Pinnacle West Raises 2026 EPS Guidance to $5.05-$5.25 as Q3 EPS Rises to $3.49
Pinnacle West Capital raised its 2026 earnings guidance to $5.05 to $5.25 per diluted share after third-quarter profit climbed on surging commercial and industrial power demand in Arizona and a hot summer.
The parent of Arizona Public Service reported third-quarter net income attributable to common shareholders of $434.2 million, or $3.49 per diluted share, according to its earnings release filed with an 8-K on Tuesday. That compares with $413.2 million, or $3.39 per share, a year earlier, gains of 5.1% in net income and 2.9% in EPS.
Operating revenue rose 8.3% to $1.97 billion from $1.82 billion. The company credited higher customer sales and usage, favorable weather versus last year and customer growth, partly offset by higher depreciation and amortization and interest charges.
"Arizona continues to grow at an extraordinary pace, and our responsibility is clear: deliver safe, reliable and affordable energy for the customers who count on us every day," Chairman, President and CEO Ted Geisler said in the release.
Record demand
Commercial and industrial sales rose 14.5% and residential sales grew 4.5%, lifting weather-normalized retail sales 9.5%, the company said. Customer growth was 1.8%.
APS customers set an all-time peak demand record of 9,166 megawatts on Aug. 2, and demand topped last year's peak of 8,648 megawatts a dozen times during the quarter. The company said it was the fourth consecutive year of record summer demand.
Growth should pay for growth
Pinnacle West said customers' annual electricity needs are projected to more than double by 2041, and APS recently filed an Integrated Resource Plan with the Arizona Corporation Commission covering the next 15 years.
The company reiterated its Pledge for Responsible Energy Growth, under which APS will require extra-large customers such as data centers and manufacturers to fund the cost of serving their growth and will not connect them faster than the grid can reliably support.
"Growth should pay for growth. It's that simple," Geisler said.
Bill credits
APS is providing more than $33 million in bill credits this month, approved by the ACC, which will reduce a typical residential customer's November bill by an estimated $14, the company said. Pinnacle West is also making $5 million available for customers facing financial hardship, funded by the company rather than through rates.
Guidance drivers
The earnings presentation filed with the 8-K lists 2026 assumptions including weather-normalized retail electricity sales growth of 8% to 10%, with 5% to 7% coming from large commercial and industrial customers, and retail customer growth of 1.5% to 2.5%.
By the numbers
- EPS: $3.49, up 2.9%
- Net income: $434.2 million, up 5.1%
- Operating revenue: $1.97 billion, up 8.3%
- Weather-normalized retail sales growth: 9.5%
- Peak demand record: 9,166 megawatts
- 2026 EPS guidance: $5.05 to $5.25, raised
Sources
- Pinnacle West Capital Form 8-K with third-quarter 2026 earnings release and presentation, filed Nov. 3, 2026 (accession 0000764622-26-000051)
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