Atmos (ATO) Up 8.7% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Atmos Energy (ATO). Shares have added about 8.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Atmos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Atmos Energy Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Atmos Energy posted first-quarter fiscal 2026 earnings of $2.44 per share, which beat the Zacks Consensus Estimate of $2.41 by 1.24%. The bottom line improved 9.42% from the year-ago quarter’s earnings of $2.23.

ATO’s Revenues

The company reported revenues of $1.34 billion, which missed the Zacks Consensus Estimate of $1.44 billion by 6.41%. However, the top line rose 14.2% from the prior-year quarter’s $1.18 billion.

Highlights of ATO’s Release

Operating income in the first fiscal quarter was $514.7million, a 12% increase from $459.4 million in the year-ago quarter.

Through Feb. 3, 2026,  new rates worth $122.9 million were implemented, and rates worth $81.2 million are in progress to be put into effect after approval by the authority.

ATO reported net income of $403 million in the fiscal first quarter, a 14.5% increase from $352 million in the year-ago quarter.

ATO’s Segmental Details

Distribution: Net income totaled $269.2 million, a 12% increase from $240.2 million in the year-ago quarter.

Pipeline and Storage: Income amounted to $134 million, reflecting a 19.6% increase from $112 million in the year-ago quarter.

ATO’s Financial Highlights

As of Dec. 31, 2025, Atmos Energy reported a strong balance sheet with $4.6 billion in available liquidity.

In the first quarter of fiscal 2026, the company issued $600 million 5.45% 30-year senior notes and settled $472 million through equity forward arrangements.

In the first quarter of fiscal 2026, the company invested nearly $1 billion, with 85% of the amount allocated for improving the safety and reliability of its distribution and transportation systems.

ATO’s Guidance

Atmos Energy reaffirms the fiscal 2026 guidance at $8.15-$8.35 earning per share. 

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

ATO's board of directors declared a quarterly dividend of $1 per common share. The indicated annual dividend for fiscal 2026 is $4, which represents a 14.9% increase from that reported in fiscal 2025.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in fresh estimates.

VGM Scores

At this time, Atmos has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Atmos has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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

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