American Water Works (AWK) · Q2 2026 results and valuation

At 10.0% growth a year (3-year revenue growth), the model's fair value is $90.14 a share — the stock trades 66% above it. Today's price assumes 14.7% growth a year.

1. Key theme

   American Water Works' job with respect to the merger is to be able to demonstrate substantial affirmative public benefit.

   Source quote

   “But our job with respect to the merger is to be able to demonstrate substantial affirmative public benefit. Certainly, affordability is a theme across the state and other states. We think that we have done that in our testimony.”

2. Guidance

   American Water Works is seeking $179 million of additional annual revenue, and it expects proposed rates to go into effect in June 2027.

3. Fading

   Confidence remains high in Pennsylvania and New Jersey case merits despite less emphasis this quarter.

   Source quote

   “We certainly feel good about the merits of our case in Pennsylvania and expect to see a recommended decision from the ALJ... So I'd say we feel very good about the fundamentals of the Pennsylvania case and same in New Jersey where there's...”

Restrained — more cautious than in Q1 2026.

Sentences that drove the tone

“As a reminder, the majority of our EPS growth will occur in the second half of the year, with revenue increases in key states expected to go into effect later...”

“As we have said, growing to scale in our states greatly benefits our operating efficiency and long-term customer affordability.”

“Concluding on Slide 15, we continue to be well positioned for growth through acquisitions across many states, as our track record of signing and closing deals continues in 2026.”