AEP earnings: guidance and next results
AEP's next results are expected on October 28, 2026. Watch whether AEP's contracted load becomes energized and paying demand.
What has AEP guided for the year?
Management promises annual operating-earnings growth of 7%–9% through 2030. It expects a compound annual growth rate greater than 9% through 2030, based on the 2025 guidance midpoint. Operating EPS is its selected measure of recurring performance; GAAP earnings also include items such as impairments or asset-sale effects. A higher annual target after the first half of 2026 matters only if ordinary utility operations can support it.
AEP expects rate base to grow nearly 11% annually through 2030. It targets a 50%–60% payout ratio and a 10%–13% total annual shareholder return, but projects must still be approved, completed and placed in rates.
| The period guided | Low | High | The date it was given | |
|---|---|---|---|---|
| Operating EPS Guidance (US$ per share) (2026) | Year to Dec 2026 | 6.25 | 6.55 | Jul 30, 2026 |
| Estimated GAAP EPS Guidance (US$ per share) (2026) | Year to Dec 2026 | 6.16 | 6.46 | Jul 30, 2026 |
| Debt to Capitalization (GAAP) | 2026–2030 | 60.0% | 63.0% | Sep 9, 2026 |
| FFO/Debt (S&P and Moody's) | 2026–2030 | 14.0% | 15.0% | Sep 9, 2026 |
| Expected operating earnings CAGR | 2025–2030 | 9.0% | Sep 9, 2026 | |
| Target payout ratio range | 2026–2030 | 50.0% | 60.0% | Sep 9, 2026 |
What this means. The two earnings-per-share forecasts differ because the operating figure leaves out certain special items, while the standard accounting figure includes them.
Has AEP kept its past promises?
Trade coverage put Fehrman’s compensation at $36.6 million in 2025. It attributed $29.3 million to stock awards. AEP also aims to execute a $78 billion five-year capital plan and reiterated annual operating-earnings growth of 7%–9% on its Q2 2026 call. Those are targets, not delivered results. Shareholders can vote on pay, but AEP’s say-on-pay vote is advisory and cannot force the board to change the plan.
The fairest verdict is not that AEP’s leaders are automatically on shareholders’ side, or against them. It is that investors must watch whether independent directors challenge management, whether new financing earns its cost, and whether pay follows reliable performance rather than promises.
What has AEP's revenue and profit trend been?
Revenue increased in the second quarter of 2026, while reported net income and diluted EPS fell. The comparison is distorted because the 2025 quarter included the $499 million FERC-related benefit connected largely with earlier years.
| Jun 2026 | Mar 2026 | Dec 2025 | Sep 2025 | Jun 2025 | Mar 2025 | Dec 2024 | Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5,445 | 6,020 | 5,314 | 6,010.4 | 5,087 | 5,463 | 4,696 | 5,420.1 |
| Operating income | 1,247 | 1,360 | 1,114.3 | 1,521.4 | 1,399 | 1,284 | 1,096 | 1,351.5 |
| Net income | 713 | 874 | 582 | 972.0 | 1,226 | 800 | 664 | 959.6 |
| EPS, diluted | 1.30 | 1.60 | 1.07 | 1.81 | 2.29 | 1.50 | 1.24 | 1.80 |
What this means. The large negative free cash flow does not necessarily mean the business is losing money: it spent much more cash on equipment, buildings, nuclear fuel, and purchased generation assets than it brought in from daily operations.