American Water Works Posts Higher Revenue and Operating Income but Lower Net Income and Diluted EPS Year-Over-Year in Quarterly Filing

Bottom line

- The headline read on 10-Q filed by American Water Works Company, Inc. for the three months ended the three months ended March 31, 2026 is that profit-side metrics moved in a mixed way against the prior-year quarter, while the top line grew. 05 per diluted share USD/SHARES, with both periods in profit, matching the authorized profit-to-profit transition.

Net income attributable to the parent of $196,000,000 USD likewise fell short of $205,000,000 USD on the same profit-to-profit footing. Operating income moved the other way in a good sense: it climbed to $391,000,000 USD from $371,000,000 USD, again a profit-to-profit step. Revenue from contracts with customers, excluding assessed tax, reached $1,203,000,000 USD, up from $1,134,000,000 USD.

The filing evidence does not attribute this change to any single cause. - The reporting identity for this section is fixed by the filing itself. , ticker AWK, Central Index Key 0001410636, presenting the quarterly report designated as 10-Q and filed under accession 0001410636-26-000063 for fiscal period period-ended-2026-03-31.

The three-month reporting window covered here is the three months ended March 31, 2026, with the year-over-year reference window being the three months ended March 31, 2025. - Source scope for this section is intentionally narrow. Every figure cited above comes from the condensed consolidated statements of operations carried inside 10-Q for the three-month windows of the three months ended March 31, 2026 and the three months ended March 31, 2025.

The numbered references available in the catalog — items one through six of Part II and notes one, two and eleven of the financial statements — are the structural anchors; this section does not lean on the narrative items beyond confirming that the income-statement lines being quoted sit inside the periods stated. - Quoted items, exchange-act references and the forward-looking-statements legend from the cover page were treated as untrusted quoted data: they establish the issuer identity and the period scope but contribute no digits to this section, and where the underlying drivers of the year-over-year movement are not stated, that absence is recorded with the machine-owned causality note rather than filled in with speculation.

- The filing evidence contains no peer or industry comparison.

Financial performance

- Reported results for the three-month reporting period ended the three months ended March 31, 2026 show revenue higher than the prior-year comparative window ended the three months ended March 31, 2025, with $1,203,000,000 of reported revenue from contract with customers, excluding assessed tax, exceeding $1,134,000,000. - Operating income for the quarter, $391,000,000, moved higher against $371,000,000, with the authorized direction indicating a profit-to-profit transition in which the current quarter's operating profit is greater than the prior-year quarter's.

- Net income attributable to parent for the quarter, $196,000,000, was lower than $205,000,000, and the authorized direction shows a profit-to-profit transition in which the current period is a smaller profit than the prior period. 05 per diluted share, again on a profit-to-profit basis, with the authorized direction pointing to a smaller per-share profit in the current quarter. , along with capital expenditure timing, debt refinancing capability, the impact of inflation and higher financing costs, regulatory and litigation outcomes, and environmental and sustainability initiatives.

- Analyst inference from the pattern is limited: revenue and operating income both moved higher year over year, while net income and diluted earnings per share moved lower, producing a wedge between top-line and bottom-line results that the filing itself does not explain in the cited context. The filing evidence does not attribute this change to any single cause. - Counter-evidence within the filing's forward-looking discussion includes the named pending acquisition transactions and a reference to increased or increasing financing costs and inflation, any of which could be consistent with margin pressure, but the filing evidence does not tie any single driver to the lower net income outcome.

The filing evidence does not attribute this change to any single cause. - The filing also does not disclose segment-level detail beyond the consolidated figures used here. The filing evidence does not disclose segment-level detail for this dimension.

- The filing evidence contains no peer or industry comparison, so no cross-issuer benchmark can be drawn from this filing alone. The filing evidence contains no peer or industry comparison. - Guidance and expectations highlighted in management's forward-looking statements cover the timing and amount of rate and revenue adjustments, including general rate case filings and filings to address regulatory lag, the timing and outcome of pending or future acquisition activity, including the Essential Utilities, Inc.

, projected capital expenditures and related funding requirements, the ability to repay or refinance debt, the impact of increased financing costs and inflation on results, the future settlement of forward sale agreements and the use of net proceeds, the outcome of governmental and regulatory investigations, class action lawsuits and other legal proceedings, the ability to meet stated environmental and sustainability goals, and regulatory, legislative, tax policy or legal developments. - The accounting policies note, described in the cited note covering significant accounting policies and new accounting standards presented in the table beneath it, is the context in which any standard updates affecting the comparability of these results would be disclosed.

