Southern (NYSE:SO – Get Free Report) announced its quarterly earnings data on Thursday. The utilities provider reported $1.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.71 by $0.23, Zacks reports. Southern had a net margin of 15.43% and a return on equity of 12.93%. The company had revenue of $8.84 billion during the quarter, compared to analysts’ expectations of $8.38 billion. During the same quarter in the prior year, the company earned $1.54 EPS. The firm’s revenue was up 13.0% on a year-over-year basis.
Here are the key takeaways from Southern’s conference call:
- Southern reported third-quarter adjusted EPS of $1.94, up $0.34 year over year and $0.29 above its estimate. It expects full-year adjusted EPS of $4.70, exceeding the top of its original 2026 guidance and representing 9% annual growth; management said it may raise the upper end of its 2027–28 outlook.
- Electricity demand is accelerating: weather-normal sales rose 3.5% in the quarter, while data-center usage increased 59%. Southern has 21 GW of signed large-load contracts and another 7 GW in late-stage discussions, with minimum-bill provisions it says protect existing customers and support rate stability.
- Southern cited strong economic-development activity across its service territory, including nearly $25 billion of announced investment in the quarter and more than $45 billion of announced future investment overall. Management said the growth is creating opportunities to expand generation and infrastructure investment.
- The company’s five-year capital plan could approach $100 billion, up from its $81 billion base plan. Southern estimates about $2 billion of remaining equity needs through 2030 and reiterated that roughly 40% of incremental investment may be funded with equity or equity equivalents, creating potential dilution and financing demands.
- Regulatory and policy questions remain, including Georgia’s upcoming rate-case process and a changed Public Service Commission, as well as discussion of possible limits on future data-center development. Southern said existing contracts are protected, but the outcome of future regulatory discussions is not yet clear.
Southern Trading Down 1.3%
Shares of NYSE SO traded down $1.18 during mid-day trading on Friday, hitting $92.16. The stock had a trading volume of 7,595,511 shares, compared to its average volume of 5,663,217. The business has a 50 day moving average price of $88.16 and a two-hundred day moving average price of $92.48. Southern has a 1 year low of $81.69 and a 1 year high of $99.58. The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.59 and a current ratio of 0.79. The firm has a market cap of $106.02 billion, a P/E ratio of 20.99, a price-to-earnings-growth ratio of 2.49 and a beta of 0.30.
Southern Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Investors of record on Monday, November 16th will be paid a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Monday, November 16th. Southern’s payout ratio is presently 69.25%.
Southern News Roundup
Here are the key news stories impacting Southern this week:
- Positive Sentiment: Third-quarter adjusted EPS of $1.94 beat the $1.71 consensus estimate, while revenue rose 13% year over year to $8.84 billion, also ahead of expectations. The company’s earnings release reported $1.77 per share on its stated basis, compared with $1.55 a year earlier. Article: Southern Co. Q3 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Management highlighted surging data-center demand and 21 GW of large-load contracts. Its 2026 EPS guidance of $4.70 is above the $4.59 consensus, and 2028 guidance of $5.25–$5.45 spans from consensus to above it—supporting the longer-term growth outlook. Article: Southern Q3 Earnings Call Highlights Growth and Capital Upside
- Neutral Sentiment: A potential $100 billion capital plan could enable investment to serve rising electricity demand, but its eventual scale and funding needs remain considerations for investors. Article: Southern Q3 Earnings Call Highlights Growth and Capital Upside
- Negative Sentiment: Fourth-quarter 2026 EPS guidance of $0.30 is below analysts’ $0.44 estimate. That near-term shortfall may temper the positive reaction to the quarterly beat and full-year guidance. Article: Southern Company Q3 Earnings Report
Analysts Set New Price Targets
SO has been the subject of several recent research reports. Scotiabank lowered their price target on shares of Southern from $103.00 to $93.00 and set a “sector perform” rating for the company in a research note on Wednesday, September 30th. Jefferies Financial Group reduced their price objective on Southern from $96.00 to $95.00 and set a “hold” rating on the stock in a research note on Tuesday, October 20th. HSBC began coverage on Southern in a report on Thursday, October 22nd. They issued a “buy” rating and a $99.50 price objective on the stock. Citigroup decreased their price objective on Southern from $114.00 to $104.00 and set a “buy” rating on the stock in a report on Friday, September 25th. Finally, DA Davidson set a $98.00 target price on Southern in a research note on Wednesday, October 21st. Eight equities research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $97.24.
Southern Company Profile
Southern Company is an energy holding company based in Atlanta, Georgia. Through its subsidiaries, it generates, transmits and distributes electricity and provides natural gas service, primarily across the southeastern United States.
Its electric utility businesses include Alabama Power, Georgia Power and Mississippi Power, which serve customers in their respective states. Southern Company also owns Southern Power, which develops and operates wholesale power generation assets, and Southern Company Gas, whose businesses distribute natural gas to customers in several states.
Formed in 1945, Southern Company has grown from a regional electric utility holding company into a diversified energy provider.
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