Pinnacle West Capital (PNW)
NYSEUtilitiesUtilities - Regulated ElectricSnapshot 2026-07-09
$106.74-1.00%
Close 2026-07-09 · 1-day change
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Track PNW free→Warn: Management is running behind on a stated commitment.
Pinnacle West Capital keeps steady earnings with EPS guidance near $4.65 for 2026. It plans big investments in gas generation and transmission to support growth. Analysts expect about 6% revenue growth. The company trades below peer P/E, offering value.
EPS guidance has softened from prior years, showing some pressure. Investment plans may strain capital allocation. Free cash flow yield is negative, raising concerns about cash generation.
The price is about 9% above our fair value near $100 and 5% below the Street median target. The market expects roughly 6% revenue growth, which aligns with consensus but leaves limited upside.
Breaks if: Investment in gas generation falls significantly short of 2 GW target
The company plans to invest in new gas generation projects with a capacity of up to 2 GWs.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Transmission investment falls below $6 billion
The company plans to expand its transmission network with an investment exceeding $6 billion.
Breaks if: EPS guidance falls below $4.55 for FY26
The company aims to maintain its EPS guidance range of $4.55 to $4.75 for the fiscal year 2026.
Stated in 3 of last 3 quarters. The company has maintained its EPS guidance range of $4.55 to $4.75 for 2026. Despite a net income of $35.1M in 2026-Q1, the trajectory shows mixed results with limited progress towards achieving the upper end of the guidance range.
“The Company continues to estimate its consolidated earnings will be within a range of $4.55 to $4.75 per diluted share.”
“For 2026, the Company continues to estimate its consolidated earnings will be within a range of $4.55 to $4.75 per diluted share.”
“The Company estimates its 2026 consolidated earnings will be within a range of $4.55 to $4.75 per diluted share.”
Breaks if: Long-term EPS growth falls below 5% annually
The company targets a long-term EPS growth of 5%-7% based on the 2024 midpoint.