Hsbc Holdings PLC decreased its position in shares of Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 6.8% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 606,558 shares of the utilities provider’s stock after selling 44,376 shares during the period. Hsbc Holdings PLC owned approximately 0.50% of Pinnacle West Capital worth $64,952,000 at the end of the most recent reporting period.
Several other hedge funds have also recently added to or reduced their stakes in the company. JFS Wealth Advisors LLC increased its position in shares of Pinnacle West Capital by 109.6% during the 2nd quarter. JFS Wealth Advisors LLC now owns 241 shares of the utilities provider’s stock valued at $26,000 after purchasing an additional 126 shares during the last quarter. CYBER HORNET ETFs LLC bought a new stake in Pinnacle West Capital in the 2nd quarter worth approximately $27,000. Compass Financial Management LLC purchased a new stake in Pinnacle West Capital in the second quarter worth approximately $33,000. Bell Investment Advisors Inc boosted its stake in Pinnacle West Capital by 144.9% in the second quarter. Bell Investment Advisors Inc now owns 338 shares of the utilities provider’s stock worth $36,000 after buying an additional 200 shares in the last quarter. Finally, MUFG Securities EMEA plc purchased a new stake in Pinnacle West Capital in the second quarter worth approximately $32,000. Institutional investors own 91.51% of the company’s stock.
Wall Street Analyst Weigh In PNW has been the topic of several research reports. BMO Capital Markets decreased their price target on shares of Pinnacle West Capital from $106.00 to $104.00 and set a “market perform” rating on the stock in a research note on Wednesday, July 22nd. Truist Financial cut their price objective on shares of Pinnacle West Capital from $107.00 to $101.00 and set a “hold” rating for the company in a research note on Monday, August 17th. Barclays increased their target price on shares of Pinnacle West Capital from $102.00 to $108.00 and gave the company an “equal weight” rating in a report on Wednesday, July 1st. Jefferies Financial Group reiterated a “buy” rating and issued a $129.00 target price on shares of Pinnacle West Capital in a research report on Wednesday, July 8th. Finally, TD Cowen reissued a “hold” rating on shares of Pinnacle West Capital in a research note on Wednesday, August 12th. Three research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $103.57.
Read Our Latest Stock Report on PNW Insider Transactions at Pinnacle West Capital In other news, SVP Luis Esparza, Jr. sold 1,800 shares of the stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $102.01, for a total transaction of $183,618.00. Following the completion of the sale, the senior vice president directly owned 4,910 shares in the company, valued at approximately $500,869.10. This represents a 26.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Elizabeth Blankenship sold 980 shares of the firm’s 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 $1,079,564.62. The trade was a 8.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.19% of the company’s stock.
Pinnacle West Capital Stock Performance NYSE:PNW opened at $97.37 on Tuesday. The firm has a market cap of $11.80 billion, a PE ratio of 18.65, a price-to-earnings-growth ratio of 3.56 and a beta of 0.45. Pinnacle West Capital Corporation has a fifty-two week low of $85.32 and a fifty-two week high of $111.16. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.41 and a current ratio of 0.59. The business has a 50 day moving average price of $102.73 and a 200-day moving average price of $101.98.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last issued its earnings results on Tuesday, August 4th. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.46 by ($0.03). The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.40 billion. Pinnacle West Capital had a return on equity of 8.99% and a net margin of 11.52%.The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.58 EPS. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. Equities research analysts predict that Pinnacle West Capital Corporation will post 4.71 earnings per share for the current year.
Pinnacle West Capital Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Stockholders of record on Monday, August 3rd were paid a dividend of $0.91 per share. This represents a $3.64 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend was Monday, August 3rd. Pinnacle West Capital’s dividend payout ratio is 69.73%.
(Free Report)
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.
Featured Stories Five stocks we like better than Pinnacle West Capital 3 Under-the-Radar Defense Stocks With Record Backlogs This Korea ETF Has Soared, But the Rally May Not Be Over Why Guidewire’s Post-Earnings Plunge May Not Last Ride-Share Reckoning: Tesla Drives Into Uber’s Lane Want to see what other hedge funds are holding PNW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pinnacle West Capital Corporation (NYSE:PNW – Free Report).
Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.
A month has gone by since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pinnacle West due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Pinnacle West Capital Corporation before we dive into how investors and analysts have reacted as of late.
Pinnacle West Q2 Earnings Miss Estimates, Revenues Increase Y/Y
Pinnacle West Capital Corporation reported second-quarter 2026 earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.49 by 4.03%. The bottom line declined 9.5% from $1.58 in the year-ago quarter.
Total Revenues of PNWRevenues for the reported quarter totaled $1.46 billion, which surpassed the Zacks Consensus Estimate of $1.40 billion by 3.93%.
The top line increased 7.1% from $1.36 billion recorded in the year-ago quarter.
PNW's Cost Growth Pressures Operating IncomeTotal operating expenses were $1.15 billion, up 9.4% from $1.05 billion in the prior-year quarter. Fuel and purchased power costs climbed 17.1% to $558.5 million, while depreciation and amortization increased 6.3% to $243.2 million.
Operating income totaled $305.7 million, down 0.6% from $307.6 million a year ago. Higher fuel and purchased power costs largely offset the benefit of increased revenues and lower operations and maintenance expenses.
Total interest expenses were $122.2 million, up 19.8% from $102 million in the prior-year period.
Pinnacle West's Financial PositionAs of June 30, 2026, cash and cash equivalents totaled $9.1 million compared with $6.6 million as of Dec. 31, 2025.
As of June 30, 2026, long-term debt, less current maturities, amounted to $9.78 billion compared with $9.21 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $629.3 million in the first six months of 2026 compared with $663.3 million a year earlier. Capital expenditures were $1.36 billion versus $1.33 billion in the comparable 2025 period.
PNW Reaffirms Guidance, Continues Capital InvestmentsThe company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.74, higher than the midpoint of the company’s guided range.
The company projects its 2026 revenues in the range of $5.56-$5.66 billion.
Management expects retail customer growth of 1.5-2.5% and weather-normalized retail electricity sales growth of 4-6%. New large manufacturing facilities and several large data centers are expected to contribute 3-5% to sales growth.
Arizona Public Service Company (APS) plans to invest $2.60 billion in 2026, followed by $2.65 billion in 2027 and $2.70 billion in 2028. The 2026 spending plan includes $825 million for generation, $550 million for transmission, $765 million for distribution and $460 million for other projects. The capital program is designed to support reliability and continued growth across the utility's service territory.
How Have Estimates Been Moving Since Then?Estimates review followed a upward path over the past two months.
VGM ScoresCurrently, Pinnacle West has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Pinnacle West has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Pinnacle West Capital, MGE Energy and Vestas Wind Systems are positioned to benefit from wind energy growth.Pinnacle West Capital secured 500 MW of wind resources, with additions set for service from 2026 to 2028.Vestas Wind Systems topped 207 GW of installed capacity and secured new turbine orders in multiple markets. An updated edition of the July 17, 2026 article.
The use of renewable energy continues to rise globally as efforts to minimize greenhouse gas emissions intensify. Across industries, companies are increasing investments in cleaner technologies as they work toward achieving net-zero emission targets. Rising electricity demand is also driving the need for reliable and low-emission energy sources.
Out of several forms of alternative energy, wind power stands out at the forefront of the global transition toward renewables. Wind energy is seeing broader adoption across industries due to its abundant supply, sustainable and emission-free technology, lower generation costs and supportive policy initiatives. Apart from its significant environmental benefits, these advantages also contribute to improved energy efficiency and employment opportunities.
Per the U.S. Energy Information Administration’s (EIA) latest Short-Term Energy Outlook, the U.S. wind power sector continues to expand, with installed generation capacity exceeding 165 gigawatts (GW) by the end of second-quarter 2026. The EIA forecasts capacity to climb to 170.2 GW by the end of 2026 before increasing further to 178.8 GW by 2027-end. The outlook also projects wind energy to contribute 11% to total U.S. electricity generation in 2026, with its share increasing to 12% in 2027.
The wind energy sector is benefiting from multiple trends, including growing electricity demand from Artificial Intelligence (AI)-powered data centers, widespread adoption of Electric Vehicles (EV) and the accelerating need for energy security and decarbonization. Per the EIA report, the U.S. grid is projected to add 11.4 GW of wind generation capacity in 2026.
The projected growth in wind capacity is likely to be supported by the commissioning and continued development of major offshore wind projects across the United States. Projects such as Vineyard Wind 1, Revolution Wind, Coastal Virginia Offshore Wind, and Empire Wind 1 are anticipated to contribute meaningfully to the expansion of renewable power capacity while strengthening the country’s clean energy infrastructure.
If you intend to capitalize on this buzzing trend, our Wind Energy Thematic Screen could make it easy to identify high-potential stocks such as Pinnacle West Capital Corporation (PNW - Free Report) , MGE Energy, Inc. (MGEE - Free Report) and Vestas Wind Systems (VWDRY - Free Report) . By leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to benefit from emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.
3 Wind Energy Stocks to Bet on NowHeadquartered in Phoenix, AZ, Pinnacle West Capital provides electricity services in Arizona through its subsidiaries. While the Zacks Rank #2 (Buy) company’s principal subsidiary, Arizona Public Service (“APS”) purchases wind power from Arizona and New Mexico wind facilities and provides clean electricity, its another unit, PNW Power, has certain wind and transmission-related joint venture investments.
PNW Power’s investment portfolio includes minority stakes in two Tenaska Energy and Tenaska Energy Holdings-operated wind facilities. The 242-megawatt Clear Creek project and the 250-megawatt Nobles 2 facilities supply electricity through long-term power purchase agreements. Through indirect ownership, PNW Power holds a 9.9% interest in Clear Creek and a 5.1% interest in Nobles 2.
The company’s major capital projects continued to proceed per plan and the addition of new renewable projects continues to boost the portfolio. The APS unit secured 3,606 MW of battery storage capacity, 2,649 MW of solar capacity, 517 MW of natural gas resources and 500 MW of wind resources, with these additions scheduled to enter service between 2026 and 2028.
Based in Madison, WI, MGE Energy produces electricity using coal, natural gas and renewable resources, while also offering solar and wind generation along with battery storage services.
Renewable energy projects are central to MGE Energy’s efforts to cut greenhouse gas emissions and achieve net-zero carbon electricity by 2050. The company also intends to lower its reliance on fossil fuels while supporting customers in improving energy efficiency and expanding electrification, including the shift toward electric transportation.
MGE continues to work on its strategy of making long-term investments in clean energy assets. Since 2015, the Zacks Rank #2 company has incorporated 93 MW of wind generation, 253 MW of solar and 11 MW of battery storage capacity into its renewable electricity portfolio. It also plans to add about 18 MW of wind, 252 MW of solar and 125 MW of battery storage by 2030-end through projects that have either received or are awaiting approval from PSCW.
