Q3 FY2026
Filed Nov 5, 2026Sempra reports Q3 2026 GAAP earnings of $877 million ($1.34 per diluted share) and adjusted earnings of $917 million ($1.40); guides to high end of 2026 adjusted EPS range and updates GAAP EPS range
Q3 2026 GAAP and adjusted earnings both exceed the prior-year quarter as printed, nine-month GAAP and adjusted EPS are well above the prior-year nine months, Sempra expects the high end of its 2026 adjusted EPS range, and it affirmed its 2027 EPS range. Offsetting items are a pending California regulatory decision that could push 2027 earnings to the low end of the segment range and a $149 million after-tax regulatory disallowance charge in the quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| GAAP earnings attributable to common shares, Q3 2026GAAP | $877M | – | – |
| GAAP diluted EPS, Q3 2026GAAP | $1.34 | – | – |
| Adjusted earnings, Q3 2026non-GAAP | $917M | – | – |
| Adjusted diluted EPS, Q3 2026non-GAAP | $1.40 | – | – |
| Total revenues, Q3 2026GAAP | $3.19B | – | – |
| Utilities natural gas revenues, Q3 2026GAAP | $1.35B | – | – |
| Utilities electric revenues, Q3 2026GAAP | $1.39B | – | – |
| Energy-related businesses revenues, Q3 2026GAAP | $453M | – | – |
| Cost of natural gas, Q3 2026GAAP | −$179M | – | – |
| Cost of electric fuel and purchased power, Q3 2026GAAP | −$154M | – | – |
| Energy-related businesses cost of sales, Q3 2026GAAP | −$137M | – | – |
| Operation and maintenance, Q3 2026GAAP | −$1.22B | – | – |
| Regulatory disallowances, net, Q3 2026GAAP | −$205M | – | – |
| Depreciation and amortization, Q3 2026GAAP | −$632M | – | – |
| Franchise fees and other taxes, Q3 2026GAAP | −$214M | – | – |
| Gain on sales, Q3 2026GAAP | $214M | – | – |
| Interest expense, Q3 2026GAAP | −$298M | – | – |
| Interest income, Q3 2026GAAP | $35M | – | – |
| Income tax expense, Q3 2026GAAP | −$14M | – | – |
| Equity earnings, Q3 2026GAAP | $668M | – | – |
| Net income (before noncontrolling interests), Q3 2026GAAP | $1.11B | – | – |
| Earnings attributable to noncontrolling interests, Q3 2026GAAP | −$231M | – | – |
| Total revenues, nine months ended Sept 30, 2026GAAP | $9.84B | – | – |
| Utilities natural gas revenues, nine months ended Sept 30, 2026GAAP | $4.74B | – | – |
| Utilities electric revenues, nine months ended Sept 30, 2026GAAP | $3.77B | – | – |
| Energy-related businesses revenues, nine months ended Sept 30, 2026GAAP | $1.33B | – | – |
| GAAP earnings attributable to common shares, nine months ended Sept 30, 2026GAAP | $2.71B | – | – |
| GAAP diluted EPS, nine months ended Sept 30, 2026GAAP | $4.13 | – | – |
| Adjusted earnings, nine months ended Sept 30, 2026non-GAAP | $2.67B | – | – |
| Adjusted diluted EPS, nine months ended Sept 30, 2026non-GAAP | $4.07 | – | – |
| Interest expense, nine months ended Sept 30, 2026GAAP | −$1.11B | – | – |
| Income tax expense, nine months ended Sept 30, 2026GAAP | −$191M | – | – |
| Equity earnings, nine months ended Sept 30, 2026GAAP | $1.58B | – | – |
| Net income (before noncontrolling interests), nine months ended Sept 30, 2026GAAP | $3.21B | – | – |
| Net cash provided by operating activities, nine months ended Sept 30, 2026GAAP | $4.68B | – | – |
| Expenditures for property, plant and equipment, nine months ended Sept 30, 2026GAAP | −$7.33B | – | – |
| Expenditures for investments, nine months ended Sept 30, 2026GAAP | −$2.10B | – | – |
| Capital expenditures for PP&E, Total Sempra, Q3 2026GAAP | $2.64B | – | – |
| Total assets, September 30, 2026GAAP | $118.0B | – | – |
| Oncor peak system demand (GW), Q3 2026other | 33.3 GW | – | 6% increase (as stated in release) |
| Oncor total deliveries (millions of kWhs), Q3 2026other | 55,206 millions of kWhs | – | – |
