Record Heat Drives Sales Growth for Pinnacle West Capital Corp.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy PNW?
Source: Newsfilter
- Significant Performance Improvement: Pinnacle West Capital Corp. reported a net income of $32.9 million for Q1 2026, translating to $0.27 per diluted share, a substantial recovery from a net loss of $4.6 million in Q1 2025, reflecting an increase of approximately $38 million primarily due to higher transmission revenues and customer growth.
- Strong Customer Growth: The company achieved a customer growth rate of 2.2%, alongside a weather-normalized sales growth of 9.4%, indicating a robust recovery in the Arizona economy, with energy consumption significantly increasing after experiencing record warm winter and spring temperatures.
- Summer Reliability Planning: The company is actively preparing for the upcoming peak summer season by enhancing wildfire mitigation measures and conducting equipment maintenance to ensure safe and reliable power supply for all customers, which is not only a core responsibility but also a strategic objective.
- Future Financial Outlook: Pinnacle West estimates its earnings per share for 2026 will range from $4.55 to $4.75 on a weather-normalized basis, reflecting confidence in future growth, particularly against a backdrop of sustained customer demand and improving market conditions.
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Analyst Views on PNW
Wall Street analysts forecast PNW stock price to fall
8 Analyst Rating
0 Buy
8 Hold
0 Sell
Hold
Current: 99.530
Low
85.00
Averages
94.14
High
99.00
Current: 99.530
Low
85.00
Averages
94.14
High
99.00
About PNW
Pinnacle West Capital Corporation is an energy holding company that conducts business through its subsidiaries, Arizona Public Service Company (APS), El Dorado Investment Company (El Dorado) and Pinnacle West Power, LLC. The Company's business segment is its regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission, and distribution. APS provides electric service to approximately 1.4 million customers. APS is also the operator and co-owner of Palo Verde, a primary source of electricity for the southwest United States and the nuclear power plant in the United States. El Dorado owns debt investments and minority interests in several energy-related investments and Arizona community-based ventures. Palo Verde is a three-unit nuclear power plant located approximately 50 miles west of Phoenix, Arizona.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pinnacle West Reports Strong Q1 2026 Earnings and Growth Outlook
- Strong Financial Performance: Pinnacle West reported earnings of $0.27 per share for Q1 2026, a significant recovery from a loss of $0.04 per share in Q1 2025, driven by higher transmission revenues and favorable weather conditions, indicating a positive market rebound.
- Sales Growth Outlook: The company maintains its 2026 sales growth guidance at 4% to 6% while projecting long-term growth of 5% to 7%, reflecting management's confidence in future demand, particularly amid the semiconductor industry's expansion.
- Infrastructure Investment: The ongoing Redhawk expansion project will add approximately 400 megawatts of natural gas capacity, with new resources expected to come online between 2029 and 2031, enhancing the company's ability to meet future customer demand.
- Contracting Model Progress: Management indicated that subscription model contracts are expected to be filed in 2026, and while negotiations are ongoing, this initiative aims to convert uncommitted load into long-term contracts, thereby improving revenue stability.
See More
Pinnacle West Capital Q1 Earnings Exceed Expectations
- Earnings Beat: Pinnacle West Capital reported Q1 GAAP EPS of $0.27, surpassing expectations by $0.26, indicating strong profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved $1.15 billion in revenue for Q1, an 11.7% year-over-year increase, exceeding market expectations by $70 million, reflecting robust business momentum that may attract more investor interest.
- Future Earnings Guidance: Pinnacle West estimates its 2026 earnings per share will range from $4.55 to $4.75 on a weather-normalized basis, providing clear profit guidance that enhances market confidence in its long-term growth prospects.
- Long-Term Growth Target: The company aims for 5% to 7% long-term sales growth through 2030 while advancing grid expansion and regulatory strategy, demonstrating a proactive approach to future market opportunities.
See More
Pinnacle West Capital Corp Reaffirms 2026 Earnings Guidance
- Financial Performance Review: Pinnacle West Capital Corp reported a net income of $32.92 million for the first quarter, translating to earnings of $0.27 per share, a significant recovery from a net loss of $4.64 million or $0.04 per share in the same quarter last year, indicating a rebound in profitability.
- Revenue Growth: The company achieved total operating revenues of $1.15 billion in the first quarter, up approximately 11.65% from $1.03 billion in the prior-year quarter, reflecting strong performance amid recovering market demand.
