Southern (NYSE:SO) Updates FY 2026 Earnings Guidance

Southern (NYSE:SO) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 4.500-4.600 for the period, compared to the consensus EPS estimate of 4.570. The company issued revenue guidance of -. Southern also updated its FY 2028 guidance to 5.250-5.450 EPS.

Southern Trading Up 0.4%

Shares of SO stock traded up $0.41 on Friday, hitting $94.75. 2,075,250 shares of the stock traded hands, compared to its average volume of 5,721,258. The company has a debt-to-equity ratio of 1.68, a quick ratio of 0.45 and a current ratio of 0.65. Southern has a twelve month low of $83.80 and a twelve month high of $100.83. The firm’s 50-day moving average price is $94.59 and its two-hundred day moving average price is $93.99. The stock has a market capitalization of $106.81 billion, a PE ratio of 24.12, a PEG ratio of 1.85 and a beta of 0.34.

Southern (NYSE:SO) last released its quarterly earnings data on Thursday, July 30th. The utilities provider reported $1.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.01 by $0.12. Southern had a net margin of 14.46% and a return on equity of 12.64%. The firm had revenue of $6.98 billion during the quarter, compared to analysts’ expectations of $7.23 billion. During the same period last year, the business earned $0.79 earnings per share. Southern’s revenue was up .1% compared to the same quarter last year. As a group, analysts anticipate that Southern will post 4.58 EPS for the current year.

Southern Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 8th. Stockholders of record on Monday, August 17th will be issued a dividend of $0.76 per share. The ex-dividend date is Monday, August 17th. This represents a $3.04 dividend on an annualized basis and a dividend yield of 3.2%. Southern’s dividend payout ratio (DPR) is currently 77.35%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SO. Truist Financial reduced their price target on shares of Southern from $103.00 to $100.00 and set a “hold” rating on the stock in a research report on Friday, May 29th. Weiss Ratings restated a “buy (b)” rating on shares of Southern in a research report on Wednesday. KeyCorp cut Southern from a “sector weight” rating to an “underweight” rating and set a $79.00 price target for the company. in a report on Thursday, July 23rd. Jefferies Financial Group set a $99.00 price objective on shares of Southern in a report on Monday, June 22nd. Finally, BMO Capital Markets increased their target price on shares of Southern from $102.00 to $104.00 and gave the stock an “outperform” rating in a research note on Monday. Seven 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. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $100.26.

Key Southern News

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Second-quarter earnings beat estimates. Southern reported adjusted earnings of $1.13 per share, above the $1.01 analyst consensus and up from $0.91 a year earlier. The company’s reported net income increased to $1.2 billion, or $1.03 per share, from $0.9 billion, or $0.80 per share, in the prior-year quarter. Southern Co. Beats Q2 Earnings Estimates
• Positive Sentiment: AI and data-center demand offer a long-term growth catalyst. Southern is benefiting from large-load contracts, including a reported 25-year power agreement with OpenAI. Rising electricity demand could support regulated rate-base investment and future earnings growth. Southern Company AI Data Center Opportunity
• Positive Sentiment: Georgia Power is expanding generation and storage capacity. Planned investments at Plant Bowen include nearly 1,500 megawatts of new natural-gas generation and 500 megawatts of battery storage. The projects are intended to meet Georgia’s growing power needs and could expand Southern’s regulated asset base over time. Georgia Power Plant Bowen Investment
• Positive Sentiment: Battery-storage execution reinforces grid-investment momentum. Georgia Power completed the Moody Battery Energy Storage System, adding capacity to support solar deployment and grid reliability. Southern Completes Moody Battery Project
• Neutral Sentiment: Revenue fell short of expectations. Quarterly revenue was $6.98 billion versus the $7.23 billion consensus and increased only 0.1% year over year, tempering the impact of the EPS beat.
• Negative Sentiment: Near-term guidance was slightly cautious. Fiscal 2026 EPS guidance of $4.50–$4.60 brackets the $4.57 consensus, while third-quarter guidance of $1.65 is below the $1.67 estimate. Fiscal 2028 guidance of $5.25–$5.45 begins at consensus, offering longer-term support but limited immediate upside.

Institutional Investors Weigh In On Southern

Several institutional investors and hedge funds have recently modified their holdings of SO. Schnieders Capital Management LLC. boosted its stake in shares of Southern by 0.7% in the second quarter. Schnieders Capital Management LLC. now owns 59,217 shares of the utilities provider’s stock valued at $5,438,000 after purchasing an additional 393 shares during the period. Lighthouse Investment Partners LLC purchased a new stake in Southern during the 2nd quarter worth approximately $275,000. Texas Capital Bank Wealth Management Services Inc lifted its holdings in Southern by 9.3% during the 3rd quarter. Texas Capital Bank Wealth Management Services Inc now owns 2,803 shares of the utilities provider’s stock worth $266,000 after buying an additional 238 shares in the last quarter. 44 Wealth Management LLC boosted its position in Southern by 4.5% in the 2nd quarter. 44 Wealth Management LLC now owns 2,879 shares of the utilities provider’s stock valued at $264,000 after buying an additional 125 shares during the period. Finally, Elevation Point Wealth Partners LLC grew its stake in shares of Southern by 342.4% in the third quarter. Elevation Point Wealth Partners LLC now owns 2,703 shares of the utilities provider’s stock worth $256,000 after acquiring an additional 2,092 shares in the last quarter. Hedge funds and other institutional investors own 64.10% of the company’s stock.

About Southern

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.