| Oncor total deliveries (millions of kWhs), nine months ended Sept 30, 2026other | 139,990 millions of kWhs | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Sempra CaliforniaQ3 2026 segment earnings $223 million versus $370 million in Q3 2025; nine-month segment earnings $1,240 million versus $1,353 million. Q3 2026 revenue prior year was $2,613 million. Release states the $149 million after-tax regulatory disallowance charge (Track 3 PD and TIMP PD) is within this segment, and that if the CPUC proposed decision on the capital attrition mechanism is not reversed, Sempra California expects 2027 earnings at the low end of its segment guidance range unless mitigated. | $2,733 million (Q3 2026) | – | – |
| Sempra Texas UtilitiesQ3 2026 segment earnings $460 million versus $306 million in Q3 2025; nine-month segment earnings $977 million versus $660 million. Q3 2026 revenue prior year was $555 million. Release reports Oncor peak demand of 33.3 GW (prior-year record 31.4 GW) and an expected 20% increase in Oncor's 2027-2031 base capital plan versus 2026-2030. | $474 million (Q3 2026) | – | – |
| Sempra InfrastructureQ3 2026 segment earnings $346 million versus $(580) million in Q3 2025; nine-month segment earnings $838 million versus $(362) million. Q3 2026 equity earnings and the Ecogas gain are reported at the consolidated level in Table A; the release states the Ecogas sale closed in August and the 45% SI Partners sale is expected to close in the next two weeks. | Not separately printed in Table F (segment totals $3,207 million in Q3 2026) | – | – |
| Parent and otherQ3 2026 earnings (losses) $(152) million versus $(19) million in Q3 2025; nine-month $(345) million versus $(207) million. | $(16) million consolidating adjustments (Q3 2026) | – | – |
Full-year 2026 and 2027 (as stated in release) outlook
- Note2026 GAAP EPS guidance range updated to $7.41 to $8.41
- Note2026 adjusted EPS guidance range $4.80 to $5.30; Sempra guiding to the high end
- Note2027 EPS guidance range $5.10 to $5.70, affirmed; certain pending regulatory outcomes could place Sempra in the lower half of this range unless mitigated
- NoteProjected long-term EPS growth rate 7% to 9%, affirmed
- NoteEstimated gain on sale of SI Partners $2.00 billion to $2.40 billion, subject to post-closing adjustments, expected to complete in November 2026
- NoteEstimated ancillary costs associated with the SI Partners sale $325 million to $400 million
- NoteOncor 2027-2031 base capital plan projected to increase by approximately 20% relative to 2026-2030 base capital plan
- NoteSempra expects to finalize and announce its 2027-2031 capital plan on the fourth-quarter earnings call in February 2027
Capital returns
- Common dividends paid, nine months ended Sept 30, 2026: $(1,245) million (prior year $(1,195) million), per cash flow statement.
- Repurchases of common stock, nine months ended Sept 30, 2026: $(21) million (prior year $(58) million).
- Distributions to noncontrolling interests, nine months ended Sept 30, 2026: $(206) million (prior year $(131) million).
- Proceeds from sales, net of transaction costs and cash sold, nine months ended Sept 30, 2026: $535 million (prior year none printed).
- Sale of 45% equity interest in Sempra Infrastructure Partners to affiliates of KKR is described as on track and expected to close in the next two weeks.
What drove it
- Q3 2026 Table A shows lower interest expense ($(298) million versus $(403) million), lower income tax expense ($(14) million versus $(482) million) and higher equity earnings ($668 million versus $472 million) than Q3 2025. The release does not state which of these caused the change in GAAP earnings.
- Excluded items in Q3 2026 GAAP-to-adjusted reconciliation: regulatory disallowances $149 million after tax; foreign currency and inflation on Mexico monetary positions $(65) million; net unrealized losses on commodity derivatives $67 million; net unrealized gains on interest rate swaps related to PA LNG Phase 1 $(16) million; tax items related to assets held for sale $2 million; gain on sale of Ecogas $(97) million. Sign convention as printed in the release's after-tax table.
