$AWK · American Water Works Company, Inc.
American Water Works reported Q3 2026 results: GAAP EPS of $1.94 flat YoY, adjusted EPS of $2.00 vs. $1.89 in Q3 2025. Revenue rose to $1.51B from $1.45B. The company narrowed its 2026 adjusted EPS guidance to $6.07–$6.12 (top half of prior range) and initiated standalone 2027 EPS guidance of $6.53–$6.63, representing ~8% growth at the midpoint.
- Q3 2026 adjusted EPS of $2.00 vs. $1.89 in Q3 2025, a 5.8% increase
- 2026 adjusted EPS guidance narrowed to $6.07–$6.12 from prior $6.02–$6.12
- 2027 standalone adjusted EPS guidance initiated at $6.53–$6.63, implying ~8% growth at midpoint
- Regulated Businesses net income rose to $407M in Q3 2026 from $383M in Q3 2025
- YTD capital investment of $2.8B, including $437M for regulated acquisitions; full-year plan $3.7B on track
Extended-hours trading shows AWK at $141.88, up 1.50% vs. the regular close of $139.79, indicating a positive initial reaction to the narrowed guidance and 2027 EPS initiation.
AWK delivered a clean beat-and-raise quarter while simultaneously initiating 2027 guidance with 8% EPS growth, reinforcing the regulated utility growth playbook amid a $20B+ five-year capital plan.
AWK's 8% EPS growth midpoint and $20B+ 5-year capital plan underscore the regulated utility sector's heavy infrastructure investment cycle, with rate-base growth of 8–9% driving the thesis.
Pending merger with Essential Utilities carries execution risk — three states approved, settlements reached in PA, NC, and TX, but further regulatory approvals are required. Transaction costs and integration risks could pressure near-term results.