Southern (NYSE:SO) Posts Quarterly Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• EPS beat: Southern reported Q1 adjusted EPS of $1.32, beating consensus by $0.11, with revenue of $8.40 billion (up ~8% YoY), and the stock jumped about 3.4% to $96.66 on the news.
• Dividend increased: Southern raised its quarterly dividend to $0.76 (annualized $3.04), up from $0.74, implying a ~3.1% yield with an ex-dividend date of May 18 and a payout ratio around 75.3%.
• Guidance, analyst and insider activity: FY2026 guidance of $4.50–$4.60 is roughly in line with expectations though Q2 guidance of $1.00 slightly misses the street; analysts are mixed (e.g., Evercore upgraded) and executives, including the CEO, recently sold shares.

Southern (NYSE:SO - Get Free Report) announced its quarterly earnings data on Wednesday. The utilities provider reported $1.32 EPS for the quarter, beating the consensus estimate of $1.21 by $0.11, FiscalAI reports. The business had revenue of $8.40 billion for the quarter, compared to the consensus estimate of $8.26 billion. Southern had a return on equity of 12.52% and a net margin of 14.69%.The business's revenue was up 8.0% on a year-over-year basis. During the same period in the previous year, the business earned $1.23 earnings per share.

Southern Trading Up 3.4%

SO stock traded up $3.15 during midday trading on Thursday, reaching $96.66. 8,303,497 shares of the company traded hands, compared to its average volume of 5,665,124. Southern has a 52-week low of $83.09 and a 52-week high of $100.83. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.47 and a current ratio of 0.65. The business has a 50 day moving average of $95.86 and a 200-day moving average of $92.09. The firm has a market capitalization of $109.06 billion, a price-to-earnings ratio of 24.59, a P/E/G ratio of 2.83 and a beta of 0.41.

Southern Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 8th. Shareholders of record on Monday, May 18th will be given a dividend of $0.76 per share. This represents a $3.04 dividend on an annualized basis and a yield of 3.1%. This is a boost from Southern's previous quarterly dividend of $0.74. The ex-dividend date is Monday, May 18th. Southern's dividend payout ratio (DPR) is currently 75.32%.

Key Headlines Impacting Southern

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Q1 results beat expectations — Southern reported adjusted EPS of $1.32 (vs. Zacks consensus $1.21) and revenue of $8.40B (vs. $8.26B consensus); revenue rose ~8% year-over-year, supporting profit strength and the recent stock uptick. Southern Co. (SO) Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Higher power demand boosted results — Reuters notes the beat was helped by rising power demand, a positive signal for near-term commodity-driven revenues and utility margins. Southern Co beats first-quarter profit estimates as power demand soars
• Positive Sentiment: Company release and materials available — Southern’s PR release and slide deck provide management detail on results and drivers (useful for confirming one-offs and adjusted EPS reconciliation). Southern Company reports first-quarter 2026 earnings
• Positive Sentiment: Fresh analyst support — Wells Fargo recently bumped its price target to $99 and Erste Group nudged FY2026 EPS estimates higher, lending modest analyst confidence to the name. Why Southern Company (SO) May Be Quietly Gaining Strength
• Neutral Sentiment: FY2026 guidance roughly in line — Southern updated FY2026 EPS guidance to $4.50–$4.60 vs. consensus ~$4.57, implying performance in line with expectations and limiting large directional surprises.
• Neutral Sentiment: Longer-term outlook steady — FY2028 EPS guidance of $5.25–$5.45 aligns with street expectations, keeping the longer-term trajectory intact.
• Neutral Sentiment: Deep-dive metric coverage available — Zacks published a metrics comparison for Q1 that investors can use to check segment drivers and one-offs. Compared to Estimates, Southern Co. (SO) Q1 Earnings: A Look at Key Metrics
• Negative Sentiment: Q2 guidance slightly below street — Southern set Q2 EPS guidance at $1.00 vs. a consensus near $1.02, a small miss that could temper short-term sentiment.
• Negative Sentiment: Competitive note — A Zacks comparison favors Vistra over Southern, citing Vistra’s nuclear push and cheaper valuation; this frames relative valuation/risk questions for investors comparing utility ideas. Vistra or Southern Co.: Which Utility Stock Looks Stronger in 2026?

Analyst Ratings Changes

SO has been the topic of a number of research analyst reports. Evercore upgraded Southern from an "in-line" rating to an "outperform" rating and set a $111.00 target price on the stock in a research report on Thursday, March 5th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $105.00 target price on shares of Southern in a research report on Friday, January 23rd. Seaport Research Partners downgraded Southern from a "buy" rating to a "neutral" rating in a research report on Monday, April 20th. Wells Fargo & Company set a $96.00 target price on Southern and gave the stock an "equal weight" rating in a research report on Friday, February 20th. Finally, Mizuho set a $104.00 target price on Southern and gave the stock an "outperform" rating in a research report on Friday, February 20th. Seven research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Southern has an average rating of "Hold" and an average target price of $99.08.

Insider Buying and Selling

In other Southern news, CEO Kimberly S. Greene sold 25,000 shares of the company's stock in a transaction that occurred on Monday, March 30th. The stock was sold at an average price of $96.67, for a total transaction of $2,416,750.00. Following the sale, the chief executive officer directly owned 103,602 shares in the company, valued at $10,015,205.34. This represents a 19.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Christopher Cummiskey sold 6,669 shares of the company's stock in a transaction that occurred on Thursday, March 19th. The shares were sold at an average price of $96.55, for a total value of $643,891.95. Following the sale, the executive vice president owned 30,800 shares in the company, valued at approximately $2,973,740. This trade represents a 17.80% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Southern

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD raised its position in Southern by 18.7% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 34,459,462 shares of the utilities provider's stock valued at $3,004,866,000 after purchasing an additional 5,436,212 shares during the period. Charles Schwab Investment Management Inc. raised its position in Southern by 1.2% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 6,889,152 shares of the utilities provider's stock valued at $600,734,000 after purchasing an additional 78,571 shares during the period. Nuveen LLC raised its position in Southern by 2.1% during the fourth quarter. Nuveen LLC now owns 4,573,702 shares of the utilities provider's stock valued at $398,827,000 after purchasing an additional 95,503 shares during the period. Soroban Capital Partners LP raised its position in Southern by 83.8% during the second quarter. Soroban Capital Partners LP now owns 4,097,422 shares of the utilities provider's stock valued at $376,266,000 after purchasing an additional 1,867,912 shares during the period. Finally, Raymond James Financial Inc. grew its stake in shares of Southern by 6.6% during the fourth quarter. Raymond James Financial Inc. now owns 3,095,082 shares of the utilities provider's stock valued at $269,891,000 after buying an additional 190,385 shares during the last quarter. 64.10% of the stock is currently owned by hedge funds and other institutional investors.

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.

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