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What's in Store for These 4 Utility Stocks This Earnings Season?
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Key Takeaways
ATO, ES, SWX and AWR earnings may reflect infrastructure spending, customer growth and higher utility rates.
SWX has a 8.00% Earnings ESP, supported by rate relief, infrastructure recovery and customer growth.
ATO, ES and AWR have Earnings ESPs of -0.09%, -3.09% and 0.00%, respectively, offering no clear beat signal.
The Zacks Utilities sector's third-quarter 2026 earnings are expected to reflect the impact of infrastructure investments, customer growth, regulatory rate increases and rising demand for reliable energy and utility services. Utilities continue to focus on strengthening their infrastructure, improving operational efficiency, managing costs and expanding their service capabilities to support growing customer needs.
Per the latest Earnings Preview, the Zacks Utilities sector’s third-quarter earnings are expected to increase 8.3% year over year on a 5.5% rise in revenues. Utilities continue to focus on strengthening infrastructure, improving operational efficiency and delivering reliable services to customers while addressing growing demand across their service territories.
Factors to Consider
Utilities continue to benefit from customer additions, economic development across their service territories and investments in critical infrastructure. Rising demand from residential, commercial and industrial customers is supporting growth opportunities, while regulatory rate increases and timely recovery of infrastructure investments are helping companies strengthen revenues.
Investments in pipeline networks, electric transmission and distribution systems, and water infrastructure remain important growth drivers. These projects are expected to improve system reliability, enhance operational efficiency, support growing customer demand and contribute to rate base expansion.
Meanwhile, utilities are focusing on disciplined cost management, operational efficiency and capital allocation to strengthen financial performance. However, elevated operating expenses, higher interest costs, compliance expenses and fluctuations in commodity and supply costs remain potential challenges for the sector.
What Our Model Predicts
According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Southwest Gas Holdings Inc. (SWX - Free Report) : Southwest Gas Holdings' quarterly results are likely to benefit from regulatory rate relief, infrastructure investment recovery and customer growth across Arizona, Nevada and California. Rising demand from data centers, manufacturing and housing development is also expected to have supported performance. (Read More: Southwest Gas to Post Q3 Earnings: What's in the Cards for the Stock?)
Our proven model predicts an earnings beat for SWX this time around. SWX has an Earnings ESP of +8.00% and a Zacks Rank #2 (Buy) at present.
Atmos Energy Corporation (ATO - Free Report) : Atmos Energy Corp.'s quarterly results are likely to benefit from customer growth, rising natural gas demand in Texas and infrastructure investments. Previously implemented rate increases are also expected to have supported revenues and operating income. (Read more: Atmos Energy to Report Q4 Earnings: What's in Store for the Stock?)
Eversource Energy (ES - Free Report) : Eversource Energy's quarterly results are likely to benefit from its focus on regulated utility operations, cost-control measures and disciplined capital allocation. Strategic investments in electric transmission and distribution infrastructure are also expected to have supported earnings. (Read More: Eversource to Report Q3 Earnings: What to Expect From the Stock?)
Our proven model does not conclusively predict an earnings beat for ES this time around. ES has an Earnings ESP of -3.09% and a Zacks Rank #4 (Sell) at present.
American States Water Company (AWR - Free Report) : American States Water Company's quarterly results are likely to benefit from higher water and electric rates, infrastructure investment recovery and favorable water consumption trends. Increased construction activity and higher management fee revenues are also expected to have supported earnings. (Read More: American States Water to Release Q3 Earnings: Here's What to Expect)
Our proven model does not conclusively predict an earnings beat for AWR this time around. AWR has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
American States Water Company Price and EPS Surprise
View the Zacks #1 Rank List
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What's in Store for These 4 Utility Stocks This Earnings Season?
Key Takeaways
The Zacks Utilities sector's third-quarter 2026 earnings are expected to reflect the impact of infrastructure investments, customer growth, regulatory rate increases and rising demand for reliable energy and utility services. Utilities continue to focus on strengthening their infrastructure, improving operational efficiency, managing costs and expanding their service capabilities to support growing customer needs.
Per the latest Earnings Preview, the Zacks Utilities sector’s third-quarter earnings are expected to increase 8.3% year over year on a 5.5% rise in revenues. Utilities continue to focus on strengthening infrastructure, improving operational efficiency and delivering reliable services to customers while addressing growing demand across their service territories.
Factors to Consider
Utilities continue to benefit from customer additions, economic development across their service territories and investments in critical infrastructure. Rising demand from residential, commercial and industrial customers is supporting growth opportunities, while regulatory rate increases and timely recovery of infrastructure investments are helping companies strengthen revenues.
Investments in pipeline networks, electric transmission and distribution systems, and water infrastructure remain important growth drivers. These projects are expected to improve system reliability, enhance operational efficiency, support growing customer demand and contribute to rate base expansion.
Meanwhile, utilities are focusing on disciplined cost management, operational efficiency and capital allocation to strengthen financial performance. However, elevated operating expenses, higher interest costs, compliance expenses and fluctuations in commodity and supply costs remain potential challenges for the sector.
What Our Model Predicts
According to the Zacks model, a company needs the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Southwest Gas Holdings Inc. (SWX - Free Report) : Southwest Gas Holdings' quarterly results are likely to benefit from regulatory rate relief, infrastructure investment recovery and customer growth across Arizona, Nevada and California. Rising demand from data centers, manufacturing and housing development is also expected to have supported performance. (Read More: Southwest Gas to Post Q3 Earnings: What's in the Cards for the Stock?)
Our proven model predicts an earnings beat for SWX this time around. SWX has an Earnings ESP of +8.00% and a Zacks Rank #2 (Buy) at present.
Southwest Gas Corporation Price and EPS Surprise
Southwest Gas Corporation price-eps-surprise | Southwest Gas Corporation Quote
Atmos Energy Corporation (ATO - Free Report) : Atmos Energy Corp.'s quarterly results are likely to benefit from customer growth, rising natural gas demand in Texas and infrastructure investments. Previously implemented rate increases are also expected to have supported revenues and operating income. (Read more: Atmos Energy to Report Q4 Earnings: What's in Store for the Stock?)
Our proven model does not conclusively predict an earnings beat for ATO this time around. ATO has an Earnings ESP of -0.09% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Atmos Energy Corporation Price and EPS Surprise
Atmos Energy Corporation price-eps-surprise | Atmos Energy Corporation Quote
Eversource Energy (ES - Free Report) : Eversource Energy's quarterly results are likely to benefit from its focus on regulated utility operations, cost-control measures and disciplined capital allocation. Strategic investments in electric transmission and distribution infrastructure are also expected to have supported earnings. (Read More: Eversource to Report Q3 Earnings: What to Expect From the Stock?)
Our proven model does not conclusively predict an earnings beat for ES this time around. ES has an Earnings ESP of -3.09% and a Zacks Rank #4 (Sell) at present.
Eversource Energy Price and EPS Surprise
Eversource Energy price-eps-surprise | Eversource Energy Quote
American States Water Company (AWR - Free Report) : American States Water Company's quarterly results are likely to benefit from higher water and electric rates, infrastructure investment recovery and favorable water consumption trends. Increased construction activity and higher management fee revenues are also expected to have supported earnings. (Read More: American States Water to Release Q3 Earnings: Here's What to Expect)
Our proven model does not conclusively predict an earnings beat for AWR this time around. AWR has an Earnings ESP of 0.00% and a Zacks Rank of 3 at present.
American States Water Company Price and EPS Surprise
American States Water Company price-eps-surprise | American States Water Company Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.