Sempra raises 2026 EPS forecast to $7.41–$8.41
Key Facts
On Nov. 5, Sempra raised its 2026 GAAP earnings-per-share forecast range to $7.41–$8.41, saying the update reflected strong results through the end of the third quarter. At the same time, the company pointed to the upper end of its adjusted earnings forecast range for the year, which is $4.80–$5.30 per share. The announcement reflects two different performance measures: a GAAP range and an adjusted range, both of which the company provided in its update for the current year. The GAAP range was raised from $5.02–$5.55 in its second-quarter results. The adjusted guidance remained within the range stated in the company’s release, with the company indicating that it expects to reach the upper end.
The company reported third-quarter 2026 GAAP net income of $877 million, or $1.34 per diluted share, compared with $77 million and $0.12 per share in the same period of 2025. On an adjusted basis, earnings were $917 million, or $1.40 per share, versus $728 million and $1.11 per share in the third quarter of last year. The difference between the results provides two frameworks for assessing the period’s earnings: one under GAAP and the other adjusted. Sempra linked its annual guidance update to strong results accumulated through the end of the third quarter. Chief Executive Jeffrey W. Martin said the company’s year-to-date results reflected “disciplined execution across the company and continued progress on 2026 value-creation initiatives.”
For next year, Sempra kept its 2027 earnings-per-share forecast at $5.10–$5.70 and reaffirmed its long-term earnings growth target of 7% to 9%. That keeps 2027 guidance within the range announced by the company, alongside confirmation of its targeted long-term growth path. In California, the Public Utilities Commission on Oct. 29 filed a proposed decision rejecting a request to modify the mechanism governing post-test-year cost recovery at SoCalGas and SDG&E. The request concerns a 3% escalation mechanism for revenue requirements during 2025–2027. Sempra’s companies said in their filing that this rate would not be sufficient to cover operating expenses and capital costs and provide a reasonable return on the asset base; that is the companies’ argument in their request, while the proposed decision rejects a modification to the mechanism.
Second-quarter results provided further regulatory context for SDG&E, with Sempra saying an electric transmission settlement included an authorized base return on equity of about 10.28%. Its statement described the outcome as constructive for the electric transmission business, pointing to a regulatory framework that supports transmission investment. This detail comes alongside the dispute over the cost-recovery mechanism at SoCalGas and SDG&E, as the disclosures addressed two different regulatory tracks for the companies. On shareholder cash returns, Sempra announced a quarterly dividend of $0.6575 per share on Nov. 11. The dividend is payable to shareholders of record on Dec. 10, 2026, with payment scheduled for Jan. 15, 2027.
The company also said it expects to complete the sale of a stake in Sempra Infrastructure Partners during November 2026. It estimated the gain from the sale at between $2.00 billion and $2.40 billion before post-closing adjustments. Completion of the transaction in the specified month remains a pending event in the company’s disclosure, while the estimate gives the expected gain range. In the latest session listed in EL7 data, Sempra shares closed at $79.54 on Nov. 13, 2026. The announced developments thus combine an earnings forecast update and a cash dividend with an expected transaction and regulatory matters related to California utility operations.