- Readers comparing this quarter with prior periods can place the result alongside a similarly structured interim filing, such as the Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing insight, to contrast a clean profit-to-profit growth pattern with the mixed top-line and bottom-line pattern shown here.

Operating drivers and segments

- The filing's segment commentary is not preserved in the quoted evidence provided, so a line-by-line review of divisional performance is not feasible from the source narrative. The consolidated top line that the filing does disclose is revenue from contracts with customers excluding assessed tax, which came in at $1,203,000,000 USD for the three months ended March 31, 2026, up from $1,134,000,000 USD for the three months ended March 31, 2025 under the authorized year-over-year direction of an increase from a positive base. - Consolidated operating income moved in the same authorized direction, from $371,000,000 USD for the three months ended March 31, 2025 to $391,000,000 USD for the three months ended March 31, 2026, higher than the prior period while remaining in profit territory on both sides of the comparison. The segment-level mix between regulated water and wastewater operations and the parent-level results is not laid out in the quoted narrative, so any read on divisional margins would have to come from the unaudited tabular notes outside this excerpt.

- Management frames the period as a continuation of the rate-base growth strategy typical of investor-owned water utilities, leaning on forward-looking language captured in the forward-looking statements section: words such as "intend," "plan," "estimate," "expect," and "project" appear repeatedly, signalling that the discussion of drivers is forward-looking rather than retrospective. - Specific items management flags as shaping the quarter include pending or future rate and revenue adjustments, infrastructure surcharges, regulatory proceedings designed to address regulatory lag, organic customer growth, capital expenditure execution, and the timing of acquisitions. The merger agreement with Essential Utilities, Inc. and the proposed acquisition of systems owned indirectly by Nexus Water Group, Inc. are called out by name as material pending transactions. - Management also calls out California subsidiary water-supply sourcing away from Carmel River diversions, the company's environmental and sustainability targets, and broader exposure to interest rates, inflation, and tariffs, but does not attribute any specific movement in revenue or operating income to any one of those levers. - The filing evidence does not attribute this change to any single cause. - No standalone disclosure in the quoted excerpt ties the year-over-year change in either revenue or operating income to a named driver such as a rate case outcome, a weather effect, a customer-growth figure, or an acquisition contribution; readers seeking that linkage must consult the segment footnote schedule directly.

Cash flow and capital

- Operating cash generation was positive in the three months ended March 31, 2026, reported at $305,000,000 USD, which the catalog flags as a decrease versus the prior-year comparative of $331,000,000 USD for the three months ended March 31, 2025. Both periods remained inflows; the authorized transition is profit-positive to profit-positive, so the underlying business continued to fund itself from operations even as the headline figure softened. The filing evidence does not single out a specific driver behind the modest contraction, so we record The filing evidence does not attribute this change to any single cause.

rather than speculate on rate-case timing, working-capital movement, or weather swings. - Investing activities swung from an outflow to an inflow. Net Cash Provided by (Used in) Investing Activities was $93,000,000 USD in the three months ended March 31, 2026, contrasting with the prior-year use of -$568,000,000 USD for the three months ended March 31, 2025.

Capital spending nevertheless stepped up: Payments to Acquire Property, Plant, and Equipment rose to $659,000,000 USD from $548,000,000 USD a year earlier, the directional move the catalog permits. The filing evidence does not attribute this change to any single cause. - Financing activities flipped sign.

The line moved to a use of -$366,000,000 USD for the three months ended March 31, 2026 from a source of $254,000,000 USD in the three months ended March 31, 2025. Ordinary common-stock dividend payments grew to $162,000,000 USD from $149,000,000 USD, the catalog's authorized year-over-year direction, consistent with the regulated utility's standing payout cadence. - On the balance sheet at the balance sheet date of March 31, 2026, Cash and Cash Equivalents stood at $137,000,000 USD, with Accounts Receivable (after the allowance for credit loss) at $386,000,000 USD and Accounts Payable at $272,000,000 USD.

Because the section receives absolute totals but not computed ratios, we treat the three lines as qualitative landmarks: liquidity remains present, customer receivables are still a meaningful working-capital asset, and supplier obligations sit at their reported level. The filing evidence contains no peer or industry comparison. - Capital allocation pattern.

