Sempra’s Q3 2026 Earnings Signal a 2026 EPS Upside, With a Side of Capex Clarity

Sempra (NYSE: SRE) reports third-quarter and nine-month 2026 results, hinting at a higher EPS trajectory fueled by a broader capital plan and strategic divestment reads

Executive snapshot

The quarter-and-a-half story comes from Sempra’s dual-track approach: GAAP earnings and a parallel non-GAAP (adjusted) view. For the third quarter of 2026, EPS stood at $1.34 on a diluted-share basis under GAAP, with EPS of $1.40 when adjusted for non-GAAP items, versus the year-ago GAAP print of $0.12 per share and adjusted $1.11 in 2025. In plain terms, the company moved from a whisper to a shout in quarterly earnings per share, even if that shout is measured with two instruments.

On the revenue forecast side, the release emphasizes earnings and cash-flow positioning rather than a full top-line number in this excerpt, aligning with Sempra’s emphasis on value creation and capital discipline. The EPS consensus isn’t explicitly stated in the filing excerpt, but management signals that 2026 EPS guidance is being nudged toward the high end of the adjusted range, suggesting the market’s current expectations may be in play—if you’re into that kind of arithmetic.

Numbers that matter

Across the first nine months of 2026, Sempra reported GAAP earnings of $2.710 billion, or $4.13 per diluted share, up from $1.444 billion, or $2.21 per diluted share, in the first nine months of 2025. The adjusted earnings for the same period were $2.670 billion, or $4.07 per diluted share, versus $2.253 billion or $3.45 in 2025.

The press release frames the third quarter as part of a running narrative—“Our year-to-date results reflect disciplined execution across the company and continued progress on our 2026 value creation initiatives,” as CEO Jeffrey W. Martin put it. That narrative is reinforced by the company’s explicit plan to advance a set of CAPEX-driven initiatives, with notable movement on Oncor’s capital program.

Strategy, guidance, and a capital plan that wants to be noticed

A centerpiece of the disclosure is a commitment to accelerate value-creation initiatives into 2026. Notably, Sempra disclosed an expected ~20% increase to Oncor’s base capital plan, signaling a bigger bet on regulated utility growth and grid expansion—an outcome that, in entry-level terms, should translate into higher rate-base growth and, with regulatory approvals, steadier earnings visibility.

The company also flagged a strategic move—planning to complete the planned sale of an equity stake in Sempra Infrastructure Partners. Management frames this as a lever to support strong growth in both Texas and California utilities and to strengthen the balance sheet. That’s the kind of hinge-point move investors watch closely: a sale that could de-lever the growth engine while funding additional capital deployment.

On guidance, Sempra notes updates to its 2026 EPS expectations, pointing toward a high end of the EPS consensus range for adjusted earnings. The GAAP EPS guidance is also being refined. In other words, the company is signaling a clearer path to higher per-share profitability, even as it underscores that much of the upside is anchored in regulated assets and capital efficiency rather than one-off items.

Implications for SRE and sector peers

For SRE itself, the combination of higher Oncor capex and the strategic asset sale supports a durable growth thesis in regulated utilities—a sector where earnings visibility often comes from rate-base growth and regulated asset quality rather than aggressive market risk. The push to high end 2026 adjusted EPS, together with a robust nine-month performance, suggests management believes the platform can weather macro pressures (rates, capital access, inflation) while extracting productivity gains from capital projects and portfolio optimization.

For sector peers, several takeaways emerge:

Capital discipline in regulated utilities remains a top driver of earnings quality; investors will look for evidence of predictable rate-base expansion and regulatory support.
Use of asset sales to fund growth initiatives can be a double-edged sword: it funds capex while potentially reshaping the growth mix and leverage profile.
Non-GAAP adjustments continue to illuminate the underlying health of the business, but market watchers will parse GAAP versus adjusted results to gauge earnings quality and sustainability.
Guidance positioning near the high end of the adjusted EPS range could become the new baseline for peers if this approach is repeated across the sector, especially where utilities are leaning into large-scale CAPEX cycles.

Caveats and context

As with any earnings release, the distinction between GAAP and adjusted metrics matters. Sempra’s narrative hinges on how investors interpret the “value creation initiatives” and the financing choices around Infrastructure Partners. The future trajectory will depend on regulatory outcomes, the pace of capex approvals, and the efficiency of project execution.

From the CEO’s desk

“Our year-to-date results reflect disciplined execution across the company and continued progress on our 2026 value creation initiatives,” said Jeffrey W. Martin, chairman and CEO of Sempra. “As a next step, we look forward to completing the planned sale of an equity stake in Sempra Infrastructure Partners, with a view toward supporting strong growth in our Texas and California utilities and strengthening our financial position.”

Bottom line for investors

Sempra’s Q3 2026 results reinforce a narrative of disciplined growth through capital deployment in regulated assets, complemented by selective portfolio actions. The highlighted ~20% uplift to Oncor’s capital plan and the strategic divestment of a stake in Infrastructure Partners position SRE to push earnings per share higher in 2026, with a focus on the high end of the adjusted EPS guidance. If you’re tracking EPS momentum and the revenue forecast trajectory of regulated utilities, Sempra’s current path provides a case study in balancing growth with regulatory risk.

For peers, the message is equally clear: the market rewards clear capital-allocation intent and steady execution on large-scale CAPEX—provided regulatory environments cooperate. The years ahead will test that thesis across the sector, but Sempra’s Q3 operations suggest the playbook remains viable for now.