Headquartered in Denmark, Vestas Wind Systems is a renowned designer, manufacturer, installer and service provider for wind turbines across the globe. The company is capitalizing on rising demand for renewable power through its emphasis on wind capacity expansion, technological advancement and sustainable energy development.
Vestas Wind has reached more than 207 GW of installed wind power capacity, which includes about 12 GW of offshore capacity. The company’s turbines are designed to operate in diverse weather conditions and it has a strong customer base across 88 countries.
In August 2026, the Zacks Rank #2 company secured two new orders from JUWI to deliver wind turbines in Germany for a total of 86 MW. Also, in the same month, the company clinched turbine orders for 65 MW in Italy and 306 MW in the United States. Apart from this, Vestas secured a deal from Statkraft Peru to develop a 72 MW Emma Wind Farm in Piura, marking its return to Peru with the 4 MW platform. These orders are indicative of the strong demand that VWDRY’s wind turbines enjoy worldwide.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Corient Private Wealth LP acquired a new position in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund acquired 87,891 shares of the utilities provider’s stock, valued at approximately $9,405,000. Corient Private Wealth LP owned 0.07% of Pinnacle West Capital at the end of the most recent reporting period.
Other large investors also recently modified their holdings of the company. Invst LLC bought a new stake in shares of Pinnacle West Capital during the 2nd quarter valued at $729,000. Jupiter Topco LLC purchased a new stake in shares of Pinnacle West Capital in the 2nd quarter worth $5,879,000. Hsbc Holdings PLC bought a new position in Pinnacle West Capital in the 2nd quarter worth $64,952,000. Ancora Advisors LLC bought a new position in Pinnacle West Capital in the 2nd quarter worth $80,000. Finally, Canada Pension Plan Investment Board purchased a new position in Pinnacle West Capital during the second quarter valued at $2,643,000. Institutional investors own 91.51% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts recently issued reports on the company. TD Cowen reiterated a “hold” rating on shares of Pinnacle West Capital in a research note on Wednesday, August 12th. Morgan Stanley decreased their target price on shares of Pinnacle West Capital from $97.00 to $94.00 and set an “equal weight” rating on the stock in a research note on Friday, August 21st. Truist Financial lowered their price target on shares of Pinnacle West Capital from $107.00 to $101.00 and set a “hold” rating on the stock in a report on Monday, August 17th. Jefferies Financial Group reiterated a “buy” rating and issued a $129.00 price target on shares of Pinnacle West Capital in a research report on Wednesday, July 8th. Finally, Barclays increased their price objective on shares of Pinnacle West Capital from $102.00 to $108.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 1st. Three investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, Pinnacle West Capital presently has an average rating of “Hold” and an average target price of $103.57.
View Our Latest Report on PNW Insiders Place Their Bets In other news, CAO Elizabeth A. Blankenship sold 980 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $99.17, for a total value of $97,186.60. Following the sale, the chief accounting officer owned 10,886 shares of the company’s stock, valued at approximately $1,079,564.62. This represents a 8.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Jose Luis Esparza, Jr. sold 1,800 shares of the stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $102.01, for a total transaction of $183,618.00. Following the completion of the sale, the senior vice president directly owned 4,910 shares in the company, valued at $500,869.10. This trade represents a 26.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.19% of the stock is owned by company insiders.
Pinnacle West Capital Trading Down 0.1% Pinnacle West Capital stock opened at $97.51 on Monday. The stock has a market cap of $11.82 billion, a P/E ratio of 18.68, a PEG ratio of 3.57 and a beta of 0.44. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.59 and a quick ratio of 0.41. Pinnacle West Capital Corporation has a 1 year low of $85.32 and a 1 year high of $111.16. The firm’s 50 day moving average price is $103.72 and its 200-day moving average price is $101.98.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last issued its earnings results on Tuesday, August 4th. The utilities provider reported $1.43 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.46 by ($0.03). Pinnacle West Capital had a return on equity of 8.99% and a net margin of 11.52%.The firm had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same period last year, the firm posted $1.58 earnings per share. The company’s revenue for the quarter was up 7.1% compared to the same quarter last year. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, equities analysts predict that Pinnacle West Capital Corporation will post 4.71 earnings per share for the current fiscal year.
Pinnacle West Capital Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Monday, August 3rd 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, August 3rd. Pinnacle West Capital’s dividend payout ratio is presently 69.73%.
(Free Report)
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.
See Also Five stocks we like better than Pinnacle West Capital Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Rubrik’s AI Security Bet Could Power the Next Leg Higher Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Snowflake Is Up Nearly 50% in 2026—What Are Short Sellers Betting Against? Want to see what other hedge funds are holding PNW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pinnacle West Capital Corporation (NYSE:PNW – Free Report).
Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.
Key Takeaways Super Micro Computer's fiscal 2027 sales are expected to grow 71.8%.State Street's 2026 sales are expected to increase 14.4%.Pinnacle West Capital's 2026 sales are projected to rise 4.1%. U.S. equities have remained firmly in positive territory so far in 2026, despite intermittent pullbacks. Elevated Treasury yields, renewed trade tensions, inflation concerns and uncertainty surrounding lofty AI-related valuations have periodically put pressure on investor sentiment. Nonetheless, solid corporate earnings, recent record highs and broader participation across financials and small-cap stocks continue to underpin the market’s overall performance.
Against this backdrop, the traditional way of selecting stocks is a good idea. Sales growth provides a more reliable basis for evaluating stocks compared with earnings-focused metrics. In this regard, stocks like Super Micro Computer, Inc. (SMCI - Free Report) , State Street Corporation (STT - Free Report) and Pinnacle West Capital Corporation (PNW - Free Report) are worth buying.
Sales growth is viewed as one of the clearest indicators of a company’s underlying business strength. While several factors can affect earnings, revenues offer a direct gauge of customer demand and a firm’s capacity to sell volumes of products or services. Consistent sales growth can signal industry trends, market-share gains, pricing strength, product launches, or expansion across new markets and customer groups.
Rising revenues can also create a stronger base for improving profitability. As sales increase, companies can distribute fixed costs across a larger revenue base, strengthening operating leverage and supporting margin expansion. Still, sales growth should not be assessed in isolation. Its importance becomes greater when evaluated alongside industry dynamics, competitor results, pricing patterns, customer mix and the overall economic environment.
The quality and durability of sales growth are equally significant. Recurring revenues, repeat purchases, volume-driven increases and resilient demand generally deserve more weight than gains stemming from temporary factors. Companies that consistently deliver reliable, high-quality sales growth across different market conditions are often better positioned to generate stable cash flows, fund expansion, strengthen competitive advantages and create sustainable shareholder returns.
Selecting the Potential Winning StocksTo shortlist stocks with impressive sales growth and a high cash balance, we have selected 5-Year Historical Sales Growth (%) greater than X-Industry and Cash Flow of more than $500 million as our main screening parameters.
But sales growth and cash strength are not the absolute criteria for selecting stocks. Hence, we have added other factors to arrive at a winning strategy.
P/S Ratio less than X-Industry: This metric determines the value placed on each dollar of a company’s revenues. The lower the ratio, the better it is for picking a stock since the investor is paying less for each unit of sales.
% Change F1 Sales Estimate Revisions (four weeks) greater than X-Industry: Estimate revisions, better than the industry, are often seen to trigger an increase in stock price.
Operating Margin (average last five years) greater than 5%: The operating margin measures how much every dollar of a company's sales translates into profits. A high ratio indicates that the company has good cost control and sales are increasing faster than costs — an optimal situation.
Return on Equity (ROE) greater than 5%: This metric will ensure that sales growth is translated into profits and the company is not hoarding cash. A high ROE means that the company is spending wisely and is, in all likelihood, profitable.
Zacks Rank less than or equal to 2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform, irrespective of the market environment. You can see the complete list of today’s Zacks #1 Rank stocks here.
3 Stocks With Strong Sales Growth to Bet onBased in San Jose, CA, Super Micro Computer is a global provider of high-performance, energy-efficient IT solutions. SMCI’s solutions are based on its Server Building Block Solutions architecture.
SMCI’s expected sales growth rate for fiscal 2027 is 71.8%. Super Micro Computer sports a Zacks Rank #1 at present.
Based in Boston, MA, State Street is a financial holding company. STT provides a range of products and services for institutional investors worldwide through its subsidiaries.
STT’s expected sales growth rate for 2026 is 14.4%. State Street currently carries a Zacks Rank #2.
Headquartered in Phoenix, AZ, Pinnacle West Capital provides electricity services (wholesale or retail) in Arizona through its subsidiaries. PNW is involved in the generation, transmission and distribution of electricity from coal, nuclear, gas, oil and solar.
Pinnacle West Capital’s sales are expected to rise 4.1% in 2026. PNW carries a Zacks Rank #2 at present.
Key Takeaways Pinnacle West Capital targets 5-7% long-term EPS growth while maintaining disciplined cost management.PNW's first-half 2026 O&M costs fell 4.5% as it plans nearly $7.95B in investment through 2028. PNW plans to convert Cholla to provide about 380 MW of dispatchable generation by 2029. Pinnacle West Capital (PNW - Free Report) is strengthening efficiency through disciplined cost management and tighter control of operating expenses. These efforts support financial stability while creating more flexibility to fund infrastructure investments.
PNW’s operations and maintenance (O&M) expenses fell 1.1% year over year to $283.4 million in the second quarter, while first-half 2026 O&M costs declined 4.5% from the prior-year period. The company expects 2026 adjusted core O&M of $970-$980 million, while adjusted O&M, excluding renewable energy and demand-side-management costs, is projected at $1.02-$1.04 billion.
Pinnacle West Capital also remains committed to reducing O&M expenses on a per-megawatt-hour basis over time. PNW’s cost control is increasingly important as it plans to invest $2.6 billion in 2026 and nearly $7.95 billion through 2028 to support infrastructure and 7-9% rate-base growth.
By lowering costs, PNW can improve earnings and capture greater benefits from its expanding customer base and rising electricity demand. The company expects 2026 earnings per share (EPS) of $4.55-$4.75 and 5-7% long-term EPS growth.
The company is also pursuing cost-effective projects. Its planned conversion of the Cholla plant will repurpose existing infrastructure to provide about 380 megawatts of dispatchable generation by 2029, helping meet rising demand without building an entirely new facility.
Overall, PNW’s stable O&M costs amid rising demand and infrastructure investment are positive, while continued efficiency and regulatory recovery could support margins and long-term growth.
Stronger Cost Control Supports Utility GrowthUtilities that control operating costs can improve margins, preserve financial flexibility, fund infrastructure investments and maintain affordable customer rates. Effective cost management also strengthens operations and supports sustainable earnings growth. Alongside PNW, several other utilities also demonstrate strong cost management as highlighted below:
American Electric Power (AEP - Free Report) expects up to $16 billion in cost offsets from load growth, helping spread fixed costs while supporting customer affordability and long-term earnings growth.
PG&E Corporation (PCG - Free Report) expects to meet its 2026 target of reducing non-fuel O&M costs by 2-4%, supporting both customer affordability and greater operating efficiency.
