A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
American Water Works delivered solid Q2 FY2026 financial performance with revenue increasing 6.1% YoY to $1.35B and net income rising 9.0% to $315M, driven primarily by regulatory rate authorizations and capital investment recoveries across its regulated utility footprint.
Revenue
$1.35B
+6.13% YoY
EPS (Diluted)
$1.61
+8.78% YoY
Operating Income
$542M
+10.84% YoY
American Water Works (AWK) reported Q2 FY2026 revenue of $1.35B, up 6.1% year over year. The company posted net income of $315M, up 9.0% from a year earlier, with diluted EPS of $1.61. Operating income was $542M, up 10.8% year over year. AWK's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
AWK posted Q2 FY2026 net income of $315M on $1.35B in revenue, supported by regulatory rate adjustments and active capital infrastructure deployment.
Last 4 quarters: 1 beat, 3 misses
Regulated business revenue growth in Q2 FY2026 was driven primarily by $52 million in incremental revenues from authorized general rate increases and infrastructure surcharges, including approved base rate increases in Pennsylvania ($75 million annualized), West Virginia ($20 million), and Maryland ($2 million).
Source: 10-Q Item 2 MD&A, p.42-46
The proposed stock-for-stock merger with Essential Utilities (0.305 AWK parent shares per Essential share) remains on track to close by Q1 2027, having secured PUC approvals in Kentucky, Ohio, and Virginia while incurring $22 million in cumulative transaction costs through Q2 FY2026.
Source: 10-Q Item 2 MD&A, p.41-42
American Water invested $1.8 billion during the first six months of 2026 toward its $3.7 billion full-year capital plan, which included $346 million for regulated acquisitions—highlighted by the $319 million acquisition of Nexus Regulated Utilities assets adding 47,000 customers.
Source: 10-Q Item 2 MD&A, p.41
The company has received $234 million in net settlement payments from PFAS litigation to date, with $131 million held in escrow and a regulatory liability of $158 million recorded as utility subsidiaries seek state PUC approvals to distribute proceeds for customer benefit.
Source: 10-Q Item 2 MD&A, p.42
Completion of the merger with Essential Utilities is subject to regulatory approvals from multiple state public utility commissions without burdensome conditions, as well as antitrust clearance under the HSR Act. Any delay or failure to satisfy closing conditions could materially affect financial condition and results of operations.
Source: 10-Q Item 2 MD&A, p.41-42
Governmental entities may seek to acquire regulated utility assets via condemnation or eminent domain, such as the active condemnation lawsuit filed by the Monterey Peninsula Water Management District regarding Cal Am's Monterey system assets. Adverse determinations could reduce utility rate base and operating scale.
Source: 10-Q Item 2 MD&A, p.48
Earnings growth depends heavily on public utility commissions approving requested base rate increases and capital investment recoveries, with major rate requests pending in Missouri ($179M) and New Jersey ($145M). Lower authorized returns on equity or rate base disallowances would depress future operating margins and net income.
Source: 10-Q Item 2 MD&A, p.43-44
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
American Water Works (AWK) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the AWK earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.35B | $1.27B | +6.13% |
Operating Income | $542M | $489M | +10.84% |
Net Income | $315M | $289M | +9.00% |
EPS (Basic) | $1.61 | $1.48 | +8.78% |
EPS (Diluted) | $1.61 | $1.48 | +8.78% |
For Q2 FY2026, American Water Works reported revenue of $1.35B, up 6.1% YoY, and operating income of $542M, up 10.8% YoY. Net income attributable to common shareholders was $315M, resulting in basic and diluted EPS of $1.61 per share compared to $1.48 in Q2 FY2025.
American Water invested $1.8 billion during the first six months of FY2026 toward its $3.7 billion full-year target. This included $1.4 billion for infrastructure improvements and $346 million for regulated acquisitions, such as the $319 million purchase of Nexus Regulated Utilities assets.
The stock-for-stock merger with Essential Utilities remains scheduled to close by the end of Q1 2027. Regulators in Kentucky, Ohio, and Virginia have approved the merger, and American Water has incurred $22 million in total merger costs through Q2 FY2026.
American Water Works (AWK) is next expected to report earnings on Oct 28, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
AWK posted Q1 FY2026 revenue of $1.20B (+6.1% YoY) driven by regulated utility growth, but net income declined 4.4% to $196M amid rising costs and a sharp surge in current liabilities that pressured the balance sheet.
American Water Works (AWK) delivered solid FY2025 results with revenue growing 10.1% to $5.12B and net income rising 5.7% to $1.11B, driven by continued infrastructure investment and rate increases, though the current ratio of 0.46 signals elevated short-term liquidity pressure.