American Water Works Stock: Is Wall Street Bullish or Bearish?

American Water Works Company (AWK), a Camden, New Jersey-based utility, ranks as the largest regulated water and wastewater provider in the United States, serving roughly 14 million people across 14 states and military bases. Over the past year, AWK's shares have lagged the broader market, falling 5.1% compared to a 20.6% gain for the S&P 500 Index.

In 2026, the stock has further underperformed, climbing 4.6% year-to-date, versus a 13.9% gain for the S&P 500. Truist Securities analyst Richard Sunderland recently lowered AWK's price target from $139 to $138, maintaining a Hold rating. Among 13 analysts covering AWK, the consensus rating is Hold, a more bullish stance than three months ago, when it was a Strong Buy.

AWK's Q2 FY2026 earnings report surpassed estimates, with revenue up 6.2% year-over-year to $1.36 billion, driven by rate hikes and acquisitions. Adjusted EPS grew 8.1% to $1.61. AWK expects full-year 2026 adjusted EPS of $6.02 to $6.12 and long-term growth targets of 7% to 9% in earnings and dividends. The company has also made progress on its merger with Essential Utilities, with three states approving the deal and Texas reaching a settlement in principle.