With a market cap of $12.4 billion, Pinnacle West Capital Corporation (PNW) provides retail and wholesale electricity services across Arizona through its subsidiary operations. The company generates, transmits, and distributes electricity using nuclear, gas, oil, coal, and solar facilities, while also maintaining transmission lines, substations, and energy storage systems.
Shares of the power company have underperformed the broader market over the past 52 weeks. PNW stock has returned 11.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 26.8%. However, shares of the company are up 14.8% on a YTD basis, outpacing SPX's 8.2% gain.
Looking closer, shares of the Phoenix, Arizona-based company have slightly outperformed the State Street Utilities Select Sector SPDR ETF's (XLU) 10.4% return over the past 52 weeks.
Pinnacle West reported Q1 2026 net income of $32.9 million, or $0.27 per share, compared with a net loss of $4.6 million, or $0.04 per share, in the same period last year. The strong results were driven by approximately $38 million in improvements from higher transmission revenues, lower operating and maintenance expenses, hotter-than-normal weather, and solid customer growth of 2.2% alongside weather-normalized sales growth of 9.4%.
Management also maintained its 2026 EPS guidance of $4.55 to $4.75 and highlighted record Arizona heat that boosted electricity demand well ahead of the summer season. Nevertheless, the stock fell 1.7% on that day.
For the fiscal year ending in December 2026, analysts expect PNW's EPS to decline 6.9% year-over-year to $4.70. However, the company's earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and 14 “Holds.”
On May 15, TD Cowen raised its price target on PNW to $101 and maintained a “Hold” rating.
The mean price target of $104.47 represents a 2.5% premium to PNW’s current price levels. The Street-high price target of $123 suggests a 20.7% potential upside.
