A month has gone by since the last earnings report for American Electric Power (AEP Quick QuoteAEP - Free Report) . Shares have lost about 4.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is AEP due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for American Electric Power Company, Inc. before we dive into how investors and analysts have reacted as of late.

American Electric's Q1 Earnings Beat Estimates, Revenues Increase Y/Y

American Electric Power Company, Inc. reported first-quarter 2026 operating earnings of $1.64 per share, which beat the Zacks Consensus Estimate of $1.55 by 5.8%. Operating earnings increased 6.5% from $1.54 in the year-ago quarter.

On a GAAP basis, AEP posted earnings of $1.61 per share, up from $1.50 a year ago.

American Electric Total Revenues

AEP generated total revenues of $6.02 billion, up 10.2% from $5.46 billion in the prior-year quarter. The top line also came in ahead of the Zacks Consensus Estimate of $5.68 billion by 6.0%.

The company’s quarter reflected continued demand growth across its service territory, with management pointing to seven gigawatts of new load agreements signed during the first quarter, largely in Ohio and Texas. AEP also highlighted that its incremental contracted load is expected to expand to 63 gigawatts by 2030, supported by signed agreements with large-load customers.

AEP’s Segmental Performance

Vertically Integrated Utilities: Operating earnings increased to $464 million from $350 million in the year-ago quarter, supported by stronger underlying utility performance. This segment remained AEP’s largest profit contributor for the period.

Transmission & Distribution Utilities: Operating earnings came in at $237 million, up from $192 million a year ago. The improvement reflected stronger results in the distribution-focused utilities compared with the prior-year base.

AEP Transmission Holdco: Operating earnings totaled $209 million, down from $235 million in first-quarter 2025. Despite its strategic importance, this segment was the primary drag on year-over-year operating earnings growth.

Generation & Marketing: Operating earnings rose to $90 million from $76 million a year earlier. The improvement indicated better performance in the company’s marketing, risk management and related market activities compared with the year-ago quarter.

Corporate and Other: The segment reported an operating loss of $109 million, wider than the $30 million loss posted in the prior-year period. The larger loss meaningfully offset gains elsewhere across the portfolio.

AEP’s 2026 Guidance

American Electric expects to generate earnings in the band of $6.15-$6.45 per share. The Zacks Consensus Estimate for earnings is pegged at $6.33 per share, which lies above the midpoint of the company’s projected range.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, AEP has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a grade of C on the value side, putting it in the middle 20% 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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, AEP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.