PINNACLE WEST REPORTS LOWER 2026 SECOND-QUARTER FINANCIAL RESULTS COMPARED TO A YEAR AGO
PINNACLE WEST CAPITAL CORP (PNW) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE August 4, 2026 Media Contact: Analyst Contact: Alan Bunnell (602) 250-3376 Amanda Ho (602) 250-3334 Website: pinnaclewest.com PINNACLE WEST REPORTS LOWER 2026 SECOND-QUARTER FINANCIAL RESULTS COMPARED TO A YEAR AGO • Lower second-quarter financi
How this was made
The 30-second read
Why it matters
The disclosure provides concrete quarterly financials, explains the main drivers of the YoY decline, and reiterates a 2026 EPS range. It also adds operational context around APS reliability and customer support during peak summer demand.
Market read
Traders can update models for PNW’s near-term earnings trajectory using the stated Q2 drivers and adjust forward expectations around the reaffirmed 2026 EPS range.
What to watch
Transmission service revenue weakness and higher interest charges are highlighted as headwinds; traders may underweight how these could persist into later quarters if rates/financing costs do not ease.
PINNACLE WEST REPORTS LOWER 2026 SECOND-QUARTER FINANCIAL RESULTS COMPARED TO A YEAR AGO
Consolidated net income attributable to common shareholders and diluted EPS were lower than the same period in 2025, primarily reflecting higher interest charges, higher depreciation and amortization, and lower transmission service revenues. The company cited strong operating performance, customer growth, weather-driven demand, lower operations and maintenance expenses, lower taxes, and reaffirmed 2026 weather-normalized earnings guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated net income attributable to common shareholdersother | $178.6M | – | a decrease of about $14 million |
| Diluted earnings per share of common stockother | $1.43 per diluted share of common stock | – | – |
| Residential cooling degree daysother | 7% increase | – | 7% increase |
| Residential customer growthother | 2.1% | – | 2.1% |
| Weather-normalized sales growthother | 5.6% | – | 5.6% |
| Overall customer growthother | 2.1% | – | 2.1% |
| Total sales increaseother | 9.6% | – | 9.6% |
| Consolidated assetsother | about $32.6 billion | – | – |
2026 outlook
- NoteConsolidated earnings of $4.55 to $4.75 per diluted share on a weather-normalized basis.
What drove it
- Higher energy demand and sustained load growth were driven by early summer heat and increased air-conditioner use.
- Residential cooling degree days increased 7% in the 2026 second quarter versus the same period a year ago.
- APS achieved residential customer growth of 2.1%, weather-normalized sales growth of 5.6%, overall customer growth of 2.1%, and total sales growth of 9.6%.
- Favorable effects of weather, customer growth and usage, decreased operations and maintenance expenses, and lower taxes partially offset earnings headwinds.
Concerns
- Higher interest charges reduced 2026 quarterly results.
- Higher depreciation and amortization reduced 2026 quarterly results.
- Lower transmission service revenues reduced 2026 quarterly results.
- The planned conversion of two retired coal-fired Cholla Power Plant units remains subject to regulatory approvals.
What to watch
- Execution against the 2026 weather-normalized consolidated earnings outlook of $4.55 to $4.75 per diluted share.
- Customer growth, weather-normalized sales growth, and demand through the peak summer season.
- Interest charges, depreciation and amortization, transmission service revenues, operations and maintenance expenses, and taxes.
- Regulatory approvals and planned construction timing for the Cholla Power Plant conversion project, which is expected to begin construction in 2028 and bring about 380 MW online by 2029.
Balance sheet and cash flow
- Consolidated assets of about $32.6 billion.
Analysis
Pinnacle West reported consolidated net income attributable to common shareholders of $178.6 million, or $1.43 per diluted share of common stock, for the quarter ended June 30, 2026, compared with consolidated net income of $192.6 million, or $1.58 per diluted share, for the same period in 2025. The company characterized the result as lower financial results compared with a year ago and said the decrease was about $14 million.
The stated earnings headwinds were higher interest charges, higher depreciation and amortization, and lower transmission service revenues. Those pressures were partially offset by favorable weather effects, customer growth and usage, decreased operations and maintenance expenses, and lower taxes. The release does not provide revenue, operating-income, gross-margin, or cash-flow line items, limiting visibility into the detailed income-statement and cash-flow progression.
