Atmos Energy (ATO) Maintains Hold Rating with Price Target of $179.44
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
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Should l Buy ATO?
Source: Yahoo Finance
- Rating Maintenance: Atmos Energy holds an average rating of 'hold', indicating a cautious market sentiment regarding its current stock price and reflecting conservative expectations for future growth.
- Price Target Analysis: Analysts have set a price target of $179.44 for Atmos Energy, which may influence investor buying decisions, particularly in a volatile market environment.
- Market Reaction: Despite the hold rating, market reactions to Atmos Energy could be influenced by broader dynamics in the energy sector, especially amid fluctuations in energy prices.
- Investor Strategy: Investors considering Atmos Energy should pay attention to its rating and price target to make more informed investment decisions in light of future market changes.
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Analyst Views on ATO
Wall Street analysts forecast ATO stock price to rise
6 Analyst Rating
1 Buy
5 Hold
0 Sell
Hold
Current: 177.770
Low
172.00
Averages
180.67
High
188.00
Current: 177.770
Low
172.00
Averages
180.67
High
188.00
About ATO
Atmos Energy Corporation is a natural gas-only distributor. The Company delivers natural gas to over 3.3 million distribution customers in over 1,400 communities across eight states located primarily in the South. It manages proprietary pipeline and storage assets, including intrastate natural gas pipeline systems in Texas. Its segments include distribution and pipeline and storage. The distribution segment comprises its regulated natural gas distribution and related sales operations in eight states. The pipeline and storage segment are consists of regulated pipeline and storage operations of its Atmos Pipeline-Texas (APT) division and its natural gas transmission operations in Louisiana. APT is an intrastate pipeline operation in Texas with a heavy concentration in the established natural gas-producing areas of central, northern, and eastern Texas, extending into or near the major producing areas of the Barnett Shale, the Texas Gulf Coast, and the Permian Basin of West Texas.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Strong Financial Performance: Atmos Energy reported a net income of $403 million and diluted earnings per share of $2.44 for Q1 2026, reflecting a 9.4% increase over the prior year, demonstrating the effectiveness of ongoing investments in safety and reliability.
- Capital Expenditure Commitment: The company allocated $1 billion in capital expenditures during the first quarter, with over 85% directed towards safety and reliability enhancements, reaffirming its commitment to a $4.2 billion annual capital spending plan aimed at infrastructure modernization.
- Robust Customer Growth: Atmos Energy added nearly 54,000 new customers by December 31, 2025, primarily in Texas, along with over 1,100 commercial and 3 industrial customers in Q1, further solidifying its market position and customer base.
- Dividend Growth Outlook: The company plans to increase its annual dividend to $4 per share, aligning with anticipated earnings per share growth of 6% to 8%, reflecting confidence in its future profitability and shareholder returns.
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- Net Income Growth: Atmos Energy's Q1 net income rose to $402.96 million, or $2.44 per share, up from $351.86 million and $2.23 per share last year, exceeding analysts' expectations of $2.44, indicating sustained profitability.
- Revenue Increase: Total operating revenues grew from $1.176 billion last year to $1.343 billion, surpassing analysts' expectations of $1.30 billion, reflecting the company's strengthening market competitiveness and sales capabilities.
- Future Earnings Outlook: The company expects earnings per share in the range of $8.15 to $8.35 for fiscal year 2026, with analysts anticipating $8.20, demonstrating market confidence in the company's future profitability.
- Dividend Declaration: Atmos Energy declared a quarterly dividend of $1.00 per share, with an annualized dividend of $4.00, scheduled for payment on March 9, 2026, to shareholders of record on February 23, 2026, highlighting the company's commitment to shareholder returns.
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- Financial Results Released: Atmos Energy reported consolidated results for its first fiscal quarter ended December 31, 2025, highlighting ongoing investments in safety and innovation aimed at enhancing operational efficiency and customer satisfaction, although specific figures were not disclosed.
- Conference Call Scheduled: The company will host a conference call on February 4, 2026, at 9:00 a.m. Eastern Time to discuss the first quarter financial results, which is expected to attract investor interest and provide insights into future performance.
- Forward-Looking Statements: The news release includes forward-looking statements that outline various risks and uncertainties the company faces, such as regulatory trends, market competition, and climate change, which could impact future financial performance.
- Company Overview: Atmos Energy is an S&P 500 company focused on natural gas distribution, serving approximately 3.4 million customers across over 1,400 communities, committed to modernizing infrastructure and investing in safety and environmental sustainability.
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- Quarterly Dividend Announcement: Atmos Energy's Board of Directors declared a quarterly dividend of $1.00 per share, indicating an annual dividend of $4.00, reflecting the company's ongoing profitability and commitment to shareholder returns.
- Payment Date Set: The dividend will be paid on March 9, 2026, to shareholders of record on February 23, 2026, ensuring timely returns for investors and enhancing their confidence in the company.
- Consecutive Dividend Record: This marks Atmos Energy's 169th consecutive quarterly dividend, showcasing the company's strong ability to generate stable cash flow and create shareholder value, further solidifying its market position.
- Business Modernization Strategy: As a natural gas-only distributor, Atmos Energy is modernizing its operations and infrastructure, focusing on safety, innovation, and environmental sustainability, aiming to enhance service quality and meet the growing demands of its customer base.
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- Quarterly Dividend Announcement: Atmos Energy's Board of Directors declared a quarterly dividend of $1.00 per share, indicating an annual dividend of $4.00, which underscores the company's ongoing profitability and commitment to shareholder returns.
- Consecutive Dividend Record: This marks the company's 169th consecutive quarterly dividend, reflecting its stable cash flow and financial health, thereby enhancing investor confidence.
- Customer Base Expansion: Atmos Energy serves approximately 3.4 million distribution customers across eight states in the southern U.S., indicating its strong market position and growth potential in the natural gas sector.
- Investment in Safety and Innovation: The company is modernizing its business and infrastructure while investing in safety, innovation, and environmental sustainability, aiming to enhance service quality and meet the growing demands of its customer base.
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- Strong Financial Performance: Atmos Energy reported a net income of $403 million for the first fiscal quarter ending December 31, 2025, with earnings per diluted share at $2.44, reflecting the effectiveness of ongoing investments in safety and reliability, thereby boosting market confidence.
- Capital Expenditure Plans: The company anticipates approximately $4.2 billion in capital expenditures for the fiscal year, with over 85% allocated to enhancing safety and reliability, a strategy that will further solidify its leadership position in the natural gas distribution market.
- Dividend Growth: Atmos Energy declared a quarterly dividend of $1.00 per share, with an expected annual dividend of $4.00 for fiscal 2026, representing a 14.9% increase over fiscal 2025, indicating the company's confidence in future profitability.
- Financial Conference Arrangement: The company will host a financial analyst conference on February 4, 2026, to discuss first-quarter financial results, which is expected to attract investor attention and enhance the company's transparency and market trust.
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