With a market cap of $26.3 billion, American Water Works Company, Inc. (AWK) is the largest publicly traded regulated water and wastewater utility in the United States. Headquartered in Camden, New Jersey, the company provides safe drinking water and wastewater services to approximately 14 million people through regulated operations in 14 states and manages water and wastewater systems at 18 U.S. military installations.
The company is expected to release its Q2 2026 earnings soon. Ahead of the event, analysts expect the company’s EPS to be $1.55 on a diluted basis, up 4.7% from $1.48 in the year-ago quarter. The company has missed Wall Street’s EPS estimates in three of its last four quarters, while beating on one occasion.
For fiscal 2026, analysts project the company’s EPS to be $6.08, up 7.8% from $5.64 in fiscal 2025.
AWK stock has declined 6.5% over the past 52 weeks, underperforming the S&P 500 Index’s ($SPX) 20.2% rise and the State Street Utilities Select Sector SPDR ETF’s (XLU) 11.8% return during the same time frame.
American Water Works has underperformed the broader market over the past year primarily because investors have favored higher-growth sectors over defensive utilities, while elevated interest rates have pressured the valuations of rate-regulated utility stocks. Although the company continues to generate stable cash flows and invest in long-term infrastructure projects, its earnings growth has remained modest, including a recent quarterly EPS miss despite revenue growth and reaffirmed guidance.
Analysts are skeptical about AWK, with the stock having a “Hold” rating overall. Among the 13 analysts covering the stock, three are recommending a “Strong Buy,” nine recommend “Hold,” and one suggests a “Strong Sell” for the stock. AWK’s average analyst price target is $139.33, indicating an upside of 5.6% from the current levels.
