01—Abstract
Summary
Summary of the 8-K filed May 5, 2026. Cited figures are marked; the original filing is the authoritative source.
AEP reported first-quarter 2026 GAAP earnings of $874 milliona, or $1.61 per share, up from $800 million or $1.50 per share a year earlier.
Operating (non-GAAP) earnings were $891 millionb, or $1.64 per share, versus $823 million or $1.54 per share in Q1 2025. Revenue rose to $6,020 million from $5,463 million. Management reaffirmed 2026 operating EPS guidance of $6.15 to $6.45 and a 7% to 9% annual operating earnings growth rate through 2030, with an expected CAGR above 9%.
The reconciled GAAP guidance range is $6.12 to $6.42c per share. The headline for investors is a larger growth plan. AEP raised its five-year capital plan to $78 billion from $72 billion, driven by newly awarded 765-kV transmission projects in PJM and SPP and new gas-fired generation in Indiana.
Transmission investment is now expected to reach $33 billiond, or 42% of the plan. Management expects nearly 11% annual rate-base growth. Incremental load commitments rose to 63 GW by 2030, with 7 GW signed in the quarter, mostly in Ohio and Texas.
The company also cites up to $16 billion in cost offsets for existing customers under the large-load contracts, and it has identified over $10 billion in further opportunities that could be added when the plan is updated in Q3 2026. The main risks are execution and affordability. Texas load growth depends on generation supplied by third parties, and the timing of Texas Senate Bill 6 implementation is a factor.
The Q1 GAAP-to-operating reconciliation includes a $35 million negative impact from a West Virginia PSC order and a $31 million Pirkey Plant disallowance tied to a pending Texas rate case. Corporate and Other losses widened to $109 million from $26 million.
Wholesale sales volumes fell 26% in the Vertically Integrated segment. Management's emphasis on affordability, together with the large capital program, will be central to regulatory outcomes.
02—Key points
Key Highlights
- Q1 2026 operating EPS of $1.64 vs. $1.54 a year earlier (+6.5%); GAAP EPS of $1.61 vs. $1.50
- 2026 operating EPS guidance of $6.15 to $6.45 reaffirmed; GAAP-equivalent range $6.12 to $6.42
- Five-year capital plan raised to $78 billion from $72 billion, with nearly 11% annual rate-base growth expected
- Transmission investment now $33 billion (42% of the plan), including 765-kV awards in SPP, PJM and MISO
- Incremental load expected to reach 63 GW by 2030, including 41 GW in AEP Texas; 7 GW of new agreements signed in Q1
- Operating earnings CAGR above 9% through 2030 (7% to 9% annual growth range), with up to $16 billion in cost offsets for existing customers
- Q1 Corporate and Other loss widened to $109 million from $26 million, and Pirkey and WVPSC items affected GAAP results
03—Questions
Frequently Asked Questions
Did AEP change its 2026 earnings outlook?
No. AEP reaffirmed its 2026 operating EPS guidance of $6.15 to $6.45. The company said that, after items recorded through Q1, GAAP EPS would fall in a range of $6.12 to $6.42. The guidance reconciliation includes a $0.07 negative impact from the WVPSC order, a $0.06 Pirkey disallowance, and a $0.05 mark-to-market effect.
What drove the increase in the capital plan?
The five-year plan rose to $78 billion from $72 billion. The increase reflects newly approved transmission investment in PJM and SPP, including 765-kV projects, and new natural gas-fired generation in Indiana. These projects are expected to come online later in the period ending 2030. Management also cited over $10 billion of additional opportunities, including Ohio's Piketon transmission project and a fuel cell installation in Wyoming, which may be added in the Q3 2026 update.
How much new load is AEP expecting, and what is the risk to timing?
Expected incremental load is 63 GW by 2030, up from prior levels, with 41 GW in AEP Texas. The load is backed by signed agreements with industrial customers, hyperscalers and data center developers. Timing in Texas depends heavily on generation supplied by others, and the rollout of Texas Senate Bill 6 this summer is expected to improve interconnection certainty.
Why do GAAP and operating earnings differ this quarter?
The gap is $17 million, or $0.03 per share, in Q1 2026. Operating earnings exclude a $26 million mark-to-market loss on commodity hedges and a $35 million negative impact from a West Virginia PSC order, which relates to deferred costs from prior periods. They also add back a $31 million Pirkey Plant disallowance tied to a pending Texas rate case, and they net out a $5 million tax effect. AEP's management says these items are not indicative of ongoing performance.
04—Continue