Sempra (SRE) is back in focus after reporting first quarter 2026 results, with revenue of US$3,655 million, net income of US$1,037 million, and updated earnings guidance that reaffirmed its outlook for 2026 and 2027.

The share price has eased in the short term, with a 30 day share price return of 4.73% and a 7 day return of 2.12% both declining, even as the 1 year total shareholder return of 26.20% and 5 year total shareholder return of 57.92% point to stronger long term momentum.

If Sempra’s latest earnings have you thinking about where else regulated energy or infrastructure trends might matter, it could be worth checking out 37 power grid technology and infrastructure stocks

With Sempra’s share price easing recently, yet still reflecting strong multi year returns and trading below the average analyst price target, the key question is whether the stock offers value today or if the market already prices in future growth.

Most Popular Narrative: 12.1% Undervalued

At a last close of $91.68 against a narrative fair value of $104.29, Sempra is framed as undervalued, with the story hinging on long term earnings power and regulated asset growth.

Grid modernization, wildfire hardening, and the integration of renewables and storage in California and Texas will expand the company's regulated asset base and enable approved rate increases, supporting both margins and top-line growth as electrification and decarbonization accelerate.

Curious what turns this broad theme into a specific valuation number? The narrative leans on measured revenue growth, sharper margins and a future earnings multiple that needs to compress from today. The tension between modest top line assumptions and a much stronger profit profile is what drives that $104.29 figure.

Result: Fair Value of $104.29 (UNDERVALUED)

However, this story can be challenged if regulators squeeze allowed returns in key markets, or if LNG projects face weaker demand and underused capacity.

Another View: Multiples Point To A Richer Price

The narrative fair value suggests Sempra is 12.1% undervalued, but the current P/E of 31.1x tells a tougher story. It stands well above the Global Integrated Utilities average of 19.2x, its peer average of 19.1x, and even its own fair ratio of 28.7x. This implies less room for error if earnings disappoint. Is this a margin of safety or a premium that needs continued execution to justify it?

Next Steps

The mix of potential upside and clear risks in Sempra’s story is hard to ignore, so act while the data is fresh and form your own view with 1 key reward and 3 important warning signs

Looking for more investment ideas?

Once you have formed a view on Sempra, do not stop there. Broaden your watchlist with other stocks that could suit different goals and risk levels.

• Target potential bargains by scanning a curated list of companies trading below their estimated worth using the 47 high quality undervalued stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.