American Electric Power (NASDAQ:AEP) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

American Electric Power (NASDAQ:AEP) released its quarterly earnings data on Thursday. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.15 by $0.04, Briefing.com reports. The firm had revenue of $5.32 billion for the quarter, compared to the consensus estimate of $5.07 billion. American Electric Power had a net margin of 17.23% and a return on equity of 11.00%. The company’s quarterly revenue was up 13.2% on a year-over-year basis. During the same period last year, the firm earned $1.24 earnings per share. American Electric Power updated its FY 2026 guidance to 6.150-6.450 EPS.

Here are the key takeaways from American Electric Power’s conference call:

• AEP delivered strong 2025 results with operating earnings of $5.97 per share (Q4 $1.19), raised the quarterly dividend to $0.95, posted a 29% total shareholder return, and reaffirmed 2026 guidance of $6.15–$6.45 and a long‑term 7%–9% earnings growth target.
• Management doubled contracted incremental load to 56 GW (all backed by signed agreements), including 36 GW of LOAs in ERCOT, supported by a ~180 GW interconnection queue — materially increasing T&D demand and future revenue visibility.
• AEP is pursuing a large but framed growth plan — a conservative $72 billion five‑year capital plan (10% rate‑base CAGR) plus ~$5–8 billion identified upside, including ~$4.7 billion of transmission awards and a $2.65 billion Bloom fuel‑cell PPA, while emphasizing balance‑sheet targets (FFO/debt ~15%).
• Management acknowledged near‑term headwinds and execution risks — higher reliability O&M, rising depreciation and interest expense, plus permitting, interconnection and generation supply constraints — that could delay connections or raise costs if not resolved.

American Electric Power Trading Up 4.5%

Shares of AEP traded up $5.53 during midday trading on Thursday, reaching $127.78. The company had a trading volume of 2,884,247 shares, compared to its average volume of 3,306,440. The company has a quick ratio of 0.53, a current ratio of 0.69 and a debt-to-equity ratio of 1.41. The firm has a 50 day simple moving average of $117.16 and a 200-day simple moving average of $115.72. American Electric Power has a 1-year low of $97.46 and a 1-year high of $128.92. The stock has a market cap of $68.25 billion, a PE ratio of 18.70, a price-to-earnings-growth ratio of 2.89 and a beta of 0.62.

American Electric Power Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Tuesday, February 10th will be issued a $0.95 dividend. This represents a $3.80 annualized dividend and a yield of 3.0%. The ex-dividend date is Tuesday, February 10th. American Electric Power’s dividend payout ratio is presently 55.39%.

Key American Electric Power News

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

• Positive Sentiment: Q4 results beat expectations — operating EPS $1.19 vs. $1.15 consensus and revenue of $5.32B (up ~13% YoY); company set FY2026 operating earnings guidance of $6.15–$6.45. American Electric’s Q4 Earnings Beat Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management is expanding its five‑year capital plan (above $72B) to meet surging electricity demand — indicates meaningful growth investment and more ratebase to support long‑term earnings. AEP expands spending plan, beats profit estimates as electricity demand surges
• Positive Sentiment: Load and contract momentum — company now targets ~56 GW of incremental load by 2030 (up from 28 GW) and identified $5–8B of additional investment opportunities beyond the existing plan, supporting longer‑term growth targets. AEP Reports Fourth Quarter and Full-Year 2025 Results, Reaffirms Long-Term Growth Outlook
• Neutral Sentiment: Strategic supply deals: AEP is engaging with on‑site generation providers (e.g., supply agreement for up to 1 GW of solid‑oxide fuel cells), which can ease interconnection constraints but shifts some exposure away from traditional utility-only solutions. AI Power Crunch: Why Bloom Energy Is the Hidden Winner (AEP)
• Neutral Sentiment: Guidance nuance — FY2026 range (6.15–6.45) roughly aligns with long‑term targets but sits slightly around consensus; investors will watch how capex execution and rate cases translate to the midpoint. American Electric Power beats Q4 estimates, reaffirms 2026 outlook
• Negative Sentiment: Regulatory setback — FERC rejected AEP’s request to sell capacity in an upcoming auction, a near‑term headwind that could limit revenue/timing on specific capacity sales. FERC rejects AEP request to sell capacity in upcoming auction

Insider Activity at American Electric Power

In other news, Director Benjamin G. S. Fowke III sold 5,000 shares of the business’s stock in a transaction that occurred on Friday, December 12th. The shares were sold at an average price of $115.07, for a total value of $575,350.00. Following the sale, the director directly owned 25,898 shares of the company’s stock, valued at approximately $2,980,082.86. The trade was a 16.18% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.07% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Measured Wealth Private Client Group LLC acquired a new position in shares of American Electric Power in the 3rd quarter valued at $29,000. Osterweis Capital Management Inc. lifted its position in American Electric Power by 3,000.0% in the second quarter. Osterweis Capital Management Inc. now owns 310 shares of the company’s stock valued at $32,000 after acquiring an additional 300 shares during the last quarter. Imprint Wealth LLC acquired a new position in American Electric Power in the third quarter valued at $35,000. Wealth Watch Advisors INC purchased a new position in shares of American Electric Power during the third quarter worth about $39,000. Finally, Jessup Wealth Management Inc acquired a new stake in shares of American Electric Power during the fourth quarter worth about $42,000. 75.24% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on AEP. Williams Trading set a $137.00 price target on shares of American Electric Power in a report on Thursday, December 18th. Siebert Williams Shank assumed coverage on American Electric Power in a research report on Thursday, December 18th. They issued a “buy” rating and a $137.00 price objective for the company. Scotiabank raised their price target on American Electric Power from $121.00 to $131.00 and gave the stock a “sector perform” rating in a report on Tuesday, December 16th. TD Cowen upgraded shares of American Electric Power to a “strong-buy” rating in a report on Thursday, October 30th. Finally, Bank of America cut shares of American Electric Power from a “buy” rating to a “neutral” rating and lowered their target price for the stock from $131.00 to $122.00 in a research note on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, American Electric Power presently has a consensus rating of “Moderate Buy” and an average target price of $127.39.

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.