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American Electric's Q2 Earnings Lag Estimates, Revenues Increase Y/Y
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Key Takeaways
American Electric's Q2 operating earnings fell 4.9% to $1.36 per share, missing estimates by 8.7%.
Revenues rose 7% to $5.45 billion, supported by utility rate changes and higher transmission revenues.
American Electric raised 2026 operating EPS guidance to $6.25-$6.55 from $6.15-$6.45.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2026 operating earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.49 by 8.7%. The bottom line declined 4.9% from $1.43 in the year-ago quarter, primarily due to the timing of income taxes and the prior-year transmission minority-interest transaction.
On a GAAP basis, AEP posted earnings of $1.31 per share, down from $2.29 a year ago.
American Electric Total Revenues
AEP generated total revenues of $5.45 billion, up 7% from $5.09 billion in the prior-year quarter. The top line also came ahead of the Zacks Consensus Estimate of $5.26 billion by 3.5%.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
Vertically Integrated Utilities segment generated operating earnings of $302 million, up from $297 million. Rate changes contributed 21 cents per share, while normalized sales added 10 cents.
Transmission & Distribution Utilities reported operating earnings of $239 million, up from $224 million in the year-ago period. Rate changes and higher transmission revenues supported the improvement.
AEP Transmission Holdco’s operating earnings were $225 million, nearly unchanged from $224 million a year earlier. However, the segment’s earnings contribution was affected by the timing of the minority-interest transaction completed in 2025.
Generation & Marketing operating earnings declined slightly to $91 million from $92 million in the year-ago quarter. Retail-related weakness was offset by gains from wholesale and other activities, while operations and maintenance costs created a modest drag.
Corporate and Other posted an operating loss of $115 million, wider than the $71 million loss recorded a year earlier. Higher operating costs, interest expense, income-tax timing and other corporate items reduced quarterly operating earnings and offset gains across several utility businesses.
AEP’s 2026 Guidance
AEP raised its 2026 operating earnings guidance range to $6.25-$6.55 per share from $6.15-$6.45. The Zacks Consensus Estimate for earnings is pegged at $6.35, which lies below the midpoint of the company’s projected range.
Entergy Corporation (ETR - Free Report) reported second-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 94 cents by 9.6%. However, the bottom line decreased 1.9% from the year-ago quarter’s figure of $1.05.
Revenues rose 5.9% year over year to $3.52 billion but missed the consensus mark of $3.53 billion by 0.08%.
PG&E Corporation (PCG - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 40 cents, which beat the Zacks Consensus Estimate of 37 cents by 8.1%. The bottom line also increased 29% from the year-ago quarter’s figure of 31 cents.
PCG reported second-quarter total revenues of $5.902 billion, up 0.1% from $5.898 billion registered in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $6.31 billion by 6.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2026 adjusted EPS of 37 cents, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 47.9% from 71 cents in the year-ago quarter.
Operating revenues totaled $1.83 billion, which missed the Zacks Consensus Estimate of $1.91 billion by 4.2%. The top line also fell 0.5% from $1.84 billion in the prior-year quarter.
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American Electric's Q2 Earnings Lag Estimates, Revenues Increase Y/Y
Key Takeaways
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2026 operating earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.49 by 8.7%. The bottom line declined 4.9% from $1.43 in the year-ago quarter, primarily due to the timing of income taxes and the prior-year transmission minority-interest transaction.
On a GAAP basis, AEP posted earnings of $1.31 per share, down from $2.29 a year ago.
American Electric Total Revenues
AEP generated total revenues of $5.45 billion, up 7% from $5.09 billion in the prior-year quarter. The top line also came ahead of the Zacks Consensus Estimate of $5.26 billion by 3.5%.
American Electric Power Company, Inc. Price, Consensus and EPS Surprise
American Electric Power Company, Inc. price-consensus-eps-surprise-chart | American Electric Power Company, Inc. Quote
AEP’s Segmental Performance
Vertically Integrated Utilities segment generated operating earnings of $302 million, up from $297 million. Rate changes contributed 21 cents per share, while normalized sales added 10 cents.
Transmission & Distribution Utilities reported operating earnings of $239 million, up from $224 million in the year-ago period. Rate changes and higher transmission revenues supported the improvement.
AEP Transmission Holdco’s operating earnings were $225 million, nearly unchanged from $224 million a year earlier. However, the segment’s earnings contribution was affected by the timing of the minority-interest transaction completed in 2025.
Generation & Marketing operating earnings declined slightly to $91 million from $92 million in the year-ago quarter. Retail-related weakness was offset by gains from wholesale and other activities, while operations and maintenance costs created a modest drag.
Corporate and Other posted an operating loss of $115 million, wider than the $71 million loss recorded a year earlier. Higher operating costs, interest expense, income-tax timing and other corporate items reduced quarterly operating earnings and offset gains across several utility businesses.
AEP’s 2026 Guidance
AEP raised its 2026 operating earnings guidance range to $6.25-$6.55 per share from $6.15-$6.45. The Zacks Consensus Estimate for earnings is pegged at $6.35, which lies below the midpoint of the company’s projected range.
AEP’s Zacks Rank
American Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
Entergy Corporation (ETR - Free Report) reported second-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 94 cents by 9.6%. However, the bottom line decreased 1.9% from the year-ago quarter’s figure of $1.05.
Revenues rose 5.9% year over year to $3.52 billion but missed the consensus mark of $3.53 billion by 0.08%.
PG&E Corporation (PCG - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of 40 cents, which beat the Zacks Consensus Estimate of 37 cents by 8.1%. The bottom line also increased 29% from the year-ago quarter’s figure of 31 cents.
PCG reported second-quarter total revenues of $5.902 billion, up 0.1% from $5.898 billion registered in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $6.31 billion by 6.4%.
CMS Energy Corporation (CMS - Free Report) reported second-quarter 2026 adjusted EPS of 37 cents, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 47.9% from 71 cents in the year-ago quarter.
Operating revenues totaled $1.83 billion, which missed the Zacks Consensus Estimate of $1.91 billion by 4.2%. The top line also fell 0.5% from $1.84 billion in the prior-year quarter.