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

Pinnacle West Capital (NYSE:PNW) released its quarterly earnings data on Wednesday. The utilities provider reported $0.13 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.12, FiscalAI reports. The business 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 was up 3.0% compared to the same quarter last year. During the same period last year, the business earned ($0.06) 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:

• 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 Trading Down 1.9%

NYSE PNW traded down $1.91 during trading on Wednesday, hitting $98.14. The stock had a trading volume of 453,621 shares, compared to its average volume of 1,271,118. Pinnacle West Capital has a twelve month low of $85.32 and a twelve month high of $100.65. The firm has a 50 day moving average price of $92.49 and a 200 day moving average price of $90.54. The company has a quick ratio of 0.49, a current ratio of 0.67 and a debt-to-equity ratio of 1.28. The company has a market capitalization of $11.75 billion, a PE ratio of 20.16, a PEG ratio of 5.96 and a beta of 0.54.

Pinnacle West Capital Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, March 2nd. Shareholders of record on Monday, February 2nd will be given a dividend of $0.91 per share. The ex-dividend date is Monday, February 2nd. This represents a $3.64 dividend on an annualized basis and a dividend yield of 3.7%. Pinnacle West Capital’s dividend payout ratio (DPR) is currently 74.74%.

Hedge Funds Weigh In On Pinnacle West Capital

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Pacer Advisors Inc. grew its position in shares of Pinnacle West Capital by 120.7% during the fourth quarter. Pacer Advisors Inc. now owns 22,201 shares of the utilities provider’s stock worth $1,969,000 after acquiring an additional 12,142 shares during the last quarter. Compound Planning Inc. boosted its position in shares of Pinnacle West Capital by 8.9% during the 4th quarter. Compound Planning Inc. now owns 3,905 shares of the utilities provider’s stock worth $346,000 after purchasing an additional 319 shares in the last quarter. Invesco Ltd. grew its position in Pinnacle West Capital by 1.8% during the fourth quarter. Invesco Ltd. now owns 4,249,267 shares of the utilities provider’s stock worth $376,910,000 after buying an additional 74,023 shares during the period. Corient Private Wealth LLC grew its holdings in shares of Pinnacle West Capital by 299.0% in 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 period. Finally, Mercer Global Advisors Inc. ADV grew its holdings in Pinnacle West Capital by 8.8% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 29,693 shares of the utilities provider’s stock valued at $2,634,000 after purchasing an additional 2,407 shares during the last quarter. 91.51% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Morgan Stanley set a $96.00 price objective on Pinnacle West Capital in a research note on Friday. Jefferies Financial Group restated a “buy” rating and set a $115.00 price target on shares of Pinnacle West Capital in a report on Tuesday, November 4th. Weiss Ratings restated a “buy (b)” rating on shares of Pinnacle West Capital in a report on Thursday, January 22nd. Royal Bank Of Canada restated a “sector perform” rating and set a $103.00 price target on shares of Pinnacle West Capital in a report on Friday, January 23rd. Finally, Barclays decreased their price objective on shares of Pinnacle West Capital from $95.00 to $90.00 and set an “equal weight” rating for the company in a research note on Thursday, January 15th. Four investment 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, Pinnacle West Capital has an average rating of “Hold” and a consensus price target of $97.33.

About Pinnacle West Capital

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.