The Zacks Rundown on PNWPNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.53% and an increase of 17.90%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Stock Trading at a Premium PNW is trading at a premium to the industry, with a forward 12-month price-to-earnings ratio of 18.92X versus the industry average of 15.42X.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past six months, Pinnacle West Capital’s shares have plunged 2% compared with the industry’s 7.9% fall.
Are defensive sectors ready to outshine growth in 2024?Pinnacle West Capital NYSE: PNW reported second-quarter 2026 earnings of $1.43 per share, down $0.15 from the same period a year earlier, as higher interest expense, depreciation and amortization, and lower transmission revenue more than offset strong weather-driven demand and customer growth.
Chief Financial Officer Andrew Cooper said the company expects to finish 2026 at the top end of its previously issued earnings guidance range of $4.55 to $4.75 per share. The utility reiterated all other aspects of its outlook.
Get Pinnacle West Capital alerts:
Ready for the Utilities Rebound? Here Are the Best Picks“We had a solid second quarter supported by disciplined execution across the business,” Chairman, President and CEO Ted Geisler said during the company’s earnings call.
Sales Growth Remains Strong Weather-normalized sales increased 9.6% year over year in the second quarter, while customer growth reached 2.1%. Cooper said hotter conditions, including an early start to triple-digit temperatures in the Phoenix area, supported cooling demand during the period.
NRG Fastest Mover in S&P As Activist Investor Pushes For ChangeResidential sales rose 5.6%, while commercial and industrial sales increased 12.7%, driven by expansion among data center, semiconductor and other advanced-manufacturing customers. Cooper said the quarter’s growth was diversified across residential and commercial customer categories.
The company did not raise its 2026 sales-growth guidance, though Cooper said year-to-date weather-normalized sales growth has been tracking closer to Pinnacle West’s longer-term outlook. The company’s long-term guidance calls for total sales growth of 5% to 7% through 2030, including 4% to 6% growth for large commercial and industrial customers.
Geisler said Taiwan Semiconductor Manufacturing Co.’s existing facilities had a relatively flat year-over-year impact on sales so far, with the bulk of that customer’s anticipated demand growth still ahead. He said recent sales growth instead reflects a combination of residential demand, other manufacturers, small and medium-sized businesses, and data centers beginning to occupy facilities.
On Aug. 2, Arizona Public Service, Pinnacle West’s utility subsidiary, recorded an all-time peak demand of 9,164 megawatts, more than 500 megawatts above the prior-year record, according to Geisler.
TSMC Expansion and Resource Planning TSMC announced an additional $100 billion investment in Arizona during the quarter, raising its total planned commitment in the state to $265 billion. The company now plans up to 12 advanced fabrication and packaging facilities in north Phoenix, as well as a research-and-development campus, Geisler said.
Pinnacle West is working with TSMC to determine the additional investment’s implications for electric capacity needs and the timing of demand ramp-up. Cooper said the utility’s integrated resource plan, now expected to be filed by the end of October, will include the company’s latest view of TSMC’s full planned build-out along with other committed load growth.
The utility has identified 4.5 gigawatts of committed large commercial and industrial load growth. Geisler said the forthcoming resource plan is expected to provide the company’s first detailed view of the timing of that demand ramp and the resources needed to serve it.
Pinnacle West delayed the integrated resource plan filing from August to October to incorporate the latest developments involving TSMC, customer-demand trends and the planned Cholla plant conversion, Geisler said.
Cholla Conversion and Transmission Investment The company recently announced plans to convert two retired coal-fired units at its Cholla Power Plant to natural gas. The project is expected to provide about 380 megawatts of dispatchable generation by 2029. Cooper said the project could add up to approximately $440 million of capital investment, primarily in 2027 and 2028, and is not included in the company’s current capital-expenditure outlook.
Geisler said the company believes its existing natural-gas supply can support operations through the end of the decade. Pinnacle West has contracted for capacity from the proposed Desert Southwest pipeline, which it expects to be important for supporting expansion in the following decade. The project is in early development, and Geisler said it is proceeding on schedule.
The utility is also increasing transmission investment to improve system resilience, connect to more distant resources and support customer growth. Cooper pointed to a potential multibillion-dollar transmission project connecting the Four Corners region, Cholla and the Phoenix load area. He said the company is focusing on projects eligible for recovery through its Federal Energy Regulatory Commission formula rate and Arizona transmission adjuster.
Rate Case and Financing Actions Pinnacle West concluded 31 days of hearings in its Arizona rate case on July 7 and has entered the briefing phase. Initial briefs are due Aug. 27, followed by reply briefs on Sept. 11. The company expects an administrative law judge’s recommended opinion and order later this year, followed by a final Arizona Corporation Commission decision before year-end.
Geisler said the hearing created a strong evidentiary record, particularly regarding the company’s request for a sustainable cost-recovery framework intended to address regulatory lag.
On financing, Cooper said Pinnacle West used the remaining capacity under its existing $900 million at-the-market equity program and filed a new $500 million ATM program to provide further funding flexibility. During the second quarter, the company also issued $500 million of senior unsecured notes to refinance maturing notes and support its funding strategy.
Second-quarter operations and maintenance expense declined modestly from a year earlier. However, higher debt balances and interest rates increased interest expense, while depreciation and amortization rose as the Agave, Ironwood and Sundance investments entered service. Transmission revenue declined in the quarter largely because of a final true-up adjustment related to 2025, Cooper said.
About Pinnacle West Capital (NYSE:PNW)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Should You Invest $1,000 in Pinnacle West Capital Right Now?Before you consider Pinnacle West Capital, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Pinnacle West Capital wasn't on the list.
While Pinnacle West Capital currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.
Amundi reduced its stake in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 19.9% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 154,737 shares of the utilities provider’s stock after selling 38,490 shares during the period. Amundi owned approximately 0.13% of Pinnacle West Capital worth $15,590,000 as of its most recent filing with the Securities and Exchange Commission.
Several other institutional investors and hedge funds have also bought and sold shares of PNW. CYBER HORNET ETFs LLC acquired a new stake in Pinnacle West Capital in the second quarter valued at about $27,000. MUFG Securities EMEA plc bought a new stake in shares of Pinnacle West Capital in the second quarter worth $32,000. Clearstead Advisors LLC increased its stake in shares of Pinnacle West Capital by 88.5% in the fourth quarter. Clearstead Advisors LLC now owns 394 shares of the utilities provider’s stock valued at $35,000 after buying an additional 185 shares during the period. EverSource Wealth Advisors LLC raised its holdings in Pinnacle West Capital by 55.5% during the 1st quarter. EverSource Wealth Advisors LLC now owns 827 shares of the utilities provider’s stock worth $83,000 after purchasing an additional 295 shares during the last quarter. Finally, Root Financial Partners LLC lifted its position in shares of Pinnacle West Capital by 168.2% in the 1st quarter. Root Financial Partners LLC now owns 885 shares of the utilities provider’s stock worth $89,000 after purchasing an additional 555 shares during the period. Institutional investors own 91.51% of the company’s stock.
Insider Activity In other news, EVP Jacob Tetlow sold 6,567 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $99.00, for a total value of $650,133.00. Following the completion of the transaction, the executive vice president directly owned 6,634 shares of the company’s stock, valued at $656,766. This represents a 49.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.19% of the stock is currently owned by corporate insiders.
Pinnacle West Capital Stock Performance Shares of PNW opened at $101.47 on Wednesday. Pinnacle West Capital Corporation has a one year low of $85.32 and a one year high of $111.16. The company has a market cap of $12.30 billion, a PE ratio of 18.90, a P/E/G ratio of 3.66 and a beta of 0.44. The stock has a 50-day moving average of $104.50 and a 200-day moving average of $101.20. 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 (NYSE:PNW – Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The utilities provider reported $1.43 EPS for the quarter, missing the consensus estimate of $1.46 by ($0.03). The company had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.40 billion. Pinnacle West Capital had a return on equity of 9.27% and a net margin of 11.99%.The business’s revenue for the quarter was up 7.1% compared to the same quarter last year. During the same period last year, the company earned $1.58 earnings per share. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, equities research analysts predict that Pinnacle West Capital Corporation will post 4.74 EPS for the current fiscal year.
Pinnacle West Capital Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 3rd will be paid a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 3.6%. The ex-dividend date is Monday, August 3rd. Pinnacle West Capital’s payout ratio is presently 67.78%.
Trending Headlines about Pinnacle West Capital Here are the key news stories impacting Pinnacle West Capital this week:
Positive Sentiment: Second-quarter revenue rose 7.1% year over year to $1.46 billion, exceeding the $1.40 billion analyst consensus. Management maintained its 2026 adjusted EPS guidance of $4.55 to $4.75, broadly consistent with the $4.70 consensus estimate. Pinnacle West Q2 Earnings Miss Estimates, Revenues Increase Year over Year Positive Sentiment: The company’s unchanged annual outlook may reassure investors that management views the quarterly weakness as manageable rather than a deterioration in its full-year earnings trajectory. Neutral Sentiment: Pinnacle West entered into an agreement to sell up to $500 million of common stock through an equity distribution program. The proceeds could support capital investment and financing needs, although the timing and size of any share sales remain uncertain. Pinnacle West Capital Announces $500 Million Equity Program Negative Sentiment: Second-quarter EPS was $1.43, below estimates ranging from $1.46 to $1.49 and down from $1.58 a year earlier. Higher fuel, purchased-power and interest expenses offset the revenue growth, highlighting continued cost and financing pressure. Pinnacle West Q2 Earnings Lag Estimates Negative Sentiment: The proposed equity issuance could dilute existing shareholders if shares are sold, potentially limiting upside despite the maintained earnings forecast. Analyst Upgrades and Downgrades PNW has been the topic of a number of analyst reports. Truist Financial reduced their price objective on shares of Pinnacle West Capital from $108.00 to $105.00 and set a “hold” rating on the stock in a research note on Friday, May 29th. Wall Street Zen upgraded shares of Pinnacle West Capital from a “sell” rating to a “hold” rating in a report on Saturday, June 27th. Morgan Stanley set a $97.00 price target on shares of Pinnacle West Capital in a research report on Wednesday, July 22nd. Weiss Ratings upgraded Pinnacle West Capital from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, May 6th. Finally, Wells Fargo & Company set a $106.00 price target on Pinnacle West Capital in a report on Tuesday, April 21st. Three investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Pinnacle West Capital presently has a consensus rating of “Hold” and a consensus target price of $104.07.
Read Our Latest Analysis on PNW
Pinnacle West Capital Profile (Free Report)
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.
Further Reading Five stocks we like better than Pinnacle West Capital System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter Want to see what other hedge funds are holding PNW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pinnacle West Capital Corporation (NYSE:PNW – Free Report).
Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEVizsla Silver Corp. $VZLA Position Boosted by Amundi
NEXT HEADLINE »Houlihan Lokey, Inc. $HLI Stock Holdings Boosted by Amundi
Pinnacle West Capital Corporation (PNW) Q2 2026 Earnings Call August 4, 2026 12:00 PM EDT
Company Participants
Amanda Ho - Director of Investor Relations
Theodore Geisler - Chairman of the Board, President & CEO
Andrew Cooper - Senior VP & CFO
Conference Call Participants
Alexander Calvert - Wells Fargo Securities, LLC, Research Division
Richard Sunderland - Truist Securities, Inc., Research Division
Julien Dumoulin-Smith - Jefferies LLC, Research Division
Travis Miller - Morningstar Inc., Research Division
Paul Patterson - Glenrock Associates LLC
Stephen D’Ambrisi - RBC Capital Markets, Research Division
Presentation
Operator
Good day, everyone, and welcome to the Pinnacle West Capital Corporation 2026 Second Quarter Earnings Conference Call. [Operator Instructions] It is now my pleasure to hand the floor over to your host, Amanda Ho. Ma'am, the floor is yours.
Amanda Ho
Director of Investor Relations
Thank you, Matthew. I would like to thank everyone for participating in this conference call and webcast to review our second quarter earnings, recent developments and operating performance. Our speakers today will be our Chairman, President and CEO, Ted Geisler; and our CFO, Andrew Cooper. Jacob Tetlow, COO; and Jose Esparza, SVP of Public Policy, are also here with us.
First, I need to cover a few details with you. The slides that we will be using are available on our Investor Relations website, along with our earnings release and related information.
Today's comments and our slides contain forward-looking statements based on current expectations and actual results may differ materially from expectations. Our second quarter 2026 Form 10-Q was filed this morning. Please refer to that document for forward-looking statements, cautionary language as well as the risk factors and MD&A sections, which identify risks and uncertainties that could cause actual results to differ materially from those contained in our disclosures.
Key Takeaways Pinnacle West posted Q2 EPS of $1.43, down 9.5%, while revenues rose 7.1% to $1.46 billion. Higher fuel, purchased power and interest costs pressured operating income despite stronger revenues. PNW reaffirmed 2026 EPS guidance of $4.55-$4.75 and plans $2.60 billion in APS investment. Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2026 earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.49 by 4.03%. The bottom line declined 9.5% from $1.58 in the year-ago quarter.
Total Revenues of PNWRevenues for the reported quarter totaled $1.46 billion, which surpassed the Zacks Consensus Estimate of $1.40 billion by 3.93%. The top line increased 7.1% from $1.36 billion recorded in the year-ago quarter.
PNW's Cost Growth Pressures Operating IncomeTotal operating expenses were $1.15 billion, up 9.4% from $1.05 billion in the prior-year quarter. Fuel and purchased power costs climbed 17.1% to $558.5 million, while depreciation and amortization increased 6.3% to $243.2 million.
Operating income totaled $305.7 million, down 0.6% from $307.6 million a year ago. Higher fuel and purchased power costs largely offset the benefit of increased revenues and lower operations and maintenance expenses.
Total interest expenses were $122.2 million, up 19.8% from $102 million in the prior-year period.
Pinnacle West's Financial PositionAs of June 30, 2026, cash and cash equivalents totaled $9.1 million compared with $6.6 million as of Dec. 31, 2025.
As of June 30, 2026, long-term debt, less current maturities, amounted to $9.78 billion compared with $9.21 billion as of Dec. 31, 2025.
Net cash provided by operating activities totaled $629.3 million in the first six months of 2026 compared with $663.3 million a year earlier. Capital expenditures were $1.36 billion versus $1.33 billion in the comparable 2025 period.
PNW Reaffirms Guidance, Continues Capital Investments The company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.74, higher than the midpoint of the company’s guided range.
The company projects its 2026 revenues in the range of $5.56-$5.66 billion.
Management expects retail customer growth of 1.5-2.5% and weather-normalized retail electricity sales growth of 4-6%. New large manufacturing facilities and several large data centers are expected to contribute 3-5% to sales growth.
Arizona Public Service Company (APS) plans to invest $2.60 billion in 2026, followed by $2.65 billion in 2027 and $2.70 billion in 2028. The 2026 spending plan includes $825 million for generation, $550 million for transmission, $765 million for distribution and $460 million for other projects. The capital program is designed to support reliability and continued growth across the utility's service territory.
PNW’s Zacks RankPinnacle West currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Utility ReleasesEvergy (EVRG - Free Report) is scheduled to report second-quarter 2026 results on Aug. 6, before the market opens. The Zacks Consensus Estimate for sales is pegged at $1.47 billion, which suggests a year-over-year increase of 2.63%.
EVRG’s long-term (three to five years) earnings growth rate is 9.07%. The Zacks Consensus Estimate for 2026 earnings is pinned at $4.25 per share, which implies a year-over-year improvement of 10.97%.
Consolidated Edison (ED - Free Report) is slated to report second-quarter 2026 results on Aug. 6, after market close. The Zacks Consensus Estimate for earnings is pegged at 74 cents per share, which implies a year-over-year increase of 10.45%.
ED’s long-term earnings growth rate is 6.32%. The Zacks Consensus Estimate for 2026 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 6.84%.
Vistra (VST - Free Report) is scheduled to report second-quarter 2026 results on Aug. 7, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.83 per share, which implies year-over-year growth of 81.19%.
VST's dividend yield is 0.92%. The Zacks Consensus Estimate for 2026 earnings is pinned at $9.37 per share, which implies a year-over-year improvement of 78.14%.
Pinnacle West (PNW - Free Report) came out with quarterly earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.58 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -4.03%. A quarter ago, it was expected that this power company would post a loss of $0.03 per share when it actually produced earnings of $0.27, delivering a surprise of +1000%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Pinnacle West, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $1.46 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.94%. This compares to year-ago revenues of $1.36 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Pinnacle West shares have added about 13.7% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Pinnacle West?While Pinnacle West has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Pinnacle West was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.11 on $1.88 billion in revenues for the coming quarter and $4.74 on $5.56 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Evergy Inc (EVRG - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This electric utility is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Evergy Inc's revenues are expected to be $1.47 billion, up 2.6% from the year-ago quarter.
Pinnacle West Capital Corp (PNW) released its 8-K filing on August 4, 2026, detailing financial results for the second quarter of 2026. Despite a robust operati
Key Takeaways Pinnacle West's Q2 EPS is estimated at $1.49, down 5.7%, while revenues are seen rising 3.08%. Arizona customer growth and semiconductor expansion likely boosted PNW's retail electricity demand.Grid investments and cost controls likely aided PNW, though financing costs and property taxes weighed. Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release second-quarter 2026 results on Aug. 4, before the market opens. The company delivered an earnings surprise of 1000% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
PNW’s Q2 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at $1.49 per share, which implies a year-over-year decrease of 5.70%.
The Zacks Consensus Estimate for revenues is pinned at $1.40 billion, indicating an increase of 3.08% from the year-ago reported number.
The Zacks Consensus Estimate for total electric sales is pegged at 9,722.3 gigawatt-hour, up 3.09% from the year-ago quarter’s reported figure.
Factors Likely to Have Impacted PNW’s Q2 EarningsPinnacle West's second-quarter earnings are expected to have benefited from robust economic growth across its Arizona service territory. Strong expansion in semiconductor manufacturing and customer growth are likely to have driven higher retail electricity sales in the second quarter. Continued expansion by Taiwan Semiconductor Manufacturing Company and its supply-chain partners likely boosted industrial electricity demand for Pinnacle West.
The company's second-quarter earnings are expected to have been supported by sustained retail customer growth and rising electricity demand. Pinnacle West's continued focus on cost management is expected to have supported the to-be-reported quarter's earnings by improving operating efficiency and controlling expenses.
PNW's second-quarter earnings are expected to have benefited from continued investments in grid modernization and transmission infrastructure. The investments likely contributed to higher transmission revenues and improved grid reliability, benefiting the company's upcoming quarterly results.
However, higher financing costs and property taxes associated with increased plant-in-service are likely to have partially offset these positive factors in the second quarter.
What Our Quantitative Model Predicts for PNWOur proven model predicts an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, as is the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is +0.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stock to ConsiderInvestors may also consider the following player from the same sector, as it has the right combination of elements to post an earnings beat this reporting cycle.
Duke Energy Corporation (DUK - Free Report) is scheduled to report second-quarter 2026 results on Aug. 4 and is likely to have registered an earnings beat. It has an Earnings ESP of +0.16% and a Zacks Rank #3 at present.
DUK’s long-term (three to five years) earnings growth rate is 6.76%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.29, which implies a year-over-year increase of 3.20%.
Southwest Gas (SWX - Free Report) is scheduled to report second-quarter 2026 results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47 cents, which implies a year-over-year decrease of 11.32%.
Spire (SR - Free Report) is set to report third-quarter fiscal 2026 results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +16.67% and a Zacks Rank #3 at present.
SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for third-quarter fiscal sales is pinned at $397.87 million, which suggests a year-over-year decline of 5.70%.
The market expects Pinnacle West (PNW - Free Report) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis power company is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of -5.7%.
Revenues are expected to be $1.4 billion, up 3.1% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.97% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Pinnacle West?For Pinnacle West, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.95%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Pinnacle West will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Pinnacle West would post a loss of$0.03 per share when it actually produced earnings of $0.27, delivering a surprise of +1,000.00%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Pinnacle West appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Utility - Electric Power industry, Avista (AVA - Free Report) , is soon expected to post earnings of $0.14 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -17.7%. This quarter's revenue is expected to be $419.2 million, up 2% from the year-ago quarter.
The consensus EPS estimate for Avista has remained unchanged over the last 30 days. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Avista will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Key Takeaways PNW expects 4-6% weather-normalized sales growth in 2026, led by manufacturing and data centers. PNW secured nearly 4.5 GW of committed high-load demand, mainly from data centers and manufacturers. PNW plans to invest $7.95B from 2026 to 2028 in generation, transmission and distribution assets. Pinnacle West Capital (PNW - Free Report) benefits from robust economic growth across its service territory, driven by population growth and rising investments in semiconductor manufacturing, data centers and other industrial facilities. These trends support customer growth, boost electricity demand, drive infrastructure investments and expand the regulated rate base.
PNW projects 1.5-2.5% retail customer growth and 4-6% weather-normalized sales growth in 2026. Demand from new manufacturing facilities and several large data centers is expected to contribute 3-5% in 2026 and support 5-7% annual sales growth through 2030. The company has secured nearly 4.5 gigawatts of committed extra high-load customer demand, primarily from data centers and large manufacturers.
The expansion of TSMC's fabrication facilities and increasing investments from semiconductor suppliers across Arizona are driving higher industrial power demand. Rising industrial activity should boost electricity demand and support PNW's long-term earnings growth.
