Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
AEP reported Q1 2026 revenue of $6.02B (+10.2% YoY) and diluted EPS of $1.60 (+6.7% YoY), driven by strong operating cash flow of $1.52B, though heavy capital investment pushed long-term debt up 15.3% to $49.6B.
Revenue
$6.02B
+10.20% YoY
EPS (Diluted)
$1.60
+6.67% YoY
Operating Income
$1.36B
+5.92% YoY
Source: SEC XBRL
American Electric Power (AEP) reported Q1 FY2026 revenue of $6.02B, up 10.2% year over year. Operating margin was 22.6%, down 0.9 points from 23.5% a year earlier. Operating cash flow was $1.52B, up 4.8% year over year. AEP's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.36 | 1.51 | Miss -10.0% |
| Mar 2026This filing | 1.64 | 1.58 | Beat +3.5% |
| Dec 2025 | 1.19 | 1.16 | Beat +2.6% |
| Sep 2025 | 1.80 | 1.83 | Miss -1.4% |
Adjusted (non-GAAP) EPS of $1.64 versus the $1.58 analyst consensus — a +3.5% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.60.
Compiled by AI from this SEC filing
AEP's Q1 2026 revenue rose 10.2% YoY to $6.02B from $5.46B, reflecting continued electricity demand growth likely tied to data center load growth and industrial expansion across its service territories.
Source: 10-Q Financial Data (XBRL), Income Statement
Despite the revenue increase, operating margin declined approximately 91 basis points YoY to 22.6% from 23.5%, suggesting that cost pressures — likely fuel, operations, and maintenance expenses — are growing faster than revenues.
Source: 10-Q Financial Data (XBRL), Income Statement / Key Ratios
Investing cash outflows surged 69.8% YoY to -$3.57B in Q1 2026, reflecting AEP's accelerated capital expenditure program to expand and modernize its transmission and distribution infrastructure.
Source: 10-Q Financial Data (XBRL), Cash Flow Statement
Financing cash flows jumped 203.9% YoY to $2.12B, indicating AEP raised substantial new debt and/or equity capital to fund its capital expenditure program, consistent with the 15.3% increase in long-term debt to $49.6B.
Source: 10-Q Financial Data (XBRL), Cash Flow Statement & Balance Sheet
Stockholders' equity grew 16.4% YoY to $31.8B, suggesting AEP may have issued new equity in addition to retaining earnings, which partially offsets the leverage increase from higher long-term debt.
Source: 10-Q Financial Data (XBRL), Balance Sheet
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
AEP's long-term debt reached $49.6B in Q1 2026, a 15.3% YoY increase, resulting in a debt-to-equity ratio of 2.66. In a rising or sustained high interest rate environment, refinancing costs could pressure earnings and limit financial flexibility.
Source: 10-Q Financial Data (XBRL), Balance Sheet & Key Ratios
AEP's current ratio stands at only 0.53, meaning current liabilities of $12.6B significantly exceed current assets of $6.6B. This below-1.0 ratio is common for regulated utilities but still signals reliance on credit facilities and capital markets to meet near-term obligations.
Source: 10-Q Financial Data (XBRL), Balance Sheet & Key Ratios
With investing cash outflows of -$3.57B in a single quarter (up 69.8% YoY), AEP is executing a very large infrastructure investment program. Delays, cost overruns, or regulatory disallowances of capital recovery could negatively impact returns and earnings.
Source: 10-Q Financial Data (XBRL), Cash Flow Statement
Operating margin declined from 23.5% to 22.6% YoY despite a 10.2% revenue increase, indicating cost growth is outpacing revenue growth. If cost pressures persist and regulators do not approve timely rate increases, margins could compress further.
Source: 10-Q Financial Data (XBRL), Income Statement & Key Ratios
AEP's financing cash flows of $2.12B in Q1 2026 alone highlight the company's heavy reliance on external debt and equity markets to fund operations and growth. Any disruption in capital market access — due to credit rating changes or market volatility — could constrain the company's investment program.
Source: 10-Q Financial Data (XBRL), Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.02 $B | 5.46 $B | +10.20% |
Operating Income $B | 1.36 $B | 1.28 $B | +5.92% |
EPS (Basic) $ | 1.61 $ | 1.50 $ | +7.33% |
EPS (Diluted) $ | 1.60 $ | 1.50 $ | +6.67% |
Answers draw on this SEC filing and the data on this page
American Electric Power reported 2026-Q2 GAAP earnings attributable to common shareholders of $713 million, down from $1.2 billion in 2025-Q2 primarily due to a non-recurring $480 million FERC tax order benefit in the prior year, while advancing its $78 billion capital investment plan to serve expanding data center electricity demand.
AEP delivered strong FY2025 results with revenue rising 10.9% to $21.9B and operating income surging 23.6% to $5.3B, driven by robust utility demand growth, though the company carries a heavy debt load and a current ratio well below 1.0.
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