Pinnacle West Capital CorpStrong weather-driven demand and customer growth, with data center and semiconductor customers driving sales, despite Q2 earnings decline.
Pinnacle West Capital reported second-quarter 2026 earnings of $1.43 per share, down $0.15 from a year earlier, as higher interest expense, depreciation and amortization, and lower transmission revenue offset strong weather-driven demand and customer growth. Chief Financial Officer Andrew Cooper said the company expects to finish 2026 at the top end of its previously issued earnings guidance range of $4.55 to $4.75 per share, and the utility reiterated all other aspects of its outlook. Weather-normalized sales increased 9.6% year over year in the second quarter, while customer growth reached 2.1%, with residential sales rising 5.6% and commercial and industrial sales up 12.7%, driven by data center, semiconductor and advanced-manufacturing customers. Chairman, President and CEO Ted Geisler noted that Taiwan Semiconductor Manufacturing Co.'s existing facilities had a relatively flat year-over-year impact on sales so far, with the bulk of anticipated demand growth still ahead, and that TSMC announced an additional $100 billion investment in Arizona during the quarter, raising its total planned commitment in the state to $265 billion. Pinnacle West's utility subsidiary, Arizona Public Service, recorded an all-time peak demand of 9,164 megawatts on August 2, more than 500 megawatts above the prior-year record. The company also plans to convert two retired coal-fired units at its Cholla Power Plant to natural gas, a project expected to provide about 380 megawatts of dispatchable generation by 2029 and add up to approximately $440 million of capital investment, primarily in 2027 and 2028.
Pinnacle West Capital CorpStrong weather-driven demand and customer growth, with data center and semiconductor customers driving sales, despite Q2 earnings decline.
Taiwan Semiconductor Manufacturing Co. Ltd.TSMC announced an additional $100 billion investment in Arizona, raising total commitment to $265 billion, indicating future demand for Pinnacle West.