With higher capex and higher dividends alongside softer operating cash, the financing line absorbed the difference, shifting from a source to a use of cash. That is consistent with a regulated water utility continuing to fund its construction program while returning more cash to shareholders, although the filing evidence does not break the financing outflow into its debt-versus-equity components. The filing evidence does not attribute this change to any single cause.

Readers who want a contrast against a non-regulated issuer can scan Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing for a different capital-return cadence, and against a peer utility interim window via American Water Works Reports Higher Profit and Revenue on Both Quarterly and Six-Month Windows, without treating either as a like-for-like benchmark.

Peer and historical context

- On a year-over-year basis, the 10-Q filed under accession 0001410636-26-000063 by American Water Works Company, Inc. (the ticker) shows $305,000,000 as the operating cash flow line for the three-month window of the three months ended March 31, 2026, against $331,000,000 for the same window of the three months ended March 31, 2025; both are positive, and the directional reading is that the quarter figure is higher than the prior-year figure. - The same quarter-on-quarter comparison for the income statement shows that $205,000,000 for the prior-year quarter and $196,000,000 for the current quarter are both profit readings, with the reported direction indicating a profit-to-profit comparison where the current quarter is lower than the prior-year quarter. - The operating-income view through the same lens pairs $371,000,000 (prior-year profit) with $391,000,000 (current-quarter profit); here the reported direction points to the current-quarter figure being higher than the prior-year figure, which differs in tone from the net-income line. - The top line, captured in $1,134,000,000 versus $1,203,000,000, similarly compares two positive readings across the three months ended March 31, 2025 and the three months ended March 31, 2026, with the authorized direction pointing to the current-quarter figure being higher than the prior-year figure.

- The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

This section sits inside the 0001410636 filer's broader interim report, framed by Note 1 on basis of presentation and Note 2 on significant accounting policies; together those notes establish that the figures above are interim, GAAP-based, and prepared from a normal-recurring set of adjustments. The rest of the document — laid out under Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, and Item 6, with capitalization cross-referenced through Note 11 — supports the standalone financial statements but does not contribute additional peer or multi-year history that this section can draw on.

Because the filing evidence stops at this one filing and its prior-year comparative, a true peer set cannot be assembled here; readers looking for regulated-utility peers or an S&P utilities cross-section will need to source those comparisons outside the four corners of this document. The historical lens is also limited: only one prior-year quarter is presented alongside the current quarter, so any multi-year trend, rate-base growth, or recovery-mechanism evolution sits beyond the evidence this section is allowed to lean on. Within that single prior-year window, the operating-cash-flow reading holds up as the most favorable directional signal, while the net-income reading softens, and the operating-income and revenue readings tilt modestly positive — a mixed picture that should be read as the full set of authorized comparisons rather than as a single verdict.

For broader interim-filing context that follows a similar year-over-year frame, readers can compare the directional pattern here against the American Water Works Reports Higher Profit and Revenue on Both Quarterly and Six-Month Windows insight, which covers the company's own longer-window view, and against the ONEOK Posts Higher Revenue, Operating Income, Net Income and Diluted EPS Year-Over-Year in Interim Filing insight, which offers a non-utility peer comparison built from a similar directional vocabulary.

Scenario analysis

A continuation of the authorized trajectory implies that Revenue from Contract with Customer, Excluding Assessed Tax moves higher than its prior-period level, as registered for the three months ended March 31, 2026 against the three months ended March 31, 2025 in the filing. Operating Income also moves higher than the prior year on a profit-to-profit transition, while reported Net Income (Loss) Attributable to Parent follows the authorized direction of decrease against the prior comparative — a profit-to-profit transition rather than a swing. Capital intensity stays elevated, with Payments to Acquire Property, Plant, and Equipment higher than the prior year in line with utility infrastructure plans, and Payments of Ordinary Dividends, Common Stock higher than the prior year as the dividend cadence continues. Operating cash flow remains positive but is lower than the prior year on the authorized direction, while Net Cash Provided by (Used in) Investing Activities registers a positive reading against the prior year's negative figure, consistent with cash management around a sizeable capex programme.

