Second Quarter 2026
Filed Jul 30, 2026AEP Reports Second-Quarter 2026 Earnings, Raises Full-Year Guidance
Second-quarter revenue increased to $5,445 million and AEP raised 2026 operating EPS guidance to $6.25 to $6.55 per share, but GAAP earnings, operating earnings and both EPS measures were below second-quarter 2025.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, Second Quarter Ended June 30other | $5,445 million | – | $358 million |
| Revenue, Year-to-Date Ended June 30other | $11,465 million | – | $915 million |
| GAAP Earnings, Second Quarter Ended June 30GAAP | $713 million | – | ($513 million) |
| Operating Earnings, Second Quarter Ended June 30non-GAAP | $742 million | – | ($24 million) |
| GAAP Earnings, Year-to-Date Ended June 30GAAP | $1,587 million | – | ($439 million) |
| Operating Earnings, Year-to-Date Ended June 30non-GAAP | $1,633 million | – | $44 million |
| GAAP EPS, Second Quarter Ended June 30GAAP | $1.31 | – | ($0.98) |
| Operating EPS, Second Quarter Ended June 30non-GAAP | $1.36 | – | ($0.07) |
| GAAP EPS, Year-to-Date Ended June 30GAAP | $2.92 | – | ($0.88) |
| Operating EPS, Year-to-Date Ended June 30non-GAAP | $3.01 | – | $0.03 |
| Weighted Average Basic Common Shares Outstanding, Quarter Ended June 30other | 544 million | – | – |
| Vertically Integrated Utilities GAAP Earnings, 2Q 26GAAP | $284 million | – | ($149 million) |
| Transmission & Distribution Utilities GAAP Earnings, 2Q 26GAAP | $222 million | – | ($2 million) |
| AEP Transmission Holdco GAAP Earnings, 2Q 26GAAP | $225 million | – | ($353 million) |
| Generation & Marketing GAAP Earnings, 2Q 26GAAP | $97 million | – | $35 million |
| All Other GAAP Earnings, 2Q 26GAAP | ($115 million) | – | ($44 million) |
| Vertically Integrated Utilities Operating Earnings, 2Q 26non-GAAP | $302 million | – | $5 million |
| Transmission & Distribution Utilities Operating Earnings, 2Q 26non-GAAP | $239 million | – | $15 million |
| AEP Transmission Holdco Operating Earnings, 2Q 26non-GAAP | $225 million | – | $1 million |
| Generation & Marketing Operating Earnings, 2Q 26non-GAAP | $91 million | – | ($1 million) |
| All Other Operating Earnings, 2Q 26non-GAAP | ($115 million) | – | ($44 million) |
| Vertically Integrated Utilities GAAP Earnings, YTD 26GAAP | $746 million | – | ($11 million) |
| Transmission & Distribution Utilities GAAP Earnings, YTD 26GAAP | $459 million | – | $70 million |
| AEP Transmission Holdco GAAP Earnings, YTD 26GAAP | $434 million | – | ($379 million) |
| Generation & Marketing GAAP Earnings, YTD 26GAAP | $172 million | – | $8 million |
| All Other GAAP Earnings, YTD 26GAAP | ($224 million) | – | ($127 million) |
| Vertically Integrated Utilities Operating Earnings, YTD 26non-GAAP | $766 million | – | $119 million |
| Transmission & Distribution Utilities Operating Earnings, YTD 26non-GAAP | $476 million | – | $60 million |
| AEP Transmission Holdco Operating Earnings, YTD 26non-GAAP | $434 million | – | ($25 million) |
| Generation & Marketing Operating Earnings, YTD 26non-GAAP | $181 million | – | $13 million |
| All Other Operating Earnings, YTD 26non-GAAP | ($224 million) | – | ($123 million) |
Full-Year 2026 outlook
- NoteOperating EPS Guidance: $6.25 to $6.55 per share
- NoteEstimated GAAP EPS Guidance: $6.16 to $6.46
- NoteMark-to-Market Impact of Commodity Hedging Activities: 0.03
- NoteImpact of WVPSC Order: (0.07)
- NotePirkey Plant Partial Disallowance: 0.06
- NoteUnified Tracker Mechanism Partial Disallowance: 0.04
- NoteWholesale Customer Contract Agreements: 0.04
- NoteIncome Tax Effect of Adjustments: (0.01)
- NoteAnnual operating earnings growth rate: 7% to 9% through 2030
- NoteExpected operating earnings CAGR: greater than 9%
What drove it
- AEP added an incremental six GW of signed load agreements during the second quarter, primarily in Texas, bringing total contracted load growth through 2030 to 69 GW.
- AEP secured three additional GW of gas-fired turbine capacity, bringing total secured capacity to approximately 13 GW for potential deployment through 2031.
- AEP is evaluating opportunities to obtain up to 10 GW of additional turbine capacity through 2035.
