Abstract

SEMPRA ENERGY O will report its quarterly results on February 26, 2026 Pre-Market. This preview summarizes consensus expectations for revenue, margins, and adjusted EPS, assesses last quarter’s performance and segment dynamics, and highlights prevailing institutional views ahead of the print.

Market Forecast

For the current quarter, SEMPRA ENERGY O’s revenue is forecast at $4.05 billion, with an estimated adjusted EPS of $1.17 and estimated EBIT of $1.13 billion. The year-over-year forecast growth rates are as follows: revenue up 7.13%, adjusted EPS down 26.81%, and EBIT down 31.76%. The market anticipates mixed margin dynamics given the EPS decline alongside higher revenue, implying pressure on profitability; formal guidance on gross profit margin and net profit margin for the current quarter is not available from the collected data.

Highlights in the main business suggest steady topline expansion while profitability headwinds may persist as operating costs and investment timelines weigh. The most promising segment appears poised for revenue growth off a larger base, with year-over-year expansion aligned to the consolidated forecast of 7.13%; specific segment revenue and YoY figures are not provided in the current-quarter dataset.

Last Quarter Review

In the previous quarter, SEMPRA ENERGY O delivered revenue of $3.15 billion, adjusted EPS of $1.11, and EBIT of $0.50 billion, with year-over-year growth of 13.51% for revenue and 24.72% for adjusted EPS; gross profit margin, GAAP net profit attributable to the parent company, and net profit margin were not available in the dataset.

A notable highlight was the revenue and EPS beat versus consensus: revenue exceeded estimates by $0.24 billion and adjusted EPS topped by $0.20, indicating resilient demand and operating execution despite sector cost pressures. Main business contributions supported the top-line surprise, although detailed breakdowns by segment revenue and YoY change were not provided for the quarter.

Current Quarter Outlook

Main Business

The core utility and infrastructure operations underpin the forecast revenue rise to $4.05 billion, signaling seasonal and regulatory-supported consumption trends alongside ongoing rate-case impacts. The expected decline in adjusted EPS suggests that while volume and tariff drivers are intact, cost absorption and timing of expense recognition may reduce per-share profitability. Investors should watch operating expense trajectories and any commentary on fuel, maintenance, and storm-related costs that can compress margins even as revenue expands. Sensitivity to wholesale price dynamics and pass-through mechanisms may influence quarter-to-quarter variability, making management’s update on cost recovery and regulatory frameworks essential for understanding margin sustainability.

Management commentary on capital deployment, project progress, and the cadence of infrastructure investments will likely frame the earnings quality. If large projects are in construction or ramp phases, depreciation and pre-operational expenses can weigh on EPS even as the revenue base grows. Rate adjustment mechanisms, where applicable, may mitigate some volatility, but deferred recovery can still produce near-term margin softness. As a result, the balance of revenue growth against expense timing will be central to interpreting the quarter’s core business performance.

Most Promising Business

Growth potential tends to cluster around regulated transmission and distribution and associated infrastructure modernization programs, which can add stable, long-duration revenue streams once placed into service. The consolidated forecast implies a 7.13% year-over-year increase in revenue, consistent with incremental contributions from projects reaching in-service milestones. The success of this segment hinges on execution risk and regulatory approvals, and proceeds are often locked in via allowed returns, offering visibility. However, the lag between capital spend and revenue recognition can lead to a transitional margin dip, reflected in the expected EPS decline for the quarter.

Tracking project backlogs and upcoming energization dates will help assess when the investment cycle translates into earnings. If management confirms that more assets will be operational during the year, revenue contributions could accelerate after the current quarter. Over the medium term, gradual expansion in the rate base generally supports modest EPS growth, assuming cost discipline and favorable regulatory outcomes. The quarter thus serves as a checkpoint for the timing of these transitions rather than a fully realized margin inflection.

Factors Most Impacting the Stock Price

Short-term performance will likely hinge on whether the company can deliver revenue near the $4.05 billion forecast while limiting EPS slippage from the projected $1.17. Margin commentary will be a focal point: investors will parse details on gross margin dynamics, net margin trajectory, and any unusual items that could distort comparability. Disclosures on fuel costs, maintenance intensity, and weather impacts will be closely read given their immediate effect on operating profit.

Another determinant is the visibility of the capital investment pipeline and its conversion into rate base growth. Clear guidance on project timelines, cost containment, and regulatory proceedings can bolster confidence in earnings durability beyond this quarter. Finally, management’s outlook on full-year trajectories—especially any updates to EPS or revenue guidance—could recalibrate market expectations, with sustained top-line strength offsetting temporary pressure on per-share profitability.

Analyst Opinions

Across recent institutional commentary, the majority stance is cautiously bullish, emphasizing revenue resilience and project execution despite near-term EPS pressure. Analysts who hold this view point to the company’s strong prior-quarter beat on both revenue and adjusted EPS as evidence of operational momentum, and they expect the upcoming report to show continued top-line expansion aligning with the $4.05 billion revenue forecast. The cautious element reflects attention to cost normalization and timing effects that may compress margins, consistent with the expected 26.81% year-over-year decline in adjusted EPS.

Several well-followed institutions highlight that earnings cadence in utilities can be influenced by regulatory schedules and investment phases, which may temporarily depress EPS while rate base growth builds. These analysts anticipate that as more capital projects reach in-service status through the year, profitability metrics should stabilize, supporting the outlook that revenue growth will persist and EPS will gradually improve. While a minority of views are more bearish due to concerns about cost inflation and potential weather-related disruptions, the prevailing consensus suggests maintaining a constructive outlook centered on revenue execution and disciplined capital management heading into February 26, 2026 Pre-Market.