A month has gone by since the last earnings report for Pinnacle West (PNW Quick QuotePNW - Free Report) . Shares have lost about 4.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Pinnacle West due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Pinnacle West Capital Corporation before we dive into how investors and analysts have reacted as of late.

Pinnacle West Q2 Earnings Miss Estimates, Revenues Increase Y/Y

Pinnacle West Capital Corporation reported second-quarter 2026 earnings of $1.43 per share, missing the Zacks Consensus Estimate of $1.49 by 4.03%. The bottom line declined 9.5% from $1.58 in the year-ago quarter.

Total Revenues of PNW

Revenues for the reported quarter totaled $1.46 billion, which surpassed the Zacks Consensus Estimate of $1.40 billion by 3.93%. 
The top line increased 7.1% from $1.36 billion recorded in the year-ago quarter.

PNW's Cost Growth Pressures Operating Income

Total operating expenses were $1.15 billion, up 9.4% from $1.05 billion in the prior-year quarter. Fuel and purchased power costs climbed 17.1% to $558.5 million, while depreciation and amortization increased 6.3% to $243.2 million.

Operating income totaled $305.7 million, down 0.6% from $307.6 million a year ago. Higher fuel and purchased power costs largely offset the benefit of increased revenues and lower operations and maintenance expenses.

Total interest expenses were $122.2 million, up 19.8% from $102 million in the prior-year period.

Pinnacle West's Financial Position

As of June 30, 2026, cash and cash equivalents totaled $9.1 million compared with $6.6 million as of Dec. 31, 2025.

As of June 30, 2026, long-term debt, less current maturities, amounted to $9.78 billion compared with $9.21 billion as of Dec. 31, 2025.

Net cash provided by operating activities totaled $629.3 million in the first six months of 2026 compared with $663.3 million a year earlier. Capital expenditures were $1.36 billion versus $1.33 billion in the comparable 2025 period.

PNW Reaffirms Guidance, Continues Capital Investments

The company continues to expect its 2026 consolidated earnings in the range of $4.55-$4.75 per share and projects 5-7% long-term EPS growth from the 2024 earnings base. The Zacks Consensus Estimate for the same is pegged at $4.74, higher than the midpoint of the company’s guided range.

The company projects its 2026 revenues in the range of $5.56-$5.66 billion.

Management expects retail customer growth of 1.5-2.5% and weather-normalized retail electricity sales growth of 4-6%. New large manufacturing facilities and several large data centers are expected to contribute 3-5% to sales growth.

Arizona Public Service Company (APS) plans to invest $2.60 billion in 2026, followed by $2.65 billion in 2027 and $2.70 billion in 2028. The 2026 spending plan includes $825 million for generation, $550 million for transmission, $765 million for distribution and $460 million for other projects. The capital program is designed to support reliability and continued growth across the utility's service territory.

How Have Estimates Been Moving Since Then?

Estimates review followed a upward path over the past two months.

VGM Scores

Currently, Pinnacle West has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Pinnacle West has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.