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Sempra Energy ( (SRE) ) has issued an update.
On April 17, 2026, the Public Utility Commission of Texas approved a final order in Oncor’s comprehensive base rate review, granting an annual revenue requirement of about $6.97 billion, an 8.7% increase over adjusted annualized revenues. The order also resets Oncor’s regulatory capital structure to 56.5% debt and 43.5% equity, with an authorized return on equity of 9.75% and cost of debt of 4.94%, modestly improving its allowed returns versus prior parameters.
The decision raises Oncor’s self-insurance reserve recovery in rates to $200 million annually for storm and other self-insured costs and establishes a five-year amortization period for most regulatory assets and liabilities, excluding certain specified items. Oncor expects the new rates, along with a 2026 surcharge for the difference between old and new rates from January 1, 2026 until the new tariffs take effect, to bolster future earnings, cash flow, and credit metrics, strengthening Sempra’s regulated utility earnings profile in Texas.
The most recent analyst rating on (SRE) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Sempra Energy stock, see the SRE Stock Forecast page.
Spark’s Take on SRE Stock
According to Spark, TipRanks’ AI Analyst, SRE is a Neutral.
The score is held back primarily by weakening financial statement trends (recent revenue declines, uneven cash conversion with historically negative free cash flow, and 2025 operating-profit volatility). Offsetting this, technicals are positive with a strong moving-average structure and supportive momentum, while the latest earnings call provided clear long-term guidance and a funded regulated growth plan. Valuation remains a restraint due to the high P/E, with only moderate support from the dividend yield.
To see Spark’s full report on SRE stock, click here.
More about Sempra Energy
Sempra Energy, through its majority-owned subsidiary Oncor Electric Delivery Company LLC, operates in the regulated electric utility industry, delivering electricity to customers across a large Texas service territory. Oncor’s revenues and returns are set through state regulatory proceedings, making rate cases with the Public Utility Commission of Texas a central driver of its financial performance and capital structure decisions.
Average Trading Volume: 4,024,526
Technical Sentiment Signal: Buy
Current Market Cap: $62.37B
Find detailed analytics on SRE stock on TipRanks’ Stock Analysis page.