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American Water to Report Q1 Earnings: What's in Store for the Stock?

Zacks Investment Research - Mon Apr 27, 10:50AM CDT
American Water to Report Q1 Earnings: What's in Store for the Stock?

American Water Works CompanyAWK is scheduled to release first-quarter 2026 results on April 29, after market close. The company delivered a negative earnings surprise of 3.13% in the last reported quarter.
 
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.

Q1 Expectations for AWK

The Zacks Consensus Estimate for earnings is pegged at $1.10 per share, implying a year-over-year increase of 4.76%.

The consensus estimate for revenues is pinned at $1.16 billion, indicating growth of 1.37% from the year-ago reported number.

Factors Likely to Have Impacted AWK's Q1 Performance

American Water Works’ first-quarter 2026 earnings are likely to have benefited from several newly implemented rates. These allow recovery of infrastructure investments and enhance earnings visibility.

The company continues to expand its operation through strategic acquisition and organic growth, which is accretive to its earnings being reported. American Water Works completed 18 acquisitions in 2025, and the synergies from these acquisitions are expected to have supported first-quarter 2026 earnings.

The company has been making regular capital investments, upgrading and replacing aging infrastructure, thereby enhancing operational efficiency and service reliability. This creates fresh demand, attracts new customers and is likely to have boosted quarterly performance.

What Our Quantitative Model Predicts About AWK

Our proven model does not predict an earnings beat for American Water Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

AWK’s Earnings ESP: The company has an Earnings ESP of -2.73% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AWK’s Zacks Rank: Currently, American Water Works carries a Zacks Rank #3. 

Stocks to Consider

Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.

WEC Energy GroupWEC is set to report first-quarter 2026 results on May 5 and is likely to come up with an earnings beat. It has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

WEC’s long-term (three to five years) earnings growth rate is 7.44%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $2.31, implying a year-over-year increase of 1.76%.

Ameren CorporationAEE is scheduled to report first-quarter 2026 results on May 6 and is likely to come up with an earnings beat. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.

AEE’s long-term earnings growth rate is 9.27%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.17, which implies a year-over-year increase of 9.35%.

NiSource Inc.NI is set to report first-quarter 2026 results on May 6 and is likely to come up with an earnings beat. It has an Earnings ESP of +2.34% and a Zacks Rank #3 at present.

NI’s long-term earnings growth rate is 6.11%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.03, which implies a year-over-year increase of 5.10%.

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