Atmos Energy Q3 Earnings Beat Estimates, Revenues Increase Y/Y

Atmos Energy ATO reported fiscal third-quarter 2026 earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.34 by 6.7%. The bottom line improved 23.3% from $1.16 in the year-ago quarter.

ATO’s Revenues

The company reported revenues of $879 million, which missed the Zacks Consensus Estimate of $1.04 billion by 15.3%. The top line increased 4.8% from $838.8 million in the prior-year quarter.

ATO’s Quarterly Operating Highlights

Operation and maintenance expenses in the third quarter of fiscal 2026 amounted to $223.2 million, up 0.5% year over year.

Operating income in the third quarter of fiscal 2026 was $320.4 million, up 27.1% from $252.1 million in the prior-year quarter.

As of Aug. 5, 2026, Atmos Energy had implemented $396.1 million of annualized rate outcomes, while $334.1 million remained in progress.

ATO reported net income of $242.7 million in the third quarter of fiscal 2026, up 37.8% from $186.4 million in the year-ago quarter.

Atmos Energy incurred interest expenses of $33.1 million, down 20.2% from the year-earlier quarter’s level.

The company reported consolidated distribution throughput of 73.1 million cubic feet per day for the third quarter, down 2.93% from the year-ago quarter’s reported actual.

ATO’s Segmental Performance

Distribution: Net income totaled $89.4 million, up 26.8% from $70.5 million in the year-ago quarter. The increase was driven by a $21 million benefit from rate adjustments, primarily in the Mid-Tex Division, along with $26.7 million of deferred infrastructure-related costs and a $3.9 million contribution from residential customer growth and higher industrial demand.

Pipeline and Storage: Net income increased 32.2% year over year to $153.3 million. The improvement was driven partly by a $35.1 million benefit from rate adjustments, primarily related to Gas Reliability Infrastructure Program filings approved in June 2025 and May 2026.

Atmos Energy’s Balance Sheet and Infrastructure Spending

As of June 30, 2026, cash and cash equivalents were $521 million, up from $202.7 million at fiscal 2025-end.

As of June 30, 2026, Atmos Energy reported a strong balance sheet with approximately $4.6 billion of available liquidity.

Net cash provided by operating activities totaled $1.67 billion during the first nine months of fiscal 2026 compared with $1.70 billion a year earlier.

Capital expenditure totaled $1.04 billion in the third quarter, up 19.9% year over year. For the first nine months of fiscal 2026, spending reached $3.08 billion, with $2.72 billion directed toward safety and reliability projects.

Atmos Energy Reaffirms Fiscal 2026 Guidance

ATO reaffirmed fiscal 2026 guidance of $8.40-$8.50 per share. The Zacks Consensus Estimate for EPS is pegged at $8.44, slightly lower than the midpoint of the company’s guided range.

Total net income is expected to be in the range of $1.41-$1.43 billion.

ATO anticipates its fiscal 2026 capital expenditure to be $4.2 billion.

ATO’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Utilities Releases

Algonquin Power & Utilities Corp. AQN is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for second-quarter EPS is pinned at 5 cents, which implies a year-over-year increase of 25%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $552.5 million, which suggests year-over-year growth of 4.68%.

PPL Corporation PPL is scheduled to report second-quarter results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at 35 cents per share, which implies year-over-year growth of 9.38%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $2.18 billion, which suggests year-over-year growth of 7.50%.

Vistra VST is scheduled to report second-quarter 2026 results on Aug. 7. The Zacks Consensus Estimate for earnings is pegged at $1.54 per share, which implies year-over-year growth of 52.48%.

The Zacks Consensus Estimate for second-quarter sales is pinned at $6.29 billion, which suggests year-over-year growth of 48.07%.

 

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research