GET DAILY SIGNALSWilliams Companies (WMB) Delivers Steady Q3 Results with AFFO Up 10%
Key Takeaways
- GAAP net income reached $699 million, or $0.56 per diluted share (EPS), up 8% from the prior-year quarter.
- Adjusted EPS of $0.54 came in line with consensus expectations, while total revenue of $3.223 billion matched the roughly $3.2 billion analysts had projected.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 6% year over year to $2.039 billion.
- Available funds from operations (AFFO), a key cash-flow measure for pipeline operators, climbed 10% to $1.589 billion.
- Management said results keep the company on track toward the upper half of its 2026 Adjusted EBITDA guidance of $8.3 billion to $8.5 billion.
Why This Quarter Matters for Natural Gas Infrastructure
The Williams Companies, Inc. (NYSE: WMB) runs one of the largest natural gas transmission networks in the United States, moving about one-third of the country’s supply. Its quarterly results offer a useful read on demand for this infrastructure, which continues to shift with growing needs for power generation, rising LNG exports, and broader industrial activity. The third quarter stands out because it includes the first contributions from the recently completed Momentum Midstream acquisition and progress on the Socrates power project. I find it useful to track how fee-based revenue and AFFO growth support the dividend and the company’s long-term capital plans, especially with a sizable project backlog in place.
The Quarter’s Reported Figures
For the three months ended September 30, 2026, WMB posted GAAP net income of $699 million, or $0.56 per diluted share, an 8% increase from $646 million in the same period a year ago. Adjusted net income rose 10% to $663 million, or $0.54 per share on an adjusted basis, which aligned closely with the consensus estimate near $0.55. Revenue reached $3.223 billion, up from $2.923 billion previously and in line with analyst projections around $3.2 billion.
Adjusted EBITDA grew 6% to $2.039 billion, while cash flow from operations increased 5% to $1.505 billion. AFFO advanced 10% to $1.589 billion, and the dividend coverage ratio on an AFFO basis was 2.42x. Management kept its 2026 Adjusted EBITDA target of $8.3 billion to $8.5 billion and noted that results point toward the upper end of that range. Growth capital expenditure guidance remained $7.3 billion to $7.9 billion, with an expected leverage ratio midpoint near 3.75x. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
How the Market Responded
The results came in largely as expected, with adjusted EPS and revenue matching forecasts. Strength came from higher service revenues linked to new power generation contracts, the Momentum Midstream deal, projects entering service, and improved storage revenues. These were partly offset by higher operating and administrative costs and softer performance in the Gas & NGL Marketing segment. From what I see, investor focus tends to stay on the sustainability of AFFO growth, dividend coverage, and how quickly new projects turn contracted capacity into cash flow rather than on headline surprises.
What Comes Next and Key Items to Follow
Looking forward, WMB enters the fourth quarter with solid momentum. The Momentum Midstream acquisition, closed in September, bolsters its position in the Haynesville basin and improves connections to Gulf Coast LNG and power demand. The Socrates power project is now fully online ahead of schedule, and the Plato North Power project is slated to begin service by mid-November.
One thing that stands out is whether these power projects will add meaningfully to Adjusted EBITDA in upcoming quarters, since early payments are often recognized over the contract life rather than upfront. The company’s success in bringing additional power projects online will also be worth watching, given the goal of maintaining an 11%-plus Adjusted EBITDA compound annual growth rate through 2030. On the expense side, rising operating and administrative costs, including those tied to acquisitions, merit attention, along with shifts in commodity derivatives and any asset sales. Balance sheet discipline stays important, with the 2026 leverage midpoint projected around 3.75x. Overall, the outlook depends on sustained natural gas demand from LNG, power, and industrial users combined with careful capital allocation across a growing project set.
Using AI Tools in My Research Workflow
I regularly turn to Tickeron’s Trending AI Robots when reviewing energy infrastructure names like this one. The platform lets me scan for patterns and signals across similar stocks, which helps me quickly spot how WMB stacks up against peers and monitor broader sector trends without spending hours on manual checks. It has become a practical part of staying on top of developments in this space.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
WMB in +1.07% Uptrend, growing for three consecutive days on October 29, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where WMB advanced for three days, in 250 of 358 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where WMB's RSI Oscillator exited the oversold zone, 9 of 13 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 69%.
The Momentum Indicator moved above the 0 level on October 28, 2026. You may want to consider a long position or call options on WMB as a result. In 59 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 66%.
The Moving Average Convergence Divergence (MACD) for WMB just turned positive on October 23, 2026. Looking at past instances where WMB's MACD turned positive, the stock continued to rise in 31 of 52 cases over the following month. The odds of a continued upward trend are 60%.
WMB moved above its 50-day moving average on October 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for WMB crossed bullishly above the 50-day moving average on October 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 11 of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 58%.
The Aroon Indicator entered an Uptrend today. In 210 of 327 cases where WMB Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 64%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WMB declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 44%.
WMB broke above its upper Bollinger Band on October 12, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 2 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 41, placing this stock better than average.
The Tickeron SMR rating for this company is 40 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 43 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. WMB’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.913) is normal, around the industry mean (160.819). P/E Ratio (29.622) is within average values for comparable stocks, (7.071). Projected Growth (PEG Ratio) (1.986) is also within normal values, averaging (13.660). Dividend Yield (0.028) settles around the average of (149858533376.000) among similar stocks. P/S Ratio (7.123) is also within normal values, averaging (4.657).
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General Information
a company that explores, produces, transports, sells and processes natural gas and petroleum products
Industry OilGasPipelines
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