The quarter beat on the metric that matters most, but not across the board. Published expectations were roughly $1.05–$1.06 of quarterly EPS and $3.17–$3.20 billion of revenue; Sempra delivered $1.16 of adjusted EPS but $2.997 billion of revenue. Revenue is less informative for a utility because pass-through energy costs can move it without changing profit, while the adjusted EPS outperformance indicates underlying earnings were better than anticipated.
| Metric | Q2 2026 | Q2 2025 | Market expectation |
|---|---|---|---|
| Adjusted EPS | $1.16 | $0.89 | ~$1.05–$1.06 |
| GAAP EPS | $1.21 | $0.71 | — |
| Revenue | $2.997B | $3.000B | ~$3.17–$3.20B |
| Adjusted earnings | $762M | $583M | — |
| Operating cash flow, six months | $3.117B | $2.266B | — |
Profit growth was broad rather than a one-off accounting boost. Adjusted earnings rose 31% year over year, with segment earnings up sharply at Sempra Texas Utilities to $346 million from $208 million and at Sempra Infrastructure to $230 million from $72 million; Sempra California also improved to $297 million from $259 million. The filing's reconciliation shows the quarter's adjusted result excludes volatile currency, derivative and asset-sale tax effects, making the core earnings comparison more useful. (Segment earnings; Reconciliation of Adjusted Earnings and Adjusted EPS)
Texas is becoming the clearest growth engine. Oncor's new rates and surcharge were implemented, while the filing cites more than $7 billion of potential transmission investment and approximately 44 GW of large-load requests in its territory. Those opportunities are not yet guaranteed—the projects remain subject to regulatory approval—but they reinforce the rationale behind Sempra's Texas-heavy growth plan. (Texas growth discussion)
The outlook is steady, not upgraded. Sempra affirmed its 2026 adjusted EPS range of $4.80–$5.30 and its 2027 EPS range of $5.10–$5.70, while updating the 2026 GAAP range to $5.02–$5.55 based on results through June. That preserves the prior growth framework rather than signaling a new earnings step-up. (EPS Guidance; Reconciliation of Adjusted EPS Guidance Range to GAAP EPS Guidance Range)
Execution improved, but capital intensity remains high. Six-month operating cash flow increased to $3.117 billion from $2.266 billion, yet capital deployed reached $6.1 billion against a roughly $64.9 billion 2026–2030 capital plan. Cash and restricted cash ended at $2.7 billion, while long-term debt rose to $31.0 billion from $29.0 billion at year-end. The net read is modestly favorable: a real adjusted-EPS beat and stronger segment performance outweigh the revenue miss, but unchanged guidance and heavy funding needs limit the upside surprise. (Cash Flow statement; Balance Sheet; Capital Plan)
Read the original 8-K on SEC EDGAR ↗