With a market cap. of $75.4 billion, American Electric Power Company, Inc. (AEP) is one of the largest electric utilities in the United States, delivering reliable and affordable electricity to 5.6 million customers across 11 states through the nation's largest electric transmission system. It is focused on modernizing energy infrastructure, meeting growing electricity demand, and creating long-term value through operational excellence, safety, and community development.
The Columbus, Ohio-based company is scheduled to report its Q2 2026 results before the market opens on Thursday, Jul. 30. Ahead of the release, analysts expect the company to post operating EPS of $1.48, up 3.5% from $1.43 in the year-ago quarter. AEP has exceeded Wall Street's EPS estimates in three of the last four quarters while missing on another occasion.
For fiscal 2026, analysts anticipate AEP to report an operating EPS of $6.35, a rise of 6.4% from $5.97 in fiscal 2025. Moreover, its operating EPS is projected to increase over 8% year-over- year to $6.86 in fiscal 2027.
AEP stock has soared 34.1% over the past 52 weeks, surpassing both the S&P 500 Index's ($SPX) 19.2% return and the State Street Utilities Select Sector SPDR ETF's (XLU) 12.7% gain over the same period.
Shares of American Electric Power rose 1.8% on May 5 after the company increased its 2026 - 2030 capital investment plan by 8% to $78 billion from $72 billion, driven by expanding transmission infrastructure and new natural gas generation projects to meet rapidly growing electricity demand. Investor sentiment was further boosted by AEP's disclosure that it signed 7 GW of new large energy project agreements in Q1 and expects 63 GW of incremental contracted load by 2030, with nearly 90% tied to data centers, including 41 GW in Texas.
The stock also gained support from stronger-than-expected Q1 2026 operating EPS of $1.64, revenue of $6.02 billion, and the reaffirmation of its 2026 operating EPS guidance of $6.15 - $6.45.
Analysts' consensus rating on AEP stock is cautiously optimistic, with an overall "Moderate Buy" rating. Out of 24 analysts covering the stock, opinions include 12 "Strong Buys," one "Moderate Buy," and 11 "Holds." This configuration is more bullish than three months ago, with 10 analysts suggesting a "Strong Buy."
The average analyst price target for American Electric Power is $143.27, indicating a potential upside of 3.4% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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