2026 second quarter
Filed Aug 4, 2026PINNACLE 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.