annualized basis and a dividend yield of 2.5%. American Water Works’s dividend payout ratio (DPR) is presently 58.17%.

Key American Water Works News

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

Positive Sentiment: Shareholders overwhelmingly approved merger‑related proposals with Essential Utilities, advancing a deal that expands scale, rate base and potential cost synergies — a structural growth story investors typically reward. American Water Works (AWK) Expands Scale with Essential Utilities Merger
Positive Sentiment: AWK raised FY‑2026 EPS guidance to $6.020–$6.120, above the Street consensus (~$5.95), which supports upside to valuation and reinforces earnings visibility for investors. FY2026 Guidance/PR Slides
Positive Sentiment: Company reported strong full‑year 2025 operating results (adjusted EPS up ~8.9% y/y), delivered 8.2% dividend growth, invested $3.2B in capital and reaffirmed long‑term EPS/dividend targets — supporting the income/growth thesis. American Water Reports Strong 2025 Results
Neutral Sentiment: A new company grant program is being debated by analysts as a valuation factor — it may affect investor perception of capital allocation and fair value but is not an immediate cash‑flow driver. American Water Works Grant Program Adds New Angle To Valuation Debate
Negative Sentiment: Q4 EPS of $1.24 missed consensus (~$1.28) and revenue came in slightly below expectations; Reuters highlights higher expenses as a near‑term headwind, which tempers the reaction to positive forward guidance. American Water Works misses quarterly results estimates on higher expenses

Analysts Set New Price Targets

A number of research analysts have weighed in on AWK shares. UBS Group set a $149.00 price target on shares of American Water Works in a research report on Wednesday, December 17th. Mizuho set a $145.00 price target on American Water Works in a report on Tuesday, October 28th. Weiss Ratings reissued a “hold (c)” rating on shares of American Water Works in a research report on Monday, December 29th. Barclays decreased their target price on American Water Works from $134.00 to $122.00 and set an “underweight” rating for the company in a research report on Wednesday, December 17th. Finally, Jefferies Financial Group upgraded American Water Works from an “underperform” rating to a “hold” rating and raised their target price for the company from $114.00 to $124.00 in a report on Wednesday, November 5th. One investment analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $140.89.

View Our Latest Research Report on American Water Works

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Faithward Advisors LLC raised its stake in shares of American Water Works by 5.4% in the 3rd quarter. Faithward Advisors LLC now owns 1,602 shares of the utilities provider’s stock valued at $223,000 after purchasing an additional 82 shares in the last quarter. Cresset Asset Management LLC raised its stake in American Water Works by 1.5% during the second quarter. Cresset Asset Management LLC now owns 5,865 shares of the utilities provider’s stock valued at $816,000 after buying an additional 85 shares in the last quarter. Transamerica Financial Advisors LLC lifted its holdings 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 last quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA grew its position in shares of American Water Works by 81.3% in the 4th quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 290 shares of the utilities provider’s stock worth $38,000 after acquiring an additional 130 shares in the last quarter. Finally, Principal Securities Inc. increased its holdings in shares of American Water Works by 2.8% in the 4th quarter. Principal Securities Inc. now owns 5,083 shares of the utilities provider’s stock valued at $663,000 after acquiring an additional 138 shares during the last quarter. 86.58% of the stock is owned by institutional investors and hedge funds.

American Water Works Company Profile

(Get Free Report)

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.