PN
PNW
Latest · Mar 31, 2026
Quarter ended Mar 31, 2026 · FY2026 Q1

Pinnacle West Capital Corporation stock research

Pinnacle West Capital (PNW) Free Cash Flow — Quarter Ended Mar 31, 2026

The company's free cash flow was negative and weakened compared to both the prior quarter and the same quarter last year. Operating cash flow declined while revenue remained stable, leading to a lower free cash flow margin.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

The company's free cash flow was negative and weakened compared to both the prior quarter and the same quarter last year. Operating cash flow declined while revenue remained stable, leading to a lower free cash flow margin.

  • Revenue was stable relative to the prior quarter, but operating cash flow was lower, resulting in a weaker cash conversion. Capital expenditure was slightly lower, yet free cash flow turned more negative.
  • Compared to the prior quarter, free cash flow and margin both weakened. Versus the same quarter last year, free cash flow also worsened despite higher revenue.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

-$991.9M

Trailing twelve-month free cash flow.

Quarter free cash flow

-$393.1M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$235.3M

Cash generated by operations before capital spending.

CapEx

$628.4M

Capital spending and related asset purchases.

FCF margin

-34.2%

The share of revenue converted into free cash flow.

TTM FCF yield

-7.6%

TTM FCF divided by market capitalization.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2025-06-30$1.4B$261.4M$709.5M-$448.1M-33.0%
2025-09-30$1.8B$665.0M$623.0M$42.0M2.3%
2025-12-31$1.1B$476.8M$669.5M-$192.7M-17.1%
2026-03-31$1.1B$235.3M$628.4M-$393.1M-34.2%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income-1119.4%Shows whether accounting earnings convert into cash.
CapEx / revenue54.7%Lower capital intensity usually supports FCF margin.
Net cash-$10.4BCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

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Operating cash flow decline

Operating cash flow decreased from the prior quarter and from the same quarter last year, while revenue was stable or higher. This was the strongest observable driver of the change in free cash flow.

The decline in operating cash flow drove free cash flow deeper into negative territory and reduced the free cash flow margin.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Revenue was stable relative to the prior quarter, but operating cash flow was lower, resulting in a weaker cash conversion. Capital expenditure was slightly lower, yet free cash flow turned more negative.

Compared to the prior quarter, free cash flow and margin both weakened. Versus the same quarter last year, free cash flow also worsened despite higher revenue.

Monitor operating cash flow, as its decline was the primary factor behind the weaker free cash flow.

Valuation context

A cash-flow page should show how much investors are paying for the cash stream, without turning into a full DCF.

Market capitalization$13.0BUsed as the denominator for FCF yield.
TTM FCF yield-7.6%TTM free cash flow divided by market capitalization.
EV / TTM FCF-23.6xA quick valuation bridge, not a full DCF.

Peer context

Free cash flow quality is easier to read against related public companies.

PN
PNW

Pinnacle West Capital Corporation

FCF margin

-34.2%

FCF yield

-7.6%