The EPS miss and rising cost structure warrant caution, but affirmed guidance and dividend growth provide a floor. Watch for upcoming rate case outcomes and merger regulatory decisions as key catalysts. The stock may trade down initially on the EPS shortfall but find support from dividend hike and merger progress.
Price Chart
Executive Summary
American Water reported Q1 2026 GAAP EPS of $1.00, missing consensus of $1.09 by 8.3%, while revenue of $1.207B beat estimates of $1.12B. The company affirmed 2026 adjusted EPS guidance of $6.02-$6.12 and raised the quarterly dividend by 8.2%, with merger progress with Essential Utilities advancing. The EPS miss, driven by higher operating costs and interest expense, overshadows the revenue beat.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP EPS $1.00 vs consensus $1.09 (miss of 8.3%)
- Q1 2026 revenue $1.207B vs consensus $1.12B (beat of 7.8%)
- Adjusted EPS (non-GAAP) $1.01 vs $1.02 in prior year
- 2026 EPS guidance affirmed at $6.02-$6.12
- Quarterly dividend increased 8.2% to $0.895/share
- Merger with Essential Utilities received first state approval in Kentucky
- Operating expenses increased $44M year-over-year, depreciation up $21M, interest expense up $12M
Financial Impact
EPS miss of $0.09 (8.3%) vs consensus, revenue beat of $87M (7.8%). Net income declined $9M (4.4%) YoY.
Risk Factors
- Regulatory lag in recovering capital investments could pressure margins
- Higher interest expense and cost inflation may continue to weigh on earnings
- Merger with Essential Utilities subject to regulatory approvals and integration risks
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001410636-26-000064 |
| Document: awk-20260429.htm | 0001410636-26-000064 |
| Document: 0001410636-26-000064-index-headers.html | 0001410636-26-000064 |
| Document: 0001410636-26-000064-index.html | 0001410636-26-000064 |
| Document: 0001410636-26-000064.txt | 0001410636-26-000064 |
| 8-K Data (Synthetic) | 0001410636-26-000064 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 18d ago | 424B5 | $138.92 $133.97 | ▼ −3.56% | ▼ −3.67% | $129.91 (−6.49%) |
Aug 26, 2026 5w ago | Press Release | $137.49 $139.49 | ▲ +1.45% | ▲ +1.57% | $129.91 (−5.51%) |
Aug 18, 2026 6w ago | Press Release | $136.27 $137.60 | ▲ +0.98% | ▲ +1.18% | $129.91 (−4.67%) |
Aug 17, 2026 6w ago | 425 | $134.35 $139.80 | ▲ +4.06% | ▲ +5.25% | $129.91 (−3.30%) |
Aug 13, 2026 7w ago | 425 | $136.46 $137.21 | ▲ +0.55% | ▲ +2.51% | $129.91 (−4.80%) |
Aug 13, 2026 7w ago | 425 | $136.46 $137.21 | ▲ +0.55% | ▲ +2.51% | $129.91 (−4.80%) |
Jul 27, 2026 9w ago | Press Release | $138.04 $131.30 | ▼ −4.88% | ▼ −7.15% | $129.91 (−5.89%) |
Jul 16, 2026 11w ago | 8-K | $135.11 $134.41 | ▼ −0.52% | ▲ +0.17% | $129.91 (−3.85%) |
Jun 23, 2026 14w ago | Institutional Cluster | $126.60 $132.50 | ▲ +4.66% | ▲ +3.65% | $129.91 (+2.61%) |
Jun 22, 2026 14w ago | 425 | $126.60 $132.50 | ▲ +4.66% | ▲ +3.65% | $129.91 (+2.61%) |
US Market Status
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