The Southern Company (SO) Q1 2026 earnings summary

Executive summary

• Adjusted Q1 2026 earnings per share (EPS) reached $1.32, up $0.09–$0.12 year-over-year and above estimates, with consolidated net income rising to $1.36–$1.4 billion ($1.21 per share), driven by strong growth across all major business segments, especially data centers and large load contracts totaling over 11 GW.

• Operating revenues rose 8% to $8.4 billion, with retail electricity sales up 2.3% and natural gas revenues up 19.1%, supported by robust customer additions and higher commodity prices.

• Over 11 GW of large load contracts have been signed, with a pipeline exceeding 75 GW, and major capital investments are underway in battery storage, solar, and natural gas projects, supported by a $26.5 billion DOE loan agreement expected to generate $7 billion in customer savings over 30 years.

• Rate stability is maintained in Alabama and Georgia through at least 2029, with recent filings to lower rates in Georgia and regulatory developments supporting long-term planning.

• Dividend increased by $0.08 to $3.04 per share annualized, marking 25 consecutive annual increases and a 79-year streak of stable or rising dividends.

Financial highlights

• Adjusted EPS for Q1 2026 was $1.32, up from $1.23 in Q1 2025, with reported EPS at $1.21; net income attributable to common stock was $1.36 billion, up from $1.33 billion.

• Total operating revenues were $8.40 billion, up from $7.78 billion year-over-year, with operating income nearly flat at $2.02 billion.

• Retail electricity sales rose 2.3% year-over-year, with commercial class up 4.5% and data center usage up 42%.

• Industrial sales grew 1.5%, supported by strong manufacturing activity and $7 billion in new regional investments.

• Natural gas revenues surged 19.1% year-over-year, with major investments like Hyundai's $500 million project in Illinois.

Outlook and guidance

• Adjusted EPS estimate for Q2 2026 is $1.00 per share, with full-year 2026 adjusted EPS guidance of $4.50–$4.60.

• Long-term adjusted EPS growth projected at 8–9% through 2028, with 7–8% targeted beyond, and electric sales growth projected at ~10% from 2026 to 2030.

• Pipeline of prospective large load customers exceeds 75 GW, with 12 GW in late-stage discussions and 6 GW expected to finalize soon.

• Georgia Power has initiated an all-source RFP for 2–6 GW of new generation resources for 2032–2033.

• Regulatory and legislative developments in Alabama and Georgia are expected to keep retail rates stable through 2027 and potentially until 2029.