Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
PNW (Pinnacle West Capital) delivered solid FY2025 revenue growth of 4.2% to $5.34B and improved operating cash flow of $1.81B, though EPS declined 3.7% to $5.15 amid a significant 15.1% expansion in total assets driven by heavy capital investment.
Revenue
$5.34B
+4.20% YoY
EPS (Diluted)
$5.05
-3.63% YoY
Operating Income
$1.07B
+5.49% YoY
Source: SEC XBRL
Pinnacle West Capital (PNW) reported FY2025 revenue of $5.34B, up 4.2% year over year. Operating margin was 20.0%, up 0.3 points from 19.7% a year earlier. Operating cash flow was $1.81B, up 12.1% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.43 | 1.48 | Miss -3.4% |
| Mar 2026 | 0.27 | -0.01 | Beat +2331.4% |
| Dec 2025This filing | 0.13 | 0.04 | Beat +217.1% |
| Sep 2025 | 3.39 | 3.15 | Beat +7.7% |
Reported EPS of $0.13 versus the $0.04 analyst consensus — a +217.1% beat for Dec 2025.
Compiled by AI from this SEC filing
PNW grew total revenues by 4.2% year-over-year from $5.12B to $5.34B in FY2025, reflecting continued demand growth in its Arizona service territory and the impact of rate adjustments. This top-line expansion supported a modest improvement in operating margin from 19.7% to 20.0%.
Source: 10-K Income Statement (XBRL Financial Data)
Operating income rose 5.5% to $1.07B in FY2025, outpacing revenue growth and indicating modest operating leverage. Operating margin improved approximately 25 basis points to ~20.0%, suggesting disciplined cost management despite inflationary pressures on utility operations.
Source: 10-K Income Statement (XBRL Financial Data)
Total assets surged 15.1% to $30.03B, funded in part by a 14.2% increase in long-term debt to $9.21B and positive financing cash flows of $576M. Investing cash outflows deepened to -$2.38B, reflecting an accelerating capital expenditure program likely tied to grid modernization and generation capacity additions.
Source: 10-K Balance Sheet & Cash Flow Statement (XBRL Financial Data)
Operating cash flow grew 12.1% to $1.81B in FY2025, driven by higher earnings and non-cash depreciation and amortization of $970M. However, free cash flow remains deeply negative as investing outflows of $2.38B significantly exceed operating cash generation, requiring ongoing external financing.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
Basic EPS fell 3.7% to $5.15 and diluted EPS declined 3.6% to $5.05, even as operating income grew. This divergence likely reflects share dilution from equity issuances used to fund the capital program, a common dynamic for capital-intensive regulated utilities.
Source: 10-K Income Statement (XBRL Financial Data)
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
PNW holds only $6.6M in cash and equivalents against current liabilities of $3.16B, resulting in a current ratio of just 0.54 — well below 1.0. The company is structurally dependent on capital markets access and credit facilities to fund operations and its large capital expenditure program, making it vulnerable to tightening credit conditions.
Source: 10-K Balance Sheet (XBRL Financial Data)
Long-term debt increased 14.2% to $9.21B in FY2025, continuing a trend of balance sheet leverage expansion to fund capital investments. Higher interest rates could materially increase financing costs and pressure earnings, particularly as existing debt matures and is refinanced at current market rates.
Source: 10-K Balance Sheet (XBRL Financial Data)
As a regulated utility, PNW's ability to earn an adequate return depends on timely and favorable rate case outcomes from the Arizona Corporation Commission. Delays or unfavorable decisions could prevent full cost recovery, compressing margins at a time when capital investment is accelerating.
Source: 10-K (Inferred from regulated utility business model and financial data)
With investing cash outflows of $2.38B in FY2025 — a 23% increase year-over-year — PNW is executing a large and growing capital program. Cost overruns, construction delays, or supply chain disruptions could impair returns and require additional debt or equity financing beyond current plans.
Source: 10-K Cash Flow Statement (XBRL Financial Data)
The gap between growing operating income (+5.5%) and declining EPS (-3.7%) suggests ongoing share dilution as PNW issues equity to partially fund its capital program. Continued equity issuances could further dilute existing shareholders if the capital program expands.
Source: 10-K Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.34 $B | 5.12 $B | +4.20% |
Operating Income $B | 1.07 $B | 1.01 $B | +5.49% |
EPS (Basic) $ | 5.15 $ | 5.35 $ | -3.74% |
EPS (Diluted) $ | 5.05 $ | 5.24 $ | -3.63% |
Answers draw on this SEC filing and the data on this page
Pinnacle West's Q2 FY2026 results highlight robust customer demand in Arizona offset by cost pressures and a pending $579.5 million rate request that will shape future profitability.
PNW (Pinnacle West Capital) delivered strong Q1 2026 results with revenue up 11.4% YoY to $1.15B and operating income surging 129.2% to $131.2M, though operating cash flow declined 41.5% and long-term debt rose 21.6% amid continued capital investment.
Other companies in Multi-Utilities