To meet rising electricity demand, PNW continues to expand its infrastructure. Pinnacle West Capital plans to invest $7.95 billion between 2026 and 2028 in generation, transmission and distribution assets to improve reliability and cater to rising demand across its service region. PNW also maintains its 2026 earnings guidance of $4.55-$4.75 per share, indicating confidence in continued demand growth. Construction has started on the Redhawk expansion, which will add approximately 400 megawatts of natural gas capacity, while the company advances the Desert Sun project and evaluates additional generation resources for 2029-2031.
Strong economic expansion, rising industrial electricity demand and disciplined capital investments position PNW to deliver sustainable earnings growth and create long-term value for shareholders.
Economic Expansion Fuels Long-Term Utility GrowthUtilities benefit from economic growth as expanding businesses, industries, data centers and electric vehicle adoption increase electricity demand. This supports utility investments, generates fresh demand for utility services, drives earnings growth and creates long-term shareholder value.
Evergy (EVRG - Free Report) is benefiting from expanding economic activity across Kansas and Missouri. Rising investments in data centers, advanced manufacturing and commercial projects support long-term rate-base and earnings growth.
PPL Corporation (PPL - Free Report) benefits from growing economic activity across Pennsylvania and Kentucky. Expanding data center and industrial investments are driving electricity demand, supporting rate-base expansion and long-term earnings growth.
The Zacks Rundown on PNWPNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.34% and an increase of 17.60%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Dividend YieldPNW currently offers a 3.45% dividend yield, exceeding the Zacks Utility - Electric Power industry's 3.02% average over the past year.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past six months, Pinnacle West Capital shares have risen 14.1% compared with the industry’s 4.6% growth.
California Public Employees Retirement System lowered its position in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 13.2% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 275,327 shares of the utilities provider’s stock after selling 41,749 shares during the period. California Public Employees Retirement System owned about 0.23% of Pinnacle West Capital worth $27,739,000 at the end of the most recent reporting period.
Other hedge funds also recently bought and sold shares of the company. Kera Capital Partners Inc. lifted its holdings in Pinnacle West Capital by 13.4% in the first quarter. Kera Capital Partners Inc. now owns 4,535 shares of the utilities provider’s stock valued at $457,000 after acquiring an additional 537 shares during the period. Assetmark Inc. grew its stake in shares of Pinnacle West Capital by 32.8% during the 1st quarter. Assetmark Inc. now owns 1,719 shares of the utilities provider’s stock valued at $173,000 after purchasing an additional 425 shares during the period. NovaPoint Capital LLC grew its stake in shares of Pinnacle West Capital by 9.8% during the 1st quarter. NovaPoint Capital LLC now owns 13,741 shares of the utilities provider’s stock valued at $1,384,000 after purchasing an additional 1,222 shares during the period. Bessemer Group Inc. increased its position in shares of Pinnacle West Capital by 26.1% during the 1st quarter. Bessemer Group Inc. now owns 4,934 shares of the utilities provider’s stock valued at $496,000 after purchasing an additional 1,020 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its position in shares of Pinnacle West Capital by 1,510.9% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 115,939 shares of the utilities provider’s stock valued at $11,771,000 after purchasing an additional 108,742 shares during the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Pinnacle West Capital Stock Down 0.7% NYSE PNW opened at $105.61 on Wednesday. The stock’s 50-day moving average price is $104.01 and its 200-day moving average price is $100.19. The company has a quick ratio of 0.39, a current ratio of 0.60 and a debt-to-equity ratio of 1.38. Pinnacle West Capital Corporation has a 52 week low of $85.32 and a 52 week high of $111.16. The company has a market capitalization of $12.80 billion, a P/E ratio of 19.67, a price-to-earnings-growth ratio of 3.87 and a beta of 0.43.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last posted its quarterly earnings data on Monday, May 4th. The utilities provider reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.03) by $0.30. The firm had revenue of $1.15 billion for the quarter, compared to analysts’ expectations of $1.08 billion. Pinnacle West Capital had a return on equity of 9.27% and a net margin of 11.99%.The business’s quarterly revenue was up 11.4% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.04) EPS. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, equities research analysts predict that Pinnacle West Capital Corporation will post 4.73 earnings per share for the current year.
Pinnacle West Capital Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 3rd will be given a $0.91 dividend. This represents a $3.64 dividend on an annualized basis and a dividend yield of 3.4%. The ex-dividend date is Monday, August 3rd. Pinnacle West Capital’s dividend payout ratio is presently 67.78%.
Insider Buying and Selling at Pinnacle West Capital In other news, EVP Jacob Tetlow sold 6,567 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $99.00, for a total value of $650,133.00. Following the completion of the sale, the executive vice president directly owned 6,634 shares of the company’s stock, valued at $656,766. This represents a 49.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.19% of the stock is currently owned by insiders.
Wall Street Analyst Weigh In Several brokerages have recently weighed in on PNW. Jefferies Financial Group reiterated a “buy” rating and issued a $129.00 price objective on shares of Pinnacle West Capital in a research note on Wednesday, July 8th. Argus boosted their target price on shares of Pinnacle West Capital from $95.00 to $106.00 and gave the company a “buy” rating in a research report on Tuesday, April 14th. Wells Fargo & Company set a $106.00 target price on shares of Pinnacle West Capital in a report on Tuesday, April 21st. TD Cowen increased their price target on shares of Pinnacle West Capital from $100.00 to $101.00 and gave the stock a “hold” rating in a research report on Friday, May 15th. Finally, Truist Financial dropped their price target on shares of Pinnacle West Capital from $108.00 to $105.00 and set a “hold” rating on the stock in a research note on Friday, May 29th. Three research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $104.14.
Get Our Latest Stock Report on PNW
Pinnacle West Capital Profile (Free Report)
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.
Featured Articles Five stocks we like better than Pinnacle West Capital Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEDimensional Fund Advisors LP Raises Stock Holdings in PayPal Holdings, Inc. $PYPL
NEXT HEADLINE »California Public Employees Retirement System Sells 56,857 Shares of Equifax, Inc. $EFX
Investors looking for stocks in the Utility - Electric Power sector might want to consider either Exelon (EXC) or Pinnacle West (PNW). But which of these two stocks presents investors with the better value opportunity right now?
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Pinnacle West Capital Corp. (NYSE: PNW) announced today that it plans to release its 2026 second-quarter financial results before U.S. financial markets open o
PHOENIX--(BUSINESS WIRE)--Pinnacle West Capital Corp. plans to release its 2026 second-quarter financial results before U.S. financial markets open on Tuesday, Aug. 4, 2026.
PHOENIX--(BUSINESS WIRE)--Arizona Public Service (APS) announced today it plans to convert two units at its Cholla Power Plant in Joseph City, Navajo County, Arizona to natural gas. The repurposed resource, with operations beginning in 2029, will help meet the state’s growing energy demand while maintaining reliable, affordable electric service for customers.
Originally commissioned in 1962, the Cholla Power Plant played a vital role in powering Arizona for decades, providing a critical power supply to the state. Beginning in the last decade, federal environmental mandates forced the phased retirement of the plant’s coal units, completed in March 2025. APS plans to convert two units at the site to natural gas, preserving its legacy in the state while leveraging existing transmission lines and infrastructure to support Arizona’s energy future.
“Cholla has been an important part of the communities of Joseph City, Holbrook, Navajo County and northeastern Arizona for decades and has been foundational to Arizona’s energy grid,” said Johnny Penrod, APS Vice President of Generation. “Repurposing the Cholla Power Plant for natural gas allows us to build on that legacy – supporting reliable, affordable energy for our customers while continuing to invest in the communities who have long supported this plant.”
Navajo County Supervisor Jason Whiting, who frequently met with APS leadership to advocate for Cholla to be converted to natural gas, expressed his appreciation for the company's decision. “I could not be more excited by this announcement," Whiting stated. "APS's decision to convert Cholla into a natural gas plant will strengthen our local economy, create jobs and support our schools. Even more importantly, it will help power our state with reliable, affordable energy.”
Supporting Arizona’s growth with a diverse energy mix
Arizona is one of the fastest-growing states in the country, and its energy needs are projected to rise significantly in the coming years. Transitioning the Cholla Power Plant to natural gas could:
Add approximately 380 megawatts (MW) of energy.Provide enough power to serve about 61,000 homes across Arizona.By repurposing an existing site, APS can provide customers with a cost-effective solution while strengthening reliability. Natural gas plays a key role by:
Its ability to provide around-the-clock power to meet customer needs at any time of the day.Responding quickly to changes in customer peak energy demand.Complementing renewable energy resources like solar and wind power and battery energy storage.The facility would further support APS’s diverse energy mix – which includes nuclear from the Palo Verde Generating Station, natural gas, coal, solar, wind and battery energy storage – ensuring top-tier, reliable service as Arizona continues to grow.
Renewed economic impact and community benefits
Repowering the Cholla site with natural gas is expected to provide meaningful economic benefits for Joseph City, Holbrook and surrounding communities by reinvigorating the plant’s presence in the region. The project will support hundreds of jobs during construction and, once in operation, is expected to provide several dozen permanent jobs to help run the facility. The plant will also provide meaningful tax revenue to the area and help stimulate new economic activity.
Looking ahead
Construction on the gas conversion is expected to begin in 2028 with a targeted in-service date in 2029. This project will need to go through formal permitting and planning processes and will include ongoing community outreach through open houses, newsletters and aps.com/chollaconversion.
APS serves 1.5 million homes and businesses in 11 of Arizona’s 15 counties and is a leader in safely delivering reliable, affordable electricity in the Southwest. With 140 years of experience serving Arizona, APS is the main subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).
Key Takeaways PNW's capital plan aims to strengthen grid reliability and support long-term earnings growth. PNW plans nearly $7.95B in 2026-2028 investments across transmission, distribution and generation. PNW expects 4-6% retail sales growth in 2026, driven by manufacturing facilities and data centers. Pinnacle West Capital (PNW - Free Report) benefits from its strategic capital investment plan, which strengthens grid reliability, supports rising electricity demand and drives sustainable long-term earnings growth. These investments are aimed at improving system reliability, supporting customer growth and expanding the company's regulated asset base.
PNW aims to invest $2.6 billion in 2026 and nearly $7.95 billion during 2026-2028, allocating about $2.11 billion to transmission, $2.31 billion to distribution and $2.28 billion to generation infrastructure. These investments support a 7-9% rate base growth through 2028 and advance strategic transmission projects.
The company is witnessing strong growth in electricity demand, supported by sustained economic development across its service territory. Arizona continues to attract semiconductor manufacturers, large data centers and other large industrial customers that require 24x7 reliable power. The company expects retail electricity sales to grow 4-6% in 2026, driven primarily by expanding manufacturing facilities and data centers. It projects 5-7% annual weather-normalized sales growth through 2030. PNW is expanding its power infrastructure to meet growing demand and recover its investments through regulatory approvals.
The company continues to target 5-7% long-term EPS growth, supported by sustained infrastructure investment and increasing electricity demand. PNW's systematic capital allocation, expanding regulated rate base and constructive regulatory framework provide a solid foundation for future earnings growth.
