How does Pinnacle West Capital (PNW) make money?

Pinnacle West Capital (PNW) generates revenue primarily from Electric Service, which accounted for 91.8% of total revenue in TTM through Q1 2026. The company reported $5.46B in revenue and converted 12% of it into net profit, equivalent to roughly $654M in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Pinnacle West Capital (PNW)?

Pinnacle West Capital (PNW) reported a gross profit margin of 40.7% in TTM through Q1 2026, equivalent to $2.22B in gross profit on $5.46B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Pinnacle West Capital (PNW)?

Pinnacle West Capital (PNW) reported an operating profit margin of 27.5% in TTM through Q1 2026, equivalent to $1.5B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Pinnacle West Capital (PNW)?

Pinnacle West Capital (PNW) reported a net profit margin of 12% in TTM through Q1 2026, equivalent to $654M in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Pinnacle West Capital (PNW) profitable?

Yes. Pinnacle West Capital (PNW) reported $654M in net income for TTM through Q1 2026, with a net profit margin of 12%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Pinnacle West Capital (PNW) spend on capital expenditures?

Pinnacle West Capital (PNW) spent $2.63B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 48.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Pinnacle West Capital (PNW) generate?

Pinnacle West Capital (PNW) generated -$992M in free cash flow during TTM through Q1 2026, a free-cash-flow margin of -18.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Pinnacle West Capital (PNW)?

Pinnacle West Capital (PNW) had an effective tax rate of 14.6% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Pinnacle West Capital (PNW)?

Pinnacle West Capital (PNW) reports revenue across 3 reportable product segments, led by Electric Service at 91.8% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Pinnacle West Capital Makes Money: 2026 Visual Revenue Map

Pinnacle West Capital (PNW) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 4, 2026).

Pinnacle West Capital discloses geographic revenue only in annual filings. to view the full breakdown.

Pinnacle West Capital (PNW) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Pinnacle West Capital (PNW), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Electric Service	$5.01B	91.8%
Electric and Transmission Service	$260M	4.8%
Wholesale Energy	$189M	3.5%
Total	$5.46B	100%

Electric Service$5.01B
Electric and Transmission Service$260M
Wholesale Energy$189M
Total$5.46B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Pinnacle West Capital (PNW) reports revenue across 3 reportable product segments; the largest segment was Electric Service at 91.8%, followed by Electric and Transmission Service (4.8%) and Wholesale Energy (3.5%).

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