American Electric Power (NASDAQ:AEP) Releases Quarterly Earnings Results, Misses Estimates By $0.12 EPS

American Electric Power (NASDAQ:AEP) issued its quarterly earnings results on Thursday. The company reported $1.36 EPS for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12), Zacks reports. The business had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.34 billion. American Electric Power had a net margin of 16.29% and a return on equity of 10.21%. The firm’s revenue was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.43 earnings per share. American Electric Power updated its FY 2026 guidance to 6.250-6.550 EPS.

Here are the key takeaways from American Electric Power’s conference call:

• AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share from $6.15–$6.45, while reaffirming 7%–9% annual earnings growth and an operating EPS CAGR above 9% through 2030.
• Contracted large-load additions increased by 6 gigawatts to 69 gigawatts through 2030, including 45 gigawatts in Texas, supported by executed agreements and nearly $2 billion of customer cash or collateral commitments.
• AEP continues to expand its long-term investment pipeline, with a $78 billion 2026–2030 capital plan, approximately 11% rate-base CAGR, 13 gigawatts of secured turbine capacity, and more than $10 billion of potential incremental investments.
• The company completed a $3 billion marketed equity transaction to address anticipated financing needs for its base capital plan and secured a DOE loan guarantee of up to $3.3 billion, which AEP expects will generate approximately $685 million in customer savings.
• Second-quarter operating earnings declined to $1.36 per share from $1.43 a year earlier, reflecting the 2025 transmission minority-interest sale, tax timing items, prior-year favorable weather, and higher reliability-related O&M spending; management also acknowledged that ERCOT reviews and transmission or generation availability could delay some load interconnections.

American Electric Power Price Performance

Shares of American Electric Power stock opened at $127.78 on Friday. The company has a debt-to-equity ratio of 1.42, a quick ratio of 0.39 and a current ratio of 0.53. The stock’s fifty day moving average is $131.87 and its 200 day moving average is $129.77. The stock has a market cap of $69.53 billion, a P/E ratio of 18.76, a P/E/G ratio of 2.32 and a beta of 0.52. American Electric Power has a one year low of $105.70 and a one year high of $140.58.

American Electric Power Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be given a dividend of $0.95 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $3.80 dividend on an annualized basis and a dividend yield of 3.0%. American Electric Power’s payout ratio is presently 55.80%.

Institutional Trading of American Electric Power

Several institutional investors and hedge funds have recently modified their holdings of the company. State Street Corp raised its stake in American Electric Power by 5.2% during the 4th quarter. State Street Corp now owns 30,437,776 shares of the company’s stock valued at $3,509,780,000 after purchasing an additional 1,514,865 shares during the period. Morgan Stanley grew its position in American Electric Power by 1.9% in the fourth quarter. Morgan Stanley now owns 14,661,858 shares of the company’s stock worth $1,690,659,000 after acquiring an additional 271,879 shares in the last quarter. Invesco Ltd. increased its position in shares of American Electric Power by 4.2% during the 4th quarter. Invesco Ltd. now owns 7,688,340 shares of the company’s stock valued at $886,543,000 after purchasing an additional 313,123 shares during the last quarter. Ameriprise Financial Inc. increased its position in American Electric Power by 1.2% during the second quarter. Ameriprise Financial Inc. now owns 4,799,534 shares of the company’s stock valued at $498,008,000 after acquiring an additional 59,243 shares during the last quarter. Finally, Soroban Capital Partners LP grew its holdings in American Electric Power by 176.3% during the 2nd quarter. Soroban Capital Partners LP now owns 4,004,686 shares of the company’s stock valued at $415,526,000 after purchasing an additional 2,555,415 shares during the last quarter. 75.24% of the stock is currently owned by institutional investors.

More American Electric Power News

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: AEP raised its 2026 operating earnings guidance to $6.25–$6.55 per share, broadly in line with the $6.35 analyst consensus. Management cited robust electricity demand from data centers and other large customers. American Electric Power lifts forecast as AI fuels electricity surge
• Positive Sentiment: The company expanded contracted and prospective new load additions to 69 gigawatts through 2030, while securing about 13 GW of gas-fired turbine capacity and evaluating another 10 GW. This positions AEP to benefit from AI-related power consumption and broader electrification. AEP Reports Second-Quarter 2026 Earnings, Raises Full-Year Guidance
• Positive Sentiment: Management expects load growth to support up to $16 billion in cost offsets, along with approximately $1.4 billion in customer savings from federal loan guarantees and grants, potentially improving affordability and supporting future investment. American Electric Power: No Signs Of Slowing Yet After Q2 Earnings
• Neutral Sentiment: Second-quarter revenue rose 7% year over year to $5.45 billion, exceeding the $5.34 billion consensus estimate. However, the revenue strength did not translate into earnings growth. AEP Second-Quarter Earnings Report
• Negative Sentiment: Operating earnings were $1.36 per share, below the $1.48–$1.49 analyst estimates and down from $1.43 a year earlier. Tax timing and the impact of a prior transaction contributed to the shortfall. GAAP earnings fell to $1.31 per share from $2.29 a year ago. American Electric Power Misses Q2 Earnings Estimates

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on AEP. Truist Financial raised their price objective on American Electric Power from $145.00 to $146.00 and gave the company a “buy” rating in a research note on Friday, July 17th. The Goldman Sachs Group boosted their price objective on shares of American Electric Power from $141.00 to $142.00 and gave the company a “buy” rating in a research report on Wednesday, April 15th. Scotiabank increased their target price on American Electric Power from $131.00 to $140.00 and gave the stock a “sector perform” rating in a research report on Wednesday, May 6th. Wall Street Zen cut shares of American Electric Power from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Finally, Seaport Research Partners raised American Electric Power from a “neutral” rating to a “buy” rating and set a $145.00 target price on the stock in a report on Monday, April 20th. Thirteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, American Electric Power presently has a consensus rating of “Moderate Buy” and an average price target of $141.71.

American Electric Power Company Profile

American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.