PNW Stock Forecast & Price Target

Pinnacle West Capital has demonstrated a robust performance with retail sales increasing by 5.2% and a growth in its customer base of 2.4%, indicating strong market demand and operational stability. The company is strategically positioned for growth, with management projecting a long-term weather-normalized sales growth between 4-6% and customer growth of 1.5-2.5%, supported by favorable economic development in their service area. Additionally, the disciplined approach to capital expenditure, with a conservative 2% increase year-over-year, underscores the company's commitment to sustainable financial management while preparing for future expansion opportunities.

Pinnacle West Capital’s financial performance has exhibited a year-over-year decline of approximately 10%, primarily driven by increased operational and maintenance expenses, depreciation, and pension-related costs, which outweighed minor improvements in operating margins and interest income. Additionally, investor sentiment has soured, as the release of the procedural schedule in the Arizona Public Service rate case has led to lowered earnings per share expectations for 2026 and 2027. This combination of declining operational metrics and negative market outlook contributes to a fundamentally unfavorable view of the company's stock prospects.