Pinnacle West raises 2026 profit forecast to $5.05 to $5.25 on sales growth

Pinnacle West Capital (PNW) said on Nov. 3 that third-quarter profit rose from a year earlier and that it now expects a higher 2026 profit.

The company’s press release said third-quarter earnings were $3.49 per diluted share, topping the $3.34 consensus estimate compiled by Finnhub.

Here's how the company did:

• Diluted EPS: $3.49 vs. $3.39 a year earlier, against the $3.34 consensus estimate compiled by Finnhub
• Revenue: $1.97 billion vs. $1.82 billion a year earlier, against a $1.92 billion consensus estimate compiled by Finnhub
• Net income attributable to common shareholders: $434.2 million vs. $413.2 million a year earlier

The company said the increase of about $21 million reflected higher customer sales and usage, favorable weather effects and customer growth. Higher depreciation and amortization and interest charges partly offset those gains.

2026 guidance

The company is adjusting its 2026 consolidated earnings guidance upward to a range of $5.05 to $5.25 per diluted share. The prior range, given on Aug. 4, was $4.55 to $4.75.

The company said the change reflects positive customer and sales growth and the impact of weather through the first three quarters of the year. Its outlook now assumes weather-normalized retail electricity sales growth of 8% to 10%.

Segment demand

Commercial and industrial sales increased 14.5%, while residential sales grew 4.5%, contributing to overall weather-normalized sales growth of 9.5%.

APS customers set an all-time peak demand record of 9,166 megawatts on Aug. 2, surpassing the previous peak of 8,648 megawatts set a year earlier.

“Growth should pay for growth. It’s that simple,” Chairman, President and Chief Executive Officer Ted Geisler said. He added that new customers would pay the cost of the infrastructure needed to serve them.

Bill credits and hardship aid

APS is providing more than $33 million in bill credits, effective this month after approval by the Arizona Corporation Commission. The credit is expected to reduce a typical residential customer’s November bill by about $14.

APS also is making an additional $5 million available to customers experiencing financial hardship. The company said that assistance is funded by Pinnacle West and not through customer rates.

Pinnacle West is hosting a conference call at 11 a.m. ET on Nov. 3 to discuss the results and its long-term outlook.