- Company statement on the Oncor capital plan: the increase is driven by a broad portfolio of investments necessary to maintain reliability and support continued load growth across ERCOT, per the release.
- Oncor set a new all-time system peak demand record of 33.3 GW in Q3 2026, versus a prior-year record of 31.4 GW; ERCOT conditionally classified about 24 GW of large load as base load (including 10 GW energized) and 21 GW as studied load, per the release.
- PUCT approved both segments of Import Path 1 of the Permian Basin Reliability Plan in August; the release states the approval is subject to motions for rehearing, which have been filed, and to appeals.
Concerns
- CPUC proposed decision of October 29, 2026 denies SoCalGas and SDGE's request to correct the 2024 General Rate Case capital attrition mechanism for 2027 revenue requirement. If not reversed, Sempra California expects 2027 earnings at the low end of its segment guidance range, unless mitigated.
- Q3 2026 regulatory disallowances, net of $(205) million pre-tax (of which SoCalGas $(216) million and SDG&E $67 million after tax appear in the adjusted-earnings reconciliation as part of the $(149) million charge), per the release.
- Sempra Texas PBRP approval is subject to pending rehearing motions and appeals, per the release.
- Adjusted EPS guidance of $4.80 to $5.30 and GAAP EPS guidance of $7.41 to $8.41 include an estimated gain on SI Partners sale and an estimated $325 million to $400 million of ancillary costs; the release estimates these amounts, which are subject to post-closing adjustments.
- Cash fell to $34 million at September 30, 2026 from $29 million at December 31, 2025 while long-term debt rose to $31,508 million from $28,979 million; the release does not discuss the balance sheet trend.
- Oncor's ability to reduce or eliminate quarterly dividends is listed among forward-looking risk factors in the release.
What to watch
- Closing of the 45% SI Partners sale to KKR, which the release expects within the next two weeks, and the final gain and ancillary costs versus the $2.00 billion to $2.40 billion and $325 million to $400 million estimates.
- Final CPUC decision on the proposed decision denying the 2024 GRC capital attrition correction, and whether Sempra California's 2027 earnings land at the low end of its segment range.
- Outcome of rehearing motions and appeals on PUCT approval of Permian Basin Reliability Plan Import Path 1.
- Announcement of Sempra's 2027-2031 capital plan on the Q4 2026 earnings call in February 2027, including the Oncor plan increase of approximately 20%.
- Whether Sempra delivers adjusted EPS in the high end of the $4.80 to $5.30 range, as guided.
Balance sheet and cash flow
- Cash and cash equivalents: $34 million at September 30, 2026 versus $29 million at December 31, 2025.
- Short-term debt: $4,438 million at September 30, 2026 versus $4,166 million at December 31, 2025.
- Current portion of long-term debt and finance leases: $1,528 million versus $1,876 million at December 31, 2025.
- Long-term debt and finance leases: $31,508 million at September 30, 2026 versus $28,979 million at December 31, 2025.
- Assets held for sale: $33,552 million versus $31,024 million at December 31, 2025. Liabilities held for sale: $13,118 million versus $11,704 million.
- Investment in Oncor Holdings: $20,010 million versus $17,472 million at December 31, 2025.
- Sempra shareholders' equity: $33,327 million versus $31,594 million at December 31, 2025. Total equity: $40,784 million versus $38,793 million.
- Net cash used in investing activities, nine months ended Sept 30, 2026: $(8,906) million (prior year $(8,605) million).
- Net cash provided by financing activities, nine months ended Sept 30, 2026: $2,776 million (prior year $6,661 million).
- Cash, cash equivalents and restricted cash, September 30, 2026: $2,104 million (prior year $3,025 million); decrease in the nine months of $(1,448) million.
Analysis
Sempra reported Q3 2026 GAAP earnings attributable to common shares of $877 million, or $1.34 per diluted share, against $77 million, or $0.12, in Q3 2025. Adjusted earnings were $917 million, or $1.40 per diluted share, against $728 million, or $1.11. For the first nine months, GAAP earnings were $2.710 billion ($4.13 per diluted share) against $1.444 billion ($2.21), and adjusted earnings were $2.670 billion ($4.07) against $2.253 billion ($3.45). Total revenues were $3,191 million in Q3 2026 against $3,151 million, and $9,843 million for nine months against $9,953 million. The nine-month revenue mix shows utilities natural gas revenue of $4,736 million against $5,195 million and electric revenue of $3,773 million against $3,350 million.
