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Atmos Energy Q1 Earnings Beat Estimates, Revenues Increase Y/Y

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Key Takeaways

  • ATO posted Q1 EPS of $2.44, topping estimates, with net income rising 14.5% from the prior-year quarter.
  • Atmos Energy saw operating income climb 12% and implemented $122.9M in new rates, with more pending approval.
  • ATO reaffirmed FY26 EPS guidance of $8.15-$8.35 and plans $4.2 billion in capital spending this fiscal year.

Atmos Energy (ATO - Free Report) posted first-quarter fiscal 2026 earnings of $2.44 per share, which beat the Zacks Consensus Estimate of $2.41 by 1.24%. The bottom line improved 9.42% from the year-ago quarter’s earnings of $2.23.

ATO’s Revenues

The company reported revenues of $1.34 billion, which missed the Zacks Consensus Estimate of $1.44 billion by 6.41%. However, the top line rose 14.2% from the prior-year quarter’s $1.18 billion.

Atmos Energy Corporation Price, Consensus and EPS Surprise

 

Atmos Energy Corporation Price, Consensus and EPS Surprise

Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote

Highlights of ATO’s Release

Operating income in the first fiscal quarter was $514.7million, a 12% increase from $459.4 million in the year-ago quarter.

Through Feb. 3, 2026,  new rates worth $122.9 million were implemented, and rates worth $81.2 million are in progress to be put into effect after approval by the authority.

ATO reported net income of $403 million in the fiscal first quarter, a 14.5% increase from $352 million in the year-ago quarter.

ATO’s Segmental Details

Distribution: Net income totaled $269.2 million, a 12% increase from $240.2 million in the year-ago quarter.

Pipeline and Storage: Income amounted to $134 million, reflecting a 19.6% increase from $112 million in the year-ago quarter.

ATO’s Financial Highlights

As of Dec. 31, 2025, Atmos Energy reported a strong balance sheet with $4.6 billion in available liquidity.

In the first quarter of fiscal 2026, the company issued $600 million 5.45% 30-year senior notes and settled $472 million through equity forward arrangements.

In the first quarter of fiscal 2026, the company invested nearly $1 billion, with 85% of the amount allocated for improving the safety and reliability of its distribution and transportation systems.

ATO’s Guidance

Atmos Energy reaffirms the fiscal 2026 guidance at $8.15-$8.35 earning per share. 

ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.

ATO's board of directors declared a quarterly dividend of $1 per common share. The indicated annual dividend for fiscal 2026 is $4, which represents a 14.9% increase from that reported in fiscal 2025.

ATO’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

MDU Resources Group (MDU - Free Report) is scheduled to report fourth-quarter results on Feb. 5. The Zacks Consensus Estimate for earnings is pegged at 37 cents per share, which indicates a year-over-year increase of 8.82%.

The Zacks Consensus Estimate for fourth-quarter sales is pinned at $554 million, which suggests year-over-year growth of 3.45%.

ONE Gas, Inc. (OGS - Free Report) is scheduled to report fourth-quarter results on Feb. 18. The Zacks Consensus Estimate for earnings is pegged at $1.42 per share, which indicates a year-over-year increase of 5.97%.

The Zacks Consensus Estimate for fourth-quarter sales is pinned at $675.21 million, which suggests year-over-year growth of 7.06%.

Northwest Natural (NWN - Free Report) is scheduled to report fourth-quarter results on Feb. 27. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share, which indicates a year-over-year fall of 3.55%.

The Zacks Consensus Estimate for fourth-quarter sales is pinned at $394.99 million, which suggests year-over-year growth of 6.50%.

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