Pinnacle West Capital Corporation (PNW) AI Stock Analysis

Pinnacle West Capital Corporation operates primarily through Arizona Public Service Company, providing electric utility services to approximately 1.3 million customers in Arizona. Headquartered in Phoenix, the company owns or leases around 6,323 megawatts of regulated generation capacity utilizing coal, nuclear, natural gas, oil, and solar resources. Its infrastructure includes approximately 5,814 miles of overhead and 74 miles of underground transmission lines, alongside 11,258 miles of overhead and 22,821 miles of underground distribution lines, supported by 475 transmission and distribution substations.

Revenue grew from $3.80B in FY2021 to $5.34B in FY2025, reflecting a 5-year CAGR of 8.3%. Annual revenue growth moderated from 13.7% in FY2022 and 9.1% in FY2024 to 4.2% in FY2025. Operating margin reached 20.0% in FY2025, up from 16.9% in FY2022, while net margin stood at 11.5%. Net income was $616.5M with EPS of $5.06 in FY2025. Over the trailing twelve months, revenue reached $5.55B with EPS of $5.21. For the quarter ended June 30, 2026, quarterly revenue rose 7.1% year-over-year, while quarterly earnings fell 9.5%.

As of June 30, 2026, Pinnacle West held $9.1M in cash and short-term investments against $11.37B in total debt, resulting in net debt of $11.36B and a debt-to-equity ratio of 1.62. Current ratio was 0.59, and shareholders' equity totaled $7.03B. In FY2025, operating cash flow reached $1.81B, while capital expenditures of $2.62B led to free cash flow of -$819.5M. The company also distributed $422.8M in dividends and raised $84.6M through share issuance.

Trading at $103.42, Pinnacle West carries a trailing P/E of 19.9x, below the median of 21.0x for its S&P 500 Utilities peers. Its forward P/E of 16.9x trades slightly above the peer median of 16.0x, while its price-to-sales multiple of 2.3x is lower than the peer median of 2.9x. Over the past year, the stock returned 15.5%, slightly behind the S&P 500 return of 16.8%. Over a 5-year span, its return of 89.2% outpaced the S&P 500 return of 83.0%.

Pinnacle West yields 3.52% on a forward annual dividend of $3.64 paid quarterly. The company has paid consecutive dividends for 34 years, delivering an annualized 5-year dividend growth rate of 2.5%. Its payout ratio stands at 69.7%, and its most recent ex-dividend date was August 3, 2026.

Wall Street coverage includes 4 Strong Buy, 1 Buy, 11 Hold, and 1 Sell ratings. The mean price target is $102.93, representing a target vs last close of -0.5%. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $5.62B and EPS of $4.78. Pinnacle West beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Pinnacle West Capital Corporation (PNW). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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