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

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

Pinnacle West Capital stock traded down $0.34 during midday trading on Wednesday, hitting $99.71. The stock had a trading volume of 1,092,140 shares, compared to its average volume of 1,281,892. 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 52-week low of $85.32 and a 52-week high of $100.65. The company has a market capitalization of $11.93 billion, a PE ratio of 20.47, a P/E/G ratio of 5.96 and a beta of 0.54. The firm’s fifty day moving average is $92.49 and its two-hundred day moving average is $90.54.

Pinnacle West Capital Dividend Announcement

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

Pinnacle West Capital News Summary

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

• Positive Sentiment: Q4 EPS topped expectations — PNW reported $0.13 EPS, beating consensus and marking a swing from a loss a year ago; the upside to profits supports near-term fundamentals. Pinnacle West (PNW) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management outlined a large capital plan (~$7.95B through 2028) designed to support grid investments and long-term regulated growth, which can drive rate-base expansion and future earnings. Pinnacle West Beats Q4 Earnings and Sales Estimates, to Invest $8B
• Positive Sentiment: Quarterly profit benefited from higher regulated rates and robust power demand — operational drivers that support utility cash flow and rate-case recoveries. Pinnacle West posts quarterly profit on higher rates, robust power demand
• Neutral Sentiment: Company released the full Q4 and FY-2025 results and supporting slides/press release — useful for modeling but largely confirmatory of trends already reported. Pinnacle West Reports 2025 Full-Year and Fourth-Quarter Results
• Neutral Sentiment: Management commentary from the earnings call/transcript provides color on rate cases, capex timing and customer demand — important for longer-term modeling but not an immediate catalyst on its own. Pinnacle West Capital Corporation (PNW) Q4 2025 Earnings Call Transcript
• Negative Sentiment: FY-2026 EPS guidance was set at $4.55–$4.75, slightly below consensus — a modest downward revision that tempers expectations and can weigh on near-term multiple expansion. Pinnacle West Reports 2025 Full-Year and Fourth-Quarter Results
• Negative Sentiment: Revenue for the quarter was slightly below some analyst estimates (reflecting mixed top-line momentum), and the large capex program increases funding needs and execution risk — potential pressure on leverage and near-term cash metrics. Pinnacle West Capital Corp. Q4 results and metrics

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Morgan Stanley set a $96.00 target price on shares of Pinnacle West Capital in a report on Friday. Royal Bank Of Canada restated a “sector perform” rating and issued a $103.00 price target on shares of Pinnacle West Capital in a research note on Friday, January 23rd. Zacks Research upgraded shares of Pinnacle West Capital from a “strong sell” rating to a “hold” rating in a research report on Monday, November 10th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $115.00 target price on shares of Pinnacle West Capital in a research report on Tuesday, November 4th. Finally, UBS Group boosted their target price on shares of Pinnacle West Capital from $94.00 to $95.00 and gave the company a “neutral” rating in a research note on Wednesday, December 17th. Four research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $97.33.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. CYBER HORNET ETFs LLC purchased a new position in shares of Pinnacle West Capital in the 2nd quarter worth $27,000. MUFG Securities EMEA plc bought a new stake in Pinnacle West Capital during the second quarter worth approximately $32,000. Brown Brothers Harriman & Co. increased its stake in Pinnacle West Capital by 102.1% during the third quarter. Brown Brothers Harriman & Co. now owns 966 shares of the utilities provider’s stock worth $87,000 after acquiring an additional 488 shares during the last quarter. Kestra Advisory Services LLC bought a new stake in shares of Pinnacle West Capital in the 4th quarter valued at approximately $88,000. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of 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 purchasing an additional 140 shares during the period. Institutional investors own 91.51% of the company’s stock.

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.