PNW Stock Forecast & Price Target

Pinnacle West Capital has demonstrated a robust performance, highlighted by a 5.2% increase in retail sales and a 2.4% expansion in its customer base during the quarter. The company anticipates a long-term sales growth rate of 4-6% and customer growth of 1.5-2.5%, supported by best-in-class economic development in the region. Furthermore, the conservative projection of a 2% increase in capital expenditures year-over-year suggests a commitment to maintaining and enhancing infrastructure to meet future demand, which could positively influence operational efficiency and profitability.

Pinnacle West Capital's financial performance has shown a notable decline, with year-over-year results decreasing by approximately 10%, driven primarily by higher operational and maintenance costs and pension-related expenses, which overshadowed some positive contributions from operating margin and interest. Anticipations of weaker earnings per share for 2026 and 2027 have emerged following the release of the procedural schedule in the Arizona Public Service rate case, leading to further downward pressure on the stock. Additionally, shares underperformed the market by about 500 basis points, indicating market skepticism around the company's financial outlook and operational challenges.