Pinnacle West Capital (NYSE:PNW) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Pinnacle West Capital (NYSE:PNW) issued its earnings results on Wednesday. The utilities provider reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.08, FiscalAI reports. The firm had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.17 billion. Pinnacle West Capital had a net margin of 11.20% and a return on equity of 8.57%. Pinnacle West Capital’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.06) 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:

• APS reported strong demand and customer growth, with 2025 weather‑normalized sales growth of about 5% for the year (6.8% in Q4), 2.4% customer growth, and over 34,000 new meters installed, supporting long‑term sales guidance of 5%–7% through 2030.
• The company has roughly 4.5 GW of committed high‑load‑factor C&I demand and an ~20 GW uncommitted pipeline (including ongoing TSMC expansion); an updated 15‑year IRP will be filed mid‑year to map committed demand and required generation/transmission, while uncommitted contracts would be incremental to the IRP.
• Operational execution was strong—APS set a record system peak (8,648 MW), Palo Verde ran at 100% summertime capacity and earned a 2025 INPO Excellence Award, and >400 MW of APS‑owned resources came online ahead of schedule.
• The rate case is progressing (staff/intervener testimony next month; hearings in May) and APS views the recent UNS formula‑rate decision as a generally constructive state precedent; APS is pursuing a formula rate to reduce regulatory lag and achieve more predictable, linear earnings recovery.
• Financials show 2025 EPS of $5.05 (Q4 EPS $0.13) with 2026 guidance reiterated at $4.55–$4.75, but management flagged near‑term headwinds from milder weather, higher financing costs, increased pension/OPEB and depreciation, plus a condensed DSM program that offsets some O&M benefits.

Pinnacle West Capital Stock Performance

Shares of NYSE:PNW opened at $99.72 on Thursday. The company has a current ratio of 0.67, a quick ratio of 0.49 and a debt-to-equity ratio of 1.28. Pinnacle West Capital has a 12 month low of $85.32 and a 12 month high of $100.65. The company has a market capitalization of $11.94 billion, a price-to-earnings ratio of 20.48, a PEG ratio of 5.99 and a beta of 0.54. The firm’s 50-day moving average is $92.71 and its 200 day moving average is $90.61.

Pinnacle West Capital Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Investors of record on Monday, February 2nd will be issued a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a yield of 3.7%. The ex-dividend date is Monday, February 2nd. Pinnacle West Capital’s dividend payout ratio is presently 74.74%.

Institutional Investors Weigh In On Pinnacle West Capital

Several hedge funds and other institutional investors have recently modified their holdings of the business. CYBER HORNET ETFs LLC bought a new position in Pinnacle West Capital in the 2nd quarter valued at $27,000. MUFG Securities EMEA plc purchased a new stake in shares of Pinnacle West Capital during the second quarter valued at $32,000. Brown Brothers Harriman & Co. grew its holdings in shares of Pinnacle West Capital by 102.1% in the third quarter. Brown Brothers Harriman & Co. now owns 966 shares of the utilities provider’s stock worth $87,000 after purchasing an additional 488 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in Pinnacle West Capital in the 4th quarter worth about $88,000. Finally, EverSource Wealth Advisors LLC increased its stake in Pinnacle West Capital by 11.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,330 shares of the utilities provider’s stock worth $119,000 after buying an additional 140 shares during the period. 91.51% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Pinnacle West Capital

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

• Positive Sentiment: Pinnacle West beat earnings estimates, reporting $0.13 EPS vs. consensus $0.05 and swung to profit from a year‑ago loss — a sign of improving operating performance and stronger demand. Pinnacle West (PNW) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management reaffirmed growth plans and is committing to a large capital program (~$7.95–8.0B through 2028) to expand the grid and customer sales, which could support rate base growth and long‑term earnings power. Pinnacle West Beats Q4 Earnings and Sales Estimates, to Invest $8B
• Neutral Sentiment: Management outlined a target of 5–7% long‑term sales growth through 2030 and detailed a regulatory strategy to support grid expansion — positive for long‑term visibility but reliant on future rate case outcomes and execution. Pinnacle West targets 5–7% long-term sales growth through 2030 while advancing grid expansion and regulatory strategy
• Neutral Sentiment: Company provided supporting materials (slide deck and call transcript) that flesh out drivers — useful for modeling but no immediate surprise beyond the press release. Pinnacle West Capital Corporation 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Revenue missed consensus ($1.13B vs. $1.17B), which tempers the EPS beat and raises questions about topline momentum in the near term. Pinnacle West posts quarterly profit on higher rates, robust power demand
• Negative Sentiment: FY‑2026 EPS guidance was set at $4.55–4.75, slightly below the prior consensus (~$4.80), which likely explains downward pressure as investors digest a modestly lower near‑term outlook despite the long‑term investment story. Pinnacle West Reports 2025 Full-Year and Fourth-Quarter Results

Analysts Set New Price Targets

A number of equities analysts recently commented on PNW shares. Wells Fargo & Company dropped their price target on Pinnacle West Capital from $92.00 to $91.00 and set an “equal weight” rating for the company in a research note on Tuesday, January 20th. Morgan Stanley set a $96.00 target price on shares of Pinnacle West Capital in a report on Friday, February 20th. Jefferies Financial Group restated a “buy” rating and issued a $115.00 price target on shares of Pinnacle West Capital in a research report on Tuesday, November 4th. KeyCorp lowered shares of Pinnacle West Capital from an “overweight” rating to a “sector weight” rating in a research report on Friday, December 12th. Finally, Royal Bank Of Canada restated a “sector perform” rating and issued a $103.00 target price on shares of Pinnacle West Capital in a report on Friday, January 23rd. Three research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $97.09.

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.