AEP Beats Revenue Estimates as AI Demand Drives $80 Billion Expansion

The Columbus, Ohio-based utility posted a net profit of $582 million, or $1.09 per share, down from $664 million a year ago. However, on an adjusted basis, earnings reached $1.19 per share, surpassing the $1.15 consensus forecast from FactSet. Revenue for the period climbed to $5.31 billion, significantly ahead of the $4.89 billion Wall Street had anticipated.

Scaling for the AI Era

To keep pace with what CEO Bill Fehrman describes as "unprecedented customer demand," AEP is boosting its five-year capital plan. The company identified an additional $8 billion in transmission and generation projects, effectively raising its investment roadmap to roughly $80 billion. This expansion targets a projected 28 gigawatts of new load, primarily driven by hyperscalers and data-center operators racing to build out AI infrastructure.

Fehrman noted that the company is "exceptionally well positioned" to execute these large-scale projects across high-growth regions. Despite the immediate costs associated with these upgrades, AEP reaffirmed its long-term financial guidance. The utility expects 2026 operating earnings to fall between $6.15 and $6.45 per share, signaling confidence in its ability to monetize the ongoing energy transition.