Below the revenue line, the release's Table A shows lower interest expense in both periods (Q3 $(298) million versus $(403) million; nine months $(1,110) million versus $(1,195) million), lower Q3 income tax expense ($(14) million versus $(482) million), and higher equity earnings (Q3 $668 million versus $472 million; nine months $1,582 million versus $1,190 million). Net income before noncontrolling interests was $1,114 million in Q3 against $150 million. Earnings attributable to noncontrolling interests rose to $(231) million from $(55) million. The company's excluded-items reconciliation lists several items that move GAAP away from adjusted results in Q3 2026, including a $149 million after-tax regulatory disallowance charge, a $97 million after-tax gain on the Ecogas sale and a $(65) million after-tax foreign currency item in Mexico. The release does not attribute the change in GAAP earnings to any single driver.
By segment, Sempra Texas Utilities earned $460 million in Q3 2026 against $306 million, and nine-month earnings of $977 million against $660 million. Sempra California earned $223 million in Q3 2026 against $370 million, and $1,240 million for nine months against $1,353 million. Sempra Infrastructure earned $346 million in Q3 2026 against $(580) million. The release reports Oncor's record peak demand of 33.3 GW, up from 31.4 GW, and Oncor deliveries of 55,206 million kWh in Q3 against 50,761 million kWh. Capital spending on property, plant and equipment was $2,640 million in Q3 2026 against $2,561 million, and nine-month capital expenditures for PP&E were $7,327 million against $7,201 million. Expenditures for investments were $2,095 million for nine months against $1,492 million.
On guidance, Sempra updated its 2026 GAAP EPS range to $7.41 to $8.41, said it is guiding to the high end of its 2026 adjusted EPS range of $4.80 to $5.30, and affirmed a 2027 EPS range of $5.10 to $5.70 and a 7% to 9% long-term EPS growth rate. The company said pending regulatory outcomes at Sempra California could place 2027 EPS in the lower half of its range unless mitigated. The guidance reconciliation includes an estimated gain of $2.00 billion to $2.40 billion on the SI Partners sale and estimated ancillary costs of $325 million to $400 million. No prior guidance was provided with this read, so no guidance comparison is made.
Capital allocation remained centered on regulated investment. Oncor's 2027-2031 base capital plan is projected to rise about 20% from 2026-2030, and Sempra will finalize its 2027-2031 plan in February. Nine-month common dividends were $(1,245) million against $(1,195) million, and repurchases were $(21) million against $(58) million. Total assets were $118,024 million at September 30, 2026, against $110,878 million at December 31, 2025, with assets held for sale of $33,552 million. Cash and equivalents were $34 million, and long-term debt and finance leases were $31,508 million. The balance sheet comparison is to year-end 2025, not to the prior-year quarter.
Management, verbatim
Our year-to-date results reflect disciplined execution across the company and continued progress on our 2026 value creation initiatives,
Jeffrey W. Martin, Chairman and CEO, Sempra
Not in the filing
stated, not guessed- Year-over-year and quarter-over-quarter percentage changes are not printed for most lines, so yoy_change and qoq_change are null.
- Q2 2026 (prior quarter) figures are not printed, so prior_quarter is null throughout.
- Gross margin, operating income, operating expenses total and tax rate are not printed as separate lines.
- Sempra Infrastructure revenue is not separately printed in Table F; only segment totals ($3,207 million) appear.
- Prior-year value for regulatory disallowances, net and gain on sales in Q3 is shown as a dash in the release and is recorded as null.
- Prior-year (Q3 2025 and nine months 2025) total assets and equity are not printed; balance sheet comparisons are to December 31, 2025 and are described in balance_sheet_cash_flow.
- Prior-year guidance was not provided, so vs_prior_guidance is empty and it is not stated whether guidance was raised, lowered or held.
- Consensus estimates, analyst expectations and share price reaction are not in the documents.
- Estimated gain on SI Partners sale and ancillary costs are ranges from guidance, not reported results.
- Basic EPS for nine months 2026 ($4.14) and share counts are omitted from key metrics by design.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.