Pinnacle West reported higher third-quarter earnings, as customer growth, increased electricity use and weather-related effects lifted results. Its Arizona utility, Arizona Public Service (APS), also served record peak demand during the quarter while reporting strong growth in both commercial and residential sales.
The company said higher depreciation, amortization and interest costs partly offset the gains. It also released presentation materials for its earnings call that include its 2026 earnings outlook.
- Earnings increased year over year: Pinnacle West earned $434.2 million, or $3.49 per diluted share, in the quarter ended Sept. 30, 2026. A year earlier, it reported $413.2 million, or $3.39 per share.
- Sales growth was broad-based: Commercial and industrial sales rose 14.5%, while residential sales increased 4.5%. Weather-normalized sales growth was 9.5%.
- Peak demand set a record: APS customers reached an all-time peak demand of 9,166 megawatts during the quarter.
- What drove the improvement: Pinnacle West attributed the roughly $21 million increase in quarterly net income primarily to higher customer sales and usage, weather effects compared with the year-earlier quarter, and customer growth.
- What offset it: Higher depreciation and amortization expenses, along with increased interest charges, weighed on results.
- Operating and strategic priorities: The company said APS maintained reliable service through a summer of record demand and emphasized investment in infrastructure to support Arizona’s growth, alongside its stated commitment to affordability.
- 2026 outlook: Pinnacle West’s earnings-call presentation includes its outlook for 2026, though the specific guidance figures are not included in the materials provided here.
The quarter’s higher earnings reflected stronger electricity sales and customer growth, while rising depreciation and interest costs remained countervailing pressures. APS’s record peak demand and reported sales gains underscore the increased load its system served during the period.