The Williams Companies, Inc. (WMB) AI Stock Analysis

The Williams Companies, Inc. operates an energy infrastructure network across the United States through four segments: Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services. The Transmission & Gulf of Mexico unit includes the Transco and Northwest natural gas pipelines alongside Gulf Coast crude and gathering assets. Northeast G&P provides midstream gathering, processing, and fractionation across the Marcellus and Utica shale areas. The West segment provides gathering and processing in basins such as the Rockies, Eagle Ford, and Permian, while Gas & NGL Marketing Services handles wholesale marketing, trading, storage, and transportation.

Revenue expanded from $10.63B in FY2021 to $11.95B in FY2025, reflecting a 5-year revenue CAGR of 9.1%. Annual revenue fell 0.5% in FY2023 and 3.7% in FY2024 before increasing 13.8% in FY2025. Over the same period, annual net income climbed from $1.52B in FY2021 to $2.62B in FY2025, as net margin expanded from 14.3% to 21.9%. For the latest quarter ended June 30, 2026, quarterly revenue grew 7.8% year-over-year while quarterly earnings grew 51.2% year-over-year. Trailing twelve months operating margin was 39.5%.

As of June 30, 2026, the company held $203.0M in cash and short-term investments alongside total debt of $30.79B, producing net debt of $30.59B. Shareholders' equity was $13.19B, resulting in a debt-to-equity ratio of 2.33 and a current ratio of 0.48. In FY2025, operations generated $5.90B in operating cash flow and $1.00B in free cash flow. Capital expenditures totaled $4.89B and dividend payments consumed $2.44B in FY2025, while share issuances brought in $9.0M.

At $71.28 on October 16, 2026, WMB trades at a trailing P/E of 28.4x and a forward P/E of 26.8x, both above the median of its S&P 500 Energy peers of 17.8x and 13.4x, respectively. The company's EV/EBITDA of 14.9x exceeds the peer group median of 7.9x, and its price-to-sales multiple of 7.1x is higher than the peer median of 2.1x. Over the past year, the stock returned 17.5% compared to 16.8% for the S&P 500, while its 5-year return reached 200.5% versus 83.0% for the index.

WMB pays a forward annual dividend of $2.10 per share, delivering a dividend yield of 2.95% with a payout ratio of 91.4%. The company distributes dividends quarterly and has paid dividends for 45 consecutive years. Over the past five years, dividend distributions increased at an annualized rate of 4.6%, with the most recent ex-dividend date occurring on September 11, 2026.

Wall Street consensus includes 17 Strong Buy, 6 Buy, and 2 Hold recommendations, with zero Sell or Strong Sell ratings. The mean price target of $85.38 represents a 19.8% premium to the closing price of $71.28. For the fiscal year ending December 31, 2026, analysts estimate revenue of $12.30B and EPS of $2.43. For the following fiscal year, 14 analysts project revenue to grow 14.7% to $14.11B with EPS of $2.65. WMB beat EPS estimates in 1 of the last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of The Williams Companies, Inc. (WMB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: WMB income statement, WMB balance sheet, WMB key metrics, WMB analyst forecast, WMB chart. See the WMB stock overview for the latest quote and news.