PNW US S&P 500Russell 1000 Earnings call · transcribed from the recording
Pinnacle West Capital (PNW) · Q3 2026 results and valuation
Share price: $107.91 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 3 Nov 2026 and 4 Aug 2026
Net income up 141.4% on the previous quarter, guidance raised. Tone in line with last period.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+141.4%
Net income vs Q2 2026
Guidance raised
Net income 436.4M vs 180.8M
Revenue +35.5%
Against the same quarter last year (Q3 2025) it is +4.5% — part of the move on last quarter is seasonal.
2 · How management spoke
Unchanged
Language tone vs last period
Language: typical — about as upbeat as in Q2 2026.
3 · What stood out
Figure
In September, it announced the second phase of its advanced packaging and test campus in Perroia.
Valuation
Is Pinnacle West Capital undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 7.3% growth a year (3-year revenue growth), the model's fair value is $4.86 a share — the stock trades 2119% above it. Today's price assumes 17.0% growth a year.
Current price
$107.91
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.0% for 10 yrs
Fair value / share
$4.86
Buy below
$3.65
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance ↑
Given its strong year-to-date performance, robust sales trends across its retail customer base, and continued economic momentum in its service territory, Pinnacle West Capital is raising its 2026 earnings guidance...
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Guidance ↑
That's part of what led to the increase in guidance.
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Dropped
With respect to the long term, certainly, there needs to be a reallocation framework designed among the lower basin states…
Source quote
“With respect to the long term, certainly, there needs to be a reallocation framework designed among the lower basin states... So we've got a pretty good sustainable story in terms of contributing to water savings as a company while keeping up with growth. But we view that as a long-term framework that may result in changing economics for water, but there's a variety of long-term solutions that could fill in the gap in the shortfall of the Colorado River.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Typical — about as upbeat as in Q2 2026.
Sentences that drove the tone
“So we're trying to take great care in ensuring that we continue to build out the grid and and preserve capacity necessary to serve that amount of growth, the residential...”
“We delivered earnings of $3.49 per share in Q3, an increase of $0.10 year over year, driven by exceptional sales growth across all customer segments, continued customer expansion, and favorable...”
“With strong customer growth, increasing demand, and significant investment opportunities ahead, we remain well positioned to deliver safe, reliable service while creating long-term value for our customers and shareholders.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.97B | 1.46B | +35.5% | 1.82B | +8.3% |
| Operating income | 620.8M | 305.7M | +103.1% | 581.8M | +6.7% |
| Net income | 436.4M | 180.8M | +141.4% | 417.5M | +4.5% |
| EPS | 3.49 | 1.43 | +144.1% | 3.39 | +2.9% |
| P/E today 19.6 | 17.5 | 20.5 | −3.0 | 18.5 | −1.0 |
Topics
Most discussed now
- That's going to be an important part of supporting both the equity cap structure of the utilities, supporting Pinnacle West Capital's…
- If you think about what are going to be the drivers of Pinnacle West Capital's external financing needs, there are two key...
- Executed in October, Pinnacle West Capital's first direct pricing contract is a 25-year agreement that's subject to regulatory approval.
- With the rate case decision and the TSMC agreement in hand, Pinnacle West Capital looks forward to updating its long-term financial…
- On the regulatory front, parties in its pending rate case have submitted closing briefs, and Pinnacle West Capital awaits the…
Faded since Q2 2026
- Fading Arizona's economy remains on a strong and sustainable growth trajectory, further cementing the state's standing as a national leader in...
- Fading Nearly 20,000 acres of surrounding land are now in various stages of planning and development, giving rise to an entirely...
- Fading Its approach to that remains the same, which is Pinnacle West Capital will include in the load forecast all committed customer growth,...
- Fading Details on total capacity ramp schedule, et cetera, are being finalized, and Pinnacle West Capital will provide that update as it finalizes…
Latest announcements
Official filings, newest first.
- Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Current report · SEC 8-K · routine
- Regulation FD disclosure · SEC 8-K
- Material agreement · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K