The Southern Company (SO) Q1 2026 earnings summary

Executive summary

• Adjusted Q1 2026 EPS was $1.32, up from $1.23 year-over-year and $0.12 above estimates, with consolidated net income at $1.36 billion ($1.21 per share), driven by strong retail electric and natural gas revenues, robust data center demand, and significant economic development in the Southeast.

• Over 11 GW of fully contracted large load agreements were signed, primarily with high-credit hyperscalers, and the pipeline of prospective large load customers exceeds 75 GW.

• Operating revenues rose 8.0% to $8.40 billion, with continued investment in infrastructure to support regional growth, reliability, and stable rates.

• Major DOE-backed loan facilities totaling $26.5 billion were secured, projected to generate $7 billion in customer savings over 30 years.

• Board approved an $0.08 per share increase in annual dividend, marking 25 consecutive annual increases.

Financial highlights

• Adjusted EPS for Q1 2026 was $1.32, up $0.09 year-over-year and $0.12 above estimate, with reported EPS at $1.21; total operating revenues were $8.40 billion, up from $7.78 billion in Q1 2025.

• 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%, with notable strength in steel manufacturing and primary metals.

• Natural gas revenues surged 19.1% year-over-year, reflecting base rate increases and higher commodity prices.

• Cash flow from operations was $1.23 billion, down slightly from $1.25 billion in Q1 2025.

Outlook and guidance

• Q2 2026 adjusted EPS estimate 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.

• Electric sales growth projected at ~10% from 2026 to 2030, driven by economic development and large load additions.

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

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