Sempra Q3 2026: Texas Surge Powers a Big EPS Beat
As seen on the 24/7 Wall St. homepage on November 5, 2026.
Texas is now carrying Sempra: the Texas utilities unit earned $460 million against $306 million a year ago, pushing management to the high end of its 2026 adjusted EPS range even with revenue missing expectations. In California, a pending CPUC ruling on rate attrition puts 2027 results in the lower half of the affirmed $5.10 to $5.70 guidance.
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Sempra's third-quarter 2026 earnings report delivered adjusted EPS of $1.40, beating the Wall Street consensus of $1.21. That margin of outperformance is the widest in the company's recent earnings history, which had seen beats in most quarters but nothing of this magnitude. Revenue of $3.19 billion came in missing expectations, though it was essentially flat year over year.
The headline driver was Sempra Texas Utilities, where earnings attributable to common shares jumped to $460 million from $306 million in the year-ago period. That increase was powered by higher Oncor equity earnings and underscored by a system peak demand record of 33.3 gigawatts, up from 31.4 gigawatts, a sign of the rapid load growth reshaping the Texas grid. Oncor's 2027 to 2031 base capital plan is projected to rise about 20% versus its prior five-year plan, pointing to sustained investment ahead.
On the GAAP side, diluted EPS came in at $1.34, dragged below the adjusted figure by a $149 million after-tax regulatory disallowance charge at Sempra California tied to CPUC proposed decisions. A $97 million after-tax gain on the August 2026 sale of Ecogas México partially offset that charge. Interest expense also fell to $298 million from $403 million a year earlier, providing a meaningful tailwind to the bottom line.
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Management now expects to finish 2026 at the high end of its adjusted EPS guidance range of $4.80 to $5.30. For 2027, the affirmed guidance range stands at $5.10 to $5.70, though a pending CPUC ruling on the California rate attrition mechanism is the key variable: an unfavorable outcome pushes consolidated 2027 results to the lower half of that range. The company also affirmed a long-term EPS growth rate of 7% to 9%.
One additional catalyst on the near-term horizon is the planned sale of a 45% equity interest in Sempra Infrastructure Partners to KKR affiliates, which management said was expected to close within about two weeks of the November 5 earnings filing. The transaction carries an estimated gain of $2.00 to $2.40 billion, with ancillary costs of $325 to $400 million, and is intended to strengthen the company's financial position while supporting growth in its Texas and California utility businesses.