Pinnacle West Capital (PNW) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw strong customer and sales growth, with retail electricity sales up 9.6% year-over-year and operating revenues rising to $1.46 billion, driven by robust Arizona economic expansion, especially in semiconductors and advanced tech 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.

• TSMC announced an additional $100B investment, now planning up to 12 fabs and a major R&D campus, spurring significant regional development and sustained load growth.

• Operational reliability remained strong during extreme heat, with APS maintaining service and expanding customer support programs.

Financial highlights

• Q2 2026 EPS was $1.43, down from $1.58 year-over-year, due to higher interest, depreciation, and lower transmission revenue, partially offset by favorable weather and sales growth.

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

• Customer growth reached 2.1% and weather-normalized sales growth was 9.6% year-over-year.

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

Outlook and guidance

• 2026 EPS guidance is $4.55–$4.75, with expectations to finish at the top end of the range, assuming normal weather and retail customer growth of 1.5%-2.5%.

• Long-term EPS growth targeted at 5%-7% annually through 2030, with sales growth of 5%-7%.

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

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