| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 5.5K | 7.8% | 8.0% |
| Total Income | 5.5K | 7.8% | 8.0% |
| Expenditure | 4.2K | 9.9% | 13.8% |
| PBT | 770.00 | 16.5% | 24.3% |
| Net Profit | 713.00 | 18.4% | 41.8% |
| OPM | 22.84% | 0.13pp | 4.84pp |
| NPM | 13.06% | 1.70pp | 11.19pp |
| EPS | 1.31 | 18.6% | 42.8% |
American Electric Power Reports Second-Quarter 2026 Earnings, Raises Full-Year Guidance
30 Jul 2026 · 30 Jul, 4:31 pm
Summary
American Electric Power (AEP) reported second-quarter 2026 GAAP earnings of $713 million ($1.31 per share), down from $1,226 million ($2.29 per share) in the prior year quarter, with operating earnings at $742 million ($1.36 per share) compared to $766 million ($1.43 per share) in Q2 2025. Despite the year-over-year decrease in earnings, AEP is raising its full-year 2026 operating earnings guidance to a range of $6.25 to $6.55 per share, reflecting strong performance and positive outlook. The company is also reaffirming its long-term operating earnings growth rate of 7% to 9% through 2030 and highlighted significant customer savings initiatives through DOE loans and grants, alongside substantial load growth additions.
Key Highlights
- 1
American Electric Power (AEP) reported second-quarter 2026 GAAP earnings of $713 million or $1.31 per share, compared to $1,226 million or $2.29 per share in second-quarter 2025.
- 2
Operating earnings for second-quarter 2026 were $742 million or $1.36 per share, a decrease from $766 million or $1.43 per share in second-quarter 2025.
- 3
AEP is raising its full-year 2026 operating earnings guidance to $6.25 to $6.55 per share from its previous guidance range of $6.15 to $6.45 per share.
- 4
The company reaffirmed its annual operating earnings growth rate of 7% to 9% through 2030, with an expected operating earnings compound annual growth rate (CAGR) of greater than 9%.
- 5
AEP has identified up to $16 billion in expected cost offsets for residential customers supported by executed electric service agreements.
- 6
AEP secured approximately $5 billion in U.S. Department of Energy (DOE) loans, supporting nearly $1 billion in projected customer savings, combined with almost $400 million in awarded DOE grants.
- 7
The company added an incremental six GW of signed load agreements during the second quarter, bringing total contracted load growth through 2030 to 69 GW.
Management Comments
Bill Fehrman
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. 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. By leveraging our industry-leading transmission network, securing the resources needed to support reliability and future demand, and working with our regulators and policymakers to drive down costs for customers, we expect to strengthen our communities and create long-term value for all of our stakeholders. AEP is demonstrating the value of our scale, industry expertise and disciplined focus on execution to benefit our customers. We are building partnerships and making strategic investments in generation and transmission that support reliability and affordability while helping customers and communities capture the benefits of generational energy demand growth.
Informational and educational content only. Not investment advice.