Here's What to Expect From A. O. Smith's Next Earnings Report

A. O. Smith Corporation (AOS), headquartered in Milwaukee, Wisconsin, manufactures and markets residential and commercial gas and electric water heaters, boilers, heat pumps, tanks, and water treatment products. With a market cap of $8.6 billion, the company specializes in offering innovative and energy-efficient solutions and products, which are developed and sold on a global platform. The leading global water technology company is expected to announce its fiscal second-quarter earnings for 2026 in the near future.

Ahead of the event, analysts expect AOS to report a profit of $0.99 per share on a diluted basis, down 7.5% from $1.07 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion. 

For the full year, analysts expect AOS to report EPS of $3.77, down 2.1% from $3.85 in fiscal 2025. However, its EPS is expected to rise 9.6% year over year to $4.13 in fiscal 2027. 

AOS stock has underperformed the S&P 500 Index’s ($SPX) 20.7% gains over the past 52 weeks, with shares down 8.3% during this period. Similarly, it underperformed the State Street Industrial Select Sector SPDR ETF’s (XLI) 23.9% gains over the same time frame.

AOS lagged as China sales dropped 17% amid weak demand and fading stimulus, while North American results were hit by weather-related disruptions at Ashland City. In response, 4% to 7% price hikes take effect in Q3. Restructuring in water treatment should deliver 200bps of margin gains in 2026, and Leonard Valve is outperforming post-acquisition. Moreover, management is still assessing China options but sees pricing and efficiency cushioning margins against inflation and soft demand.

Analysts’ consensus opinion on AOS stock is cautious, with a “Hold” rating overall. Out of 13 analysts covering the stock, four advise a “Strong Buy” rating, six give a “Hold,” and three recommend a “Strong Sell.” AOS’ average analyst price target is $68.36, indicating a potential upside of 10% from the current levels.