Capital Investments Strengthening Regulated GrowthCapital investments strengthen regulated utility growth through grid modernization, transmission expansion, improved reliability and renewable integration. These investments expand the regulated asset base, support timely cost recovery and drive stable earnings and long-term growth.
FirstEnergy Corp. (FE - Free Report) expects to invest $36 billion over 2026-2030 to strengthen its regulated transmission and distribution business. The capital plan prioritizes grid modernization and infrastructure upgrades, supporting an estimated 10% compound annual rate base growth.
PPL Corporation (PPL - Free Report) plans to invest nearly $23 billion during 2026-2029, supporting an average annual rate base growth of 10.3%. These investments strengthen energy infrastructure, expand cleaner generation, improve reliability and maintain affordable electricity for customers.
PNW’s Earnings EstimatesThe Zacks Consensus Estimate for 2026 and 2027 EPS indicates a decrease of 6.73% and an increase of 18.05%, respectively, year over year.
Image Source: Zacks Investment Research
PNW’s Dividend YieldPNW currently offers a 3.42% dividend yield, exceeding the Electric Power industry 2.99% average over the past year.
Image Source: Zacks Investment Research
PNW’s Stock Price PerformanceIn the past month, the company’s shares have risen 7% compared with the industry’s 3.3% growth.
Investors with an interest in Utility - Electric Power stocks have likely encountered both ENGIE - Sponsored ADR (ENGIY) and Pinnacle West (PNW). But which of these two companies is the best option for those looking for undervalued stocks?
PHOENIX--(BUSINESS WIRE)--Pinnacle West Capital Corporation’s (NYSE: PNW) board of directors today declared a quarterly dividend of $0.91 per share of common stock, payable on Sept. 1, 2026, to shareholders of record at the close of business on Aug. 3, 2026.
General Information
Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $31 billion, about 6,200 megawatts of generating capacity and approximately 6,600 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to about 1.5 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of ENGIE - Sponsored ADR (ENGIY) and Pinnacle West (PNW). But which of these two stocks is more attractive to value investors?
The U.S. Department of Energy has set a goal to triple America's nuclear power generation capacity by the middle of the century. And that won't be as difficult as you might imagine.
In terms of nuclear energy production, the United States leads the pack. In fact, America generates 30% of the world's nuclear power. But nuclear makes up about 18% of the nation's power generation.
The only real issue is time; it takes years to build a new nuclear power plant. That's likely why some power companies have been collaborating with big tech companies to bring decommissioned nuclear plants back online.
Still, it will be years before the ball really gets rolling on expanding American nuclear capabilities further. And that actually makes nuclear power companies prime dividend opportunities.
Image source: Getty Images.
Turning the desert green Pinnacle West Capital Corp. (PNW +0.95%) is a bit of an under-the-radar nuclear play. It's a holding company that controls Arizona Public Service (APS), a utilities company in Arizona.
APS happens to operate the Palo Verde nuclear plant in Arizona. That plant is not only the single largest nuclear plant in the United States, it's also the most productive power plant nationwide.
To any other nuclear power geeks out there, the plant is incredibly cool. It has three reactors, a trait shared by only two other plants and exceeded by only one. Alone, the plant produces 32 million megawatt-hours annually, powering over 4 million homes and businesses in the Southwest.
The company isn't resting on its laurels either, it's working to renew its Palo Verde operating licenses for the next 20 years. It has also partnered up with other Arizona utilities companies, namely the Salt River Project and Tucson Electric Power to explore deploying more nuclear plants in Arizona. Of particular interest to APS are small modular reactors (SMR).
Finally, the company is looking to expand into other clean energy generation opportunities, in particular solar power. The company plans to bring its APS-owned Ironwood Solar Plant in Yuma online this year.
And, because Pinnacle West is a less obvious nuclear power producer, it seems to have avoided the massive run-up in share price other nuclear companies saw in the past year, which killed their yields.
Pinnacle West is only up 7.29% over the past 12 months and so its yield is 3.69% right now, considerably better than most other nuclear power companies like Constellation Energy at about 0.54%.
Today's Change
(
0.95
%) $
0.97
Current Price
$
103.37
Its payout ratio is a relatively high but fairly healthy 71.19%, but it has been higher in the past, so the company has brought that back down when it's needed to. It has also raised its dividend for five years in a row.
In addition to its solid yield, the company is fairly healthy, aside from its high debt-to-equity ratio of 2. It runs a net profit margin of 11.83% and it grew its revenue 4.2% over 2024 in 2025. Its net income grew 1.2% over the same period.
Arizona is a growing state that needs more power. That's especially true with companies in the energy-intensive semiconductor industry, like Taiwan Semiconductor Manufacturing, expanding their footprint in Arizona massively over the coming years.
Pinnacle West allows you to profit from both the nuclear renaissance and semiconductor industry growth trends. Consider it for a long-term dividend play.
SG Americas Securities LLC reduced its stake in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 17.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 27,171 shares of the utilities provider’s stock after selling 5,830 shares during the period. SG Americas Securities LLC’s holdings in Pinnacle West Capital were worth $2,410,000 at the end of the most recent quarter.
Other hedge funds also recently bought and sold shares of the company. Assenagon Asset Management S.A. raised its stake in shares of Pinnacle West Capital by 133.4% in the 4th quarter. Assenagon Asset Management S.A. now owns 920,687 shares of the utilities provider’s stock valued at $81,665,000 after acquiring an additional 526,212 shares during the period. TABR Capital Management LLC purchased a new position in shares of Pinnacle West Capital during the 4th quarter worth approximately $787,000. 180 Wealth Advisors LLC acquired a new stake in Pinnacle West Capital in the 4th quarter valued at approximately $206,000. Wealth Enhancement Advisory Services LLC increased its holdings in Pinnacle West Capital by 12.7% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 35,827 shares of the utilities provider’s stock valued at $3,198,000 after purchasing an additional 4,024 shares during the last quarter. Finally, Wedmont Private Capital purchased a new stake in Pinnacle West Capital in the fourth quarter valued at approximately $223,000. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts have recently commented on the company. Weiss Ratings restated a “buy (b)” rating on shares of Pinnacle West Capital in a research report on Thursday, January 22nd. Stifel Nicolaus set a $107.00 target price on Pinnacle West Capital in a research note on Thursday, February 26th. Morgan Stanley set a $96.00 target price on Pinnacle West Capital in a report on Friday, February 20th. Citigroup lifted their target price on Pinnacle West Capital from $100.00 to $109.00 and gave the company a “neutral” rating in a research report on Thursday, February 26th. Finally, UBS Group boosted their price target on shares of Pinnacle West Capital from $94.00 to $95.00 and gave the stock a “neutral” rating in a research note on Wednesday, December 17th. Three equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Pinnacle West Capital presently has an average rating of “Hold” and a consensus target price of $100.92.
Read Our Latest Analysis on Pinnacle West Capital
Pinnacle West Capital Stock Down 0.1% Shares of NYSE:PNW opened at $102.64 on Friday. The firm has a fifty day moving average price of $98.58 and a 200 day moving average price of $92.67. Pinnacle West Capital Corporation has a 1-year low of $85.32 and a 1-year high of $103.97. The stock has a market cap of $12.41 billion, a P/E ratio of 20.28, a P/E/G ratio of 3.77 and a beta of 0.49. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.54 and a quick ratio of 0.36.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last issued its quarterly earnings results on Wednesday, February 25th. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.08. The business had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.17 billion. Pinnacle West Capital had a net margin of 11.55% and a return on equity of 8.82%. The business’s revenue was up 3.0% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.06) earnings per share. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. Sell-side analysts predict that Pinnacle West Capital Corporation will post 5.13 EPS for the current year.
Pinnacle West Capital Profile (Free Report)
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.
See Also Five stocks we like better than Pinnacle West Capital Want to see what other hedge funds are holding PNW? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Pinnacle West Capital Corporation (NYSE:PNW – Free Report).
Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEC2P Capital Advisory Group LLC d.b.a. Prosperity Capital Advisors Sells 1,380 Shares of Invesco QQQ $QQQ
NEXT HEADLINE »SG Americas Securities LLC Acquires 59,500 Shares of Twist Bioscience Corporation $TWST
PHOENIX--(BUSINESS WIRE)--Pinnacle West plans to release its 2026 first-quarter financial results before U.S. financial markets open on Monday, May 4, 2026.
Massachusetts Financial Services Co. MA lowered its position in Pinnacle West Capital Corporation (NYSE:PNW – Free Report) by 2.8% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,900,385 shares of the utilities provider’s stock after selling 83,241 shares during the quarter. Massachusetts Financial Services Co. MA owned approximately 2.42% of Pinnacle West Capital worth $257,264,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. Capital Research Global Investors grew its stake in Pinnacle West Capital by 5.0% in the third quarter. Capital Research Global Investors now owns 15,853,302 shares of the utilities provider’s stock valued at $1,421,407,000 after purchasing an additional 758,190 shares in the last quarter. Barrow Hanley Mewhinney & Strauss LLC grew its stake in Pinnacle West Capital by 8.5% in the third quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 7,223,725 shares of the utilities provider’s stock valued at $647,679,000 after purchasing an additional 568,581 shares in the last quarter. Reaves W H & Co. Inc. grew its stake in Pinnacle West Capital by 21.3% in the third quarter. Reaves W H & Co. Inc. now owns 1,804,114 shares of the utilities provider’s stock valued at $161,757,000 after purchasing an additional 316,193 shares in the last quarter. First Trust Advisors LP grew its stake in Pinnacle West Capital by 6.3% in the third quarter. First Trust Advisors LP now owns 1,307,421 shares of the utilities provider’s stock valued at $117,223,000 after purchasing an additional 76,930 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in Pinnacle West Capital by 9.9% in the third quarter. Dimensional Fund Advisors LP now owns 1,265,651 shares of the utilities provider’s stock valued at $113,466,000 after purchasing an additional 113,585 shares in the last quarter. Hedge funds and other institutional investors own 91.51% of the company’s stock.
Pinnacle West Capital Price Performance Shares of NYSE:PNW opened at $103.67 on Monday. Pinnacle West Capital Corporation has a fifty-two week low of $85.32 and a fifty-two week high of $104.92. The business has a 50-day moving average of $99.54 and a two-hundred day moving average of $93.30. The stock has a market capitalization of $12.55 billion, a P/E ratio of 20.49, a P/E/G ratio of 3.80 and a beta of 0.49. The company has a debt-to-equity ratio of 1.30, a current ratio of 0.54 and a quick ratio of 0.36.
Pinnacle West Capital (NYSE:PNW – Get Free Report) last announced its quarterly earnings results on Wednesday, February 25th. The utilities provider reported $0.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.08. Pinnacle West Capital had a return on equity of 8.82% and a net margin of 11.55%.The company had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.17 billion. During the same quarter in the previous year, the firm earned ($0.06) earnings per share. The business’s quarterly revenue was up 3.0% compared to the same quarter last year. Pinnacle West Capital has set its FY 2026 guidance at 4.550-4.750 EPS. On average, equities research analysts predict that Pinnacle West Capital Corporation will post 5.13 EPS for the current fiscal year.
