Pinnacle West Beats Q3 Targets and Raises Full-Year Guidance

Pinnacle West Capital Corporation recently reported third-quarter 2026 financial results that exceeded analyst projections. Revenue reached US$2.0b, beating estimates by 3.8%. Statutory earnings per share arrived at US$3.49, also topping expectations by 3.8% and rising $0.10 compared to the prior-year period.

Driven by the strong quarter, the utility lifted its full-year 2026 earnings guidance to between $5.05 and $5.25 per share, up from its earlier forecast of $4.55 to $4.75 per share. Management also increased its full-year retail sales growth outlook to a range of 8% to 10%, citing substantial momentum among commercial and industrial customers.

Weather-normalized retail electricity sales expanded 9.5% during the quarter. Commercial and industrial demand increased 14.5%, while residential sales grew 4.5%. Customer accounts grew by 1.8%, with sales and customer additions together contributing roughly $0.35 per share to third-quarter earnings growth. Operationally, the company managed through 12 peak demand days, aided by a 100% capacity factor at the Palo Verde facility.

During the quarter, Pinnacle West executed a 25-year direct pricing contract with TSMC for 1.88 GW. The framework requires large customers to supply upfront capital and credit support. To fund ongoing infrastructure, the company secured $700 million through senior unsecured notes and priced approximately $235 million in equity via an at-the-market program during the quarter, bringing equity raised through that program to nearly $920 million year-to-date.

Following the results, fourteen analysts tracked by Simply Wall St maintained a consensus price target of US$105, with targets spanning from US$89.00 to US$120. Analysts project 2027 revenue of US$5.93b and earnings per share of US$5.61, noting that the company's projected annualized revenue growth of 3.2% through 2027 trails the broader industry forecast of 7.3%.