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Atmos Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
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Key Takeaways
ATO posted Q2 EPS of $3.47, topping estimates and rising 14.5% from last year.
Atmos Energy's Q2 operating income climbed 21.6% as O&M expenses fell 16.1%.
ATO reaffirmed fiscal 2026 EPS guidance of $8.40-$8.50 and raised its annual dividend 14.9%.
Atmos Energy (ATO - Free Report) posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.
ATO’s Revenues
The company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Operation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.
Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.
Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.
ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.
Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.
The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.
ATO’s Segmental Details
Distribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.
Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.
ATO’s Financial Highlights
As of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.
As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.
Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.
During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.
In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.
ATO’s FY26 Guidance
Atmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.
ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
Total net income is expected to be in the range of $1.41-$1.43 billion.
ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.
Algonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 11 cents, which implies a year-over-year decrease of 21.43%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $697.9 million, which suggests year-over-year growth of 0.79%.
PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.
Global Water Resources, Inc. (GWRS - Free Report) is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for first-quarter EPS is pinned at a loss of 2 cents, which implies a year-over-year decrease of 200%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $13.0 million, which suggests year-over-year growth of 4.33%.
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Atmos Energy Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Atmos Energy (ATO - Free Report) posted second-quarter fiscal 2026 earnings of $3.47 per share, which beat the Zacks Consensus Estimate of $3.37 by 2.97%. The bottom line improved 14.52% from the year-ago quarter’s $3.03.
ATO’s Revenues
The company reported revenues of $1.96 billion, which missed the Zacks Consensus Estimate of $2.24 billion by 12.37%. However, the top line rose 0.61% from the prior-year quarter’s $1.95 billion.
Atmos Energy Corporation Price, Consensus and EPS Surprise
Atmos Energy Corporation price-consensus-eps-surprise-chart | Atmos Energy Corporation Quote
Highlights of ATO’s Q2 Release
Operation and maintenance expenses in the second quarter of fiscal 2026 amounted to $195.8 million, down 16.08% from the year-ago quarter’s level.
Operating income in the second quarter of fiscal 2026 was $764.8 million, a 21.60% increase from $628.9 million in the year-ago quarter.
Through May 6, 2026, new rates worth $136.1 million were implemented, while rates worth $598.4 million await approval from the authorities before being put into effect.
ATO reported net income of $581.9 million in the second quarter of fiscal 2026, a 19.84% increase from $485.6 million in the year-ago quarter.
Atmos Energy incurred interest expenses of $48.7 million, down 2.63% from the year-earlier quarter’s level.
The company reported 159.4 million cubic feet of consolidated distribution throughput for the quarter, down 18.85% from the year-ago quarter’s reported actuals.
ATO’s Segmental Details
Distribution: Net income totaled $437.3 million, a 14.89% increase from $380.6 million in the year-ago quarter.
Pipeline and Storage: Income amounts to $144.6 million, reflecting a 37.80% increase from $104.9 million reported in the year-ago quarter.
ATO’s Financial Highlights
As of March 31, 2026, Atmos Energy reported a strong balance sheet with approximately $4.1 billion in available liquidity.
As of March 31, 2026, ATO had cash and cash equivalents of $127.1 million compared with $203.8 million as of Sept. 30, 2025.
Net cash flow provided by operating activities in the first six months of fiscal 2026 was $1.03 billion compared with $1.20 billion in the year-ago period.
During the second quarter of fiscal 2026, the company issued $600 million of 5.45% 30-year senior notes and settled $672 million through equity forward arrangements.
In the second quarter of fiscal 2026, the company invested nearly $2.0 billion, with 85% of the amount allocated to improving the safety and reliability of its distribution and transportation systems.
ATO’s FY26 Guidance
Atmos Energy reaffirms fiscal 2026 guidance in the range of $8.40-$8.50 per share. The Zacks Consensus Estimate is pegged at $8.30 per share, lower than the company’s guided range.
ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.
Total net income is expected to be in the range of $1.41-$1.43 billion.
ATO's board of directors has declared a quarterly dividend of $1.00 per common share. The indicated annual dividend for fiscal 2026 is $4.00, which represents a 14.9% increase from fiscal 2025.
ATO’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Utilities Releases
Algonquin Power & Utilities Corp. (AQN - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 11 cents, which implies a year-over-year decrease of 21.43%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $697.9 million, which suggests year-over-year growth of 0.79%.
PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.
Global Water Resources, Inc. (GWRS - Free Report) is scheduled to report first-quarter results on May 14. The Zacks Consensus Estimate for first-quarter EPS is pinned at a loss of 2 cents, which implies a year-over-year decrease of 200%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $13.0 million, which suggests year-over-year growth of 4.33%.