Energy & Commodities
Southern Company raises 2026 profit outlook on rising power demand
Southern Company raised its 2026 earnings forecast above Wall Street's estimate as electricity sales rose. Its fourth-quarter profit outlook fell short of what analysts expected.
Quick Read
- Southern Company raised its 2026 adjusted earnings forecast to $4.70 a share, above the analyst consensus.
- Third-quarter adjusted earnings of $1.94 a share beat estimates as electricity sales rose on heat, customer growth and big business demand.
- The company's fourth-quarter outlook came in below what Wall Street expected.
- Southern's shares traded higher Thursday while the S&P 500 tumbled.
What did Southern Company report?
Southern Company (NYSE: SO) raised its 2026 adjusted earnings forecast to $4.70 a share on Thursday. Its previous range was $4.50 to $4.60. Adjusted earnings leave out one-time items.
Why it matters: The new forecast tops the consensus, or average analyst forecast, of $4.59. Third-quarter adjusted earnings came in at $1.94 a share, above the $1.71 analysts expected. Operating revenue rose from a year earlier and also beat estimates.
Why is Southern selling more power?
Total electricity sales rose 7.3% in the quarter, the company said. It credited warmer weather, more customers and heavier use by large commercial and industrial customers.
Sales also grew after adjusting for weather, so heat alone does not explain the gain. The company's count of regulated utility customers grew too. The Southern Power unit contributed more than in the same quarter a year earlier.
Chief executive Chris Womack pointed to fast growth across the Southeast and rising demand for reliable electricity.
What is the weak spot in the outlook?
Southern expects fourth-quarter adjusted earnings of 30 cents a share. That is below the 45 cents Wall Street expected.
The company kept its 2028 adjusted earnings forecast unchanged. The open question is whether demand from large customers keeps growing at this pace. The fourth-quarter report will show whether results land near the company's own guidance.
How did the shares do on a rough day?
Southern's shares traded higher Thursday. That same day the S&P 500 tumbled 4.4%, and the utilities sector fund (XLU) fell a smaller 0.7%.
For readers
What it could mean for you: If you own Southern shares directly, the higher full-year forecast and the soft fourth-quarter outlook both land on your holding in full. No other stocks offset them. The next test could come with the fourth-quarter report. It may show whether earnings match the company's own guidance and whether demand from big commercial and industrial users keeps climbing. If you hold Southern through a utilities or income fund instead, it is one holding among many, so its results may move that fund less.
Questions and answers
Why did Southern Company raise its 2026 forecast?
The company said higher electricity sales drove its results, citing warmer weather, customer growth and stronger demand from large commercial and industrial customers. Sales grew even after adjusting for weather.
Did Southern Company beat earnings estimates?
Yes. Third-quarter adjusted earnings of $1.94 a share topped the $1.71 consensus, and operating revenue also beat estimates.
What is Southern Company's fourth-quarter outlook?
Southern expects fourth-quarter adjusted earnings of 30 cents a share, below the 45 cents Wall Street expected.
Did Southern Company change its 2028 forecast?
No. The company kept its 2028 adjusted earnings forecast unchanged.
The numbers
| S&P 500 change | −4.36% |
|---|---|
| 10-year Treasury yield | 4.84% |
Thursday’s close
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