American Water Works Company AWK is scheduled to release first-quarter 2026 results on April 29, after market close. The company delivered a negative earnings surprise of 3.13% in the last reported quarter.
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.
Q1 Expectations for AWK
The Zacks Consensus Estimate for earnings is pegged at $1.10 per share, implying a year-over-year increase of 4.76%.
The consensus estimate for revenues is pinned at $1.16 billion, indicating growth of 1.37% from the year-ago reported number.
Factors Likely to Have Impacted AWK's Q1 Performance
American Water Works’ first-quarter 2026 earnings are likely to have benefited from several newly implemented rates. These allow recovery of infrastructure investments and enhance earnings visibility.
The company continues to expand its operation through strategic acquisition and organic growth, which is accretive to its earnings being reported. American Water Works completed 18 acquisitions in 2025, and the synergies from these acquisitions are expected to have supported first-quarter 2026 earnings.
The company has been making regular capital investments, upgrading and replacing aging infrastructure, thereby enhancing operational efficiency and service reliability. This creates fresh demand, attracts new customers and is likely to have boosted quarterly performance.
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 -2.73% 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.
American Water Works Company, Inc. Price and EPS Surprise
American Water Works Company, Inc. price-eps-surprise | American Water Works Company, Inc. Quote
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.
WEC Energy Group WEC is set to report first-quarter 2026 results on May 5 and is likely to come up with an earnings beat. It has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
WEC’s long-term (three to five years) earnings growth rate is 7.44%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $2.31, implying a year-over-year increase of 1.76%.
Ameren Corporation AEE is scheduled to report first-quarter 2026 results on May 6 and is likely to come up with an earnings beat. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.
AEE’s long-term earnings growth rate is 9.27%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.17, which implies a year-over-year increase of 9.35%.
NiSource Inc. NI is set to report first-quarter 2026 results on May 6 and is likely to come up with an earnings beat. It has an Earnings ESP of +2.34% and a Zacks Rank #3 at present.
NI’s long-term earnings growth rate is 6.11%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.03, which implies a year-over-year increase of 5.10%.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>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
Ameren Corporation (AEE): Free Stock Analysis Report
NiSource, Inc (NI): Free Stock Analysis Report
WEC Energy Group, Inc. (WEC): Free Stock Analysis Report
American Water Works Company, Inc. (AWK): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).