Quarterly reported profit per share stayed at $1.94, while American Water's adjusted profit per share rose to $2.
American Water reported Q3 2026 GAAP EPS of $1.94, unchanged from 2025, and adjusted EPS of $2.00, up from $1.89. 2026 adjusted EPS guidance narrowed to $6.02-$6.07. 2027 standalone EPS guidance set at $6.53-$6.63. The company is on track with its $3.7B capital investment plan and progressing on its merger with Essential Utilities.
How this was made
The 30-second read
Why it matters
The earnings release tightens guidance and confirms merger progress, likely supporting the stock price in the near term.
Market read
First‑report earnings and guidance for a large‑cap utility, with clear bullish catalysts.
What to watch
Higher depreciation and financing costs from the capital plan could pressure margins despite EPS guidance.
Background
American Water Works Co. (NYSE: AWK) released its Q3 2026 earnings, providing GAAP and non‑GAAP EPS figures, updated guidance, and merger status.
Ticker impact
American Water reported Q3 GAAP EPS of $1.94 (flat YoY) and adjusted EPS of $2, narrowed 2026 guidance to $6.07‑$6.12 and set 2027 standalone EPS guidance $6.53‑$6.63, while confirming progress on its merger with Essential Utilities.
likely upside as investors price in higher EPS guidance and merger completion expectations
The company narrowed its EPS guidance to the top half of the prior range and announced a clear timeline for the Essential Utilities merger, both viewed as bullish catalysts for a regulated utility.
Market effects
Utility sector may see modest rally on positive earnings and merger news, supporting peers with similar regulated rate structures.
North‑American utilities could benefit from perceived stability and growth prospects.
Limited to U.S. utility investors; no broader macro impact.
Counterpoint
If the merger faces regulatory delays, the guidance may be overly optimistic, risking a pull‑back.
Key entities
- ExecutiveJohn Griffith
President and CEO of American Water, quoted on results and merger outlook.
- CompanyEssential Utilities
Merger partner; three state approvals obtained, settlement agreements reached.



