Southern Company (the) Stock Earnings Reports

Southern Company reported a strong start to 2026, with Q1 adjusted EPS of $1.32 (9¢ above 2025 and 12¢ above the company estimate). Key drivers were meaningful customer growth and increased usage—retail electricity sales were up 2.3% Y/Y (Q1), data center usage rose 42% Y/Y, and 46,000 net new residential customers were added. The company highlighted a large-load pipeline (23 GW contracted or late-stage; >11 GW fully contracted across subsidiaries) driven by hyperscalers and large manufacturers, with a prospective pipeline of >75 GW. Contracts are structured so incremental customers cover the full cost to serve them, supporting rate stability (Alabama base rates held through at least 2029, Georgia through 2028) and protections for existing customers. Southern is progressing a 10 GW program of near-term resources (batteries and gas turbines) and announced Georgia Power commercial operations of nearly 200 MW of battery storage. A new Georgia all-source RFP for 2–6 GW targeting 2032–2033 was initiated. Southern Power plans uprates adding 400 MW (2029–2031) costing about $700M incremental CapEx and is evaluating another ~300 MW; these opportunities are expected to be largely contracted. Financial/financing items: a historic $26.5B DOE loan package expected to produce ~$7B cumulative customer savings over ~30 years and reduce capital market pressure; Southern has sourced incremental equity via ATM (additional $500M this quarter) and projects $1.8B of remaining equity/equivalent needs through 2030 to support the capital plan and credit targets (aiming for ~17% FFO to debt by 2029). The Board approved an 8¢ increase in the annual dividend to $3.04 (25th consecutive annual increase). Q2 adjusted EPS estimate is $1.00.