SRE Sempra Earnings Preview: May 7, 2026

Sempra (SRE) will report first-quarter earnings on May 7, 2026, after market close. Analysts expect earnings per share of $1.48 and revenue of $4.10 billion. The energy utility company serves 29 million people across California and Texas through its gas and electric operations. Investors will closely watch whether SRE can maintain its recent momentum. The stock trades at $94.37 with a market cap of $61.64 billion. Understanding what to expect helps investors prepare for potential market moves.

Earnings Estimates and Historical Performance

Analysts project Sempra will deliver $1.48 in earnings per share this quarter. Revenue expectations sit at $4.10 billion. These estimates represent a critical test for the utility company’s operational efficiency.

Recent Earnings Track Record

Sempra has shown mixed results over the past four quarters. In February 2026, the company beat EPS estimates by delivering $1.28 versus the $1.24 estimate. However, revenue fell short at $3.72 billion against a $4.05 billion forecast. The August 2025 quarter saw EPS of $0.89 against a $0.846 estimate, showing a beat. May 2025 results were stronger, with $1.44 EPS beating the $1.32 estimate and $3.80 billion in revenue versus $3.92 billion expected.

What the Estimates Mean

The current $1.48 EPS estimate represents a significant jump from recent quarters. This suggests analysts expect improved profitability or operational leverage. The $4.10 billion revenue target is the highest forecast in recent history. If Sempra achieves these numbers, it would demonstrate strong execution across its three main segments: San Diego Gas & Electric, Southern California Gas, and Sempra Texas Utilities.

Beat or Miss Prediction Based on Historical Patterns

Sempra’s earnings history reveals a company that beats on EPS more often than it misses. Over the last four quarters, the company beat EPS estimates twice and missed once. This pattern suggests management has become better at guiding expectations.

EPS Outlook

The company appears likely to meet or slightly beat the $1.48 EPS estimate. Sempra’s recent track record shows disciplined cost management and operational improvements. The utility sector typically delivers predictable results, and Sempra operates in regulated markets with stable cash flows. However, the high estimate of $1.48 leaves limited room for error.

Revenue Prediction

Revenue forecasts present more uncertainty. The $4.10 billion estimate is ambitious compared to recent quarters. Sempra missed revenue expectations in February 2026, suggesting potential challenges in forecasting. Weather patterns, customer demand, and regulatory decisions all impact quarterly revenue. Investors should watch whether the company can deliver this elevated revenue target or if it will face headwinds similar to the February miss.

Key Metrics and What to Watch

Several important metrics will determine how investors react to Sempra’s earnings announcement. Understanding these factors helps predict stock movement after the report.

Dividend and Cash Flow

Sempra maintains a strong dividend yield of 2.73 percent, paying $2.59 per share annually. The payout ratio stands at 89 percent, indicating the company returns most earnings to shareholders. Operating cash flow per share reached $6.99, though free cash flow turned negative at negative $9.26 per share. This suggests heavy capital expenditure for infrastructure upgrades. Investors should monitor whether cash flow trends improve or deteriorate.

Debt and Financial Health

The company carries a debt-to-equity ratio of 1.15, which is moderate for a utility. Interest coverage of 2.24 times shows the company can service debt obligations. However, net debt to EBITDA of 5.96 times is elevated. Management commentary on debt reduction plans will be crucial. The current ratio of 1.59 indicates solid short-term liquidity.

Regulatory and Operational Updates

Investors should listen for updates on rate cases, infrastructure investments, and regulatory developments. Sempra operates in highly regulated markets where rate approvals directly impact profitability. Any news about renewable energy investments or grid modernization could signal future growth. Management guidance on capital expenditure plans will also matter significantly.

Analyst Consensus and Meyka AI Grade

Wall Street maintains a bullish stance on Sempra. Twenty analysts rate the stock as a buy, while four recommend hold. No analysts rate it as sell. This consensus suggests confidence in the company’s fundamentals and growth prospects.

Meyka AI Grade Explanation

Meyka AI rates SRE with a grade of B+. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. The B+ rating indicates Sempra is a solid performer relative to peers and the broader market. The company scores well on analyst sentiment and sector positioning. However, the grade reflects some concerns about valuation and financial leverage. These grades are not guaranteed and we are not financial advisors.

Valuation Context

Sempra trades at a price-to-earnings ratio of 34.31, which is elevated for a utility. The price-to-sales ratio of 4.51 also suggests premium valuation. This means the market has high expectations built into the current stock price. Any disappointment on earnings or guidance could trigger a sharp selloff. Conversely, a strong beat could push the stock higher given the bullish analyst consensus.

Final Thoughts

Sempra’s May 7 earnings report will reveal whether the company meets ambitious expectations of $1.48 EPS and $4.10 billion revenue. While Sempra typically beats EPS targets, revenue forecasts carry more risk. Investors should monitor cash flow, debt management, and regulatory updates. With strong market sentiment and a B+ rating, execution is critical given the premium valuation. Key signals include guidance changes and capital expenditure announcements that reflect management confidence in future growth.

FAQs

Disclaimer:

Stock markets involve risks. This content is for informational purposes only. Earnings estimates are analyst projections and not guarantees of actual results. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.