The Southern Company (SO) Q2 2026 earnings summary

Executive summary

• Q2 2026 adjusted EPS was $1.13, up from $0.92, and net income reached $1.2 billion ($1.03 per share), driven by strong electric sales, data center and industrial demand, and all business segments exceeding estimates.

• Over 17 GW of large load contracts secured through the mid-2030s, with an additional 8 GW in late-stage negotiations, supporting robust economic development in the Southeast.

• Retail electricity sales grew 2.3% year-over-year, the highest in nearly 20 years, with data center usage up 55% in Q2 and 49% year-to-date.

• Rate stability emphasized, with retail base rates held stable in Georgia and Alabama until at least 2029.

• Major investments and job creation announced, including $14 billion in new projects and 3,000 jobs, led by data centers and logistics.

Financial highlights

• Q2 2026 adjusted EPS was $1.13, up $0.21 year-over-year and $0.13 above estimate; reported EPS was $1.03, up from $0.80.

• Adjusted EPS for the first half of 2026 reached $2.46, up from $2.15, exceeding year-to-date expectations.

• Operating revenues for Q2 were $6.98 billion, nearly unchanged 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.

• Commercial sales grew 7.4% in Q2, with 11,000 new residential customers added in the quarter and 42,000 new residential customers since June 2025.

Outlook and guidance

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

• Q3 2026 adjusted EPS estimate is $1.65.

• 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.

• Continued momentum expected from large load contracts and economic development.