Pinnacle West Capital Corporation reported first‑quarter 2026 results on May 4, 2026, with revenue of $1.1496 billion, up 11.5% from $1.032 billion in the same period a year earlier. Net income rose to $32.92 million, reversing a $4.64 million loss in Q1 2025, and diluted earnings per share climbed to $0.27 from a $0.04 loss a year ago.
The turnaround was driven by a combination of hotter‑than‑normal weather that boosted retail energy usage, a 2.2% increase in customer count, and a 9.4% rise in weather‑normalized retail sales. Operating efficiencies also helped, as operations and maintenance expenses fell 7.8% to $276.7 million from $300.1 million in Q1 2025, offsetting higher interest, tax, and depreciation costs.
Management reaffirmed its full‑year 2026 earnings guidance of $4.55 to $4.75 per diluted share, issued in February, and reiterated a long‑term EPS growth target of 5‑7%. The company also highlighted planned capital investments of $2.60 billion in 2026 and $7.95 billion through 2028 to support reliability and growth.
Chairman, President and CEO Ted Geisler said, 'Phoenix and much of Arizona just went through its warmest winter on record, and the heat didn't let up as we moved into spring. As a result, our first‑quarter results exceeded expectations, with our retail customers using much more energy than they typically would under normal weather conditions.' CEO Jeff Guldner added, 'Our robust Q1 performance underscores the effectiveness of our strategic investments and our commitment to serving Arizona's growing energy needs.'
The company’s results come amid a pending 2025 Arizona Public Service rate case that could influence future revenue, and the company’s focus on expanding its customer base in high‑growth sectors such as data centers and advanced manufacturing.
Analysts had expected a loss of $0.03 per share and revenue of $1.08 billion. The company beat earnings expectations by $0.30 per share and revenue expectations by $70 million, underscoring the strength of its operational execution and the impact of favorable weather.
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