- Full-Year Earnings Outlook: Pinnacle West reaffirmed its consolidated earnings guidance for fiscal 2026, expecting earnings per share in the range of $4.55 to $4.75, demonstrating management's confidence in future performance despite a challenging market environment.
- Stock Price Movement: In pre-market trading on Monday, PNW's stock was priced at $100.64, down $2.95 or 2.85%, indicating a cautious market reaction to the company's earnings report.
See More
Record Heat Drives Sales Growth for Pinnacle West Capital Corp.
- Significant Performance Improvement: Pinnacle West Capital Corp. reported a net income of $32.9 million for Q1 2026, translating to $0.27 per diluted share, a substantial recovery from a net loss of $4.6 million in Q1 2025, reflecting an increase of approximately $38 million primarily due to higher transmission revenues and customer growth.
- Strong Customer Growth: The company achieved a customer growth rate of 2.2%, alongside a weather-normalized sales growth of 9.4%, indicating a robust recovery in the Arizona economy, with energy consumption significantly increasing after experiencing record warm winter and spring temperatures.
- Summer Reliability Planning: The company is actively preparing for the upcoming peak summer season by enhancing wildfire mitigation measures and conducting equipment maintenance to ensure safe and reliable power supply for all customers, which is not only a core responsibility but also a strategic objective.
- Future Financial Outlook: Pinnacle West estimates its earnings per share for 2026 will range from $4.55 to $4.75 on a weather-normalized basis, reflecting confidence in future growth, particularly against a backdrop of sustained customer demand and improving market conditions.
See More
Major Earnings Reports Expected on Monday
- Norwegian Cruise Line Earnings: Norwegian Cruise Line Holdings Ltd. (NCLH) is set to report earnings before the market opens on Monday, with investors keen on its recovery performance post-pandemic and future outlook, which could significantly impact stock price volatility.
- Tyson Foods Earnings: Tyson Foods (TSN) will also release its earnings on the same day, with market participants looking for insights into its pricing strategies in the meat market and cost control capabilities, which may influence industry trends.
- Axsome Therapeutics Earnings: Axsome Therapeutics (AXSM) is expected to announce its earnings, with the market focusing on its new drug development progress and sales outlook, potentially affecting investor sentiment in the biopharmaceutical sector.
- Other Earnings Announcements: Additionally, several other companies including ADCT, CCOI, and CNA are scheduled to report earnings before Monday, and the overall performance during this earnings season will provide crucial economic signals for the market.
See More
Pinnacle West Capital to Announce Q1 Earnings on May 4
- Earnings Announcement Date: Pinnacle West Capital is set to release its Q1 earnings on May 4 before market open, with a consensus EPS estimate of -$0.00, reflecting a 100% year-over-year increase, indicating potential recovery in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.08 billion, representing a 4.9% year-over-year growth, suggesting the company maintains stable sales growth despite market challenges.
- Estimate Revision Dynamics: Over the past three months, EPS estimates have seen five upward revisions and two downward adjustments, while revenue estimates experienced one upward and one downward revision, reflecting analysts' differing views on the company's future performance.
- Long-term Growth Targets: Pinnacle West aims for a long-term sales growth of 5-7% through 2030, actively pursuing grid expansion and regulatory strategies to enhance its competitive position in the market.
See More
Pinnacle West Reports Strong Q1 2026 Earnings and Growth Outlook
- Strong Financial Performance: Pinnacle West reported earnings of $0.27 per share for Q1 2026, a significant recovery from a loss of $0.04 per share in Q1 2025, driven by higher transmission revenues and favorable weather conditions, indicating a positive market rebound.
- Sales Growth Outlook: The company maintains its 2026 sales growth guidance at 4% to 6% while projecting long-term growth of 5% to 7%, reflecting management's confidence in future demand, particularly amid the semiconductor industry's expansion.
- Infrastructure Investment: The ongoing Redhawk expansion project will add approximately 400 megawatts of natural gas capacity, with new resources expected to come online between 2029 and 2031, enhancing the company's ability to meet future customer demand.
- Contracting Model Progress: Management indicated that subscription model contracts are expected to be filed in 2026, and while negotiations are ongoing, this initiative aims to convert uncommitted load into long-term contracts, thereby improving revenue stability.
See More
Pinnacle West Capital Q1 Earnings Exceed Expectations
- Earnings Beat: Pinnacle West Capital reported Q1 GAAP EPS of $0.27, surpassing expectations by $0.26, indicating strong profitability that boosts investor confidence.
