American Water Q3 EPS Flat at $1.94; Adjusted EPS Rises to $2.00 on 4% Revenue Growth
AWK sits 16% above its 52-week low of $120.57.
Summary
American Water's Q3 revenue rose 4.1% to $1.51 billion with adjusted EPS of $2.00 versus $1.89, while GAAP EPS held at $1.94. Nine-month operating cash flow reached $1.635 billion, and the company flagged an $825 million Monterey desalination cost estimate now pending CPUC review.
Key Events · Earnings and Guidance · AWK
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Q3 Revenue Up 4.1%, Adjusted EPS $2.00
Operating revenues rose to $1,510 million from $1,451 million, and adjusted diluted EPS rose to $2.00 from $1.89; GAAP diluted EPS was flat at $1.94 as depreciation and interest expense increased.
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Operating Cash Flow Jumps on CAMT Reversal
Nine-month operating cash flow was $1,635 million versus $1,396 million, helped by reversal of the $200 million CAMT credit carryforward after IRS Notice 2026-7; the company also recognized $50 million of additional uncertain tax liabilities.
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Capital Plan Funded With Debt and Equity
Nine-month capital expenditures were $2,407 million against a roughly $3.7 billion 2026 plan, funded partly by $1,847 million of long-term debt proceeds and $476 million from settling 3,403,756 forward-sold shares in June 2026.
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Illinois Rate Case Order Due December 18
An administrative law judge proposed a 9.67% return on equity and recommended against the second-step increase; a final Illinois Commerce Commission order is expected no later than December 18, 2026, with new rates from January 1, 2027.
Analysis · AWK · Energy & Transportation
Third-quarter results were solid but unspectacular: revenue rose 4.1% to $1.51 billion and adjusted EPS climbed to $2.00 from $1.89, while GAAP EPS held at $1.94 as higher depreciation and interest costs offset rate relief. The bigger swing factors sit outside the income statement. Nine-month operating cash flow jumped to $1.635 billion from $1.396 billion, largely because the IRS's February 2026 CAMT guidance let the company reverse a $200 million credit carryforward and recover prior payments — though it booked $50 million of new uncertain tax liabilities in the process. Capital spending is running at $2.407 billion for nine months against a $3.7 billion full-year plan, funded with $1.847 billion of new long-term debt and $476 million from settling 3.4 million forward-sold shares in June. Two regulatory items carry real money: an Illinois administrative law judge recommended a 9.67% ROE and rejected the second-step rate increase ahead of a final order due by December 18, 2026, and Cal Am asked the CPUC on October 23, 2026 to bless an $825 million (plus AFUDC) Monterey desalination cost estimate versus the $279 million approved in 2018 — a recovery risk the company explicitly says it cannot predict. The Essential Utilities merger remains on track for a first-quarter 2027 close, with Kentucky, Ohio and Virginia approvals in hand and the HSR waiting period expired August 14, 2026.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.7% of the 1698 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, AWK was trading at $139.79 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $27.8B. The 52-week trading range was $120.57 to $144.14. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.