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
ATO delivered strong Q2 FY2026 results with net income rising 19.8% YoY to $581.9M and operating margin expanding ~670 basis points to 39.0%, driven by disciplined cost management even as revenue grew only modestly by 0.6%.
Revenue
$1.96B
+0.61% YoY
EPS (Diluted)
$3.47
+14.52% YoY
Operating Income
$764.8M
+21.60% YoY
Source: SEC XBRL
Atmos Energy (ATO) reported Q2 FY2026 revenue of $1.96B, up 0.6% year over year. Operating margin was 39.0%, up 6.8 points from 32.2% a year earlier. ATO's fiscal Q2 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.43 | 1.37 | Beat +4.7% |
| Mar 2026This filing | 3.47 | 3.43 | Beat +1.1% |
| Dec 2025 | 2.44 | 2.45 | Miss -0.4% |
| Sep 2025 | 1.07 | 1.01 | Beat +5.7% |
Reported EPS of $3.47 versus the $3.43 analyst consensus — a +1.1% beat for Mar 2026.
Compiled by AI from this SEC filing
Revenue increased just 0.6% YoY to $1.96B, yet operating income surged 21.6% to $764.8M and net income jumped 19.8% to $581.9M, indicating significant operating leverage and cost efficiency improvements in Q2 FY2026.
Source: 10-Q Income Statement Data
Operating margin expanded approximately 670 basis points YoY from 32.2% to 39.0%, reflecting ATO's ability to grow earnings substantially faster than revenues — a hallmark of regulated utility pricing power and cost discipline.
Source: 10-Q Key Ratios Data
Investing cash outflows reached -$2.04B on a fiscal year-to-date basis (up 18.5% in magnitude YoY), signaling an accelerating capital expenditure program likely tied to pipeline infrastructure upgrades and system modernization.
Source: 10-Q Cash Flow Statement (YTD)
Total assets grew 12.6% YoY to $30.4B, funded in part by financing cash inflows of $927.5M YTD (up 23.9% YoY), suggesting ongoing debt issuance or equity raises to support the capital investment program.
Source: 10-Q Balance Sheet & Cash Flow Statement (YTD)
Basic EPS rose 14.4% YoY to $3.49 and diluted EPS rose 14.5% to $3.47, slightly lagging net income growth of 19.8%, which may reflect modest share count increases from equity financing activities.
Source: 10-Q Income Statement Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Cash and equivalents fell sharply by 76.9% YoY to just $125.7M, while the current ratio stands at a thin 1.003x. This near-parity between current assets ($1.26B) and current liabilities ($1.26B) leaves limited liquidity buffer for unexpected near-term obligations.
Source: 10-Q Balance Sheet Data
YTD investing outflows of -$2.04B significantly exceed operating cash flows of $1.03B, requiring substantial external financing. Continued reliance on debt markets exposes ATO to refinancing risk and interest rate sensitivity, particularly in a higher-rate environment.
Source: 10-Q Cash Flow Statement (YTD)
Despite strong net income growth, operating cash flow declined 14.4% YoY to $1.03B on a YTD basis, suggesting working capital headwinds or timing differences in cash collections that could pressure near-term liquidity if sustained.
Source: 10-Q Cash Flow Statement (YTD)
As a regulated natural gas utility, ATO's revenue and margin profile are subject to state regulatory commission approvals. Any adverse rate case outcomes or delays in cost recovery mechanisms could impair the operating margin gains observed in Q2 FY2026.
Source: 10-Q Financial Data (Inferred from utility business model)
ROE of 3.9% and ROA of 1.9% are modest, reflecting the capital-intensive nature of the utility business. If the cost of capital rises or regulators limit allowed returns, these metrics could compress further, reducing shareholder value creation.
Source: 10-Q Key Ratios Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.96 $B | 1.95 $B | +0.61% |
Operating Income $M | 764.80 $M | 628.94 $M | +21.60% |
Net Income $M | 581.90 $M | 485.58 $M | +19.84% |
EPS (Basic) $ | 3.49 $ | 3.05 $ | +14.43% |
EPS (Diluted) $ | 3.47 $ | 3.03 $ | +14.52% |
Answers draw on this SEC filing and the data on this page
Atmos Energy's Q3 FY2026 earnings were boosted by rate-driven revenue gains and favorable Texas legislation, though its aggressive safety capex continues to require external financing.
ATO delivered solid Q1 FY2026 results with revenue rising 14.2% YoY to $1.34B and net income growing 14.5% to $403.0M, driven by continued utility investment and rate base expansion, though operating margin edged slightly lower.