A. O. Smith (NYSE:AOS) Releases FY 2026 Earnings Guidance

A. O. Smith (NYSE:AOS) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 3.700-3.850 for the period, compared to the consensus estimate of 3.770. The company issued revenue guidance of $3.9 billion-$3.9 billion, compared to the consensus revenue estimate of $3.9 billion.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Zacks Research cut A. O. Smith from a “hold” rating to a “strong sell” rating in a research note on Wednesday, May 6th. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $60.00 price objective (down from $65.00) on shares of A. O. Smith in a report on Friday, May 15th. The Goldman Sachs Group reduced their price objective on A. O. Smith from $69.00 to $61.00 and set a “sell” rating on the stock in a research report on Monday, April 13th. DA Davidson set a $67.00 price objective on A. O. Smith and gave the company a “neutral” rating in a report on Monday, May 4th. Finally, Oppenheimer set a $75.00 target price on A. O. Smith and gave the stock an “outperform” rating in a research report on Wednesday, June 10th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, A. O. Smith currently has an average rating of “Reduce” and an average target price of $67.75.

A. O. Smith Trading Up 0.8%

AOS opened at $60.31 on Friday. The stock has a market cap of $8.31 billion, a PE ratio of 16.75, a PEG ratio of 1.33 and a beta of 1.16. The company has a quick ratio of 1.00, a current ratio of 1.59 and a debt-to-equity ratio of 0.32. The business has a 50 day moving average of $59.56 and a 200-day moving average of $65.39. A. O. Smith has a 52 week low of $54.16 and a 52 week high of $81.86.

A. O. Smith (NYSE:AOS) last announced its quarterly earnings results on Thursday, July 30th. The industrial products company reported $1.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.96 by $0.07. A. O. Smith had a net margin of 13.15% and a return on equity of 27.88%. The company had revenue of $1 billion for the quarter, compared to analysts’ expectations of $994.89 million. During the same quarter in the previous year, the business posted $1.07 EPS. A. O. Smith’s revenue was down .7% compared to the same quarter last year. A. O. Smith has set its FY 2026 guidance at 3.700-3.850 EPS. Equities research analysts predict that A. O. Smith will post 3.74 earnings per share for the current fiscal year.

A. O. Smith Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Friday, July 31st will be given a $0.36 dividend. The ex-dividend date is Friday, July 31st. This represents a $1.44 dividend on an annualized basis and a yield of 2.4%. A. O. Smith’s dividend payout ratio is presently 38.30%.

A. O. Smith News Summary

Here are the key news stories impacting A. O. Smith this week:

• Positive Sentiment: Second-quarter results exceeded expectations. A. O. Smith reported adjusted EPS of $1.03, above the $0.96 consensus estimate, while sales of approximately $1.0 billion also topped forecasts. North America sales rose 5% to $820.5 million, supported by the Leonard Valve acquisition, 21% boiler sales growth and pricing actions. A. O. Smith Reports Second Quarter 2026 Results
• Positive Sentiment: Cash generation and shareholder returns improved. Year-to-date operating cash flow increased 42% to $254 million, free cash flow climbed 67% to $233 million, and the company raised its 2026 share-repurchase target to $300 million. A. O. Smith also declared a quarterly dividend of $0.36 per share. A. O. Smith Q2 Sales Report
• Neutral Sentiment: Full-year guidance remains broadly in line with expectations. Management reiterated adjusted EPS guidance of $3.70 to $3.85 and sales growth of 2% to 3%; the midpoint is close to the analyst consensus. The company’s earnings beat and boiler momentum provide support, but the outlook does not represent a major upward revision. A. O. Smith Q2 Earnings and Revenues Top Estimates
• Negative Sentiment: International weakness and costs remain concerns. Rest of World sales fell 19%, primarily because of continued weakness in China’s consumer-appliance market. Quarterly revenue declined slightly year over year, adjusted EPS was below the prior-year result, and higher input costs pressured profitability. A. O. Smith Q2 Earnings Beat Estimates
• Negative Sentiment: Analysts lowered their valuation targets. Citigroup cut its target to $64 from $65 and kept a neutral rating, while Stifel reduced its target to $70 from $76 but maintained a buy rating. The reductions may limit upside sentiment despite both targets remaining above the recent trading level. Analyst Price Target Changes

Institutional Trading of A. O. Smith

Several hedge funds have recently bought and sold shares of AOS. Los Angeles Capital Management LLC purchased a new position in A. O. Smith during the 4th quarter worth $35,000. Larson Financial Group LLC grew its position in shares of A. O. Smith by 67.9% during the 3rd quarter. Larson Financial Group LLC now owns 487 shares of the industrial products company’s stock worth $36,000 after buying an additional 197 shares in the last quarter. Johnson Financial Group Inc. increased its stake in shares of A. O. Smith by 398.1% during the third quarter. Johnson Financial Group Inc. now owns 782 shares of the industrial products company’s stock valued at $57,000 after buying an additional 625 shares during the period. EverSource Wealth Advisors LLC increased its stake in shares of A. O. Smith by 78.0% during the second quarter. EverSource Wealth Advisors LLC now owns 963 shares of the industrial products company’s stock valued at $63,000 after buying an additional 422 shares during the period. Finally, Headlands Technologies LLC bought a new stake in shares of A. O. Smith in the second quarter valued at about $72,000. Hedge funds and other institutional investors own 76.10% of the company’s stock.

About A. O. Smith

A. O. Smith Corporation, based in Milwaukee, Wisconsin, is a leading manufacturer of water heating and water treatment products for residential and commercial applications. Since its founding in 1874, the company has built a reputation for producing reliable, energy-efficient water heaters, boilers and pressure vessels. Its product portfolio encompasses gas, electric, condensing and tankless water heaters, as well as specialty boilers designed to meet a variety of building and industrial needs.

The company operates through two primary segments: North America and Asia.