Southern (NYSE:SO) Issues Quarterly Earnings Results

Southern (NYSE:SO) released its quarterly earnings results on Thursday. The utilities provider reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.01), FiscalAI reports. The company had revenue of $6.98 billion during the quarter, compared to analysts’ expectations of $6.41 billion. Southern had a return on equity of 12.62% and a net margin of 14.69%.The firm’s revenue was up 10.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.50 EPS. Southern updated its Q1 2026 guidance to 1.200-1.20 EPS and its FY 2026 guidance to 4.500-4.600 EPS.

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

• Southern Company reported strong 2025 results with adjusted EPS of $4.30 (top of guidance), 6% YoY EPS growth, and continued dividend increases, signaling reliable execution and shareholder returns.
• Management highlighted robust large‑load momentum — a 75 GW pipeline with 26 signed contracts (~10 GW) and 3 GW in late stages — and raised sales guidance to at least 3% for 2026 and ~10% annual retail sales growth (2026–2030), supporting higher long‑term earnings.
• The five‑year base capital plan rose to $81 billion (a ~30% increase year‑over‑year), ~95% at regulated utilities and ~ $42 billion expected through 2030 to serve projected growth, with management saying further increases are possible as project visibility improves.
• The company proactively addressed financing and credit needs — ~$9 billion of equity/equivalents on deck (ATM and mandatory convertible) with only ~$2 billion additional equity needed through 2030 and a target of ~17% FFO/debt by 2029 — aiming to preserve investment‑grade ratings while funding growth.
• Offsetting drivers include higher O&M, depreciation/amortization and interest costs, plus political/regulatory noise around data centers and the large capex program, which could pressure rates, require more funding or delay project timing despite contractual protections management describes.

Southern Stock Down 1.0%

Shares of SO stock opened at $94.14 on Friday. The stock has a fifty day moving average price of $88.76 and a 200 day moving average price of $91.32. The stock has a market cap of $103.65 billion, a P/E ratio of 23.95, a price-to-earnings-growth ratio of 2.88 and a beta of 0.45. Southern has a one year low of $83.09 and a one year high of $100.83. The company has a debt-to-equity ratio of 1.69, a current ratio of 0.75 and a quick ratio of 0.59.

Southern Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, March 6th. Shareholders of record on Tuesday, February 17th will be issued a $0.74 dividend. The ex-dividend date of this dividend is Tuesday, February 17th. This represents a $2.96 annualized dividend and a yield of 3.1%. Southern’s dividend payout ratio is 75.32%.

Southern News Summary

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Revenue beat and strong top-line growth: Q4 revenue of ~$6.98B topped consensus (~$6.41B) and was up ~10% year-over-year, showing demand strength that supports future cash flow. Compared to Estimates, Southern Co. (SO) Q4 Earnings: A Look at Key Metrics
• Positive Sentiment: Upbeat near-term guidance: Southern raised its FY2026 EPS guidance to $4.50–4.60 and issued a Q1 2026 guide of $1.20 — Q1 guidance materially above consensus — which suggests management expects strong early-year earnings momentum. Southern Company reports fourth-quarter and full-year 2025 earnings
• Neutral Sentiment: Company materials released: slide deck and earnings presentation / call were published for investors to dig into drivers and assumptions behind guidance and capex plans. These materials clarify the outlook but may not change sentiment immediately. The Southern Company 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Small EPS miss and mixed profitability signals: Adjusted EPS came in at $0.55 vs. a $0.56 consensus (a modest miss), which, together with differing reported GAAP figures, has raised questions about underlying margin trends. Southern Co. (SO) Misses Q4 Earnings Estimates
• Negative Sentiment: Raised multi-year spending plan and profit commentary: Reuters flags that Southern forecast annual profit below some analysts’ expectations while raising its five-year spending plan to support large-load customers (data centers, industrials). Higher capex and near-term profit pressure are risk factors for margins and credit metrics. Southern Co forecasts annual profit below estimates, raises spending plan

Hedge Funds Weigh In On Southern

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Stokes Family Office LLC increased its holdings in shares of Southern by 0.7% in the fourth quarter. Stokes Family Office LLC now owns 15,994 shares of the utilities provider’s stock valued at $1,395,000 after purchasing an additional 115 shares in the last quarter. Tradewinds LLC. raised its position in shares of Southern by 1.1% during the 4th quarter. Tradewinds LLC. now owns 11,528 shares of the utilities provider’s stock valued at $1,005,000 after acquiring an additional 121 shares during the last quarter. Stonebridge Capital Advisors LLC lifted its stake in shares of Southern by 3.6% in the 2nd quarter. Stonebridge Capital Advisors LLC now owns 3,575 shares of the utilities provider’s stock valued at $328,000 after purchasing an additional 123 shares during the period. 44 Wealth Management LLC boosted its position in shares of Southern by 4.5% in the 2nd quarter. 44 Wealth Management LLC now owns 2,879 shares of the utilities provider’s stock worth $264,000 after purchasing an additional 125 shares during the last quarter. Finally, Keebeck Wealth Management boosted its position in shares of Southern by 2.2% in the 3rd quarter. Keebeck Wealth Management now owns 5,988 shares of the utilities provider’s stock worth $567,000 after purchasing an additional 130 shares during the last quarter. 64.10% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on SO. KeyCorp cut their target price on Southern from $87.00 to $76.00 and set an “underweight” rating on the stock in a research note on Friday, December 12th. Morgan Stanley reissued an “underweight” rating on shares of Southern in a report on Friday. UBS Group lowered their price target on Southern from $98.00 to $94.00 and set a “neutral” rating on the stock in a research report on Wednesday, December 17th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $105.00 price target on shares of Southern in a research report on Friday, January 23rd. Finally, JPMorgan Chase & Co. cut their price target on shares of Southern from $104.00 to $93.00 and set a “neutral” rating for the company in a report on Monday, December 15th. Five equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $97.14.

Southern Company Profile

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.