The Southern Company (SO) Q2 2026 earnings summary

Executive summary

• Adjusted EPS for Q2 2026 was $1.13, up $0.21 year-over-year and $0.13 above estimate, driven by customer growth, higher usage, and robust economic development in the Southeast.

• Net income for Q2 2026 was $1.2 billion ($1.03 per share), up from $0.9 billion ($0.80 per share) in Q2 2025; adjusted net income was $1.3 billion ($1.13 per share), up from $1.0 billion ($0.92 per share) year-over-year.

• Over 17 GW of large load contracts are secured, including a 3.2 GW, 25-year deal with OpenAI, with 8 GW in late-stage development and a robust pipeline above 75 GW.

• Data center and industrial demand continue to accelerate, with data center usage up 55% year-over-year and system-wide load exceeding 1.2 GW.

• Retail electricity sales grew 2.3% year-to-date, the highest growth through June in nearly two decades, with commercial sales up 7.4% in Q2.

Financial highlights

• Q2 2026 reported EPS was $1.03, up from $0.80 in Q2 2025; adjusted EPS was $1.13, up from $0.92.

• Year-to-date 2026 adjusted EPS was $2.46, up from $2.15 YTD 2025.

• Operating revenues for Q2 2026 were $6.98 billion, nearly flat year-over-year; six-month revenues rose to $15.4 billion.

• Cash flow from operations for the first half was $4.28 billion, up from $3.43 billion.

• Q2 benefited from higher AFUDC, equity method investment earnings, and tax impacts, partially offset by higher interest expense and share dilution.

Outlook and guidance

• Full-year 2026 adjusted EPS is projected at or near the top of the $4.50–$4.60 guidance range; Q3 adjusted EPS estimated at $1.65.

• 8–9% projected adjusted EPS growth through 2028, with long-term growth of 7–8%.

• Projected electric sales growth of 10% from 2026 to 2030, driven by economic development and large load additions.

• Regulatory and legislative actions are expected to keep Alabama retail rates stable through 2027, with no increases before 2029.

• Ongoing RFPs in Alabama and Georgia for new generation resources to meet growing demand into the 2030s.