Demand and customer indicators were strong in the release. Management cited a 7% increase in residential cooling degree days in the 2026 second quarter versus the same period a year ago, residential customer growth of 2.1%, weather-normalized sales growth of 5.6%, overall customer growth of 2.1%, and total sales growth of 9.6%. Management attributed higher energy demand and sustained load growth to early summer heat and continued air-conditioner use.
Capital and reliability plans remain focused on the planned conversion of two retired coal-fired Cholla Power Plant units to natural gas. The project is intended to bring about 380 MW of dispatchable energy online by 2029, is expected to begin construction in 2028, and remains subject to regulatory approvals. Pinnacle West continued to estimate 2026 consolidated earnings of $4.55 to $4.75 per diluted share on a weather-normalized basis, indicating no change to the outlook stated in this release.
The primary reported items to monitor are whether customer and sales growth continue through the summer, the effect of interest charges and depreciation and amortization on earnings, and the trajectory of transmission service revenues. The company also identified its customer assistance and reliability initiatives as operational priorities during the peak summer season, while regulatory progress will determine the timing of the Cholla conversion project.
Management, verbatim
Summer arrived early this year, with temperatures reaching 105° F back in March. As a result, our customers turned on their air conditioners sooner than usual and continued using them heavily even after temperatures returned to levels similar to last year.
Ted Geisler, Pinnacle West Chairman, President and Chief Executive Officer
This usage drove higher energy demand and sustained load growth and contributed to financial results within our expectations.
Ted Geisler, Pinnacle West Chairman, President and Chief Executive Officer
When residents shared concerns about how a planned outage could affect their community, our employees took the time to listen and respond.
Ted Geisler, Pinnacle West Chairman, President and Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue
- Revenue by segment
- Gross profit
- Gross margin
- Operating income
- Operating margin
- Net income attributable to Pinnacle West Capital Corp. other than consolidated net income attributable to common shareholders
- GAAP versus non-GAAP designation for reported net income and EPS
- Non-GAAP earnings or non-GAAP EPS
- Prior-quarter net income and EPS
- Operating cash flow
- Free cash flow
- Capital expenditures
- Cash balance
- Debt balance
- Share repurchases
- Dividends
- Revenue guidance
- Gross-margin guidance
- Operating-expense guidance
- Tax-rate guidance
- Previous-release outlook for comparison
- Detailed key factors and assumptions underlying 2026 outlook, which the release directs readers to find in the second-quarter 2026 earnings presentation slides
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC Form 8-K Item 2.02 with Exhibit 99.1 reporting Pinnacle West’s Q2 2026 results and providing a 2026 weather-normalized earnings outlook.
Ticker impact
Pinnacle West reported Q2 2026 net income of $178.6M and guided 2026 weather-normalized EPS to $4.55 to $4.75, citing higher interest charges and lower transmission revenues.
Near-term bias modestly negative to neutral if investors focus on the year-over-year earnings decline, but potentially supported by the maintained 2026 EPS range and load growth narrative.
This is a primary 8-K earnings-and-outlook disclosure with specific quarterly results and a 2026 EPS range. However, the article does not provide consensus comparisons or a new guidance change beyond the stated outlook, limiting incremental surprise.
Market effects
Utility demand seasonality and reliability execution are reinforced, with emphasis on load growth from early summer heat and customer support programs.
Arizona-focused operational narrative (APS reliability during extreme heat) may influence regional utility sentiment and rate-case expectations indirectly.
Limited direct global impact; primarily a US regulated utility earnings and outlook update.
Counterpoint
The year-over-year EPS decline may be more about financing and accounting line items than underlying operating strength, so the maintained 2026 EPS range could be the more important signal.
Key entities
- public_companyPinnacle West Capital Corp.
NYSE-listed parent company reporting consolidated Q2 2026 results and 2026 weather-normalized EPS outlook.
- operating_subsidiaryArizona Public Service Co. (APS)
Utility operating company referenced for reliability performance, customer growth, and customer assistance programs.
- assetCholla Power Plant
Site where Pinnacle West/APS plans to convert two retired coal-fired units to natural gas, targeting 380 MW by 2029.
