Q4 2025 operating earnings came in at $1.19 per share, down from $1.24 a year earlier but above the FactSet consensus of $1.15. On a GAAP basis, earnings were $1.09 per share, versus $1.25 a year ago. Revenue reached $5.31bn, up sharply from $4.70bn a year earlier and well above the $4.89bn analysts had forecast.
Source: AEP
 
FY 2025 GAAP EPS totaled $6.70 per share (versus $5.60 in 2024), while operating earnings were $5.97 per share (versus $5.62). The year-on-year momentum reflects solid profit growth, supported by higher volumes and investment in regulated infrastructure.
 
The group reaffirmed its 2026 guidance, with operating earnings expected between $6.15 and $6.45 per share, in line with the $6.32 consensus. 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 centers and the rise of artificial intelligence. AEP said it has signed an additional 28 GW of load since October, taking 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, largely tied to hyperscalers such as Alphabet, Amazon and Meta. About 80% of AEP's growth is attributed to these large technology customers.
Source: AEP
 
To support this expansion, AEP plans to extend 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 28 GW of additional load recently incorporated into its outlook are not yet included in that plan, suggesting potential for further 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, as well as significant commitments in 765 kV transmission projects and Bloom Energy fuel cells. 
 
At the same time, the ramp-up in investment raises affordability challenges. Management is emphasizing the rollout of specific rate structures so that large industrial customers bear the infrastructure costs required for their interconnections. 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 programs to limit the impact on residential customers.
 
The stockmarket reaction remained positive, with the shares up 1.7% in premarket trading and 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 US power-sector investment cycle, combining regulatory visibility, volume growth and a significant expansion of its regulated asset base.