Pinnacle West Q2 profit misses estimates on higher costs

Pinnacle West Capital

04/08/2026 13:40

Overview
U.S. energy holding company's Q2 operating revenue rose yr/yr, net income and EPS declined
Q2 EPS missed analyst expectations
Company attributes lower results to higher interest charges, depreciation, and lower transmission revenues

Outlook
Pinnacle West continues to estimate 2026 EPS between $4.55 and $4.75 on a weather-normalized basis
Company expects robust customer growth and increased energy demand to continue through peak summer season
Pinnacle West plans infrastructure investments to strengthen reliability and meet Arizona's growing energy demand

Result Drivers
HIGHER COSTS - Co said increased interest charges and higher depreciation and amortization weighed on Q2 results
WEATHER-DRIVEN DEMAND - Early summer heat led to higher residential energy usage and increased demand, per CEO Ted Geisler
CUSTOMER GROWTH - Co reported 2.1% overall customer growth and 9.6% total sales increase in Q2

Company press release: ID:nBw6S9X7la

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Operating Revenue
 
$1.46 bln
 
Q2 EPS
Miss
$1.43
$1.47 (12 Analysts)
Q2 Net Income
 
$180.77 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 14 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Pinnacle West Capital Corp is $106.00, about 5.1% above its August 3 closing price of $100.81
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Aug 4 - Duke Energy's profit beats as higher power demand offsets rising expenses
Aug 4 - NRG Energy misses quarterly profit estimates as interest costs rise
Aug 3 - Unitil Q2 net income rises on higher rates, customer growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)