Barclays Lifts Atmos Energy (ATO) PT Ahead of Utilities Q1 Preview

Atmos Energy Corporation (NYSE:ATO) is included among the 15 Best Low Volatility Blue Chip Stocks to Buy Now.

On April 7, Barclays raised its price recommendation on Atmos Energy Corporation (NYSE:ATO) to $184 from $167. The firm kept an Equal Weight rating while updating its outlook for the North America power and utilities group as part of a Q1 preview.

During the Q4 2025 earnings call, Christopher Forsythe said fiscal 2026 first-quarter diluted earnings per share came in at $2.44. That marked a 9.4% increase from the same period last year. He noted that results included a $35 million, or $0.16 per share, impact tied to Texas House Bill 4384. He explained that the quarter benefited from $68 million in rate increases. There was also $24 million in operating income growth, driven by customer additions and higher load, along with another $7 million from increased through-system revenues.

At the same time, Forsythe pointed out that consolidated O&M expenses rose by $23 million. He said the increase was largely tied to compliance, safety, and employee-related costs. He added that the company’s first-quarter performance puts it in a good position to meet its rebased fiscal 2026 earnings per share guidance of $8.15 to $8.35. He also said the company remains on track to carry out its $4.2 billion capital spending plan.

Atmos Energy Corporation (NYSE:ATO) operates as a natural gas-only distributor. It serves more than 3.3 million customers across over 1,400 communities in eight states, mainly in the South, and manages its own pipeline and storage assets, including intrastate systems in Texas.

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