Sempra Releases 2026 Earnings Guidance Amid Mixed Q4 Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy SRE?
Source: seekingalpha
- Q4 Financial Highlights: Sempra's Q4 non-GAAP EPS of $1.28 exceeded expectations by $0.11, indicating strong profitability, although revenue of $3.75 billion fell short by $300 million with a year-over-year decline of 0.3%, which may dampen market confidence in future growth.
- 2026 Earnings Guidance: The company affirms its adjusted EPS guidance for 2026 in the range of $4.80 to $5.30, which is not directly reconcilable to GAAP EPS guidance, yet reflects management's confidence in future profitability aimed at attracting investor interest in its long-term growth potential.
- 2027 and 2030 Outlook: Sempra also announced a 2027 EPS guidance range of $5.10 to $5.70, slightly above the consensus of $5.16, and a 2030 outlook of $6.70 to $7.50, indicating a positive outlook for sustained growth over the coming years.
- Market Reaction and Regulatory Impact: Despite Sempra's strong earnings performance, California regulators plan to reduce utility company profits, albeit less than proposed, which could exert pressure on the company's long-term profitability, necessitating close monitoring of related policy changes by investors.
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Analyst Views on SRE
Wall Street analysts forecast SRE stock price to rise
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 96.270
Low
89.00
Averages
100.58
High
115.00
Current: 96.270
Low
89.00
Averages
100.58
High
115.00
About SRE
Sempra is a North American energy infrastructure company. The Company's businesses invest in, develop and operate energy infrastructure, and provide electric and gas services to customers. Its segments include Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. The Sempra California segment provides natural gas and electric service to Southern California and part of central California through its subsidiaries, SDG&E and SoCalGas. The Sempra Texas Utilities segment holds its investment in Oncor Holdings, which owns an over 80.25% interest in Oncor, a regulated electric transmission and distribution utility serving customers in the north-central, eastern, western and panhandle regions of Texas, and its indirect 50% interest in Sharyland Holdings, which owns Sharyland Utilities, a regulated electric transmission utility serving customers near the Texas-Mexico border. The Sempra Infrastructure segment develops, builds, operates and invests in energy infrastructure.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Future Outlook: With ongoing growth in power demand, Sempra's business outlook appears promising, and market expectations for future earnings may rise, especially ahead of the upcoming Q4 2025 earnings report, generating anticipation among investors.
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- Adjusted Earnings: Excluding special items, Sempra reported adjusted earnings of $841 million, or $1.28 per share; however, this still fails to offset the overall decline in profitability, reflecting operational challenges faced by the company.
- Revenue Slight Drop: The company's revenue for the fourth quarter was $3.749 billion, down 0.2% from $3.758 billion last year, suggesting a lack of revenue growth in a competitive market environment.
- Market Reaction: The dual decline in earnings and revenue has led to a cautious market outlook on Sempra Energy's future, potentially impacting its investment attractiveness and stock performance.
See More
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