AEP Eyes Q4 Earnings Amid Data Center Expansion and Significant Stock Rally

American Electric Power (AEP) is set to release its fourth-quarter earnings report, marking a pivotal moment for the utility giant following a significant stock rally. Analysts are forecasting earnings per share of $1.14 on projected revenues of $4.99 billion. The company’s shares have surged 26% in 2025, outperforming the broader utility sector and placing its valuation at a premium. Investors are closely monitoring AEP's $72 billion capital spending plan, which prioritizes industrial growth and data center infrastructure in Texas. This report will serve as a critical test of whether the company’s strategic shift can sustain its current market momentum. While the outlook remains positive due to rising energy demand, any deviation from expectations could trigger a price correction given the current premium valuation.