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SO · Analysis updated Nov 6, 2026, 9:52 AM ET
Why is Southern Company (SO) stock moving?
Southern Company reported a strong Q3. Adjusted EPS was $1.94 against $1.60 a year earlier, and consensus was about $1.71. Revenue rose 13% to $8.84B, and management raised 2026 adjusted EPS guidance to $4.70. Growth came from warmer weather, customer additions and a 59% rise in data-center usage. Offsetting factors are heavy capital spending, equity funding and share dilution (about $0.09 per share), higher operating costs, a 71% payout ratio and negative free cash flow. Insider selling and net trimming by tracked investors add a cautious note. The Georgia regulator headline (Democrats winning a majority on the Georgia utility regulator) raised policy risk. Volume was elevated on Nov 4 (18.7M shares) and Nov 5 (15.9M), roughly three times the usual level, while the price held near $93, close to its recent high of $94.61. Analyst views are split: HSBC at Buy with a $99.50 target, Jefferies at $95, and Morgan Stanley at Underweight with an $84 target. The stock looks fairly valued, so much of the good news appears to be priced in.
News behind the analysis
- Southern Company reports third-quarter 2026 earningsQ3 earnings were $1.77 per share, or $1.94 adjusted, against $1.60 a year earlier. Operating revenue rose 13.0% to $8.8B.
- Southern Company (SO) Reports Strong Q3 Results, Dividend Sustainability in FocusResults beat expectations. The payout ratio is 71% and the yield is 3.39%. GuruFocus rates the stock as roughly fairly valued, and insiders have been net sellers.
- Southern Company Reports Q3 2026 Earnings of $1.77 EPS and $8.8 Billion Revenue, Surpassing EstimatesAdjusted EPS grew 21%. Traditional electric utilities contributed $0.32 of the increase, and share dilution cost $0.09.
- Southern Company stock posts Q3 profit and revenue gainsRevenue and adjusted earnings rose on stronger electricity demand. Management called Southeast growth unprecedented but warned of heavy investment and financing needs.
- Southern Company stock gets earnings boost as revenue rises 13%Warmer weather, higher usage and large-customer demand lifted earnings. Higher operating costs, taxes and share dilution offset part of the gain.
- Southern Company reports record $2 billion profit in third quarter of 2026Record Q3 earnings were driven by weather, usage, customer growth, large commercial and industrial customers, and Southern Power.
- Southern Company Q3 earnings rise to $2.05BNet income was $2,046M. Nine-month revenue rose 7.3% to $24.2B.
- The Southern Company Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2026Q3 revenue was $8,843M against $7,823M a year earlier. Net income was $2,046M against $1,711M.
- The Southern Company (SO) Stock Price, News, Quote & HistorySummary of the quarter: adjusted EPS $1.94, 2026 EPS guidance raised to $4.70, and data-center usage up 59%. HSBC initiated coverage with a Buy rating and a $99.50 target on Oct 22.
- The Southern Company (SO) Stock Price & OverviewRecent items: leadership realignment on Oct 30, a 76-cent quarterly dividend, HSBC's Buy, Morgan Stanley's target cut to $84 (Underweight), and Jefferies' target cut to $95.