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SRE · 10-Q filed May 7, 2026

SRE earnings analysis

What we found in SRE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.

Our reading of the filing · Free to read, no account needed

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.

What stood out

The parts that mattered.

Pulled out of the filing itself, with the figures the company reported.

EPS Matches Analyst Expectations
Reported diluted EPS of $1.51 met estimates but showed a decline from prior periods.
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.
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

And the other side of it.

The offsets in the same document — the things a summary that only listed the good news would have left out.

High Capital Expenditures
Capital expenditures increased to $3.337 billion in Q1 2026, raising concerns over cash management.
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.
The numbers

What they reported.

What the company itself reported, taken out of the document.

Earnings per share
$1.51
Segment
Sempra California
Segment
Sempra Texas Utilities
Segment
Sempra Infrastructure
Guidance

What they said about what is next.

Management expects EPS in the range of $4.87 to $5.37 for FY 2026, reflecting ongoing capital investments.

How we read the filing overall

The filing reads worse than the one before it.

One reading of one document. It is not advice, and it is not a forecast.

This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.

Read the next one first.

We read every filing SRE makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.

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