AEP Reports Q3 2026 Earnings, Expands 5-Year Capital Plan to $100B, and Raises Growth Outlook

Executive Summary

American Electric Power Company, Inc. (NASDAQ: AEP) filed Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), furnishing its third-quarter 2026 financial results, introducing an expanded $100 billion five-year capital plan through 2031, and boosting long-term earnings growth expectations.

Key Financial Highlights

• Q3 2026 Operating Earnings: $1,216 million, or $2.23 per share, compared to $963 million, or $1.80 per share, in Q3 2025.
• Q3 2026 GAAP Earnings: $1,187 million, or $2.18 per share, compared to $972 million, or $1.82 per share, in Q3 2025.
• Year-to-Date (YTD) 2026 Operating Earnings: $2,849 million ($5.24 per share), up from $2,552 million ($4.78 per share) YTD 2025.
• Revenue: Q3 2026 revenue increased to $6,832 million compared to $6,011 million in Q3 2025.

Guidance & Long-Term Outlook

• Full-Year 2026 Guidance: Operating EPS is projected to come in at or above the high end of the previously stated $6.25 to $6.55 range.
• 2027 & 2028 Guidance: Introduced 2027 operating EPS range of $6.75 to $7.05 and 2028 range of $7.40 to $7.70.
• Long-Term EPS Growth: Introducing an annual operating EPS growth target of 9% to 11% from 2027 through 2031, driving a 10%+ CAGR off the original 2026 guidance midpoint of $6.30.

Capital Plan & Operational Catalysts

• $100 Billion Five-Year Capital Plan: Drives an expected 13%+ rate base CAGR, increasing rate base to approximately $162 billion by 2031.
• Segment Allocations:
  • Transmission: ~$37 billion allocated, targeting a transmission rate base approaching $70 billion.
  • Generation: $36 billion planned to meet accelerating demand backed by long-term contracts.
  • Distribution: $22 billion targeted at grid resiliency and modernization.
• Demand Pipeline: Signed 15 GW of incremental load commitments during Q3, bringing total contracted incremental load to 84 GW by 2031. Take-or-pay agreements are projected to generate up to $21 billion in fixed cost offsets for residential customers over contract lifetimes.