At a glance
Pinnacle West Capital Corp is worth $12.84B, about 21 times its fiscal 2025 earnings. Revenue grew 4.2% to $5.34B in fiscal 2025, with 11.5% kept as profit; over 5 years it has grown 8.3% a year. It pays a 4.31% dividend yield, raised every year for at least 9 years, and returned $1.96B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +25.4% over the past year with dividends reinvested and +15.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 39.3% in the 2020 crash (S&P 500: 33.7%) and 24.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 52 months and 2 months after the lows.
The business in plain English
Pinnacle West Capital is a holding company based in Phoenix, Arizona. Essentially all of its revenue and profit comes from one subsidiary, Arizona Public Service (APS), whose history in Arizona goes back to 1886. APS is Arizona's largest electric company. It serves about 1.4 million customers in 11 of the state's 15 counties, and in 2025 no single customer made up more than 1.9% of its electric revenue.
Pinnacle West reports a single business segment: regulated electricity. APS generates power, carries it over transmission lines and delivers it to homes and businesses. It owns or leases 6,257 megawatts of generating capacity. It buys more through power purchase agreements, which are contracts to buy electricity from other producers. A key source is Palo Verde, a three-unit nuclear plant west of Phoenix that APS operates and partly owns. About 58% of its 2025 energy supply came from clean sources such as nuclear and renewables.
APS cannot set its own prices. The Arizona Corporation Commission approves its retail rates, and the Federal Energy Regulatory Commission oversees wholesale and transmission rates. Regulators generally let a utility charge enough to cover its costs and earn a return on what it invests in plants and the grid. Revenue was $5.34 billion in fiscal 2025, up 4.2%, with net income of $617 million.
Price history
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PNW +25.4% over the year to Nov 2, 2026, total return with dividends reinvested.
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $1.46B, up 7.1% from a year earlier, and net income was $178.6M (-7.3%).
- For fiscal 2025, revenue was $5.34B (+4.2% year over year; +8.3% a year from FY2020 to FY2025) with a 11.5% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.3% good |
|---|---|
| Operating margin | 20% good |
| Free cash flow margin | -15.3% weak |
| Return on equity (FY2025) | 8.7% watch |
| Return on assets (FY2025) | 2.1% weak |
| Net cash (cash minus debt) | $-11.36B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $3.59B | $550.6M | $-360.2M |
| FY2021 | $3.80B | $618.7M | $-613.5M |
| FY2022 | $4.32B | $483.6M | $-466.0M |
| FY2023 | $4.70B | $501.6M | $-638.7M |
| FY2024 | $5.12B | $608.8M | $-639.4M |
| FY2025 | $5.34B | $616.5M | $-819.5M |
Valuation snapshot
| Market value | $12.84B |
|---|---|
| P/E ratio | 21 |
| Dividend yield | 4.31% |
Rank among 1514 US companies
Market value at each year end
Pinnacle West Capital’s market value went from $8.69B at the end of 2016 to $12.84B on Nov 2, 2026, up 48%; since the end of 2025 it is up 21%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $12.84B | +21.0% |
| 2025 | $10.62B | +10.1% |
| 2024 | $9.64B | +18.3% |
| 2023 | $8.15B | -5.3% |
| 2022 | $8.60B | +8.0% |
| 2021 | $7.96B | -11.5% |
| 2020 | $9.00B | -11.0% |
| 2019 | $10.11B | +5.9% |
| 2018 | $9.55B | +0.3% |
| 2017 | $9.52B | +9.6% |
| 2016 | $8.69B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| PNW price data to Nov 2, 2026 | +23.9% | +25.4% | +16.7% | +15.5% | +7.8% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +23.9% |
| 2025 | +8.9% |
| 2024 | +23.4% |
| 2023 | -1.2% |
| 2022 | +13.1% |
| 2021 | -7.8% |
| 2020 | -7.7% |
| 2019 | +9.0% |
| 2018 | +3.6% |
| 2017 | +12.7% |
| 2016 | +25.4% |
| 2015 | -2.0% |
| 2014 | +34.5% |
| 2013 | +7.9% |
| 2012 | +10.4% |
| 2011 | +22.1% |
| 2010 | +19.7% |
| 2009 | +21.8% |
| 2008 | -19.4% |
| 2007 | -12.2% |
| 2006 | +28.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 39.6% over that stretch · deepest drop along the way 43.8%, back to its old high 12.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38% over that stretch · deepest drop along the way 39.3%, back to its old high 52.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 11.3% over that stretch · deepest drop along the way 24%, back to its old high 1.6 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 4 sales ($931K).
