Sempra Profit Jumps 26% in Q3 as Texas Utility Powers Earnings Beat

Sempra made more money in the third quarter of 2026 than it did a year earlier. The US energy company earned $1.40 per share on an adjusted basis, up 26 percent from $1.11 in the same quarter last year, and it pointed to the high end of its profit outlook for 2026. Revenue came in a little short of expectations, and the shares slipped on Friday, but the company raised its full year earnings guidance.

What happened

Sempra reported its third quarter results on November 5, 2026, for the three months ended September 30. On the headline measure, profit was $877 million, or $1.34 per share, compared with only $77 million, or $0.12 per share, a year earlier. On an adjusted basis, which strips out one-off items, earnings were $917 million, or $1.40 per share, up from $728 million, or $1.11 per share, a year earlier.

Revenue was $3.19 billion, up 1.3 percent from a year earlier, but below the $3.31 billion analysts had expected. So Sempra beat expectations on profit and missed slightly on sales.

The growth came mainly from Texas. Earnings at Sempra Texas Utilities rose to $460 million from $306 million a year earlier. Its Oncor electric business hit a record peak demand of 33 gigawatts, and Sempra said Oncor expects its 2027 to 2031 capital plan to rise about 20 percent from the current $47.5 billion plan, as it builds more grid capacity for growing demand.

The adjusted result excluded a $149 million after-tax charge linked to a California regulatory decision, partly offset by a $97 million gain on the sale of Ecogas Mexico.

Sempra also lifted its outlook. It raised its 2026 earnings guidance on the headline measure to $7.41 to $8.41 per share, said it expects to finish near the high end of its adjusted range of $4.80 to $5.30 per share, and reaffirmed its 2027 guidance of $5.10 to $5.70 per share. It kept its long term target of 7 to 9 percent annual earnings growth. Sempra shares slipped on Friday, falling $1.67 to $78.16, even after the earnings beat.

Why it matters for beginners

Sempra is a simple business to understand at its core. It runs electric and gas utilities in Texas and California and builds energy infrastructure, including power lines and energy export facilities. Regulated utilities earn returns that regulators approve, so their profit usually grows slowly and steadily as they invest in the grid.

This report matters for three reasons. First, electricity demand is rising again, driven by data centers, new factories and population growth in Texas. Oncor hitting record demand is a clear sign of that trend. Second, the raised outlook tells investors the company expects that demand, plus its investment plan, to keep profit growing. Third, it is a useful reminder that a profit beat does not always lift the share price. Revenue missed expectations, and the shares fell on Friday, so one good number is not the whole story.

It also fits a wider pattern this earnings season. Duke Energy also beat expectations in the same week and raised its outlook, as power demand grows across the United States.

What to watch next

Watch the California regulatory outcome, because Sempra said its California business could land at the low end of its 2027 guidance if a pending regulatory matter is not resolved in its favour. Watch whether Oncor keeps setting demand records and whether regulators approve its bigger investment plan. The next big test is the fourth quarter and full year results early in 2027, which will show whether Sempra landed at the high end of its $4.80 to $5.30 range. Interest rates matter too, because utilities borrow heavily to build, so higher borrowing costs can squeeze profit.

FAQ

What is Sempra?

Sempra is a US energy company based in San Diego, California. It runs electric and gas utilities in Texas and California and builds energy infrastructure.

How much did Sempra earn in Q3 2026?

It earned $1.40 per share on an adjusted basis, up 26 percent from $1.11 a year earlier. On the headline measure, earnings were $1.34 per share, up from $0.12 a year earlier. Revenue was $3.19 billion.

Did Sempra beat expectations?

Yes, on profit. Adjusted earnings of $1.40 per share were above what analysts expected, but revenue of $3.19 billion came in below the $3.31 billion expected.

What is its outlook for 2026?

Sempra raised its 2026 headline earnings guidance to $7.41 to $8.41 per share and said it expects to finish near the high end of its adjusted range of $4.80 to $5.30 per share. It reaffirmed 2027 guidance of $5.10 to $5.70 per share.

Sources

Sempra, “Sempra Reports Strong Third-Quarter 2026 Results”, November 5, 2026: https://www.prnewswire.com/news-releases/sempra-reports-strong-third-quarter-2026-results-302930206.html

Zacks via CNHI News, “Sempra’s Q3 Earnings Outpace Estimates, Revenues Increase Y/Y”, November 5, 2026: https://www.cnhinews.com/news/article_d72305ab-9112-5f47-8768-dc52b147fd30.html

The Motley Fool, “Sempra (SRE) Q3 2026 Earnings Call Transcript”, November 5, 2026: https://www.fool.com/earnings/call-transcripts/2026/11/05/sempra-sre-q3-2026-earnings-call-transcript/

This article is for general information and education only. It is not legal or financial advice.