Analyst Ratings Changes A number of analysts have weighed in on PNW shares. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Pinnacle West Capital in a research report on Thursday, January 22nd. Morgan Stanley set a $96.00 price target on Pinnacle West Capital in a research report on Friday, February 20th. TD Cowen boosted their price target on Pinnacle West Capital from $97.00 to $100.00 and gave the stock a “hold” rating in a research report on Thursday, February 26th. Barclays boosted their price target on Pinnacle West Capital from $97.00 to $101.00 and gave the stock an “equal weight” rating in a research report on Tuesday, March 31st. Finally, Stifel Nicolaus set a $107.00 price target on Pinnacle West Capital in a research report on Thursday, February 26th. Three research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Pinnacle West Capital presently has an average rating of “Hold” and a consensus price target of $100.92.
Read Our Latest Report on PNW
Pinnacle West Capital Profile (Free Report)
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.
Recommended Stories Five stocks we like better than Pinnacle West Capital
Receive News & Ratings for Pinnacle West Capital Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pinnacle West Capital and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEMassachusetts Financial Services Co. MA Trims Holdings in Permian Resources Corporation $PR
NEXT HEADLINE »Massachusetts Financial Services Co. MA Has $242.32 Million Stake in Rexford Industrial Realty, Inc. $REXR
NiSource (NYSE:NI – Get Free Report) and Pinnacle West Capital (NYSE:PNW – Get Free Report) are both large-cap utilities companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, valuation, analyst recommendations, risk and earnings.
Earnings & Valuation This table compares NiSource and Pinnacle West Capital”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio NiSource $6.64 billion 3.45 $929.50 million $1.95 24.49 Pinnacle West Capital $5.34 billion 2.33 $616.53 million $5.06 20.34 NiSource has higher revenue and earnings than Pinnacle West Capital. Pinnacle West Capital is trading at a lower price-to-earnings ratio than NiSource, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility NiSource has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Pinnacle West Capital has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500.
Dividends NiSource pays an annual dividend of $1.20 per share and has a dividend yield of 2.5%. Pinnacle West Capital pays an annual dividend of $3.64 per share and has a dividend yield of 3.5%. NiSource pays out 61.5% of its earnings in the form of a dividend. Pinnacle West Capital pays out 71.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NiSource has increased its dividend for 14 consecutive years.
Institutional and Insider Ownership 91.6% of NiSource shares are owned by institutional investors. Comparatively, 91.5% of Pinnacle West Capital shares are owned by institutional investors. 0.4% of NiSource shares are owned by company insiders. Comparatively, 0.2% of Pinnacle West Capital shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations This is a summary of recent recommendations and price targets for NiSource and Pinnacle West Capital, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score NiSource 0 3 9 1 2.85 Pinnacle West Capital 1 11 3 0 2.13 NiSource presently has a consensus price target of $48.09, indicating a potential upside of 0.70%. Pinnacle West Capital has a consensus price target of $102.21, indicating a potential downside of 0.70%. Given NiSource’s stronger consensus rating and higher probable upside, equities analysts plainly believe NiSource is more favorable than Pinnacle West Capital.
Profitability This table compares NiSource and Pinnacle West Capital’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets NiSource 13.99% 8.07% 2.64% Pinnacle West Capital 11.55% 8.82% 2.12% Summary NiSource beats Pinnacle West Capital on 15 of the 18 factors compared between the two stocks.
About NiSource (Get Free Report)
NiSource Inc., an energy holding company, operates as a regulated natural gas and electric utility company in the United States. It operates in two segments, Gas Distribution Operations and Electric Operations. The company distributes natural gas to approximately 3.3 million customers through approximately 55,000 miles of distribution main pipeline and the associated individual customer service lines; and 1,000 miles of transmission main pipeline in northern Indiana, Ohio, Pennsylvania, Virginia, Kentucky, and Maryland. It also generates, transmits, and distributes electricity to approximately 0.5 million customers in various counties in the northern part of Indiana, as well as engages in wholesale electric and transmission transactions. It owns and operates coal-fired electric generating stations in Wheatfield and Michigan City; combined cycle gas turbine in West Terre Haute; natural gas generating units in Wheatfield; hydro generating plants in Carroll County and White County; wind generating units in White County, Indiana; and solar generating units in Jasper County and White County. The company was formerly known as NIPSCO Industries, Inc. and changed its name to NiSource Inc. in April 1999. NiSource Inc. was founded in 1847 and is headquartered in Merrillville, Indiana.
About Pinnacle West Capital (Get Free Report)
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services primarily in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using coal, nuclear, gas, oil, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains transmission and distribution substations; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
Receive News & Ratings for NiSource Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NiSource and related companies with MarketBeat.com's FREE daily email newsletter.
PHOENIX--(BUSINESS WIRE)--Pinnacle West declared a quarterly dividend of $0.91 per share of common stock, payable on June 1, 2026, to shareholders of record on May 4, 2026.
WEC Energy (WEC) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Pinnacle West (PNW - Free Report) . This company, which is in the Zacks Utility - Electric Power industry, shows potential for another earnings beat.
When looking at the last two reports, this power company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 85.76%, on average, in the last two quarters.
For the last reported quarter, Pinnacle West came out with earnings of $0.13 per share versus the Zacks Consensus Estimate of $0.05 per share, representing a surprise of 160.00%. For the previous quarter, the company was expected to post earnings of $3.04 per share and it actually produced earnings of $3.39 per share, delivering a surprise of 11.51%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Pinnacle West. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Pinnacle West currently has an Earnings ESP of +40.00%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on May 4, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Pinnacle West (PNW - Free Report) came out with quarterly earnings of $0.27 per share, beating the Zacks Consensus Estimate of a loss of $0.03 per share. This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +910.81%. A quarter ago, it was expected that this power company would post earnings of $0.05 per share when it actually produced earnings of $0.13, delivering a surprise of +160%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Pinnacle West, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $1.15 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.42%. This compares to year-ago revenues of $1.03 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Pinnacle West shares have added about 16.7% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Pinnacle West?While Pinnacle West has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Pinnacle West was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.49 on $1.42 billion in revenues for the coming quarter and $4.70 on $5.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, AES (AES - Free Report) , has yet to report results for the quarter ended March 2026.
This power company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of +85.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
AES's revenues are expected to be $3.1 billion, up 6% from the year-ago quarter.
Investors interested in stocks from the Utility - Electric Power sector have probably already heard of Pampa Energia (PAM - Free Report) and Pinnacle West (PNW - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Pampa Energia is sporting a Zacks Rank of #1 (Strong Buy), while Pinnacle West has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that PAM has an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
PAM currently has a forward P/E ratio of 9.02, while PNW has a forward P/E of 22.01. We also note that PAM has a PEG ratio of 3.09. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PNW currently has a PEG ratio of 3.79.
Another notable valuation metric for PAM is its P/B ratio of 1.2. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PNW has a P/B of 1.75.
These metrics, and several others, help PAM earn a Value grade of B, while PNW has been given a Value grade of C.
PAM has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that PAM is the superior option right now.
Key Takeaways Pinnacle West posted Q1 earnings of 27 cents per share, beating estimates and year-ago results. PNW generated $1.15B in Q1 revenues, up 11.36% year over year and above consensus estimates. PNW reaffirmed 2026 EPS guidance and plans $7.95B investments through 2028 to strengthen operations. Pinnacle West Capital Corporation (PNW - Free Report) reported first-quarter 2026 earnings of 27 cents per share, which beat the Zacks Consensus Estimate of a loss of three cents per share by a whopping 1000%. The bottom line improved substantially from a loss of four cents reported in the year-ago quarter.
Total Revenues of PNWSales for the quarter totaled $1.15 billion, which surpassed the Zacks Consensus Estimate of $1.08 billion by 6.48%. The top line increased 11.36% from $1.03 billion recorded in the year-ago quarter.
Pinnacle West Capital Corporation Price, Consensus and EPS SurprisePNW’s Operational HighlightsTotal operating expenses were $1.02 billion, up 4.45% year over year, due to higher fuel and purchased power, as well as other expenses.
Operating income totaled $131.2 million, up 129.2% from $57.2 million recorded in the year-ago quarter.
Total interest expenses were $125.8 million, up 19.84% from $104.9 million reported in the prior-year period.
PNW’s Financial HighlightsAs of March 31, 2026, cash and cash equivalents totaled $6.41 million compared with $6.60 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt-less current maturities amounted to $9.80 billion compared with $9.21 billion as of Dec. 31, 2025.
Net cash flow provided by operating activities in the first quarter of 2026 totaled $235.3 million compared with $401.9 million in the year-ago period.
PNW’s GuidanceThe company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.70, higher than the midpoint of the company’s guided range.
The company projects its 2026 revenues in the range of $5.56-$5.66 billion.
During 2026, management projects its retail customers to increase 1.5-2.5%. Retail electricity sales growth of 4-6%, driven partly by new large manufacturing facilities and multiple large data centers, is expected to contribute 3-5% to sales growth.
Pinnacle West plans to invest $2.60 billion in 2026 and $7.95 billion in the 2026-2028 period to further strengthen its operations.
PNW’s Zacks RankPinnacle West currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Utility ReleasesWEC Energy Group (WEC - Free Report) is scheduled to report first-quarter results on May 5. The Zacks Consensus Estimate for first-quarter EPS is pinned at $2.33, which implies a year-over-year increase of 2.64%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $3.21 billion, which suggests year-over-year growth of 1.91%.
NiSource (NI - Free Report) is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.06, which implies a year-over-year increase of 8.16%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $2.43 billion, which suggests year-over-year growth of 12.01%.
PPL Corporation (PPL - Free Report) is scheduled to report first-quarter results on May 8. The Zacks Consensus Estimate for first-quarter EPS is pinned at 61 cents, which implies a year-over-year increase of 1.67%.
The Zacks Consensus Estimate for first-quarter sales is pinned at $2.62 billion, which suggests year-over-year growth of 4.65%.
Pinnacle West (PNW) is upgraded from sell to hold as shares approach fair value after a strong technical breakout and solid Q1 results. PNW delivered Q1 GAAP EPS of $0.27 and revenue of $1.15B, beating expectations, with robust 9.4% retail sales growth driven by 14.6% C&I demand. Management reaffirmed FY 2026 EPS guidance of $4.55–$4.75 and targets 5–7% long-term EPS growth, supported by $10.4B capex through 2028.
Key Takeaways FirstEnergy is framed as the better 2026 utility pick after a side-by-side fundamentals review. FE EPS estimates: $2.73 in 2026 and $2.94 in 2027, implying 7.06% and 7.73% growth. FE targets $36B investment in 2026-2030; debt-to-capital 65.55% and ROE 10.66%. Companies operating in the Zacks Utility - Electric Power industry are engaged in generating and delivering electricity to millions of consumers across the United States. The regulated operation of the utilities supports cost recovery and stable returns, while rising customer demand drives earnings growth. They offer attractive dividends and stable returns, making them a reliable defensive investment choice. Utilities are now producing more electricity from clean sources to meet rising demand.
