It has been about a month since the last earnings report for Williams Companies, Inc. (The) (WMB Quick QuoteWMB - Free Report) . Shares have added about 4.6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is The Williams Companies due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Williams Companies, Inc. (The) before we dive into how investors and analysts have reacted as of late.

Williams Companies Q4 Earnings Miss Estimates, Revenues Beat

The Williams Companies reported fourth-quarter 2025 adjusted earnings per share of 55 cents, which missed the Zacks Consensus Estimate of 58 cents, mainly due to a 10.3% year-over-year increase in costs and expenses, along with weak performance in its Transmission, Power & Gulf, Northeast G&P and West segments, which came in 0.8%, 1.2% and 0.3% below the consensus mark, respectively.

However, the bottom line increased from the year-ago period’s level of 47 cents. This can be attributed to the better-than-expected performance of its Gas & NGL Marketing Services and Other segments, which came in 27.8% and 1% above the consensus estimate, respectively.

The Tulsa, OK-based oil and gas storage and transportation company’s revenues of $3.2 billion beat the Zacks Consensus Estimate by $57 million. The figure also increased from the year-ago quarter’s reported number of $2.7 billion, supported by higher service revenues, including those tied to commodity contracts, stronger product sales and gains from commodity derivative instruments.

Adjusted EBITDA totaled $2 billion in the quarter under review, which was up 14.5% year over year. Cash flow from operations amounted to $1.6 billion, up 29.4% from the corresponding quarter of 2024.

Segmental Analysis

Transmission, Power & Gulf (formerly Transmission & Gulf of America): The segment reported an adjusted EBITDA of $998 million, up 20.8% from the year-ago quarter’s level. The increase was driven by stronger net rates and expansion projects at Transco, as well as incremental Gulf volumes. However, the figure slightly missed the Zacks Consensus Estimate of $1 billion.

Northeast G&P: Driven primarily by increased gathering volumes at Bradford within Appalachia Midstream, this segment registered an adjusted EBITDA of $508 million. This represents a 1.8% increase from $499 million in the year-earlier quarter. However, it missed the Zacks Consensus Estimate of $514 million.

West: This segment focuses on the gathering and processing of assets in the Western United States. Adjusted EBITDA for this segment totaled $388 million, up 12.5% from the prior-year quarter’s level of $345 million. Strong results were fueled by the Louisiana Energy Gateway project entering service, additional volumes from the 2025 Rimrock and Saber acquisitions and higher throughput in the Haynesville. However, the figure was slightly decreased from the Zacks Consensus Estimate of $389 million.

Gas & NGL Marketing Services: The segment posted $42 million in adjusted EBITDA, a year-over-year increase from $36 million, driven by favorable NGL spreads and contributions from the Cogentrix investment, and the figure was above the Zacks Consensus Estimate of $32.87 million.

Other: This segment posted an adjusted EBITDA of $97 million, representing a 38.6% increase from $70 million in the year-earlier quarter, driven by higher upstream volumes and stronger gas prices. Moreover, the figure was slightly above the Zacks Consensus Estimate of $96 million.

Costs, Capex & Balance Sheet

In the reported quarter, total costs and expenses of $2 billion increased almost 10.3% from the year-ago quarter’s figure.

Total capital expenditure (capex) was $1 billion. As of Dec. 31, 2025, Williams had cash and cash equivalents of $63 million and a long-term debt of $27.3 billion, with a debt-to-capitalization of 68.1%.

2026 Guidance

The company expects its 2026 adjusted EBITDA to be between $8.05 billion and $8.35 billion. In line with its growth plans, Williams projects 2026 growth capital spending of $6.1-$6.7 billion, along with maintenance capital expenditures of $850-$950 million, while targeting an average leverage ratio of around 4.0x. Reflecting confidence in the cash-flow outlook, the company also announced a 5% increase in its annual dividend to $2.10 per share in 2026 from $2.00 in 2025. Notably, its 2026 guidance for growth capital expenditures and debt-to-adjusted EBITDA excludes certain reimbursable long-lead equipment costs.

Meanwhile, the company expects its 2026 net production to total 180-220 million British thermal units per day (MMBtu/d) of natural gas, 7-9 million barrels per day (Mbbl/d) of oil and 11-13 Mbbl/d of natural gas liquids (NGLs), based on assumed prices of $4.04 per MMBtu (NYMEX), $61.42 per Mbbl and $0.82 per gallon for NGLs, excluding hedge impact. Consistent with this outlook, the company anticipates adjusted earnings per share (EPS) of $2.20-$2.38, available funds from operations (AFFO) of $6.085-$6.315 billion and AFFO per share of $4.95-$5.14 for 2026.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, The Williams Companies has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, The Williams Companies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

The Williams Companies belongs to the Zacks Oil and Gas - Production and Pipelines industry. Another stock from the same industry, MPLX LP (MPLX Quick QuoteMPLX - Free Report) , has gained 5.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

MPLX LP reported revenues of $3.25 billion in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $1.17 for the same period compares with $1.07 a year ago.

MPLX LP is expected to post earnings of $1.08 per share for the current quarter, representing a year-over-year change of -1.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for MPLX LP. Also, the stock has a VGM Score of D.