American Water to Report Q2 Earnings: What's in Store for the Stock?

Q2 Expectations for AWK

The Zacks Consensus Estimate for earnings is pegged at $1.59 per share, implying a year-over-year increase of 7.43%.

The consensus estimate for revenues is pinned at $1.28 billion, indicating growth of 0.02% from the year-ago reported number.

Factors Likely to Have Impacted AWK's Q2 Performance

American Water Works' strategic acquisitions and organic growth are likely to have strengthened its second-quarter 2026 financial performance.  On June 1, 2026, AWK completed the acquisition of Nexus Water Group’s regulated utilities, adding roughly 47,000 customer connections across eight states. Earlier, its Kentucky American Water unit acquired the City of Livingston Municipal Water Works system, adding about 162 connections. The resulting synergies likely supported the company’s second-quarter performance.

AWK's second-quarter 2026 results are likely to benefit from newly implemented rates across its regulated operations. These rates enable the regulated recovery of infrastructure investments, supporting stable and predictable earnings.

The company continues to invest in upgrading and replacing aging infrastructure, improving operational efficiency and service reliability. These investments attract new customers and increase demand, likely supporting quarterly performance.

However, higher operating and maintenance costs are likely to have pressured second-quarter earnings.

What Our Quantitative Model Predicts About AWK

Our proven model does not predict an earnings beat for American Water Works this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

AWK’s Earnings ESP: The company has an Earnings ESP of -0.42% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

AWK’s Zacks Rank: Currently, American Water Works carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.

Ameren AEE is set to report second-quarter results on July 31 and is likely to have come up with an earnings beat. It has an Earnings ESP of +0.19% and a Zacks Rank #2 at present.

AEE’s long-term (three to five years) earnings growth rate is 7.68%. The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pinned at $1.08, which implies a year-over-year increase of 6.93%.

Edison International EIX is set to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +4.66% and a Zacks Rank #2 at present.

EIX’s long-term earnings growth rate is 2.10%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.02, which implies a year-over-year increase of 5.15%.

Southwest Gas SWX is scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.

SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47cents, which implies a year-over-year decrease of 11.32%.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research