Pinnacle West upgraded to hold after strong Q1 earnings and technical breakout.

Pinnacle West (PNW) was upgraded from sell to hold as its shares near fair value following a strong technical breakout and solid first-quarter results. The company reported Q1 GAAP EPS of $0.27 and revenue of $1.15 billion, beating expectations, driven by a 9.4% increase in retail sales and 14.6% growth in commercial and industrial demand. Management reaffirmed its full-year 2026 EPS guidance of $4.55–$4.75 and aims for 5–7% long-term EPS growth, supported by $10.4 billion in capital expenditures through 2028. Key risks include rising interest rates, regulatory decisions on the 2025 APS Rate Case, and operational challenges from increasing AI-driven demand.