Pinnacle West Capital (PNW)
NYSE:PNW
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Pinnacle West Capital
(NYSE:PNW)
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Rating:63Neutral
Price Target:
$110.00
â–²(5.73% Upside)
Action:Reiterated
Date:06/09/26
PNW scores as a steady but not high-conviction setup: financials are weighed down most by structurally negative free cash flow and higher leverage, while the earnings call was a clear positive (reaffirmed guidance, stronger sales and EPS recovery, improved funding visibility). Technicals and valuation are supportive but only moderately so, keeping the overall score in the low-to-mid 60s.
Positive Factors
Stable revenue & profitability
Consistent top-line expansion and steady margins reflect the regulated utility business model where cost recovery and allowed returns drive durable earnings. Over the next 2–6 months, continued rate-base additions and steady retail sales should support predictable revenue and baseline profitability.
Negative Factors
Persistent negative free cash flow
Chronic negative free cash flow due to sustained high capital spending forces reliance on external financing and limits internal liquidity. Over several quarters this structural gap can constrain flexibility, elevate financing needs, and increase exposure to market conditions when raising debt or equity.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable revenue & profitability
Consistent top-line expansion and steady margins reflect the regulated utility business model where cost recovery and allowed returns drive durable earnings. Over the next 2–6 months, continued rate-base additions and steady retail sales should support predictable revenue and baseline profitability.
Read all positive factors
Pinnacle West Capital Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue from different business units, providing insight into which segments are driving growth and which may need strategic adjustments. This helps assess the company's diversification and resilience against market fluctuations.
Highlights revenue from different business units, providing insight into which segments are driving growth and which may need strategic adjustments. This helps assess the company's diversification and resilience against market fluctuations.
Data provided by:
The Fly
The FlyPinnacle West Capital (PNW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.40B
Dividend Yield4.15%
Average Volume (3M)1.24M
Price to Earnings (P/E)19.0
Beta (1Y)0.15
Revenue Growth4.84%
EPS Growth5.77%
CountryUS
Employees94
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)5.46
Shares Outstanding121,187,164
10 Day Avg. Volume1,302,484
30 Day Avg. Volume1,235,801
Financial Highlights & Ratios
PEG Ratio-4.61
Price to Book (P/B)1.51
Price to Sales (P/S)1.99
P/FCF Ratio-12.95
Enterprise Value/Market Cap2.22
Enterprise Value/Revenue5.05
Enterprise Value/Gross Profit12.40
Enterprise Value/Ebitda12.62
Forecast
1Y Price Target
$105.44Price Target Upside1.35% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)4.74
Revenue Forecast (FY)$5.56B
Pinnacle West Capital Business Overview & Revenue Model
Company Description
Pinnacle West Capital Corporation (PNW), primarily operating through its Arizona Public Service Company (APS) subsidiary, delivers retail and wholesale electricity services predominantly within Arizona. The company manages the full scope of electr...
How the Company Makes Money
Pinnacle West primarily makes money through its regulated electric utility, APS, by earning revenues from selling electricity and delivering electric service within its service territory. The core revenue streams include (1) retail electric revenu...
Pinnacle West Capital Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and financial picture: management reported a clear earnings recovery, strong weather-normalized sales (9.4%) and customer growth (2.2%), meaningful transmission revenue contribution ($0.16/share), progress on major generation/transmission projects (Red Hawk ~400 MW; Desert Sun), de-risked near-term equity funding (~$850M priced), and maintained credit ratings. Offsetting factors include higher interest expense, smaller contribution from a portfolio investment, rising depreciation, regulatory lag and execution uncertainty related to the 20 GW uncommitted queue and pending rate case, and continued capital needs through 2028. Overall, the favorable top-line growth, project execution, and funding progress materially outweigh the manageable financial and regulatory headwinds.Positive Updates
Earnings Recovery
Reported EPS of $0.27 in Q1 2026 versus a loss of $0.04 in Q1 2025 (improvement of $0.31 per share), driven by higher transmission revenue, favorable weather, higher sales/usage, and lower O&M.
Negative Updates
Higher Financing Costs
Interest expense increased year-over-year due to higher debt balances from recent issuances, creating a headwind to net results despite other benefits in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Earnings Recovery
Reported EPS of $0.27 in Q1 2026 versus a loss of $0.04 in Q1 2025 (improvement of $0.31 per share), driven by higher transmission revenue, favorable weather, higher sales/usage, and lower O&M.
