Earnings analysis · 10-Q
SRE earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
Sempra reported Q1 2026 earnings of $1.037 billion, or $1.51 per diluted share, matching analyst expectations for EPS. Revenue fell to $3.655 billion, missing the $4.125 billion target amid significant fluctuations in…
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Sempra reported Q1 2026 earnings of $1.037 billion, or $1.51 per diluted share, matching analyst expectations for EPS. Revenue fell to $3.655 billion, missing the $4.125 billion target amid significant fluctuations in segment earnings across key utilities. Capital expenditures continued at a robust pace, totaling $3.337 billion for the quarter as part of ongoing investment strategies.
Reported figures
- Earnings per share
- $1.51
- Segment
- Sempra California
- Segment
- Sempra Texas Utilities
- Segment
- Sempra Infrastructure
What stood out
-
EPS Matches Analyst Expectations
Reported diluted EPS of $1.51 met estimates but showed a decline from prior periods.
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Significant Revenue Decline
Total revenue of $3.655 billion fell short of the $4.125 billion estimate, representing a 11.4% miss.
-
Strong Capital Expenditures
Capital expenditures reached $3.337 billion, highlighting commitment to infrastructure.
-
Segment Earnings Variability
Sempra California earnings decreased by $4 million (1%) compared to Q1 2025.
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Growth in Infrastructure Earnings
Sempra Infrastructure saw an earnings increase of $116 million year-over-year.
-
Operating Cash Flow Improvement
Cash flow from operations increased by $327 million year-over-year to $1.809 billion.
What to watch
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High Capital Expenditures
Capital expenditures increased to $3.337 billion in Q1 2026, raising concerns over cash management.
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Regulatory Risks
Dependence on regulatory frameworks exposes Sempra to significant operational risks, especially in California.
-
Declining Revenues in Key Segments
Natural gas revenue decreased by 14% to $2.025 billion, driven largely by Sempra California.
Management's outlook
Management expects EPS in the range of $4.87 to $5.37 for FY 2026, reflecting ongoing capital investments.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.