Pinnacle West Capital (NYSE:PNW) Issues Quarterly Earnings Results

by · The Markets Daily

Pinnacle West Capital (NYSE:PNW – Get Free Report) released its earnings results on Tuesday. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.46 by ($0.03), FiscalAI reports. The business had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.40 billion. Pinnacle West Capital had a net margin of 11.52% and a return on equity of 8.97%. The business’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.58 earnings per share. Pinnacle West Capital updated its FY 2026 guidance to 4.550-4.750 EPS.

Here are the key takeaways from Pinnacle West Capital’s conference call:

  • Positive Sentiment: Pinnacle West reiterated its 2026 outlook and expects to finish at the top end of its $4.55–$4.75 EPS guidance range, supported by strong first-half execution.
  • Positive Sentiment: Demand growth remained robust, with 9.6% weather-normalized sales growth, 2.1% customer growth, and commercial and industrial sales up 12.7%. Management said the diverse expansion of data centers, semiconductor manufacturing, and residential usage provides a sustained growth runway.
  • Positive Sentiment: TSMC’s additional $100 billion Arizona investment, bringing its total commitment to $265 billion, is expected to drive further long-term load growth. Pinnacle West plans to include TSMC’s full intended build-out and updated ramp schedule in its October integrated resource plan.
  • Neutral Sentiment: The company plans to convert two retired Cholla coal units to natural gas, adding approximately 380 MW of dispatchable capacity by 2029; the project could require up to $440 million of incremental capital spending, primarily in 2027–2028.
  • Negative Sentiment: Second-quarter EPS fell to $1.43 from $1.58 a year earlier as higher interest expense, increased depreciation and amortization, and lower transmission revenue outweighed favorable weather and sales growth. Pinnacle West also used the remaining capacity of its $900 million ATM program and filed a new $500 million ATM, highlighting continued equity-financing needs.

Pinnacle West Capital Trading Down 0.7%

Shares of PNW traded down $0.67 during trading hours on Thursday, reaching $100.83. The stock had a trading volume of 525,009 shares, compared to its average volume of 1,258,053. The company has a market cap of $12.22 billion, a P/E ratio of 19.32, a P/E/G ratio of 3.71 and a beta of 0.44. Pinnacle West Capital has a 52 week low of $85.32 and a 52 week high of $111.16. The company has a quick ratio of 0.39, a current ratio of 0.60 and a debt-to-equity ratio of 1.38. The firm has a 50-day moving average of $104.47 and a 200 day moving average of $101.26.

Pinnacle West Capital Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 3rd will be issued a $0.91 dividend. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $3.64 annualized dividend and a dividend yield of 3.6%. Pinnacle West Capital’s payout ratio is 69.73%.

Insider Transactions at Pinnacle West Capital

In other Pinnacle West Capital news, EVP Jacob Tetlow sold 6,567 shares of the stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $99.00, for a total value of $650,133.00. Following the completion of the sale, the executive vice president directly owned 6,634 shares in the company, valued at $656,766. This represents a 49.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.19% of the company’s stock.

Institutional Trading of Pinnacle West Capital

Several hedge funds have recently bought and sold shares of PNW. Invesco Ltd. boosted its holdings in shares of Pinnacle West Capital by 1.8% in the fourth quarter. Invesco Ltd. now owns 4,249,267 shares of the utilities provider’s stock valued at $376,910,000 after buying an additional 74,023 shares during the period. First Trust Advisors LP grew its holdings in shares of Pinnacle West Capital by 4.9% during the fourth quarter. First Trust Advisors LP now owns 1,371,150 shares of the utilities provider’s stock worth $121,621,000 after buying an additional 63,729 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Pinnacle West Capital by 4.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 1,318,711 shares of the utilities provider’s stock worth $116,973,000 after acquiring an additional 53,060 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in shares of Pinnacle West Capital by 1.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,117,500 shares of the utilities provider’s stock valued at $99,122,000 after purchasing an additional 10,625 shares during the last quarter. Finally, Franklin Resources Inc. lifted its position in shares of Pinnacle West Capital by 0.6% in the third quarter. Franklin Resources Inc. now owns 931,747 shares of the utilities provider’s stock worth $83,540,000 after purchasing an additional 5,995 shares in the last quarter. 91.51% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on PNW shares. TD Cowen increased their price objective on shares of Pinnacle West Capital from $100.00 to $101.00 and gave the company a “hold” rating in a report on Friday, May 15th. Argus upped their target price on shares of Pinnacle West Capital from $95.00 to $106.00 and gave the company a “buy” rating in a research report on Tuesday, April 14th. Weiss Ratings reissued a “buy (b)” rating on shares of Pinnacle West Capital in a research note on Monday. Wells Fargo & Company set a $106.00 price objective on Pinnacle West Capital in a research note on Tuesday, April 21st. Finally, Truist Financial dropped their price objective on Pinnacle West Capital from $108.00 to $105.00 and set a “hold” rating for the company in a report on Friday, May 29th. Three analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, Pinnacle West Capital has a consensus rating of “Hold” and a consensus target price of $104.07.

View Our Latest Analysis on Pinnacle West Capital

Pinnacle West Capital Company Profile

(Get Free Report)

Pinnacle West Capital Corporation is a publicly traded utility holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Arizona Public Service Company (APS), Pinnacle West generates, transmits and distributes electricity to more than one million residential, commercial and industrial customers across central and southern Arizona. The company’s regulated operations focus on delivering safe, reliable power while meeting evolving environmental standards.

The company’s diversified generation portfolio includes natural gas–fired plants, the nuclear-powered Palo Verde Generating Station—the largest nuclear facility in the United States by net output—plus growing investments in solar and battery storage projects.

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