Earnings call transcript: American Water Works Q3 2026 misses estimates

American Water Works reported Q3 2026 earnings of $2.00 per share, below analysts' expectations of $2.07. Revenue of $1.51 billion also fell short of forecasts. Despite the miss, the utility narrowed its full-year 2026 earnings guidance to $6.07 to $6.12 per share, indicating it expects to finish in the top half of its original guidance range.

Management pointed to regulatory wins and rate increases as factors supporting future growth. The company reaffirmed its long-term EPS growth targets of 7% to 9% annually. For the first nine months of 2026, adjusted earnings reached $4.63 per share, up 5.2% from the same period a year earlier. The company highlighted progress on acquisitions and regulatory approvals, which are crucial to its long-term growth strategy.

American Water has raised its dividend for 12 consecutive years, yielding 2.56%, underscoring its commitment to shareholder returns. The stock was little changed in after-hours trading, trading at $140.03, near the upper end of its 52-week range. InvestingPro analysis suggests the stock may be overvalued at current levels.