Key Highlights

  • Consensus EPS of 2.05 compares with second-quarter operating EPS of 1.36 and GAAP diluted EPS of 1.30.
  • Consensus revenue of USD 6.55 billion compares with second-quarter revenues of USD 5,445 million, against USD 5,087 million.
  • Management raised 2026 operating EPS guidance to 6.25 to 6.55 from 6.15 to 6.45, citing year-to-date performance.
  • Contracted load additions total 69 gigawatts through 2030, and the capital plan is USD 78 billion for 2026 through 2030.

American Electric Power (NASDAQ:AEP) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 2.05 on revenue of USD 6.55 billion, and the company has a market capitalization of USD 70.35 billion.

American Electric Power is an electric utility holding company with regulated utilities and a transmission business. Second-quarter revenues were USD 5,445 million against USD 5,087 million, and net income was USD 747 million against USD 1,289 million.

Estimates Against Raised 2026 Guidance

The EPS estimate of 2.05 is above the second-quarter operating EPS of 1.36 and the GAAP diluted EPS of 1.30, which compared with 2.29 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 6.55 billion is above the USD 5,445 million reported.

Management raised 2026 operating EPS guidance to 6.25 to 6.55 from 6.15 to 6.45 and reaffirmed an operating EPS growth target of greater than 9% through 2030. Operating earnings were USD 742 million.

What Management Guided and What It Left Open

Management targets an FFO to debt ratio of 14% to 15% and said it executed a USD 3 billion marketed equity transaction to be settled under forward contracts by May 2028. It put the rate base compound growth rate at nearly 11% through 2030.

Management left open the timing of interconnections, saying the ERCOT review process, available generation and transmission timelines may affect when contracted load converts to revenue. It also noted that Oklahoma relies on a transmission cost rider to offset a lower proposed return on equity of 9.375%.

Load Growth, Capital Plan and Regulatory Outcomes

Contracted load additions rose six gigawatts in the quarter to 69 gigawatts through 2030, including 45 gigawatts in ERCOT. The company secured three more gigawatts of gas turbines, for 13 gigawatts in total, and options on up to 10 gigawatts through 2035.

Ohio produced a 9.84% return on equity and Virginia completed a USD 1.4 billion securitization in May. A USD 3.3 billion DOE loan guarantee supports 2,800 miles of AEP Texas transmission projects. Regulated earned ROE was 9.2% for the quarter.

Income Statement Lines and Dividend

Operating income was USD 1,247 million against USD 1,399 million, and income before taxes was USD 770 million against USD 1,017 million. Net income available to common shareholders was USD 713 million against USD 1,226 million. The 2025 transmission minority interest sale affected the comparison.

The dividend declared was 0.95 per share against 0.93. The company collected nearly USD 2 billion in cash or collateral for ERCOT load commitments. The estimates table lists a market capitalization of USD 70.35 billion.

Comparisons to Make in the Report

Reported EPS against 2.05 and revenues against USD 6.55 billion are the headline comparisons. Other markers are contracted load, ERCOT interconnections and the 2026 operating EPS range.