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SO US S&P 500Russell 1000 Earnings call

Southern Company (SO) · Q2 2026 results and valuation

Share price: $93.84 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026

Net income down 13.4% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

−13.4%

Net income vs Q1 2026

Outlook given

Net income 1.17B vs 1.36B

Revenue −16.9%

Against the same quarter last year (Q2 2025) it is +37.6%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Upbeat

More upbeat than 71% of company calls

Answers to analysts: typical, in line with the script.

Similar to last call.

3 · What stood out

Figure

Notably, data center usage was 55% higher compared to the second quarter of 2025 and is now up 49% year-to-date.

Valuation

Is Southern Company undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.

Current price

$93.84

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+17.2% for 10 yrs

Fair value / share

$-16.39

Buy below

$-12.29

Price vs fair value

n/a

Price vs buy-below price

n/a

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    Is working to keep customer rates stable through 2028 and as low as possible without getting ahead of commission processes.

    Source quote
    “And so we are thrilled with how we are delivering rate stability to our customers through 2028 And so mean... I mean, our goal at all times is to keep rates as low as possible for our customers. About what is possible, but I am not gonna get ahead of any process or any conversation with the commission.”
  2. Guidance

    Projecting full-year 2026 adjusted earnings near or at the top as momentum is expected to continue through the second half.

    Source quote
    “Looking towards the second half of the year, we anticipate this momentum continuing and now project our full-year 2026 adjusted earnings to be near or at the top...”
  3. Fading

    First-quarter weather-normal retail electricity sales rose 2.3%, marking the highest first-quarter sales growth in recent history.

    Source quote
    “First quarter weather-normal retail electricity sales to all classes were 2.3% higher than 2025. Turning now to retail electricity sales. This represents the highest total retail sales growth that we have seen in the first quarter in recent history.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Upbeat (was typical)
Answers to analysts Typical (was typical)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“This extraordinary growth continues to strengthen our business fundamentals and expand capital investment opportunities well into the next decade and we continue to see momentum building in support of an...”
“The projects announced in the second quarter marked the second-highest investment level ever recorded in our electric territories, underscoring the strength of regional trends in economic development and, ultimately, helping...”
“With customer rates held stable at our 2 largest subsidiaries, this strong performance continues to be driven by increased sales and customer growth, and strong execution across each of our...”

Full figures

USD · ROIC.AI fundamentals (NYSE:SO, period end 2026-06-30)

Metric Q2 2026period end 2026-06-30 Q1 2026period end 2026-03-31 Change Q2 2025 YoY
Revenue 6.98B 8.40B −16.9% 6.97B +0.1%
Gross profit 3.58B — —
Operating income 1.78B 2.02B −12.0% 1.76B +0.7%
Net income 1.17B 1.36B −13.4% 853.0M +37.6%
EPS 1.03 1.20 −14.0% 0.79 +30.7%
P/E today 21.4 — 24.7 — 23.7 —

Topics

Most discussed now

  • The extraordinary economic development momentum and demand for power across its Southeast region Southern has seen for the past several...
  • This site, which is expected to take electric service in phases beginning in 2028 features 1 GW of flexible demand...
  • Combined, these four projects representing 6 GW of newly contracted customer load along with agreements previously signed brings Southern's…
  • The primary drivers of Southern's performance for the current quarter compared to last year included increased usage and customer growth,...
  • With customer rates held stable at Southern's 2 largest subsidiaries, this strong performance continues to be driven by increased sales...

Faded since Q1 2026

  • Dropped All of these things can help mitigate risk associated with new construction.
  • Dropped Whether it is turbines, transformers, wire, cable—you name it—Southern's supply chain organization continues to be very aggressive and…
  • Fading These bilaterally negotiated agreements are structured so that customers driving incremental demand cover the full share of the cost to...
  • Fading In just the last two months, Southern has signed contracts for another 1.9 gigawatts of customer load with high credit...

Latest announcements

Official filings, newest first.

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