American Electric Power (NASDAQ:AEP) Issues FY 2026 Earnings Guidance

American Electric Power (NASDAQ:AEP) updated its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 6.250-6.550 for the period, compared to the consensus EPS estimate of 6.350. The company issued revenue guidance of -.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on AEP shares. BMO Capital Markets reduced their target price on American Electric Power from $141.00 to $139.00 and set a “market perform” rating on the stock in a report on Wednesday, July 22nd. Jefferies Financial Group raised their price target on American Electric Power from $147.00 to $154.00 and gave the company a “buy” rating in a report on Wednesday, July 1st. Scotiabank boosted their price objective on American Electric Power from $131.00 to $140.00 and gave the stock a “sector perform” rating in a report on Wednesday, May 6th. Morgan Stanley upped their price objective on shares of American Electric Power from $136.00 to $139.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 22nd. Finally, TD Cowen boosted their price target on shares of American Electric Power from $141.00 to $148.00 and gave the stock a “buy” rating in a research note on Friday, May 15th. Thirteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, American Electric Power presently has a consensus rating of “Moderate Buy” and an average price target of $141.43.

American Electric Power Price Performance

AEP traded up $0.97 during trading on Friday, reaching $128.75. The company’s stock had a trading volume of 2,470,213 shares, compared to its average volume of 4,055,372. The company has a quick ratio of 0.39, a current ratio of 0.53 and a debt-to-equity ratio of 1.42. The company has a market cap of $70.05 billion, a price-to-earnings ratio of 18.89, a PEG ratio of 2.32 and a beta of 0.52. The firm has a fifty day simple moving average of $131.87 and a two-hundred day simple moving average of $129.77. American Electric Power has a 1 year low of $105.70 and a 1 year high of $140.58.

American Electric Power (NASDAQ:AEP) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.48 by ($0.12). American Electric Power had a return on equity of 10.21% and a net margin of 16.29%.The company had revenue of $5.45 billion for the quarter, compared to analysts’ expectations of $5.34 billion. During the same period in the prior year, the business earned $1.43 EPS. The business’s quarterly revenue was up 7.0% compared to the same quarter last year. American Electric Power has set its FY 2026 guidance at 6.250-6.550 EPS. As a group, analysts anticipate that American Electric Power will post 6.35 EPS for the current year.

American Electric Power Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a dividend of $0.95 per share. The ex-dividend date of this dividend is Monday, August 10th. This represents a $3.80 annualized dividend and a dividend yield of 3.0%. American Electric Power’s payout ratio is 55.80%.

More American Electric Power News

Here are the key news stories impacting American Electric Power this week:

• Positive Sentiment: Raised 2026 guidance: AEP lifted its full-year operating earnings outlook to $6.25–$6.55 per share, broadly in line with the $6.35 analyst consensus. The higher forecast reflects stronger electricity demand from data centers, artificial-intelligence infrastructure and other large customers. Reuters article
• Positive Sentiment: Large load-growth opportunity: The company expanded contracted and expected new load additions to approximately 69 gigawatts through 2030. AEP also highlighted a $78 billion capital plan, approximately 13 GW of secured gas-fired turbine capacity and as much as 10 GW under evaluation to support rising demand. Zacks article
• Positive Sentiment: Revenue growth and potential cost benefits: Second-quarter revenue rose 7% year over year to $5.45 billion, exceeding estimates. Management expects load growth to generate up to $16 billion in cost offsets and federal financing support to provide approximately $1.4 billion in customer savings, which could improve affordability and strengthen demand. AEP earnings release
• Neutral Sentiment: Analysts and commentary remain constructive on AEP’s exposure to AI-related power demand and its infrastructure investments, although the stock’s roughly 20-times forward price-to-earnings valuation leaves less room for execution disappointments. Seeking Alpha article
• Negative Sentiment: Quarterly earnings missed expectations: Second-quarter operating EPS was $1.36, below the $1.48–$1.49 consensus and down from $1.43 a year earlier. Tax timing and the impact of a prior transaction weighed on results; GAAP EPS fell to $1.31 from $2.29 in the prior-year quarter. Zacks earnings article

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. State Street Corp increased its holdings in American Electric Power by 5.2% in the 4th quarter. State Street Corp now owns 30,437,776 shares of the company’s stock valued at $3,509,780,000 after purchasing an additional 1,514,865 shares in the last quarter. Morgan Stanley boosted its position in American Electric Power by 1.9% in the 4th quarter. Morgan Stanley now owns 14,661,858 shares of the company’s stock valued at $1,690,659,000 after buying an additional 271,879 shares during the last quarter. Invesco Ltd. grew its stake in American Electric Power by 4.2% during the 4th quarter. Invesco Ltd. now owns 7,688,340 shares of the company’s stock valued at $886,543,000 after purchasing an additional 313,123 shares in the last quarter. Ameriprise Financial Inc. grew its holdings in American Electric Power by 1.2% during the 2nd quarter. Ameriprise Financial Inc. now owns 4,799,534 shares of the company’s stock worth $498,008,000 after acquiring an additional 59,243 shares in the last quarter. Finally, Soroban Capital Partners LP raised its stake in shares of American Electric Power by 176.3% in the 2nd quarter. Soroban Capital Partners LP now owns 4,004,686 shares of the company’s stock valued at $415,526,000 after purchasing an additional 2,555,415 shares in the last quarter. Hedge funds and other institutional investors own 75.24% of the company’s stock.

About American Electric Power

American Electric Power (NASDAQ: AEP) is a major investor-owned electric utility headquartered in Columbus, Ohio. The company is primarily engaged in the generation, transmission and distribution of electricity, operating a diverse portfolio of power plants and an extensive high-voltage transmission network. AEP serves retail customers through its regulated utility subsidiaries and provides wholesale power and grid services across multiple regional markets in the United States.

Operations span the full utility value chain: AEP owns and operates generation assets that include fossil-fuel, natural gas, nuclear and hydropower facilities, and it has been adding renewable resources to its mix.