Southern (NYSE:SO) Issues Earnings Results

by · The Markets Daily

Southern (NYSE:SO – Get Free Report) released its earnings results on Thursday. The utilities provider reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $1.01 by $0.12, FiscalAI reports. Southern had a net margin of 15.43% and a return on equity of 12.93%. The business had revenue of $6.98 billion for the quarter, compared to analyst estimates of $7.23 billion. During the same period last year, the company posted $0.79 EPS. The business’s revenue was up .1% on a year-over-year basis.

Here are the key takeaways from Southern’s conference call:

  • Second-quarter adjusted EPS was $1.13, up $0.21 year over year and $0.13 above management’s estimate. Southern Company now expects full-year 2026 adjusted EPS to be near or at the top of its $4.50–$4.60 guidance range.
  • Large-load momentum remains strong, with more than 17 gigawatts of contracted demand expected by the mid-2030s, including Georgia Power’s 3.2-gigawatt, 25-year OpenAI agreement. The company’s late-stage pipeline includes another 8 gigawatts, with roughly 3 gigawatts potentially finalized near term.
  • Weather-normal retail electricity sales rose 2.3% year to date, the strongest first-half growth in nearly two decades, while data-center usage increased 55% year over year in the second quarter. Management also highlighted customer protections such as minimum bills covering at least 100% of incremental service costs and significant collateral requirements.
  • Alabama and Georgia are conducting generation RFPs to support rising demand, potentially creating substantial capital investment beyond the current plan; management cited a rough opportunity of about $2 billion per gigawatt of new generation. Selected projects could begin adding capital spending around 2028, with certifications expected through 2027.
  • Southern Company issued an additional $700 million of equity through its at-the-market program and expects $1.1 billion of remaining equity needs through 2030. The financing is intended to support a 17% FFO-to-debt target by 2029, but additional shares may create ongoing dilution for investors.

Southern Trading Up 0.5%

Shares of SO stock traded up $0.45 during mid-day trading on Friday, hitting $94.79. 5,581,077 shares of the company’s stock were exchanged, compared to its average volume of 4,360,801. Southern has a fifty-two week low of $83.80 and a fifty-two week high of $100.83. The stock has a 50-day simple moving average of $94.59 and a two-hundred day simple moving average of $94.00. The stock has a market cap of $106.86 billion, a price-to-earnings ratio of 22.73, a PEG ratio of 1.81 and a beta of 0.34. The company has a quick ratio of 0.45, a current ratio of 0.79 and a debt-to-equity ratio of 1.62.

Southern Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 8th. Shareholders of record on Monday, August 17th will be paid a $0.76 dividend. This represents a $3.04 annualized dividend and a yield of 3.2%. The ex-dividend date of this dividend is Monday, August 17th. Southern’s payout ratio is presently 72.90%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reissued a “buy (b)” rating on shares of Southern in a report on Wednesday. BMO Capital Markets raised their target price on shares of Southern from $102.00 to $104.00 and gave the company an “outperform” rating in a report on Monday. Wall Street Zen lowered shares of Southern from a “hold” rating to a “sell” rating in a research note on Saturday. Barclays reduced their target price on Southern from $99.00 to $98.00 and set an “equal weight” rating for the company in a report on Thursday, June 18th. Finally, Raymond James Financial restated an “outperform” rating and issued a $104.00 price objective on shares of Southern in a research note on Friday, May 1st. Seven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $100.26.

Check Out Our Latest Stock Analysis on Southern

Southern News Roundup

Here are the key news stories impacting Southern this week:

  • Positive Sentiment: Second-quarter earnings beat expectations: Southern reported adjusted EPS of $1.13, above the $1.01 analyst consensus and up from $0.91 a year earlier. The company’s reported earnings were $1.2 billion, or $1.03 per share, compared with $0.9 billion, or $0.80 per share, in the prior-year quarter. Southern Co. Beats Q2 Earnings Estimates Southern Company Reports Second-Quarter 2026 Earnings
  • Positive Sentiment: Capacity expansion is positioning the utility for load growth: Georgia Power is developing nearly 1,500 megawatts of new natural-gas generation and 500 megawatts of battery storage at Plant Bowen. The projects could support reliability and future demand from industrial customers and data centers, although they also require substantial capital investment. Georgia Power and Officials Celebrate Plant Bowen Investments
  • Positive Sentiment: Energy-storage and AI demand provide longer-term catalysts: Georgia Power completed the Moody Battery Energy Storage System, expanding Southern’s regulated storage platform. Analysts also point to large-load contracts and a reported 25-year OpenAI power agreement as potential drivers of future utility demand. Southern Completes Moody Battery Project Southern Company AI Data Center Opportunity
  • Neutral Sentiment: Revenue growth remained weak: Quarterly revenue was $6.98 billion, below the $7.23 billion consensus and up only 0.1% year over year, tempering the significance of the EPS beat. Southern Q2 Key Metrics Versus Estimates
  • Negative Sentiment: Near-term guidance was slightly cautious: Third-quarter EPS guidance of $1.65 was below the $1.67 consensus, while the $4.50–$4.60 full-year 2026 range brackets but centers below the $4.57 estimate. The 2028 range of $5.25–$5.45, however, is at least in line with current expectations.

Hedge Funds Weigh In On Southern

Hedge funds and other institutional investors have recently made changes to their positions in the business. T. Rowe Price Investment Management Inc. raised its stake in shares of Southern by 55.0% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 30,300 shares of the utilities provider’s stock valued at $2,643,000 after purchasing an additional 10,748 shares during the period. Compound Planning Inc. boosted its stake in Southern by 11.0% in the fourth quarter. Compound Planning Inc. now owns 23,553 shares of the utilities provider’s stock valued at $2,054,000 after acquiring an additional 2,333 shares during the period. Axxcess Wealth Management LLC boosted its holdings in shares of Southern by 5.7% during the fourth quarter. Axxcess Wealth Management LLC now owns 17,848 shares of the utilities provider’s stock valued at $1,556,000 after acquiring an additional 962 shares during the period. Corient Private Wealth LLC raised its holdings in shares of Southern by 41.7% during the fourth quarter. Corient Private Wealth LLC now owns 345,270 shares of the utilities provider’s stock valued at $30,108,000 after buying an additional 101,605 shares during the last quarter. Finally, Strive Financial Group LLC acquired a new position in shares of Southern during the fourth quarter valued at $48,000. Institutional investors and hedge funds own 64.10% of the company’s stock.

About Southern

(Get Free Report)

Southern Company (NYSE: SO) is an Atlanta-based energy holding company that provides electric and gas utility services and owns power generation assets across the United States. Founded in 1945, the company operates a portfolio of regulated electric utilities and affiliated businesses that generate, transmit and distribute electricity to residential, commercial and industrial customers.

Southern’s principal regulated electric subsidiaries include Georgia Power, Alabama Power and Mississippi Power, which serve large portions of the southeastern United States.

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