American Electric Power Company, Inc.

NasdaqGS:AEP Stock Report

Market Cap: US$66.5b

American Electric Power Company Future Growth

Future criteria checks 1/6

American Electric Power Company is forecast to grow earnings and revenue by 12% and 7.6% per annum respectively. EPS is expected to grow by 9.6% per annum. Return on equity is forecast to be 10.9% in 3 years.

Key information

12.0%

Earnings growth rate

9.58%

EPS growth rate

Electric Utilities earnings growth10.5%
Revenue growth rate7.6%
Future return on equity10.91%
Analyst coverage

Good

Last updated14 Sep 2026

Recent future growth updates

Recent updates

Seeking Alpha • Sep 07

American Electric Power: Defensive Income Meets AI-Fueled Growth

Summary American Electric Power is well-positioned to benefit from surging data center-driven electricity demand and robust contracted load growth. AEP's $78 billion capital plan, backed by 69 GW of contracted incremental load, supports management’s 7–9% long-term EPS growth outlook. With a 19.5x forward P/E and a 3.05% yield, AEP offers low-volatility, income, and growth. I maintain a 'Buy' rating on AEP, targeting low-teens total returns and defensive portfolio characteristics amid the AI infrastructure buildout. Read the full article on Seeking Alpha
Narrative Update • Jun 23

AEP: Data Center Demand And PJM Decisions Will Shape Future Returns

Analysts trimmed the base case fair value estimate for American Electric Power Company by about $0.10 to $144.43 per share. This adjustment reflects slightly lower consolidated price targets after recent cuts from firms citing moderating utility sector performance and emerging, but currently contained, data center pushback risks.
Narrative Update • Jun 05

AEP: Data Center Driven Capital Plan And PJM Tensions Will Shape Returns

Analysts now see slightly higher long term value for American Electric Power, with the modeled fair value edging up from about $144.29 to $144.52. This reflects updated assumptions around data center driven revenue growth, modest adjustments to profit margin expectations, and a small reset in future P/E targets amid mixed but generally constructive price target revisions across the Street.
Narrative Update • May 09

AEP: Data Center Backlog And Grid Investments Will Shape Future Returns

Narrative Update Analysts have moderately lifted the implied price target for American Electric Power Company to $144.29 from $141.38, reflecting updated views on its earnings power. This change is supported by research that cites factors such as the company's 56 GW contracted load backlog, large transmission network, and potential upside in earnings and rate base.
Narrative Update • Apr 25

AEP: Data Center Backlog And Grid Spend Will Guide Balanced Outlook

Analysts have nudged their blended price target for American Electric Power higher to reflect modestly adjusted fair value and revenue growth assumptions, supported by a series of recent target increases across the Street despite one small reduction. Analyst Commentary Recent research on American Electric Power Company reflects an overall constructive tone, with multiple firms adjusting price targets and ratings as they refresh models after the latest earnings season and sector reviews.
New Narrative • Apr 24

AEP: Capturing the Scarcity Value of the American Power Grid

As of April 2026, American Electric Power (AEP) has transitioned from a traditional income stock to a structural growth play. While its current price of $134 (20.3x Fwd P/E) sits above historical norms, this premium is fundamentally supported by a tectonic shift in grid demand.
Narrative Update • Apr 09

AEP: Data Center Load Backlog And Grid Investments Will Shape Outlook

Analysts have raised their average price target for American Electric Power Company by roughly $4 to about $137. They attribute this change to updated models that factor in higher contracted load, a larger capital program in transmission and supply, and refined earnings assumptions following recent Q4 results.
Narrative Update • Mar 26

AEP: Data Center Load And Transmission Build Plan Will Shape Outlook

Analyst price targets for American Electric Power Company have been revised modestly higher to reflect updated earnings models, a slightly higher fair value estimate of about $137.47, and continued emphasis on the company's large contracted load backlog and transmission-focused investment plans. Analyst Commentary Recent Street research on American Electric Power Company reflects a generally constructive tone, with several firms adjusting price targets higher and a mix of rating upgrades and one downgrade tied mainly to valuation.
Narrative Update • Mar 11

AEP: Data Center Load Backlog And Fuel Project Will Shape Outlook

The analyst price target for American Electric Power Company has been raised by about $3.50 to $136.53, as analysts point to updated earnings expectations, a large contracted load backlog, and an extensive capital and transmission investment program as key supports for their revised outlook. Analyst Commentary Recent research updates on American Electric Power Company show an active debate around how to value the company’s growth plans, capital spending, and contract backlog.
Narrative Update • Feb 24

