AI Takeaway
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.
Revenue
$1.15B
++11.36% YoY
EPS (Basic)
$0.27
++775.00% YoY
Operating Income
$131.17M
++129.24% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue increased 11.4% YoY from $1.03B to $1.15B in Q1 2026, reflecting stronger electricity demand and potentially favorable rate conditions in Arizona Public Service's service territory.
Source: Source: 10-Q Income Statement, Q1 2026
Operating income surged 129.2% YoY from $57.2M to $131.2M, with operating margin expanding significantly from 5.5% to 11.4%, indicating meaningful improvement in operational efficiency and cost management relative to revenues.
Source: Source: 10-Q Income Statement, Q1 2026
Basic and diluted EPS improved dramatically from -$0.04 in Q1 2025 to $0.27 in Q1 2026, representing a 775% YoY change and signaling a return to profitability at the per-share level after a loss quarter.
Source: Source: 10-Q Income Statement, Q1 2026
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Upgrade to unlockLong-term debt increased 21.6% YoY to $9.80B, while stockholders' equity grew only 4.9% to $7.07B. This rising leverage increases interest expense and financial risk, particularly in a higher-for-longer interest rate environment that raises refinancing costs.
Source: Source: 10-Q Balance Sheet, Q1 2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.27 versus the $-0.01 analyst consensus — a +2331.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.15B | $1.03B | +11.36% |
Operating Income | $131.17M | $57.22M | +129.24% |
EPS (Basic) | $0.27 | $-0.04 | +775.00% |
EPS (Diluted) | $0.27 | $-0.04 | +775.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $30.69B | $27.24B | +12.68% |
Current Assets | $1.61B | $1.59B | +1.61% |
Current Liabilities | $2.7B | $3.17B | -14.91% |
Stockholders' Equity | $7.07B | $6.74B | +4.89% |
Cash & Equivalents | $6.41M | $10.05M | -36.21% |
Long-Term Debt | $9.8B | $8.06B | +21.60% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $235.3M | $401.89M | -41.45% |
Investing Cash Flow | $-551.55M | $-586.12M | +5.90% |
Financing Cash Flow | $316.06M | $190.43M | +65.97% |
D&A | $259.84M | $250.65M | +3.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 11.4% | 5.5% | +5.87% |
Current Ratio | $0.599 | — | — |
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PNW reported basic and diluted EPS of $0.27 in Q1 2026, a dramatic improvement from -$0.04 in Q1 2025. Whether this beat consensus analyst estimates cannot be confirmed from the filing alone, but the turnaround from a loss to positive earnings is a notable positive development.
The headline takeaways are revenue growth of 11.4% to $1.15B, operating income more than doubling to $131.2M, and EPS swinging from -$0.04 to $0.27. However, operating cash flow fell sharply by 41.5% to $235.3M and long-term debt rose 21.6% to $9.80B, reflecting the company's heavy capital investment program.
Based on the financial data, key risks include a significant decline in operating cash flow (-41.5% YoY to $235.3M), rapidly rising long-term debt (+21.6% to $9.80B), and a low current ratio of 0.60 indicating near-term liquidity reliance on external financing. Minimal cash reserves of just $6.4M also represent a notable vulnerability.
PNW's revenue grew 11.4% YoY from $1.03B in Q1 2025 to $1.15B in Q1 2026, reflecting stronger electricity demand in its Arizona service territory. This revenue growth, combined with cost discipline, drove operating margin expansion from 5.5% to 11.4%.
PNW's financial health shows a mixed picture: profitability improved significantly with operating income up 129.2% and EPS turning positive at $0.27, but leverage is rising with long-term debt at $9.80B and a current ratio of only 0.60. The company's heavy capital investment program requires ongoing access to debt and equity markets, making financial market conditions a key dependency.