Pinnacle West Capital (PNW) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw strong retail sales growth of 9.6% year-over-year, with total operating revenues rising to $1.46 billion, driven by robust Arizona economic growth, especially in semiconductor and advanced technology sectors.

• Net income attributable to common shareholders for Q2 2026 was $178.6 million ($1.43 per diluted share), down from $192.6 million ($1.58 per diluted share) in Q2 2025, mainly due to higher interest charges and depreciation, partially offset by customer growth and favorable weather impacts.

• Set a new all-time peak demand record of 9,164 MW in August, exceeding last year's record by over 500 MW.

• Focused on customer-centric initiatives, digital investments, and maintaining top-tier reliability amid extreme heat, with expanded customer support programs.

• TSMC announced an additional $100 billion investment, now planning up to 12 facilities in North Phoenix, spurring significant regional development.

Financial highlights

• Q2 2026 EPS was $1.43 per diluted share, down from $1.58 in Q2 2025, mainly due to higher interest, depreciation, and lower transmission revenue.

• Operating revenues for Q2 2026 were $1.46 billion, up from $1.36 billion in Q2 2025.

• Customer growth reached 2.1% year-over-year, with total retail customers at 1,457,459.

• Residential sales grew 5.6%; commercial and industrial sales surged 12.7%–13.6% year-over-year.

• O&M expense declined modestly; interest and depreciation expenses increased due to higher plant balances and rates.

Outlook and guidance

• 2026 consolidated earnings are projected to be within $4.55 to $4.75 per diluted share on a weather-normalized basis, with long-term EPS growth targeted at 5%–7% annually through 2030.

• Not updating 2026 sales growth guidance, but year-to-date trends align with long-term 5%–7% outlook.

• Capital expenditure guidance unchanged; Cholla conversion project could add $440 million in 2027–2028.

• Major capital plan of $10.35 billion from 2025–2028 to support reliability and growth.

• The company is seeking a net base rate increase of $579.5 million in the 2025 Rate Case, with a decision expected by year-end.