Q4 2025 operating earnings reached $1.19 per share, a tad under the $1.24 a year earlier, although above the FactSet consensus of $1.15. On a GAAP basis, EPS reached $1.09, compared with $1.25 a year earlier. Revenue reached $5.31bn, up sharply from $4.70bn a year earlier and well above the $4.89bn expected by analysts.
Source: AEP
 
FY 2025 GAAP EPS rose to $6.70 (versus $5.60 in 2024) and operating earnings increased to $5.97 per share (versus $5.62). The annual momentum reflects a solid improvement in results, supported by higher volumes and investment in regulated infrastructure.
 
The group confirmed its 2026 guidance, with operating earnings expected between $6.15 and $6.45 per share, in line with the consensus of $6.32. AEP also reiterated a long-term annual operating earnings growth target of 7% to 9%.
 
The main strategic driver remains the "generational" growth in electricity demand, fueled by data centres and the rise of artificial intelligence. AEP said it has signed an additional 28 GW of load since October, bringing secured incremental demand to 56 GW by 2030, fully backed by signed agreements. In Texas alone, load has risen from 13 GW to 36 GW, mainly tied to hyperscalers such as Alphabet, Amazon and Meta. Around 80% of AEP's growth is attributed to these large technology customers.
Source: AEP
 
To support this expansion, AEP plans to broaden its $72bn 5-year investment plan, identifying an additional $5bn to $8bn in transmission and generation projects. The group said the investments needed to serve the additional 28 GW recently incorporated into its forecasts are not yet included in this plan, suggesting further potential increases in infrastructure spending. AEP has also secured more than 10 GW of gas turbines and 2.2 GW of new generation capacity acquired in 2025, along with significant commitments in 765 kV transmission projects and Bloom Energy fuel cells. 
 
At the same time, the ramp-up in investment raises questions over affordability. Management stressed the rollout of specific rate structures so that large industrial customers bear the infrastructure costs required for their connections. New mechanisms have been approved in several states (Indiana, Ohio, Kentucky, West Virginia) and are under review elsewhere. The group also highlighted the use of federal loans, state subsidies and support schemes to limit the impact on residential customers.
 
The market reaction remained positive, with the stock up 1.7% in premarket trading and up 3.6% at the time of writing, reflecting the quarterly beat and the visibility provided by the growth trajectory. Overall, AEP is positioning itself as a major beneficiary of the U.S. electrical investment cycle, combining regulatory visibility, volume growth and a significant expansion of its regulated asset base.