Electricity demand in the United States is rising, driven by higher residential demand, the reshoring of industries and increasing data center demands. Companies operating in this industry are making strategic investments in renewable expansion, grid modernization and strengthening distribution networks to maintain service reliability.
Amid the rising importance of electricity generation, transmission and distribution companies, let us discuss FirstEnergy Corporation (FE - Free Report) and Pinnacle West Capital (PNW - Free Report) . These two electric utilities target carbon neutrality by 2050 and are investing heavily in infrastructure, grid modernization and renewable energy expansion, making them comparable in the utility space.
FirstEnergy, with its regulated structure and operating through subsidiaries, serves millions of customers across the United States. Its strategic capital investment in infrastructure development supports rate base growth and renewable expansion. The company’s ‘Energize365’ is a multi-year grid evolution platform prioritizing customer affordability, with rates at or below those of in-state peers. It enhances service reliability and supports the company’s long-term growth initiatives.
Pinnacle West Capital stands out with its regulated framework and operations through subsidiaries, serving millions of customers across the state of Arizona. The company is aided by strong economic development in its service territories, an expanding customer base, a rise in data center demand and higher commercial activities. PNW invests systematically in expanding renewable assets, grid modernization and infrastructure development, which enhances operational efficiency and strengthens financial performance.
Pinnacle West Capital and FirstEnergy are among the leading utility stocks, and a side-by-side comparison of their fundamentals can help determine which offers the more attractive investment opportunity.
FE & PNW’s Earnings ProjectionsThe Zacks Consensus Estimate for FE’s earnings per share is pegged at $2.73 for 2026 and $2.94 for 2027, suggesting year-over-year growth of 7.06% and 7.73%, respectively. FE’s long-term (three to five years) earnings growth is currently pinned at 7.64%.
Image Source: Zacks Investment Research
On the other side, PNW’s earnings per share are pegged at $4.71 for 2026, suggesting a year-over-year fall of 6.73%, and $5.57 for 2027, suggesting year-over-year growth of 18.13%. PNW’s long-term earnings growth is currently pinned at 6.03%.
Image Source: Zacks Investment Research
Debt to CapitalThe Zacks Utilities sector is a capital-intensive one, and regular investment is required for infrastructure and technological upgrades, as well as for expanding operations. These utilities combine internally generated cash flows with borrowed funds from capital markets to finance long-term investments, ensuring steady growth and service reliability.
Pinnacle West Capital's debt-to-capital ratio currently stands at 60.73% compared to FirstEnergy’s 65.55%. Both companies are using debt to fund their business. PNW and FE’s debt levels are higher than the industry’s 59.94%, with FE’s being higher, indicating greater reliance on borrowed funds.
Return on EquityReturn on Equity (“ROE”) is an important measure reflecting how efficiently a company utilizes shareholders’ funds to generate returns. ROE highlights management’s effectiveness in utilizing invested capital to grow earnings and enhance shareholder value.
FirstEnergy’s current ROE is 10.66%, outperforming Pinnacle West Capital, which reports a slightly lower ROE 9.27%. FE utilizes shareholder capital more efficiently and generates higher profits, though both companies’ returns remain below the industry average of 11.09%.
Image Source: Zacks Investment Research
Capital Investment PlansUtilities’ operations are capital-intensive, as huge funds are required for infrastructure development, enhancing system reliability and maintaining the existing assets. Electric utilities engaged in power generation and distribution are continuously investing in grid modernization, renewable expansion, energy storage and replacement of outdated equipment.
FirstEnergy aims to invest $36 billion in 2026-2030 to strengthen its electric transmission, distribution and generation infrastructure, and expand renewable energy capacity. PNW plans to invest $7.95 billion in 2026-2028 to strengthen generation, distribution and transmission structure, supporting service reliability and rate base growth.
Price PerformancePNW shares have gained 2.3% in the past three months compared to FE’s decline of 8.0%.
Image Source: Zacks Investment Research
Summing UpFirstEnergy and Pinnacle West Capital are benefiting from rising load growth, driven by data center demand, an expanding customer base and significant infrastructure investments to support millions of customers across the United States.
FE’s stronger earnings estimate revisions, higher return on equity and broader capital expenditure plan make it a more attractive choice in the utility sector.
Based on the above discussion, FirstEnergy currently has an edge over Pinnacle West Capital, though both presently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in Utility - Electric Power stocks are likely familiar with ENGIE - Sponsored ADR (ENGIY - Free Report) and Pinnacle West (PNW - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, ENGIE - Sponsored ADR is sporting a Zacks Rank of #2 (Buy), while Pinnacle West has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ENGIY likely has seen a stronger improvement to its earnings outlook than PNW has recently. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
ENGIY currently has a forward P/E ratio of 12.70, while PNW has a forward P/E of 21.41. We also note that ENGIY has a PEG ratio of 3.51. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PNW currently has a PEG ratio of 3.68.
Another notable valuation metric for ENGIY is its P/B ratio of 1.63. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, PNW has a P/B of 1.72.
These are just a few of the metrics contributing to ENGIY's Value grade of A and PNW's Value grade of C.
ENGIY has seen stronger estimate revision activity and sports more attractive valuation metrics than PNW, so it seems like value investors will conclude that ENGIY is the superior option right now.
A month has gone by since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Pinnacle West due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pinnacle West Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Pinnacle West Capital Corporation reported first-quarter 2026 earnings of 27 cents per share, which beat the Zacks Consensus Estimate of a loss of three cents per share by a whopping 1000%. The bottom line improved substantially from a loss of four cents reported in the year-ago quarter.
Total Revenues of PNWSales for the quarter totaled $1.15 billion, which surpassed the Zacks Consensus Estimate of $1.08 billion by 6.48%. The top line increased 11.36% from $1.03 billion recorded in the year-ago quarter.
PNW’s Operational HighlightsTotal operating expenses were $1.02 billion, up 4.45% year over year, due to higher fuel and purchased power, as well as other expenses.
Operating income totaled $131.2 million, up 129.2% from $57.2 million recorded in the year-ago quarter.
Total interest expenses were $125.8 million, up 19.84% from $104.9 million reported in the prior-year period.
PNW’s Financial HighlightsAs of March 31, 2026, cash and cash equivalents totaled $6.41 million compared with $6.60 million as of Dec. 31, 2025.
As of March 31, 2026, long-term debt-less current maturities amounted to $9.80 billion compared with $9.21 billion as of Dec. 31, 2025.
Net cash flow provided by operating activities in the first quarter of 2026 totaled $235.3 million compared with $401.9 million in the year-ago period.
PNW’s GuidanceThe company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.70, higher than the midpoint of the company’s guided range.
The company projects its 2026 revenues in the range of $5.56-$5.66 billion.
During 2026, management projects its retail customers to increase 1.5-2.5%. Retail electricity sales growth of 4-6%, driven partly by new large manufacturing facilities and multiple large data centers, is expected to contribute 3-5% to sales growth.
Pinnacle West plans to invest $2.60 billion in 2026 and $7.95 billion in the 2026-2028 period to further strengthen its operations.
How Have Estimates Been Moving Since Then?Investors have witnessed a downward trend in estimates review over the past two months.
VGM ScoresCurrently, Pinnacle West has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Pinnacle West has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerPinnacle West is part of the Zacks Utility - Electric Power industry. Over the past month, Edison International (EIX - Free Report) , a stock from the same industry, has gained 3%. The company reported its results for the quarter ended March 2026 more than a month ago.
Edison International reported revenues of $4.1 billion in the last reported quarter, representing a year-over-year change of +7.7%. EPS of $1.42 for the same period compares with $1.37 a year ago.
Edison International is expected to post earnings of $1.05 per share for the current quarter, representing a year-over-year change of +8.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1%.
Edison International has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
Company to Showcase Exciting Lineup of Rigs from Customers and Brand Ambassadors, Including a Forest River Palomino Pause Travel Trailer
REDMOND, Ore., June 11, 2026 (GLOBE NEWSWIRE) -- Expion360 Inc. (Nasdaq: XPON) (“Expion360”), an industry leader in lithium-ion battery power storage solutions, today announced its participation as a Title Sponsor at Overland Expo PNW 2026 taking place June 26-28, 2026, at the Deschutes County Expo Center in Redmond, Oregon. Show hours Friday, June 26 and Saturday, June 27 are 9:00am-5:00pm Pacific time, and Sunday, June 28 9:00am-3:00pm Pacific time.
As a Title Sponsor, Expion360 will be featured prominently throughout the event and can be found at booth FG18. Visitors are invited to stop by and experience firsthand the products and technology that power some of the most capable overland builds on the road today.
Expion360 will showcase an exciting lineup of rigs from the Company's customers and brand ambassadors, offering attendees a real-world look at how Expion360 solutions perform in demanding off-road and overland environments.
Featured builds include:
Expion360 ambassador Chivas Sotelo will be on hand with his 2026 Ford F350 hosting a Four Wheel Camper Hawk Slide-In Camper, a customer build powered by 2x Expion360 EX2 240Ah Edge LiFePO4 batteries and 5x GC2 162Ah LiFePO4 batteries, delivering serious off-grid capability for the long haul.Expion360 employee Casey Inman will be showcasing his 2021 Dodge 2500 Power Wagon paired with a Four Wheel Camper Project M Topper Truck Camper, a customer build running on 2x Expion360 GC2 162Ah LiFePO4 batteries.Expion360 ambassador Andy Catts, owner of Beadlock Coffee, will be serving up fresh coffee straight from his iconic 1976 Toyota Land Cruiser FJ40, a rig running entirely on a single Expion360 EX2 240Ah LiFePO4 battery. Stop by for a cup and see how clean, reliable lithium power makes even a vintage build completely self-sufficient.Rounding out the lineup is a Forest River Palomino Pause Travel Trailer, equipped with 3x Expion360 EX1 368Ah LiFePO4 batteries, demonstrating the power and versatility of Expion360 solutions across a wide range of camping and overlanding platforms. Expion360 invites all Overland Expo PNW attendees to visit booth FG18 to meet the team, see the rigs, and learn more about what Expion360 has to offer the overland community.
About Overland Expo
Overland Expo® is the premier overlanding event series in the world—no other event offers the scope of classes taught by the world’s leading experts alongside a professional-level trade show that brings together all the camping and vehicle and motorcycle equipment and services you need to Get Outfitted. Get Trained. Get Inspired. Get Going. For more information visit overlandexpo.com.
About Expion360
Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles and marine applications, with residential and industrial applications under development.
The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability than other lithium-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. Expion360 delivers advanced lithium battery technology that powers every adventure, every mission, for the moments that matter.
The Company is headquartered in Redmond, Oregon. Expion360 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country.
To learn more about the Company, visit expion360.com.
