AEP raises full-year 2026 operating EPS guidance to $6.25-$6.55
Company reaffirms annual operating earnings growth rate of 7%-9% through 2030
AEP expects robust customer demand and expands contracted load growth to 69 GW through 2030
Overview
U.S. electric utility's Q2 revenue rose and beat analyst expectations
Adjusted EPS for Q2 declined and missed analyst estimates
Company raised full-year 2026 operating EPS guidance
Result drivers
Load growth - Co said strong commercial and industrial demand, especially in Texas, drove higher contracted load and revenue
Earnings pressure - Co said lower operating earnings were due to the 2025 transmission minority interest sale and timing of tax-related items, per CEO Bill Fehrman
Regulatory and cost offsets - Co cited productive regulatory outcomes and customer cost offsets from federal loans and grants as supporting affordability and results
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for American Electric Power Company Inc is $145.00, about 12.1% above its July 29 closing price of $129.40
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago
AEP•
