| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 58 | 21.3x | 17.8x | Around median | |
Growth | 43 | 10.3% | 7.1% | Around median | |
Quality | 51 | 7.7% | 4.5% | Around median | |
Safety | 36 | 5.5x | 2.6x | Bottom tier | |
Capital Return | 41 | 3.03% | 2.12% | Around median | |
Momentum | 54 | 14.2% | 2.9% | Around median | |
Sentiment | 63 | 14 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
American Electric Power Company, Inc. is an electric utility holding company that builds, finances, and operates generation, transmission, and distribution assets across a broad geographic footprint in the United States. Its earnings growth depends on recovering investments through regulatory frameworks, increasing transmission revenues and weather-normalized sales, and connecting large loads such as data centers and industrial customers. The company benefits from its scale in equipment procurement and infrastructure financing, while targeting a funds from operations-to-debt ratio of 14% to 15%.
In Q2 fiscal 2026, operating earnings were $742 million, or $1.36 per share, compared with $1.43 per share in the corresponding quarter of fiscal 2025. News published on August 26, 2026, showed quarterly revenue growth of 19% year over year and an increase in gross margin to 17%, while the provided data did not include the quarterly revenue figure in dollars. The year-over-year comparison for Transmission Holdco earnings was affected by the sale of a minority stake in June 2025, as well as timing-related tax items, while results benefited from improved regulatory outcomes, higher weather-normalized sales, and growth in transmission revenues.
Operating earnings from the beginning of fiscal 2026 through the end of Q2 were $3.01 per share, compared with $2.98 in the corresponding period of fiscal 2025. Based on the provided statements, the company reported Q1 fiscal 2026 revenue of $6.0 billion and net income of $874 million, while fiscal 2025 revenue was approximately $21.9 billion and net income was $3.6 billion. Regulated operations remain the core of the operating mix, with contributions from state utilities, transmission operations, the generation and marketing segment, and corporate expenses.
The analyst consensus is “Buy,” with an average price target of $140.38 and a relatively wide range of $129 to $147. The average target is only $0.20 below the 52-week range high of $140.58, while the highest target exceeds that high; the lowest target of $129 reflects the risks of delayed load connections and the scale of financing and regulatory execution.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
The leading driver is connecting 69 gigawatts of contracted load through 2030, after adding 6 gigawatts during Q2 fiscal 2026. Texas accounts for 45 gigawatts and Ohio for 12 gigawatts, while another 12 gigawatts are distributed across six states. These loads support a $78 billion capital plan targeting a compound annual growth rate of approximately 11% in the asset base.
On July 30, 2026, the company raised its operating earnings range to $6.25–$6.55 per share from $6.15–$6.45. Management said that first-half fiscal 2026 performance exceeded plan assumptions, with the second half benefiting from regulatory actions at AEP Ohio, SWEPCO Texas, and PSO. Operating earnings from the beginning of fiscal 2026 through the end of Q2 were $3.01 per share, compared with $2.98 in the corresponding period.
AEP Texas submitted 45 gigawatts of projects to Batch Zero, all backed by executed letters of agreement. The company collected approximately $2 billion in cash or guarantees during the month preceding the July 30, 2026 call, covering the credit support required for the submitted volume. However, ERCOT review, generation availability, and transmission construction timelines may affect connection timing, and some projects may move between batches.
Automated analysis for informational purposes only — not investment advice.
AEP completed a $3 billion marketed equity transaction that is expected to settle through forward contracts by May 2028. Management said the transaction covers the expected marketed equity needs required to support the base 2026–2030 plan. The company also targets maintaining a funds from operations-to-debt ratio of 14% to 15% and benefits from approximately $5 billion in Department of Energy loans and nearly $400 million in awarded grants.
Both projects are among more than $10 billion of investment opportunities not included in the $78 billion plan. The Piketon transmission project in Ohio requires final agreements with SP Energy, followed by regulatory review and approval. The Wyoming fuel-cell project is subject to a contractual milestone in December 2026, and the cells must be installed and operational before the end of 2028 to qualify for the investment tax credit.
The earned regulated return reached 9.2% in Q2 fiscal 2026, consistent with management's expectation for the end of fiscal 2026. The company targets increasing this return to 9.5% by 2030 through improved cost-recovery mechanisms and regulatory settlements. In Ohio, AEP secured an authorized return of 9.84% versus 9.7%, while the proposed Oklahoma settlement included a return of 9.375% and an improved mechanism for tracking transmission costs.