AEP: Data Center Load And Fuel Project Will Shape Premium Valuation Potential

Analysts have lifted their price expectations for American Electric Power, with the updated fair value estimate moving from $128.75 to $133.03. They cite a larger contracted load pipeline, ongoing capital investment plans in supply and transmission, and continued execution that supports premium P/E assumptions, despite slightly lower revenue growth and profit margin inputs in recent models.
Narrative Update • Feb 10

AEP: Data Center Load And Fuel Project Will Test Premium Standing

Analysts have nudged their price targets on American Electric Power higher by a few dollars, reflecting updated views that incorporate a slightly higher fair value estimate of about $128.75, modest adjustments to growth and discount rate assumptions, and recent mixed research that includes several target increases alongside one valuation driven downgrade. Analyst Commentary Recent research on American Electric Power Company reflects a mix of optimism around growth projects and valuation discipline as the share price moves relative to peers.
Narrative Update • Jan 26

AEP: Data Center Demand And Grid Plan Will Test Premium Valuation

Analysts have slightly raised their price targets on American Electric Power Company by a few dollars, citing updated assumptions around revenue growth, profit margins, and future P/E multiples. They generally view the shares as fairly valued, with execution and regulatory progress identified as key drivers.
Narrative Update • Jan 12

AEP: Data Center Demand And Grid Investments Will Shape Balanced Outlook

Analysts have nudged their price targets on American Electric Power higher into a roughly $117 to $133 range, pointing to a solid balance sheet, a large planned capital program, exposure to rising power demand including data centers, and constructive regulatory support as key reasons for the updated valuations. Analyst Commentary Recent research on American Electric Power Company shows a mix of optimism around growth opportunities and prudence around valuation and execution risk.
Narrative Update • Dec 21

AEP: Data Center Load And Massive Capex Plan Will Drive Future Upside

Analysts have nudged their price target on American Electric Power Company modestly higher, citing a series of recent target increases across the Street. These moves reflect expectations for stronger rate base and earnings growth supported by robust data center driven demand and a sizable, multi year capital plan.
Narrative Update • Dec 07

AEP: Data Center Demand And Execution On Massive Grid Buildout Will Drive Outcomes

The analyst price target for American Electric Power Company has risen by approximately $4 to the low $120s range, as analysts highlight the company's solid balance sheet, sizable $70B-plus capital plan, and growing exposure to data center driven demand, even as they flag valuation and regulatory execution as key swing factors. Analyst Commentary Recent Street research reflects a constructive but selective stance on American Electric Power, with many bullish analysts raising price targets into the low to mid $120s and a few more cautious voices emphasizing execution and valuation risk.
Narrative Update • Nov 23

AEP: Data Center Demand And Execution On $70 Billion Plan Will Drive Results

The analyst price target for American Electric Power Company has increased by $1.35 to $128.68. Analysts point to ongoing improvements in the company’s financial outlook and stronger confidence in future earnings growth, supported by regulatory and strategic updates.
Narrative Update • Nov 05

AEP: Data Center Demand And Regulatory Outcomes Will Shape Earnings Path Forward

American Electric Power Company's analyst price target has increased from $120.41 to $127.32. Analysts cite stronger projected revenue growth and robust demand fundamentals to support the upward revision.
Analysis Article • Oct 29

American Electric Power Company (NASDAQ:AEP) Is Increasing Its Dividend To $0.95

The board of American Electric Power Company, Inc. ( NASDAQ:AEP ) has announced that it will be increasing its dividend...
Narrative Update • Oct 22

Analysts Highlight Growth Prospects and Risks as American Electric Power Targets Higher Valuation

American Electric Power Company's analyst price target has increased by approximately $4.57. Analysts cite the company's substantial multi-year capital plan, accelerating demand for electricity, and improving regulatory momentum as drivers of a stronger outlook.
Narrative Update • Oct 08

Capital Investments And Regulatory Moves Will Secure Future Grid

American Electric Power Company's analyst price target has been modestly increased to $115.83 from $115. Analysts cite ongoing execution, robust demand trends, and the company's strategic positioning in large load development as key supporting factors.
Seeking Alpha • Apr 07

