The EPS and revenue both missed consensus, but the guidance narrowing to the top half and the initiation of 2027 guidance at 8% growth provide a positive offset. Monitor the Essential Utilities merger closing timeline (targeted by end of Q1 2027) and regulatory rate case outcomes, which are key to future earnings growth.
Price Chart
Executive Summary
American Water reported Q3 2026 adjusted EPS of $2.00, up 5.8% from $1.89 a year ago, narrowly missing the $2.04 consensus. Revenue of $1.51B grew 4.1% YoY but missed the $1.55B estimate. The company narrowed its 2026 adjusted EPS guidance to $6.07-$6.12 (top half of prior $6.02-$6.12 range) and initiated 2027 standalone EPS guidance of $6.53-$6.63, reflecting 8% growth at the midpoint. Long-term targets of 7-9% EPS and dividend growth were affirmed.
Key Financial Metrics
Key Facts
- Q3 2026 adjusted EPS of $2.00 vs $1.89 YoY, vs consensus $2.04 (miss of ~2.0%)
- Q3 2026 GAAP EPS of $1.94, flat YoY
- Q3 2026 revenue of $1.51B, up 4.1% from $1.451B YoY, vs consensus $1.55B (miss)
- 2026 adjusted EPS guidance narrowed to $6.07-$6.12 from $6.02-$6.12
- Initiated 2027 standalone adjusted EPS guidance of $6.53-$6.63 (8% growth at midpoint)
- Regulated Businesses net income rose to $407M from $383M in Q3 2025
- Capital investment of $2.8B in first nine months of 2026, on track for $3.7B full year
- Quarterly dividend maintained at $0.8950 per share
- Merger with Essential Utilities progressing; three states approved, settlements in PA, NC, TX
Financial Impact
Q3 adjusted EPS $2.00 vs consensus $2.04 (miss); revenue $1.51B vs $1.55B (miss); guidance narrowed to top half of range; 2027 guidance initiated at 8% growth
Segment Breakdown
| Segment |
|---|
| Regulated Businesses |
Risk Factors
- EPS and revenue both missed consensus estimates for Q3 2026
- Higher operating costs and interest expense are pressuring margins
- Merger with Essential Utilities faces regulatory approvals and integration risks
- Weather impacts and PFAS regulation could affect future results
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001410636-26-000150 |
| Document: awk-20261028.htm | 0001410636-26-000150 |
| Document: 0001410636-26-000150-index-headers.html | 0001410636-26-000150 |
| Document: 0001410636-26-000150-index.html | 0001410636-26-000150 |
| Document: 0001410636-26-000150.txt | 0001410636-26-000150 |
| 8-K Data (Synthetic) | 0001410636-26-000150 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 28, 2026 2d ago | 8-K | $142.21 | awaiting T+5 | awaiting T+5 | $144.37 (+1.52%) |
Oct 27, 2026 3d ago | Press Release | $141.10 | awaiting T+5 | awaiting T+5 | $144.37 (+2.32%) |
Oct 21, 2026 9d ago | Institutional Cluster | $143.23 $142.21 | ▼ −0.71% | ▼ −1.42% | $144.37 (+0.80%) |
Oct 15, 2026 15d ago | 425 | $134.94 $142.75 | ▲ +5.79% | ▲ +5.69% | $144.37 (+6.99%) |
Oct 5, 2026 25d ago | Press Release | $127.84 $129.55 | ▲ +1.34% | ▲ +0.92% | $144.37 (+12.93%) |
Sep 23, 2026 5w ago | Press Release | $133.06 $129.47 | ▼ −2.70% | ▼ −2.02% | $144.37 (+8.50%) |
Sep 18, 2026 6w ago | 425 | $133.97 $128.93 | ▼ −3.76% | ▼ −2.74% | $144.37 (+7.76%) |
Sep 17, 2026 6w ago | 425 | $138.24 $131.53 | ▼ −4.85% | ▼ −5.45% | $144.37 (+4.43%) |
Sep 17, 2026 6w ago | 8-K | $138.24 $131.53 | ▼ −4.85% | ▼ −5.45% | $144.37 (+4.43%) |
Sep 16, 2026 6w ago | 8-K | $137.76 $133.06 | ▼ −3.41% | ▼ −5.24% | $144.37 (+4.80%) |
US Market Status
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