| Date | Insider | Type | Value |
|---|---|---|---|
| May 13, 2026 | Jacob Tetlow EVP, COO, APS | sell | $646K |
| Aug 7, 2026 | Jose Luis Jr Esparza SVP Public Policy APS | sell | $184K |
| Aug 10, 2026 | Elizabeth A Blankenship VP, Controller and CAO | sell | $97K |
| May 13, 2026 | Jacob Tetlow EVP, COO, APS | sell | $4K |
Who owns it
Large shareholders (13G filings)
| Capital Research Global Investors | 13.6% | Mar 31, 2026 |
| BlackRock, Inc. | 8.2% | Mar 31, 2025 |
| Vanguard Capital Management | 7.35% | Mar 31, 2026 |
| BARROW HANLEY MEWHINNEY & STRAUSS LLC | 5.4% | Jun 30, 2026 |
ETFs with the most weight in PNW
| UTES Virtus Reaves Utilities ETF | 5.47% |
| FXU First Trust Utilities AlphaDEX Fund | 3.32% |
| RSPU Invesco S&P 500 Equal Weight Utilities ETF | 3.27% |
| ZAP Global X U.S. Electrification ETF | 2.09% |
| SPHD Invesco S&P 500® High Dividend Low Volatility ETF | 2.05% |
| SMMV iShares MSCI USA Small-Cap Min Vol Factor ETF | 1.62% |
| HEJD VictoryShares Hedged Equity Income ETF | 1.59% |
| SPYD SPDR Portfolio S&P 500 High Dividend ETF | 1.46% |
What could go wrong
- Arizona regulators control its prices. The Arizona Corporation Commission approves APS's retail rates. If it denies or delays recovery of costs, profits suffer. Arizona law also lets the commission reopen some prior decisions and change final orders.
- Palo Verde nuclear plant carries special risks. Federal nuclear regulators can step up inspections, impose penalties or shut a unit until problems are fixed. Spent fuel stays on site because the Energy Department missed a 1998 deadline to start accepting it.
- Not enough water for its plants. APS warns that a lack of access to enough water could materially harm its business and results. Many power plants need large amounts of water for cooling.
- Wildfires in its service territory. APS lists wildfires as a threat to its results. It has increased spending on fire mitigation, such as clearing space around equipment and upgrading its system, which adds cost without removing the risk.
- Climate rules and extreme weather. Limits on greenhouse gas emissions, climate lawsuits or stricter environmental rules could raise costs or upset its business plans. Its energy mix includes coal and natural gas. Extreme weather can also disrupt operations.
- Heavy debt and constant need for capital. Total debt was about $11.4 billion as of June 30, 2026, and free cash flow was negative every year from 2020 to 2025. A credit downgrade or tight markets could raise borrowing costs.
Recent events
- Investor presentation or announcement
- Investor presentation or announcement
- Investor presentation or announcement
- Major agreement signed
- Quarterly results released; Investor presentation or announcement
- Executive or board change
- Investor presentation or announcement
- Other company announcement
- Shareholder vote results
- Investor presentation or announcement
For income and retirement investors
Pinnacle West has raised its dividend at least nine years in a row through fiscal 2025, and the streak may be longer. The raises were small: dividends per share rose from $3.23 in fiscal 2020 to $3.61 in fiscal 2025, about 2.2% a year. The yield was 3.47% as of October 28, 2026. Dividends took 68.6% of fiscal 2025 earnings. Free cash flow (operating cash flow minus capital spending) was negative every year from 2020 to 2025, so borrowing and new shares helped fund the dividend. Buybacks were tiny, about $6.7 million over fiscal 2021–2025, and the share count grew 7.5% from July 2021 to July 2026.
The stock fell 43.8% in the 2008 financial crisis and regained its peak by April 2010. It dropped 39.3% in the 2020 COVID crash and took until July 2024 to recover. In the 2022 bear market it fell 24% and recovered by November 2022. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Pinnacle West make money?
Pinnacle West makes nearly all its money through Arizona Public Service (APS), the state's largest electric company. APS generates, transmits and delivers electricity to about 1.4 million customers in 11 of Arizona's 15 counties. The Arizona Corporation Commission approves its retail rates, and federal regulators oversee wholesale and transmission rates. Revenue was about $5.34 billion in fiscal 2025 and net income about $617 million. No single customer made up more than 1.9% of 2025 electric revenue.
Does Pinnacle West raise its dividend every year?
Yes, in every year of the available SEC data. Pinnacle West has raised its dividend at least nine years in a row through fiscal 2025, and the streak may be longer. The increases have been modest. Dividends per share grew from $3.23 in fiscal 2020 to $3.61 in fiscal 2025, about 2.2% a year. Past increases do not guarantee future ones.
What is Pinnacle West's dividend yield?
The dividend yield was 3.47% as of October 28, 2026. Dividends were $3.61 per share in fiscal 2025, and total dividends equaled 68.6% of that year's net income. Free cash flow, or operating cash flow minus capital spending, was negative by about $820 million in fiscal 2025. That means borrowing and new shares helped fund the dividend. The price-to-earnings ratio was 20.8 on fiscal 2025 earnings as of October 28, 2026.
Does Pinnacle West own a nuclear power plant?
Yes. APS operates the Palo Verde Generating Station, a three-unit nuclear plant about 50 miles west of Phoenix. Through ownership and, for Unit 2, a lease, it holds a 29.1% interest in each unit, entitling it to 1,146 megawatts. Federal operating licenses run to 2045, 2046 and 2047. Nuclear counts toward the roughly 58% of APS's 2025 energy supply that came from clean sources. It also brings strict federal oversight and the cost of storing spent fuel on site.
How has PNW stock performed over the long term?
Over five and ten years, PNW shares have posted positive returns, though not every year. As of October 28, 2026, the stock returned 20.1% over one year, about 14.5% a year over five years and about 7.5% a year over ten years. Calendar years have been mixed: losses of 7.7% in 2020 and 7.8% in 2021, gains of 23.4% in 2024 and 8.9% in 2025. The 21.6% gain for 2026 runs only through October 28. Its worst decline in about 21 years of price history was 49.5%.