American Electric Power: EPS Up 31% In 2024 Earnings

Summary American Electric Power has shown consistent financial growth, with revenue rising from $14.9 billion in 2020 to $19.7 billion in 2024, and net profit increasing from $2.2 billion to $3.0 billion. AEP's business model focuses on regulated infrastructure, ensuring stable profitability and predictable cash flow, supported by a vertically integrated structure and centralized management. The company plans a $54 billion investment over five years to modernize infrastructure and expand generation, aiming for 6-8% annual EPS growth and a 4% dividend yield. Despite regulatory risks and market challenges, AEP's strategic focus on electrification and data center growth positions it for long-term success, with a fair valuation of $109.13 per share and a "Buy" rating. Read the full article on Seeking Alpha
Seeking Alpha • Jan 26

American Electric Power: Charge Up Your Portfolio With Durable Assets

Summary American Electric Power offers a solid investment with a 3.8% dividend yield and a strong track record of shareholder returns and financial management. Management targets 6-8% annual EPS growth starting in 2026, driven by a $54 billion capital investment plan and operational efficiencies. AEP's new CEO is committed to optimizing the company structure, aiming for improved performance and strategic growth in regulated utilities and renewable energy. AEP's attractive valuation and potential 10-12% total returns make it a compelling choice for long-term investors. Read the full article on Seeking Alpha

Earnings and Revenue Growth Forecasts

NasdaqGS:AEP - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/202827,2404,356-7,2898,81215
12/31/202725,1393,865-4,8268,02116
12/31/202623,5633,540-3,0997,34211
6/30/202622,7913,141-5,8907,694N/A
3/31/202622,4333,654-6,6957,013N/A
12/31/202521,8763,580-5,0926,944N/A
9/30/202521,2563,662-3,7916,858N/A
6/30/202520,6663,650-3,6356,571N/A
3/31/202520,1582,764-1,6996,812N/A
12/31/202419,7212,967-1,3666,804N/A
9/30/202419,6022,639-5336,413N/A
6/30/202419,5242,633-7466,035N/A
3/31/202419,3172,814-1,4835,737N/A
12/31/202318,9822,208-2,6495,012N/A
9/30/202319,2862,256-3,6834,231N/A
6/30/202319,4711,986-3,6574,179N/A
3/31/202319,7381,990-2,9094,384N/A
12/31/202219,6402,307-2,6925,288N/A
9/30/202218,8202,462-2,0615,600N/A
6/30/202217,9172,574-1,9265,787N/A
3/31/202217,1042,628-2,2255,579N/A
12/31/202116,7922,488-2,6913,840N/A
9/30/202116,3412,385-2,5913,884N/A
6/30/202115,7852,337-3,1353,131N/A
3/31/202115,4522,280-3,0733,100N/A
12/31/202014,9192,200-2,4833,833N/A
9/30/202014,9241,918-2,6323,842N/A
6/30/202015,1731,903-2,1904,216N/A
3/31/202015,2521,844N/A4,078N/A
12/31/201915,5611,921N/A4,270N/A
9/30/201915,7472,131N/A4,641N/A
6/30/201915,7651,975N/A5,017N/A
3/31/201916,2042,042N/A5,229N/A
12/31/201816,1961,924N/A5,223N/A
9/30/201816,2051,961N/A5,079N/A
6/30/201815,9771,928N/A4,560N/A
3/31/201815,5401,775N/A4,266N/A
12/31/201715,4251,913N/A4,270N/A
9/30/201715,4051,885N/A4,225N/A
6/30/201715,952575N/A4,513N/A
3/31/201716,269704N/A4,526N/A
12/31/201616,380613N/A4,519N/A
9/30/201616,205444N/A4,316N/A
6/30/201615,9841,720N/A4,338N/A
3/31/201615,9181,646N/A4,361N/A
12/31/201516,4531,763N/A4,819N/A
9/30/201516,6581,719N/A4,819N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEP's forecast earnings growth (12% per year) is above the savings rate (3.7%).

Earnings vs Market: AEP's earnings (12% per year) are forecast to grow slower than the US market (17.1% per year).

High Growth Earnings: AEP's earnings are forecast to grow, but not significantly.

Revenue vs Market: AEP's revenue (7.6% per year) is forecast to grow slower than the US market (13.3% per year).

High Growth Revenue: AEP's revenue (7.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AEP's Return on Equity is forecast to be low in 3 years time (10.9%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/15 04:23
End of Day Share Price 2026/09/15 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

American Electric Power Company, Inc. is covered by 31 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jacob KilsteinArgus Research Company
Nicholas CampanellaBarclays
Michael LoneganBarclays