A constructive read on the period would see Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended March 31, 2026 print higher than the level reported for the three months ended March 31, 2025 in 10-Q, with Operating Income extending the authorized profit-to-profit increase and Net Income (Loss) Attributable to Parent actually reversing the authorized direction to grow rather than decline — still profit on both sides of the comparison. Under that path, Operating Cash Flow holds up better than the authorized direction suggests, capital spending on Property, Plant, and Equipment can be funded without as much reliance on external financing, and the shift in Net Cash Provided by (Used in) Financing Activities away from the prior-period positive reading can be less pronounced. Earnings Per Share, Diluted would follow the same directional improvement as net income, departing from the authorized decrease.

A more cautious framing still places Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended March 31, 2026 above its prior-period level under the authorized direction, but the Operating Income gain narrows and Net Income (Loss) Attributable to Parent extends the authorized decrease rather than recovering. In that environment, Payments to Acquire Property, Plant, and Equipment remain higher than the prior year, sustaining capital intensity, while Net Cash Provided by (Used in) Financing Activities would sit below its prior-year positive reading on the authorized direction. Earnings Per Share, Diluted widens its decrease against the prior period. The filing evidence does not attribute this change to any single cause.

Cross-checking against peer or industry-level prints is not possible from this filing: The filing evidence contains no peer or industry comparison.. Readers comparing this trajectory with another regulated utility quarter can pair the framing with American Water Works Reports Higher Profit and Revenue on Both Quarterly and Six-Month Windows to test whether the profit-to-profit revenue increase and the authorised net-income decrease pattern observed in 10-Q for the three months ended March 31, 2026 shows up elsewhere.

Risks and what to watch

- Reported financial facts: For the three months ended March 31, 2025, Net Income (Loss) Attributable to Parent was $205,000,000 USD, and Revenue from Contract with Customer, Excluding Assessed Tax was $1,134,000,000 USD. For the three months ended March 31, 2026, Net Income (Loss) Attributable to Parent was $196,000,000 USD, and Revenue from Contract with Customer, Excluding Assessed Tax was $1,203,000,000 USD. - Management explanations: No forward-looking guidance, risk-factor update, contingency disclosure, or other-than-items-one-A through item-six narrative content is reproduced in the source narrative beyond an accounting-standards adoption table.

The disclosure horizon in the cited excerpt is limited to recently issued standards not yet adopted; the only standard described in narrative form is Income Statement Disaggregation, and the filing simply states the standard "did not have a material impact on the Consolidated Financial Statements," with the effective date framed in terms of annual and interim periods beginning after a December date and a prospective application. " Note One and Note Eleven frame the consolidated balance sheet presentation, and Note Two discusses significant accounting policies and new accounting standards.

Items that customarily carry the risk narrative are noted only by heading: Item One-A (Risk Factors), Item Three (Quantitative and Qualitative Disclosures About Market Risk), Item Four (Controls and Procedures), and Item One and Item Two, with the surrounding text reduced to "(omitted)" inside the excerpt. The filing itself is a quarterly report (10-Q for period-ended-2026-03-31, accession 0001410636-26-000063, filed by American Water Works Company, Inc. under 0001410636, ticker AWK).

- Analyst inference: Because the user-visible narrative has been stripped to a standards-adoption summary, no analyst-style commentary can be sourced from the cited excerpt, and The filing evidence contains no peer or industry comparison. applies to any cross-issuer read. - Counter-evidence: With directional comparisons authorized separately elsewhere in the article, the only reported counterweight visible in this section is the absence of any qualitative risk language in the reproduced text itself; the broader regulatory, weather, customer-growth, capital-program, and rate-case narratives that typically drive a water utility's risks are not present in the quoted source and therefore cannot be cited as counter-evidence here.

The unadopted Income Statement Disaggregation standard is itself a disclosure-shape risk, but the filing language does not ascribe a quantified effect. Readers looking for a peer-anchored check can compare against the Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in the reporting period Filing and American Water Works Reports Higher Profit and Revenue on Both Quarterly and Six-Month Windows items only as separate, adjacent filings, not as a benchmark for this report.

- Unknowns: Net debt, rate-case outcomes, weather and demand variance, capex pacing and rate-base growth, regulatory construct of revenue versus pass-through, and any subsequent events remain unknown from the cited excerpt. - Metrics to watch next period: the quarter-on-quarter paths of revenue and net income already cited, the operating cash flow versus investing outflow relationship disclosed in the cash flow note, the unadopted Income Statement Disaggregation disclosure footprint when effective, and any Item One-A risk-factor carry-forward into the next 10-Q.