Pinnacle West Capital (NYSE:PNW) Announces Earnings Results

Pinnacle West Capital (NYSE:PNW) announced its earnings results on Tuesday. The utilities provider reported $3.49 earnings per share for the quarter, beating the consensus estimate of $3.32 by $0.17, FiscalAI reports. The business had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.90 billion. Pinnacle West Capital had a net margin of 11.59% and a return on equity of 9.32%. The business’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.39 earnings per share.

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

• Third-quarter EPS rose to $3.49, up $0.10 year over year, prompting Pinnacle West to raise 2026 EPS guidance to $5.05–$5.25 from $4.55–$4.75.
• Weather-normalized retail sales increased 9.5% in the quarter, led by 14.5% commercial and industrial growth, and the company raised its 2026 and long-term sales growth outlook to 8%–10%.
• Pinnacle West signed a 25-year direct pricing contract with TSMC covering approximately 1.88 GW at full build-out. Upfront capital contributions and credit support are intended to ensure TSMC funds the infrastructure needed to serve its demand without subsidization by residential customers.
• The updated integrated resource plan calls for nearly 15 GW of new generation and 2.6 GW of additional transmission through 2041, with a mix of natural gas, utility-scale solar, and battery storage; roughly half of the resources remain to be procured.
• Significant infrastructure investment is increasing depreciation, interest expense, and external financing needs, while the pending rate case remains unresolved. Management expects a final decision by year-end, but meaningful formula-rate benefits may not begin until late 2027 and largely reach run-rate impact in 2029.

Pinnacle West Capital Trading Down 2.0%

NYSE:PNW opened at $105.56 on Thursday. The stock has a market capitalization of $12.79 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 3.85 and a beta of 0.48. Pinnacle West Capital has a 52 week low of $86.18 and a 52 week high of $111.16. The company has a quick ratio of 0.41, a current ratio of 0.59 and a debt-to-equity ratio of 1.38. The firm has a 50 day moving average of $98.81 and a 200 day moving average of $100.52.

Pinnacle West Capital Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 2nd will be given a dividend of $0.9250 per share. The ex-dividend date of this dividend is Monday, November 2nd. This is a positive change from Pinnacle West Capital’s previous quarterly dividend of $0.91. This represents a $3.70 dividend on an annualized basis and a yield of 3.5%. Pinnacle West Capital’s dividend payout ratio is currently 70.88%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on PNW shares. Morgan Stanley increased their price target on Pinnacle West Capital from $89.00 to $91.00 and gave the stock an “equal weight” rating in a report on Wednesday, October 21st. HSBC initiated coverage on Pinnacle West Capital in a report on Thursday, October 22nd. They issued a “buy” rating and a $119.50 target price for the company. Truist Financial cut their price target on Pinnacle West Capital from $101.00 to $99.00 and set a “hold” rating on the stock in a research note on Monday, October 5th. Mizuho set a $109.00 price objective on Pinnacle West Capital in a report on Tuesday. Finally, Scotiabank assumed coverage on shares of Pinnacle West Capital in a research note on Tuesday, September 29th. They issued a “sector outperform” rating and a $104.00 price objective for the company. Five investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $103.77.

Insiders Place Their Bets

In other Pinnacle West Capital news, CAO Elizabeth A. Blankenship sold 980 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $99.17, for a total value of $97,186.60. Following the completion of the sale, the chief accounting officer directly owned 10,886 shares in the company, valued at approximately $1,079,564.62. This trade represents a 8.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, SVP Jose Luis Esparza, Jr. sold 1,800 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $102.01, for a total value of $183,618.00. Following the completion of the sale, the senior vice president directly owned 4,910 shares of the company’s stock, valued at approximately $500,869.10. This represents a 26.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.19% of the stock is owned by company insiders.

About Pinnacle West Capital

Pinnacle West Capital Corporation (NYSE:PNW) is an energy holding company based in Phoenix, Arizona. Its principal subsidiary, Arizona Public Service Company (APS), is an electric utility that generates, transmits and distributes electricity to customers across Arizona.

APS serves residential, commercial, industrial and governmental customers through a diverse power portfolio that includes nuclear, natural gas, coal, solar and other renewable energy resources. The utility is also involved in maintaining and expanding the electric grid, supporting energy-efficiency programs and developing cleaner energy resources.