- AEP Texas secured a DOE loan for up to $3.3 billion to support nearly 100 transmission projects.
- AEP has now secured approximately $5 billion in DOE loans across its portfolio, supporting nearly $1 billion in projected customer savings through lower interest costs.
- AEP plans to invest $78 billion from 2026 through 2030.
Concerns
- Second-quarter GAAP earnings were $713 million, compared with $1,226 million in second-quarter 2025.
- Second-quarter operating earnings were $742 million, compared with $766 million in second-quarter 2025.
- AEP Transmission Holdco GAAP earnings were $225 million in 2Q 26, compared with $578 million in 2Q 25.
- All Other operating earnings were ($115 million) in 2Q 26, compared with ($71 million) in 2Q 25.
- Management cited the 2025 transmission minority interest sale and the timing of tax-related items as reasons operating earnings were below last year at this stage.
What to watch
- Execution against total contracted load growth through 2030 of 69 GW.
- Deployment of approximately 13 GW of secured gas-fired turbine capacity through 2031 and the evaluation of up to 10 GW of additional turbine capacity through 2035.
- Regulatory progress on large load tariffs, with five states approved and three additional state filings pending approval.
- Delivery of up to $16 billion in expected cost offsets for residential customers in vertically integrated utilities supported by fully executed take-or-pay electric service agreements.
- Progress on incremental capital investments of more than $10 billion, including the fuel cell project in Wyoming, the Piketon transmission opportunity in Ohio, and incremental generation in AEP’s footprint.
Analysis
AEP reported second-quarter revenue of $5,445 million, compared with $5,087 million in second-quarter 2025. Despite the higher revenue, second-quarter GAAP earnings were $713 million versus $1,226 million, while operating earnings were $742 million versus $766 million. GAAP EPS was $1.31 compared with $2.29, and operating EPS was $1.36 compared with $1.43.
Year-to-date operating earnings improved to $1,633 million from $1,589 million, and operating EPS rose to $3.01 from $2.98. The year-to-date GAAP comparison remained lower, with earnings of $1,587 million versus $2,026 million and EPS of $2.92 versus $3.80. Management attributed operating earnings being below last year at this stage to the 2025 transmission minority interest sale and the timing of tax-related items.
At the operating-segment level, second-quarter improvements at Vertically Integrated Utilities and Transmission & Distribution Utilities were offset by a $44 million larger All Other operating loss. AEP Transmission Holdco operating earnings were essentially unchanged at $225 million, but its GAAP earnings fell to $225 million from $578 million. Year-to-date, Vertically Integrated Utilities and Transmission & Distribution Utilities delivered higher operating earnings, while AEP Transmission Holdco and All Other were lower.
The company raised full-year 2026 operating EPS guidance to $6.25 to $6.55 per share from $6.15 to $6.45 per share, citing strong first-half performance and expected results for the remainder of the year. Estimated GAAP EPS guidance is $6.16 to $6.46. Management reaffirmed annual operating earnings growth of 7% to 9% through 2030 and an expected operating earnings CAGR of greater than 9% based on the 2025 guidance midpoint.
Demand and infrastructure planning remain central to the release. AEP added six GW of signed load agreements in the quarter, bringing contracted load growth through 2030 to 69 GW, and secured three additional GW of gas-fired turbine capacity for a total of approximately 13 GW for potential deployment through 2031. The company is pairing growth investment with affordability initiatives, including up to $16 billion in expected cost offsets for residential customers and DOE loans and grants expected to deliver nearly $1.4 billion in estimated customer benefits over the life of the loans and grants.
Management, verbatim
While I recognize our operating earnings are below last year at this stage due to the 2025 transmission minority interest sale and the timing of tax-related items, I am highly confident in our robust business performance – so much so that we are raising 2026 full-year guidance to $6.25 to $6.55 per share.
Bill Fehrman, AEP chairman, president and chief executive officer
As electricity demand accelerates, we have seen firsthand how growth can lower costs and improve affordability for existing customers. That is why we have led efforts to implement large load tariffs and structure contracts to ensure growth helps pay for growth.
Bill Fehrman, AEP chairman, president and chief executive officer
AEP is demonstrating the value of our scale, industry expertise and disciplined focus on execution to benefit our customers.
Bill Fehrman, AEP chairman, president and chief executive officer
Not in the filing
stated, not guessed- Segment revenue by operating segment was not reported.
- Gross profit and gross margin were not reported.
- Operating income and operating margin were not reported.
- Operating expenses were not reported.
- Operating cash flow and free cash flow were not reported.
- Cash, debt and liquidity balances were not reported.
- Share repurchases, dividends and other capital-return amounts were not reported.
- Prior-quarter comparisons for reported earnings metrics were not reported.
- A previous earnings release outlook section was not provided, so no comparison of actual results with prior guidance is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.