Pinnacle West Capital (NYSE:PNW) Posts Earnings Results, Misses Estimates By $0.03 EPS

Pinnacle West Capital (NYSE:PNW) announced 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 company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.40 billion. Pinnacle West Capital had a return on equity of 9.27% and a net margin of 11.99%.The firm’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same period in the previous year, the company earned $1.58 EPS. 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 Up 0.7%

Shares of NYSE PNW traded up $0.66 during midday trading on Wednesday, reaching $102.11. 250,030 shares of the stock were exchanged, compared to its average volume of 1,256,398. The business has a 50-day simple moving average of $104.50 and a two-hundred day simple moving average of $101.20. The company has a market capitalization of $12.37 billion, a price-to-earnings ratio of 19.01, a P/E/G ratio of 3.66 and a beta of 0.44. Pinnacle West Capital has a 12 month low of $85.32 and a 12 month high of $111.16. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.60 and a quick ratio of 0.39.

Pinnacle West Capital Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 3rd will be issued a $0.91 dividend. The ex-dividend date is Monday, August 3rd. This represents a $3.64 annualized dividend and a yield of 3.6%. Pinnacle West Capital’s dividend payout ratio (DPR) is 67.78%.

Insiders Place Their Bets

In other Pinnacle West Capital news, EVP Jacob Tetlow sold 6,567 shares of Pinnacle West Capital stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $99.00, for a total transaction of $650,133.00. Following the transaction, the executive vice president directly owned 6,634 shares in the company, valued at approximately $656,766. The trade was a 49.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.19% of the company’s stock.

Institutional Trading of Pinnacle West Capital

Large investors have recently bought and sold shares of the business. Pacer Advisors Inc. boosted its holdings in shares of Pinnacle West Capital by 120.7% in the fourth quarter. Pacer Advisors Inc. now owns 22,201 shares of the utilities provider’s stock valued at $1,969,000 after buying an additional 12,142 shares during the period. Compound Planning Inc. raised its position in Pinnacle West Capital by 8.9% in the 4th quarter. Compound Planning Inc. now owns 3,905 shares of the utilities provider’s stock valued at $346,000 after buying an additional 319 shares during the last quarter. Invesco Ltd. lifted its stake in Pinnacle West Capital by 1.8% in the 4th quarter. Invesco Ltd. now owns 4,249,267 shares of the utilities provider’s stock valued at $376,910,000 after acquiring an additional 74,023 shares in the last quarter. Corient Private Wealth LLC boosted its position in Pinnacle West Capital by 299.0% during the 4th quarter. Corient Private Wealth LLC now owns 66,284 shares of the utilities provider’s stock worth $5,879,000 after acquiring an additional 49,670 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its position in Pinnacle West Capital by 8.8% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 29,693 shares of the utilities provider’s stock worth $2,634,000 after acquiring an additional 2,407 shares during the last quarter. 91.51% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research analysts recently commented on PNW shares. Barclays raised their target price on Pinnacle West Capital from $102.00 to $108.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 1st. Argus increased their price target on shares of Pinnacle West Capital from $95.00 to $106.00 and gave the stock a “buy” rating in a research report on Tuesday, April 14th. BMO Capital Markets decreased their price objective on Pinnacle West Capital from $106.00 to $104.00 and set a “market perform” rating on the stock in a report on Wednesday, July 22nd. Jefferies Financial Group restated a “buy” rating and set a $129.00 target price on shares of Pinnacle West Capital in a research report on Wednesday, July 8th. Finally, Morgan Stanley set a $97.00 price target on Pinnacle West Capital in a research report on Wednesday, July 22nd. Three analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $104.07.

Pinnacle West Capital News Summary

Here are the key news stories impacting Pinnacle West Capital this week:

• Positive Sentiment: Management expects 2026 earnings per share to land at the top end of its previously stated $4.55–$4.75 range, signaling confidence in its outlook despite second-quarter pressure. Pinnacle West targets 380 MW Cholla gas conversion and expects 2026 EPS at top end
• Positive Sentiment: Pinnacle West plans to convert 380 megawatts of the Cholla plant to natural gas by 2029. The project could improve generation reliability and support long-term capacity needs while reducing reliance on coal.
• Positive Sentiment: Second-quarter revenue increased 7.1% year over year to $1.46 billion, exceeding analysts’ $1.40 billion estimate, reflecting stronger sales despite higher operating costs. Pinnacle West Q2 earnings miss estimates while revenue increases
• Neutral Sentiment: Management maintained full-year 2026 EPS guidance of $4.55–$4.75, compared with a consensus estimate near $4.70, leaving the outlook intact but providing limited upside to expectations.
• Negative Sentiment: Second-quarter EPS fell to $1.43 from $1.58 a year earlier and missed consensus estimates of approximately $1.46–$1.49. Higher fuel, purchased-power and interest expenses offset the revenue growth. Pinnacle West Q2 earnings lag estimates
• Negative Sentiment: Pinnacle West entered into an agreement allowing it to issue up to $500 million of common stock. While the proceeds may support capital investment, the potential share dilution could weigh on existing shareholders. Pinnacle West announces $500 million equity program

Pinnacle West Capital Company Profile

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.