Avista’s Q1 2026 earnings in focus

Avista (AVA) has rolled into Q1 2026 on the back of a solid run through 2025, capped by Q4 revenue of US$533 million and basic EPS of US$0.87, alongside trailing 12 month EPS of US$2.38 on US$1.96 billion of revenue. Over recent quarters, the company has seen revenue hold in a US$394 million to US$617 million range while quarterly EPS moved between US$0.17 and US$0.98. The trailing net profit margin is 9.8% compared with 9.3% a year earlier, which puts the latest results firmly in a margins-focused spotlight for investors assessing the story behind the current US$40.93 share price.

See our full analysis for Avista.

With the headline numbers on the table, the next step is to set these results against the widely shared narratives around Avista’s growth, risks, and income profile to see which views are reinforced and which start to look out of date.

Valuation: 17.5x P/E versus peers at 29.7x

• Avista trades on a trailing P/E of 17.5x compared with 29.7x for peers and 19.1x for the Global Integrated Utilities industry, so the stock is priced below both these comparison points on this metric.
• Consensus narrative points to long term earnings growth from about US$193 million of trailing 12 month profit and planned capital spending near US$3b. This relatively lower P/E supports the view that investors are not paying the same multiple as for peers even though analysts expect earnings to reach US$253.4 million by around 2029.
  • Supporters of the bullish view highlight that the current P/E of 17.5x sits below the single allowed analyst price target of US$41.83 when compared with the share price of US$40.93, which implies only a small gap between price and that target.
  • Consensus also expects profit margins to rise from 9.8% to 11.7%, and if that plays out it would help justify paying closer to the 18.1x P/E that analysts are using for their 2029 assumptions.

On these numbers, bullish investors are really asking whether a 17.5x P/E with margin expansion potential is enough to close the small gap to the consensus target or if the discount to peers is there for a reason, and the detailed bull case breaks that trade off down in full 🐂 Avista Bull Case.

Margins at 9.8% with interest coverage flagged

• Net profit margin on a trailing 12 month basis sits at 9.8% compared with 9.3% a year earlier, while the company also faces a major risk flag that interest payments are not well covered by earnings.
• Skeptics focus on the angle that rising capital needs for grid expansion and wildfire mitigation could pressure finances, and the interest coverage warning in the data directly feeds that concern even though margin has improved on the figures provided.
  • Bears argue that if interest expense continues to take a larger share of earnings, the current 9.8% margin could be harder to maintain, especially alongside capex plans approaching US$3b for 2025 to 2029.
  • The same data set also notes that the 4.79% dividend is not well covered by free cash flow, which adds another layer to the concern that both debt costs and shareholder payouts could constrain flexibility.

For anyone weighing that trade off, the full bear case sets out how interest coverage, dividend strain, and heavy investment might affect future earnings stability 🐻 Avista Bear Case.

EPS trend and 7.2% annual earnings growth

• Over the last five years, earnings have grown by about 7.2% per year, and trailing 12 month basic EPS is US$2.38, built from quarterly EPS that ranged between roughly US$0.17 and US$0.98 across 2025.
• Consensus narrative sees accelerating electrification and favorable regulation as drivers for long term revenue and earnings growth, and the steady 7.2% historical earnings growth rate together with forecasts of about 8.26% annual earnings growth fit that story but at a pace that is below the 16% figure cited for the wider US market.
  • Analysts assume revenue growth of about 3.3% to 4% a year and rising profit margins from 9.8% to 11.7%, which aligns with the idea of grid and clean energy investments feeding into a larger regulated rate base over time.
  • The modest gap between the US$40.93 share price and the single allowed analyst target of US$41.83 suggests the market is not pricing in extreme upside, which keeps the consensus view relatively balanced between growth opportunity and the financial risks already highlighted.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Avista on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given all this, do the risks or the rewards feel more convincing to you right now? Move quickly to check the details behind those views with 4 key rewards and 2 important warning signs

See What Else Is Out There

Avista’s heavy capital plans, interest coverage warning, and dividend pressure point to a balance sheet that may feel tight for some investors.

If you want less stress around debt and payout coverage, check out companies in the solid balance sheet and fundamentals stocks screener (46 results) that aim to keep financial risk firmly in check.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.