- Significant Revenue Growth: The company achieved $1.15 billion in revenue for Q1, an 11.7% year-over-year increase, exceeding market expectations by $70 million, reflecting robust business momentum that may attract more investor interest.
- Future Earnings Guidance: Pinnacle West estimates its 2026 earnings per share will range from $4.55 to $4.75 on a weather-normalized basis, providing clear profit guidance that enhances market confidence in its long-term growth prospects.
- Long-Term Growth Target: The company aims for 5% to 7% long-term sales growth through 2030 while advancing grid expansion and regulatory strategy, demonstrating a proactive approach to future market opportunities.
See More
Pinnacle West Capital Corp Reaffirms 2026 Earnings Guidance
- Financial Performance Review: Pinnacle West Capital Corp reported a net income of $32.92 million for the first quarter, translating to earnings of $0.27 per share, a significant recovery from a net loss of $4.64 million or $0.04 per share in the same quarter last year, indicating a rebound in profitability.
- Revenue Growth: The company achieved total operating revenues of $1.15 billion in the first quarter, up approximately 11.65% from $1.03 billion in the prior-year quarter, reflecting strong performance amid recovering market demand.
- Full-Year Earnings Outlook: Pinnacle West reaffirmed its consolidated earnings guidance for fiscal 2026, expecting earnings per share in the range of $4.55 to $4.75, demonstrating management's confidence in future performance despite a challenging market environment.
- Stock Price Movement: In pre-market trading on Monday, PNW's stock was priced at $100.64, down $2.95 or 2.85%, indicating a cautious market reaction to the company's earnings report.
See More
Record Heat Drives Sales Growth for Pinnacle West Capital Corp.
- Significant Performance Improvement: Pinnacle West Capital Corp. reported a net income of $32.9 million for Q1 2026, translating to $0.27 per diluted share, a substantial recovery from a net loss of $4.6 million in Q1 2025, reflecting an increase of approximately $38 million primarily due to higher transmission revenues and customer growth.
- Strong Customer Growth: The company achieved a customer growth rate of 2.2%, alongside a weather-normalized sales growth of 9.4%, indicating a robust recovery in the Arizona economy, with energy consumption significantly increasing after experiencing record warm winter and spring temperatures.
- Summer Reliability Planning: The company is actively preparing for the upcoming peak summer season by enhancing wildfire mitigation measures and conducting equipment maintenance to ensure safe and reliable power supply for all customers, which is not only a core responsibility but also a strategic objective.
- Future Financial Outlook: Pinnacle West estimates its earnings per share for 2026 will range from $4.55 to $4.75 on a weather-normalized basis, reflecting confidence in future growth, particularly against a backdrop of sustained customer demand and improving market conditions.
See More
Major Earnings Reports Expected on Monday
- Norwegian Cruise Line Earnings: Norwegian Cruise Line Holdings Ltd. (NCLH) is set to report earnings before the market opens on Monday, with investors keen on its recovery performance post-pandemic and future outlook, which could significantly impact stock price volatility.
- Tyson Foods Earnings: Tyson Foods (TSN) will also release its earnings on the same day, with market participants looking for insights into its pricing strategies in the meat market and cost control capabilities, which may influence industry trends.
- Axsome Therapeutics Earnings: Axsome Therapeutics (AXSM) is expected to announce its earnings, with the market focusing on its new drug development progress and sales outlook, potentially affecting investor sentiment in the biopharmaceutical sector.
- Other Earnings Announcements: Additionally, several other companies including ADCT, CCOI, and CNA are scheduled to report earnings before Monday, and the overall performance during this earnings season will provide crucial economic signals for the market.
See More
Pinnacle West Capital to Announce Q1 Earnings on May 4
- Earnings Announcement Date: Pinnacle West Capital is set to release its Q1 earnings on May 4 before market open, with a consensus EPS estimate of -$0.00, reflecting a 100% year-over-year increase, indicating potential recovery in profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $1.08 billion, representing a 4.9% year-over-year growth, suggesting the company maintains stable sales growth despite market challenges.
- Estimate Revision Dynamics: Over the past three months, EPS estimates have seen five upward revisions and two downward adjustments, while revenue estimates experienced one upward and one downward revision, reflecting analysts' differing views on the company's future performance.
- Long-term Growth Targets: Pinnacle West aims for a long-term sales growth of 5-7% through 2030, actively pursuing grid expansion and regulatory strategies to enhance its competitive position in the market.
See More
