Southern (NYSE:SO) Issues Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Southern (NYSE:SO) posted its quarterly earnings data on Wednesday. The utilities provider reported $1.13 EPS for the quarter, beating analysts’ consensus estimates of $1.01 by $0.12, FiscalAI reports. The firm had revenue of $6.98 billion for the quarter, compared to the consensus estimate of $7.23 billion. Southern had a net margin of 14.46% and a return on equity of 12.64%. The firm’s revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.79 EPS.

Southern Stock Performance

Shares of NYSE:SO traded down $1.81 during trading on Thursday, hitting $94.24. 6,392,187 shares of the company traded hands, compared to its average volume of 5,747,137. The company has a quick ratio of 0.45, a current ratio of 0.65 and a debt-to-equity ratio of 1.68. The business’s fifty day moving average is $94.59 and its 200-day moving average is $93.99. The stock has a market capitalization of $106.24 billion, a price-to-earnings ratio of 23.98, a PEG ratio of 1.86 and a beta of 0.34. Southern has a one year low of $83.80 and a one year high of $100.83.

Southern Dividend Announcement

The business also recently announced 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 of this dividend is Monday, August 17th. This represents a $3.04 annualized dividend and a dividend yield of 3.2%. Southern’s dividend payout ratio is 77.35%.

Analyst Upgrades and Downgrades

SO has been the topic of several research analyst reports. Jefferies Financial Group set a $99.00 price target on shares of Southern in a research report on Monday, June 22nd. Morgan Stanley reaffirmed an “underweight” rating on shares of Southern in a report on Wednesday, July 22nd. Truist Financial decreased their target price on Southern from $103.00 to $100.00 and set a “hold” rating for the company in a research report on Friday, May 29th. JPMorgan Chase & Co. boosted their price target on Southern from $101.00 to $104.00 and gave the company a “neutral” rating in a report on Thursday, July 16th. Finally, Seaport Research Partners lowered Southern from a “buy” rating to a “neutral” rating in a research report on Monday, April 20th. Seven equities 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 data from MarketBeat.com, Southern has an average rating of “Hold” and an average price target of $100.21.

Key Headlines Impacting Southern

Here are the key news stories impacting Southern this week:

• Positive Sentiment: Southern raised or maintained longer-term growth expectations, issuing 2028 EPS guidance of $5.25-$5.45 versus a $5.25 analyst consensus. Six-month 2026 earnings also increased to $2.24 per share from $2.01 in the prior-year period. Southern Company Reports Second-Quarter 2026 Earnings
• Positive Sentiment: Georgia Power completed the Moody Battery Energy Storage System, supporting grid reliability and renewable-energy deployment. Southern is also expanding storage projects across Georgia, which could strengthen its regulated utility investment base over time. Southern Completes Moody Battery Project
• Positive Sentiment: Investors continue to view Southern as a potential beneficiary of rising electricity demand from artificial-intelligence data centers. Large-load contracts and a reported 25-year power agreement with OpenAI provide a potential long-term growth catalyst, although the financial impact will develop gradually. Southern Company as an AI Data Center Play
• Neutral Sentiment: Full-year 2026 EPS guidance of $4.50-$4.60 broadly brackets the $4.57 consensus, suggesting no meaningful change to near-term expectations. Southern Earnings Report
• Negative Sentiment: Third-quarter EPS guidance of $1.65 is below the $1.67 consensus, while the quarterly revenue miss highlights continued pressure on near-term growth. The modest outlook reduction may weigh on the stock because SO already trades at a relatively demanding utility valuation.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD increased its holdings in shares of 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. Soroban Capital Partners LP raised its position in shares of Southern by 83.8% during the 2nd quarter. Soroban Capital Partners LP now owns 4,097,422 shares of the utilities provider’s stock worth $376,266,000 after buying an additional 1,867,912 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in shares of Southern in the 4th quarter worth approximately $131,968,000. Canada Pension Plan Investment Board lifted its stake in shares of Southern by 1,518.4% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,044,101 shares of the utilities provider’s stock worth $95,880,000 after acquiring an additional 979,587 shares during the period. Finally, Balyasny Asset Management L.P. boosted its holdings in shares of Southern by 790.6% in the second quarter. Balyasny Asset Management L.P. now owns 811,737 shares of the utilities provider’s stock valued at $74,542,000 after acquiring an additional 720,589 shares in the last quarter. Institutional investors and hedge funds 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.