# Pinnacle West Capital Corporation (PNW)

> Source: Nexqual · https://nexqual.com/PNW · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Pinnacle West Capital Corporation (PNW), nexqual.com/PNW" · informational, not investment advice.

**Price:** USD 106.61 (+2.62% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 103.89 · day 104.37–106.72 · 52w 86.18–111.16 · market cap $12.9B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $5.55B, net income $651M (11.7% margin), free cash flow -$879M (SEC filings).
- Valuation: P/E 19.8x (avg 16.2x at the last 3 fiscal year-ends), EV/EBITDA 11.0x, net debt $10.5B.
- Insider open-market sales, last ~7 months: 3 Form 4 filings, $931K; 3 not under a Rule 10b5-1 plan ($931K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.72 on a 1–5 scale) (18 analysts), mean target USD 104.17 (range 89–119.5).
- Total return with dividends: 1Y +19.6% vs S&P 500 +14.9%; 5Y +98.0% vs S&P 500 +80.3%.
- Next earnings: 2026-11-03, EPS estimate USD 3.32, revenue estimate $1.92B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $3.80B | $4.32B | $4.70B | $5.12B | $5.34B | $5.55B |
| Operating income | $805M | $732M | $825M | $1.01B | $1.07B | $1.14B |
| Net income | $636M | $501M | $519M | $626M | $632M | $651M |
| EPS (diluted) | $5.47 | $4.26 | $4.41 | $5.24 | $5.05 | — |
| Free cash flow | -$613M | -$466M | -$639M | -$639M | -$820M | -$879M |
| Operating margin | 21.2% | 16.9% | 17.6% | 19.7% | 20.0% | 20.5% |
| Net margin | 16.7% | 11.6% | 11.0% | 12.2% | 11.8% | 11.7% |
| Revenue growth | +6.0% | +13.7% | +8.6% | +9.1% | +4.2% | — |
| Cash + short-term investments | $10.0M | $4.8M | $5.0M | $3.8M | $6.6M | — |
| Total debt | $7.21B | $8.08B | $8.42B | $8.86B | $9.81B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 19.8x · P/S 2.3x · EV/EBITDA 11.0x · EV/Sales 4.2x · P/B 1.8x · FCF yield -6.80% · Earnings yield 5.04% · Dividend yield (paid, TTM) 3.34% · Net debt $10.5B · EV $23.5B
P/E at fiscal year-ends: Dec 2025 17.1x, Dec 2024 15.7x, Dec 2023 15.8x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 3 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-10 | Blankenship Elizabeth A | VP, Controller and CAO | 980 | $97K | 8.2% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-08-07 | Esparza Jose Luis Jr |  | 1,800 | $184K | 26.8% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-13 | Tetlow Jacob |  | 6,567 | $650K | 41.9% | No | Too little history (no open-market trades in 2023) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.72 on a 1–5 scale), 18 analysts; mean target USD 104.17 (low 89, high 119.5).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | HSBC | Initiated | Buy | $119.5 |
| 2026-10-21 | Morgan Stanley | Target raised | Equal-Weight | $89 → $91 |
| 2026-10-05 | Jefferies | Target lowered | Buy | $129 → $109 |
| 2026-10-05 | Truist Securities | Target lowered | Hold | $101 → $99 |
| 2026-10-01 | Barclays | Target lowered | Equal-Weight | $108 → $94 |
| 2026-09-29 | Scotiabank | Initiated | Sector Outperform | $104 |
| 2026-09-18 | Morgan Stanley | Target lowered | Equal-Weight | $94 → $89 |
| 2026-08-21 | Morgan Stanley | Target lowered | Equal-Weight | $97 → $94 |
| 2026-08-17 | Truist Securities | Target lowered | Hold | $107 → $101 |
| 2026-07-22 | BMO Capital | Target lowered | Market Perform | $106 → $104 |
| 2026-07-01 | Barclays | Target raised | Equal-Weight | $102 → $108 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +19.6% | +98.0% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +19.7% | +14.6% |
| Volatility (annualized) | 17.1% | 20.4% |
| Max drawdown | -16.0% (Jul 2026→Sep 2026) | -21.8% (Aug 2022→Oct 2022) |

## Peers (Utilities - Regulated Electric)
KEP (Korea Electric Power Corporatio) USD 10.72 -0.09% · EMA (Emera Incorporated) USD 49.36 +4.20% · ELPC (Companhia Paranaense de Energia) USD 13.83 +0.22% · OGE (OGE Energy Corp) USD 48.92 +2.02% · CIG-C (Comp En De Mn Cemig) USD 3.4 -2.86% · LNT (Alliant Energy Corporation) USD 70.3 +2.79%

## More
Full page: https://nexqual.com/PNW · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Supply chain and relationships (SEC annual reports)

Named in PNW's own 10-K filed 2026-02-25 (https://www.sec.gov/Archives/edgar/data/764622/000076462226000011/pnw-20251231.htm):

| Relationship | Company | Sentence in the filing |
|---|---|---|
| Customer | Arizona | "Actual sales growth, excluding weather-related variations, may differ from our projections as a result of numerous factors, such as macroeconomic conditions, current and future economic, regulatory, business, and other c…" |

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Regulated Electricity | $1.46B | 100.0% | +7.1% |
| Total revenue | $1.46B | 100% | — |

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Electric and Transmission Service | $1.45B | 99.7% | +7.9% |
| Transmission Services for Others | $29.2M | 2.0% | -8.8% |
| Wholesale Energy Sales | $13.7M | 0.9% | -23.4% |
| Other Sources | $8.9M | 0.6% | +181.3% |
| Total revenue | $1.46B | 100% | — |
The lines above cover 103.2% of total revenue.

## Company outlook (8-K filed 2026-08-04)

- "Key factors and assumptions underlying this outlook can be found in the second-quarter 2026 earnings presentation slides at pinnaclewest.com/investors."
- "Conference Call and Webcast Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the company's financial results and recent developments, and to provide an update on the company's longer-term financial outlook, at noon ET (9 a.m."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $3.32 | $3.14 | +5.7% | $1.92B | 8 |
| Next quarter (ends 2026-12-31) | $-0.24 | $-0.11 | +120.3% | $1.18B | 5 |
| Current fiscal year (ends 2026-12-31) | $4.81 | $4.72 | +2.0% | $5.59B | 11 |
| Next fiscal year (ends 2027-12-31) | $5.61 | $5.65 | -0.7% | $5.94B | 11 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-11-03): ±4.9%; last 8 reports averaged ±1.3%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 21.4% | ±4.9% |
| 2026-12-18 | 56 | 21.0% | ±6.6% |
| 2027-01-15 | 84 | 21.7% | ±8.3% |
| 2027-04-16 | 175 | 19.6% | ±10.7% |