Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Sempra's second quarter of fiscal 2026 delivered a strong increase in earnings attributable to common shares, reaching $796 million, up 73% year-over-year, as the company benefited from regulatory outcomes and strategic portfolio actions. The standout performer was Sempra Infrastructure, where tax benefits from classifying SI Partners and Ecogas as held for sale, along with gains on commodity derivatives, added $158 million to segment earnings. Sempra Texas Utilities also contributed significantly, with Oncor's surcharge from a base rate review boosting equity earnings. Meanwhile, Sempra California saw modest earnings growth from higher CPUC-authorized base operating margins and transmission settlements, partially offset by rising interest costs. These gains were partly tempered by a $71 million increase in consolidated interest expense across the holding company and utilities, reflecting higher debt balances.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.16 | 1.07 | Beat +8.5% |
| Mar 2026 | 1.51 | 1.53 | Miss -1.4% |
| Dec 2025 | 1.28 | 1.18 | Beat +8.2% |
| Sep 2025 | 1.11 | 0.92 | Beat +20.5% |
Reported EPS of $1.16 versus the $1.07 analyst consensus — a +8.5% beat for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $2.83B; with -$28M of reconciling items (corporate, unallocated and eliminations) it ties to the $2.8B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
Earnings increased $38 million (15%) in Q2, driven by $21 million higher CPUC base operating margin and a $13 million favorable impact from the retroactive FERC-approved TO6 settlement for electric transmission.
Source: 10-Q Item 2 MD&A
Oncor's equity earnings jumped $137 million due to a surcharge from a comprehensive base rate review, reflecting the difference between new and old rates from January to June 2026, along with new base rates implemented in June.
Source: 10-Q Item 2 MD&A
Segment earnings rose $158 million, including a $46 million tax benefit from classifying SI Partners and Ecogas as held for sale, which adjusted deferred tax liabilities and lowered depreciation by $37 million.
Source: 10-Q Item 2 MD&A
Sempra Infrastructure recorded $34 million in higher unrealized gains on commodity derivatives due to natural gas price changes and transport/storage optimization, contributing to earnings.
Source: 10-Q Item 2 MD&A
Consolidated interest expense rose $71 million (20%) to $430 million, with increases at Sempra California and Parent from higher debt balances, partially offset by unrealized gains on interest rate swaps at Sempra Infrastructure.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 1 high, 4 medium, 0 low
Sempra's utilities rely on favorable regulatory decisions for cost recovery and returns. Adverse rulings, like the 2025 disallowance of COVID-19 costs, could impact earnings. Future GRC decisions or FERC settlements may not replicate the recent favorable TO6 settlement.
Source: 10-Q Item 2 MD&A
Sempra Infrastructure's earnings are subject to natural gas price fluctuations and derivative gains/losses. Unrealized gains contributed $34 million in Q2 2026, but these can reverse if prices move adversely.
Source: 10-Q Item 2 MD&A
The company's Mexican operations expose it to peso fluctuations and inflation. While Q2 2026 saw a $27 million favorable impact from reduced losses compared to 2025, future volatility could harm earnings, though the planned sale of SI Partners will reduce this exposure.
Source: 10-Q Item 2 MD&A
Rising interest expense from higher debt balances and variable-rate debt could pressure earnings, as seen with a 20% increase in Q2. Sempra's capital-intensive utility plans and LNG projects increase leverage.
Source: 10-Q Item 2 MD&A
The pending sale of SI Partners (expected Q3 2026) and prior classification of Ecogas as held for sale carry risks of deal failure, unfavorable terms, or loss of future earnings contributions from these assets.
Source: 10-Q Item 2 MD&A
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
SRE reported Q1 FY2026 net income of $1.04B (+13.1% YoY) on revenue of $3.43B (-6.9% YoY), with strong operating cash flow of $1.81B and a significant balance sheet expansion driven by a surge in current assets.
SRE (Sempra) reported FY2025 revenue of $13.70B (+3.9% YoY) but net income fell sharply to $1.84B (-35.8% YoY), reflecting significant cost pressures and investment activity even as the company aggressively expanded its asset base by 15.3%.
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