Read all positive updates
Company Guidance
Management reaffirmed 2026 financial and financing guidance while reporting Q1 EPS of $0.27 (vs. a $(0.04) loss in Q1 2025) and said transmission revenues added ~16¢ and weather contributed ~13¢ to Q1 results; customer growth was 2.2% for the quarter, weather‑normalized sales growth was 9.4% (7.4% adjusting for a one‑time prior‑year item) with C&I up 14.6% and residential up 1.8%, and annual sales growth guidance remains 4%–6% (long‑term 5%–7% through 2030). Management noted ~4.5 GW of committed extra‑high‑load customers and ~20 GW of uncommitted queue, all 2026 equity needs are funded with nearly $850M of priced equity available (>$350M priced in Q1), a base 2026–2028 new‑money equity need of ~$1.0–1.2B (2026 need ~$650M), stable credit ratings, transmission benefits expected through the year, a rate case hearing beginning May 18, and an IRP filing planned later this summer.Pinnacle West Capital Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
57
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.46B | 5.34B | 5.12B | 4.70B | 4.32B | 3.80B |
| Gross Profit | 2.22B | 1.36B | 2.14B | 1.84B | 1.71B | 1.70B |
| EBITDA | 2.18B | 2.13B | 2.07B | 1.78B | 1.65B | 1.70B |
| Net Income | 654.10M | 616.53M | 608.81M | 501.56M | 483.60M | 618.72M |
Balance Sheet | ||||||
| Total Assets | 30.69B | 31.68B | 26.10B | 24.66B | 22.72B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 6.41M | 9.85M | 3.84M | 4.96M | 4.83M | 9.97M |
| Total Debt | 15.14B | 17.85B | 11.05B | 10.30B | 8.88B | 8.18B |
| Total Liabilities | 23.58B | 24.60B | 19.25B | 18.38B | 16.56B | 15.98B |
| Stockholders Equity | 7.07B | 7.05B | 6.75B | 6.18B | 6.05B | 5.91B |
Cash Flow | ||||||
| Free Cash Flow | -991.93M | -819.52M | -639.37M | -638.67M | -466.05M | -613.46M |
| Operating Cash Flow | 1.64B | 1.81B | 1.61B | 1.21B | 1.24B | 860.01M |
| Investing Cash Flow | -2.54B | -2.58B | -1.93B | -1.69B | -1.62B | -1.39B |
| Financing Cash Flow | 900.72M | 775.09M | 322.69M | 486.68M | 371.47M | 476.92M |
Pinnacle West Capital Technical Analysis
Positive
104.04
Price Trends
101.61
Positive
100.17
Positive
93.86
Positive
Market Momentum
1.10
Negative
67.82
Neutral
86.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PNW, the sentiment is Positive. The current price of 104.04 is above the 20-day moving average (MA) of 102.18, above the 50-day MA of 101.61, and above the 200-day MA of 93.86, indicating a bullish trend. The MACD of 1.10 indicates Negative momentum. The RSI at 67.82 is Neutral, neither overbought nor oversold. The STOCH value of 86.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PNW.
Pinnacle West Capital Risk Analysis
Pinnacle West Capital disclosed 28 risk factors in its most recent earnings report. Pinnacle West Capital reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pinnacle West Capital Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $10.10B | 21.66 | 9.47% | 3.82% | 4.11% | -6.40% | |
66 Neutral | $36.54B | 22.29 | 11.99% | 3.38% | 11.20% | -1.68% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $30.70B | 24.15 | 10.43% | 3.45% | 22.33% | -17.75% | |
63 Neutral | $12.40B | 18.99 | 9.34% | 4.15% | 4.84% | 5.77% | |
61 Neutral | $18.85B | 22.89 | 11.24% | 3.11% | 8.34% | 10.00% | |
61 Neutral | $19.02B | 21.58 | 8.69% | 3.72% | 1.99% | 0.63% |
* Utilities Sector Average
PNW
Pinnacle West Capital
107.28
21.70
25.36%
LNT
Alliant Energy
76.19
17.71
30.27%
DTE
DTE Energy
152.81
25.49
20.02%
OGE
OGE Energy
48.95
6.58
15.53%
WEC
WEC Energy Group
117.07
17.11
17.12%
EVRG
Evergy
86.66
20.57
31.12%
Pinnacle West Capital Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Pinnacle West Highlights Growth Outlook in Analyst Presentation
Positive
Jun 8, 2026
Pinnacle West Capital disclosed that in June 2026 it would meet with securities analysts and investors, using an investor presentation that highlights its scale as Arizona’s largest electric utility, its substantial clean energy mix, and its...
Business Operations and StrategyPrivate Placements and Financing
Pinnacle West Extends Maturity on Equity Distribution Program
Neutral
Jun 5, 2026
On June 5, 2026, Pinnacle West Capital amended its existing equity distribution agreement governing at-the-market offerings of up to $900 million of common stock. The First Amendment extends the outside maturity period for related forward sale agr...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Pinnacle West Shareholders Reaffirm Board and Governance Structure
Positive
May 19, 2026
At the May 14, 2026 Annual Meeting of Shareholders, Pinnacle West Capital Corporation investors elected ten directors to one-year terms expiring at the 2027 annual meeting, reaffirming the existing board slate and signaling continuity in the compa...
Business Operations and StrategyFinancial Disclosures
Pinnacle West Raises Long-Term Retail Sales Growth Outlook
Positive
May 6, 2026
Pinnacle West Capital plans to engage with securities analysts and investors in May 2026 using an investor presentation that highlights its scale, growth trajectory, and the strength of its Arizona service territory. The materials underscore that ...
Business Operations and StrategyFinancial Disclosures
Pinnacle West Capital Reports Strong Quarterly Earnings Rebound
Positive
May 4, 2026
Pinnacle West Capital Corp. reported on May 4, 2025 that it generated consolidated net income attributable to common shareholders of $32.9 million, or $0.27 per diluted share, for the quarter ended March 31, 2026, reversing a net loss of $4.6 mill...
Business Operations and StrategyFinancial Disclosures
Pinnacle West Highlights APS Growth Outlook and Investment Strategy
Positive
Apr 15, 2026
Pinnacle West Capital told investors it will use an updated investor presentation during April 2026 meetings to highlight the growth outlook and financial profile of its Arizona Public Service utility, emphasizing its role as Arizona’s large...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.