Abstract

Sempra will report its quarterly results on February 26, 2026 Pre-Market, with investors watching projected revenue softness and margin dynamics alongside analyst support anchored by multiple Buy and Overweight ratings.

Market Forecast

Consensus tracking points to Sempra’s current-quarter revenue around 4.05 billion (down 7.13% year over year) and adjusted EPS near 1.17 (down 26.81% year over year); EBIT is expected to be 1.13 billion (down 31.76% year over year), while no explicit guidance was available for gross profit margin or net margin. The main business remains centered on the company’s gas utilities; last quarter this segment drove 2.61 billion and represented 82.93% of total revenue, with stable operations expected this quarter despite normalized weather and rate-case timing. The most promising segment is liquefied natural gas, which delivered 555.00 million last quarter and is widely flagged by institutions as a growth lever, with expectations of year-over-year momentum as infrastructure and commercial ramp-ups progress.

Last Quarter Review

Sempra posted revenue of 3.15 billion (up 13.51% year over year), a gross profit margin of 36.78%, GAAP net profit attributable to the parent company of 95.00 million, a net profit margin of 3.01%, and adjusted EPS of 1.11 (up 24.72% year over year). Sequentially, net profit declined by 79.87%, reflecting a mix of margin pressures and timing effects that pulled quarterly profitability below the prior period’s level. The main business remained the gas utilities operation, which generated 2.61 billion and accounted for 82.93% of the revenue mix, supported by overall company revenue increasing 13.51% year over year.

Current Quarter Outlook

Gas Utilities

The gas utilities segment shapes near-term performance by anchoring the top line and providing a baseline of earnings durability through regulated operations and cost recovery mechanisms. This quarter, results will likely reflect ordinary seasonal usage patterns, commodity pass-throughs, and the influence of any interim rate adjustments and cost trackers in effect, with operating efficiency and O&M discipline playing a visible role in safeguarding margins. Revenue variability versus last quarter can be influenced by weather normalization and customer volume trends, yet the segment’s structure generally stabilizes revenue recognition even when net profit margins oscillate due to episodic cost items. Investors will focus on how the segment manages pressure from rising inputs and capital deployment timing, ensuring that regulatory outcomes and allowed returns translate predictably into cash generation and rate-base growth across the next several periods.

Liquefied Natural Gas

Liquefied natural gas remains a key growth vector as institutions repeatedly highlight infrastructure fundamentals and long-term demand visibility supporting the business outlook. The reported 555.00 million from last quarter offers a reference point for scale, and analysts anticipate positive year-over-year traction tied to capacity expansions and commercial advances at infrastructure assets. This quarter, sentiment will likely hinge on execution milestones across ongoing projects, reliability metrics at operating facilities, and the cadence of capacity contracting, which together shape revenue recognition under take-or-pay or tolling structures. Any updates on asset monetization, minority stake sales, or capital recycling associated with the infrastructure portfolio can influence perceived growth duration, as balance sheet flexibility supports continued investment in projects with multi-year revenue potential.

Stock Price Drivers

For the quarter at hand, earnings drivers center on the interplay between revenue expectations and EPS compression versus last year, with consensus indicating a single-quarter step-down in profitability after a strong prior period. The market will be sensitive to signals around margin resilience, especially in light of sequential net-profit volatility last quarter and a forecast EPS trajectory that points lower year over year. Beyond operating inputs and weather normalization, regulatory outcomes are a measurable influence on valuation multiples and cash-flow confidence; any clarity on rate cases, authorized returns, or cost-recovery timing can reset expectations quickly. Institutional commentary references litigation overhang as a recent pressure point on the stock; updates that curtail legal uncertainties or frame potential liabilities can reduce volatility and refocus investor attention on infrastructure-driven growth. Asset portfolio actions, including progress on planned sales of infrastructure stakes, may also affect equity sentiment by demonstrating capital discipline and aligning resources with projects offering better visibility; in turn, this helps inform forward EPS and aids in evaluating whether consensus expectations are conservative or fairly calibrated.

Analyst Opinions

Bullish views dominate recent commentary for Sempra, with multiple institutions reiterating Buy or Overweight ratings and adjusting price targets within a supportive range. Barclays maintained an Overweight rating and adjusted its price target to 95.00, citing constructive fundamentals and stable utilities cash flows in the broader setup. Ladenburg Thalmann retained a Buy rating and lifted its price target to 104.00, signaling confidence in the earnings trajectory as infrastructure strategies continue to progress. Wells Fargo maintained an Overweight rating with a 112.00 price target, underscoring the attractiveness of capital deployment into long-duration projects with visibility and an improving profile for infrastructure cash generation. Bank of America’s Ross Fowler reiterated a Buy at 99.00, while BMO Capital’s James Thalacker reaffirmed a Buy at 100.00 and later argued that a lawsuit-driven selloff was overdone amid strong infrastructure fundamentals and LNG growth. Morgan Stanley’s David Arcaro likewise maintained a Buy with a 93.00 target, highlighting the strategic framework and financial strength underpinning growth initiatives. Neutral stances have appeared—UBS maintained a Neutral at 92.00 and Jefferies kept a Hold at 89.00—but these remain a minority relative to the breadth of Buy and Overweight opinions. Overall, the preponderance of bullish ratings points to institutional conviction in revenue stability from the core utilities and multi-year growth embedded in LNG infrastructure, even as near-term EPS is forecast to be lower year over year. Analysts emphasize that execution on infrastructure projects and the pace of asset optimization will be key to narrowing the gap between quarterly forecasts and longer-term earnings power; a clean quarter with progress updates could reaffirm the prevailing Buy cases and support price targets clustered around the low-to-mid 100s. In aggregate, bullish commentary frames current-quarter volatility as manageable within a sturdier multi-quarter arc, with LNG momentum and portfolio actions providing the catalysts analysts expect will underpin the stock’s fundamental path through 2026.