Why Is Pinnacle West (PNW) Down 1% Since Last Earnings Report?

It has been about a month since the last earnings report for Pinnacle West (PNW). Shares have lost about 1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Pinnacle West due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Pinnacle West Capital Corporation before we dive into how investors and analysts have reacted as of late.

Pinnacle West Beats Q4 Earnings and Sales Estimates, to Invest $8B

Pinnacle West Capital Corporation reported fourth-quarter 2025 earnings of 13 cents per share, which beat the Zacks Consensus Estimate of 5 cents by 160%. The bottom line also improved substantially from a loss of 6 cents reported in the year-ago quarter.

PNW’s Revenues

Sales for the quarter totaled $1.13 billion, which surpassed the Zacks Consensus Estimate of $1.12 billion by 0.5%. The top line also increased 3% from $1.09 billion recorded in the year-ago quarter.

PNW’s Operational Highlights

Total operating expenses were $1.01 billion, down 0.4% year over year. This was due to lower operations and maintenance expenses.

Operating income totaled $121 million, up 43.2% from $84.5 million recorded in the year-ago quarter.

Total interest expenses were $126.1 million, up 17.7% from $107.1 million registered in the prior-year period.

PNW’s Financial Highlights

As of Dec. 31, 2025, cash and cash equivalents totaled $6.6 million compared with $3.8 million as of Dec. 31, 2024.

Long-term debt-less current maturities amounted to $9.20 billion as of Dec. 31, 2025, compared with $8.06 billion as of Dec. 31, 2024.

Net cash flow provided by operating activities in 2025 totaled $1.8 billion compared with $1.6 billion in the year-ago period.

PNW’s Guidance

Pinnacle West reiterated its 2026 consolidated earnings to the range of $4.55-$4.75 per share. The Zacks Consensus Estimate for the same is pegged at $4.69 per share, which is within the company’s guided range.

The company expects its 2026 revenues in the range of $5.56-$5.66 billion.

Management now expects its retail customers to increase 1.5-2.5% in 2026.

Pinnacle West plans to invest $7.95 billion in the 2026-2028 period to further strengthen its operations.

The company expects long-term earnings per share to be in the range of 5-7% from the 2024 earnings base.

How Have Estimates Been Moving Since Then?

Investors have witnessed a downward trend in estimates review over the past two months.

The consensus estimate has shifted -66.67% due to these changes.

VGM Scores

Currently, Pinnacle West has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Pinnacle West has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Pinnacle West belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Consolidated Edison (ED), has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Con Ed reported revenues of $4 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.89 for the same period compares with $0.98 a year ago.

Con Ed is expected to post earnings of $2.39 per share for the current quarter, representing a year-over-year change of +6.2%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Con Ed has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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