PNW Stock Forecast & Price Target

Pinnacle West Capital demonstrates a positive outlook supported by a robust 5.2% increase in retail sales and a 2.4% growth in its customer base, reflecting strong demand for its services. The company is positioned for future growth with management reaffirming long-term expectations of 4-6% sales growth and 1.5-2.5% customer growth, underlined by best-in-class economic development. Additionally, a conservative approach to capital expenditures with a projected 2% year-over-year increase, coupled with potential upsides from future transmission projects, positions the company well for sustained profitability and expansion.

Pinnacle West Capital experienced a year-over-year decline of approximately 10%, primarily due to negative impacts from operating and maintenance expenses, depreciation and amortization, and pension-related costs, which outweighed minor improvements in operating margin and interest. The company's stock underperformed by approximately 500 basis points in the latter half of July, as investor expectations for earnings per share in 2026 and 2027 were adjusted downward following the announcement of the procedural schedule in the Arizona Public Service rate case. This combination of declining financial performance and negative market sentiment regarding future earnings prospects contributes to a negative outlook for Pinnacle West Capital's stock.