Southern Company reports third-quarter 2026 earnings
SOUTHERN CO (SO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Page 1 News Media Contact: Southern Company Media Relations 404-506-5333 or 1-866-506-5333 southerncompany.com Investor Relations Contact: Greg MacLeod 404-685-4194 gbmacleo@southernco.com November 5, 2026 Southern Company reports third-quarter 2026 earnings ATLANTA –
How this was made
The 30-second read
Why it matters
The earnings beat and revenue growth suggest a positive short‑term catalyst, but no forward guidance was provided.
Market read
The earnings release is a primary corporate disclosure for a large‑cap utility, likely to move the stock modestly today.
What to watch
Potential regulatory or environmental cost pressures not detailed in the release could temper upside.
Southern Company reports third-quarter 2026 earnings
Third-quarter operating revenues increased 13.0%, net income attributable to Southern Company increased to $2,046 million from $1,711 million, and basic earnings per share excluding items increased to $1.94 from $1.60. Growth was supported by weather, usage, customer growth, large commercial and industrial customers, and Southern Power.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total operating revenues, three months ended SeptemberGAAP | $8.84B | – | 13.0 % |
| Total operating revenues, year-to-date SeptemberGAAP | $24.22B | – | 7.3 % |
| Retail electric revenues: Fuel, three months ended SeptemberGAAP | $1.49B | – | $226 million |
| Retail electric revenues: Fuel, year-to-date SeptemberGAAP | $3.81B | – | $189 million |
| Retail electric revenues: Non-fuel, three months ended SeptemberGAAP | $5.13B | – | $690 million |
| Retail electric revenues: Non-fuel, year-to-date SeptemberGAAP | $12.20B | – | $755 million |
| Wholesale electric revenues, three months ended SeptemberGAAP | $873M | – | $41 million |
| Wholesale electric revenues, year-to-date SeptemberGAAP | $2.54B | – | $280 million |
| Other electric revenues, three months ended SeptemberGAAP | $229M | – | $(33) million |
| Other electric revenues, year-to-date SeptemberGAAP | $736M | – | $12 million |
| Natural gas revenues, three months ended SeptemberGAAP | $773M | – | $39 million |
| Natural gas revenues, year-to-date SeptemberGAAP | $3.93B | – | $378 million |
| Other revenues, three months ended SeptemberGAAP | $345M | – | $57 million |
| Other revenues, year-to-date SeptemberGAAP | $1.01B | – | $32 million |
| Fuel and purchased power, three months ended SeptemberGAAP | $1.83B | – | $223 million |
| Fuel and purchased power, year-to-date SeptemberGAAP | $4.90B | – | $381 million |
| Cost of natural gas, three months ended SeptemberGAAP | $99M | – | $(17) million |
| Cost of natural gas, year-to-date SeptemberGAAP | $1.20B | – | $155 million |
| Cost of other sales, three months ended SeptemberGAAP | $191M | – | $35 million |
| Cost of other sales, year-to-date SeptemberGAAP | $548M | – | $26 million |
| Non-fuel operations and maintenance, three months ended SeptemberGAAP | $1.85B | – | $205 million |
| Non-fuel operations and maintenance, year-to-date SeptemberGAAP | $5.21B | – | $261 million |
| Depreciation and amortization, three months ended SeptemberGAAP | $1.44B | – | $22 million |
| Depreciation and amortization, year-to-date SeptemberGAAP | $4.30B | – | $268 million |
| Taxes other than income taxes, three months ended SeptemberGAAP | $434M | – | $146 million |
| Taxes other than income taxes, year-to-date SeptemberGAAP | $1.26B | – | $129 million |
| Total operating expenses, three months ended SeptemberGAAP | $5.84B | – | $614 million |
| Total operating expenses, year-to-date SeptemberGAAP | $17.42B | – | $1,220 million |
| Operating income, three months ended SeptemberGAAP | $3B | – | $406 million |
| Operating income, year-to-date SeptemberGAAP | $6.79B | – | $426 million |
| Allowance for equity funds used during construction, three months ended SeptemberGAAP | $140M | – | $50 million |
| Allowance for equity funds used during construction, year-to-date SeptemberGAAP | $388M | – | $145 million |
| Earnings from equity method investments, three months ended SeptemberGAAP | $77M | – | $44 million |
| Earnings from equity method investments, year-to-date SeptemberGAAP | $213M | – | $137 million |
| Interest expense, net of amounts capitalized, three months ended SeptemberGAAP | $842M | – | $87 million |
| Interest expense, net of amounts capitalized, year-to-date SeptemberGAAP | $2.42B | – | $72 million |
| Other income (expense), net, three months ended SeptemberGAAP | $171M | – | $22 million |
| Other income (expense), net, year-to-date SeptemberGAAP | $508M | – | $49 million |
| Income taxes, three months ended SeptemberGAAP | $472M | – | $68 million |
| Income taxes, year-to-date SeptemberGAAP | $887M | – | $(86) million |
| Net income, three months ended SeptemberGAAP | $2.07B | – | $367 million |
| Net income, year-to-date SeptemberGAAP | $4.60B | – | $771 million |
| Net income attributable to Southern Company, three months ended SeptemberGAAP | $2.05B | – | $335 million |
| Net income attributable to Southern Company, year-to-date SeptemberGAAP | $4.58B | – | $652 million |
| Basic earnings per share, three months ended SeptemberGAAP | $1.77 | – | $0.22 |
| Basic earnings per share, year-to-date SeptemberGAAP | $4.02 | – | $0.46 |
| Diluted earnings per share, three months ended SeptemberGAAP | $1.76 | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $4.00 | – | – |
| Average shares outstanding, three months ended SeptemberGAAP | 1.16B | – | – |
| Average shares outstanding, year-to-date SeptemberGAAP | 1.14B | – | – |
| Net income excluding items, three months ended Septembernon-GAAP | $2.24B | – | – |
| Net income excluding items, year-to-date Septembernon-GAAP | $5.02B | – | – |
| Basic earnings per share excluding items, three months ended Septembernon-GAAP | $1.94 | – | $0.34 |
| Basic earnings per share excluding items, year-to-date Septembernon-GAAP | $4.40 | – | $0.64 |
| Total retail sales, three months ended Septemberother | 45.65B | – | 7.7 % |
| Total retail sales, year-to-date Septemberother | 120.2B | – | 3.6 % |
| Total regulated utility customers, period ended Septemberother | 9.00M | – | 0.7% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Alabama PowerNo segment-specific revenue driver was provided. | $2.51B | – | 8.2 % |
| Georgia PowerNo segment-specific revenue driver was provided. | $4.47B | – | 18.6 % |
| Mississippi PowerNo segment-specific revenue driver was provided. | $497M | – | 3.5 % |
| Southern PowerHigher earnings from Southern Power was identified as an adjusted earnings driver. | $699M | – | 14.0 % |
| Southern Company GasNo segment-specific revenue driver was provided. | $773M | – | 5.3 % |
Capital returns
- Southern Company repurchased certain convertible senior notes and redeemed certain junior subordinated notes, resulting in costs associated with extinguishment of debt totaling $43 million ($40 million after tax) for the three months ended September 30, 2026.
- Costs associated with extinguishment of debt totaled $54 million ($49 million after tax) for the nine months ended September 30, 2026.
What drove it
- Adjusted earnings drivers for the third quarter of 2026 included warmer weather, increased usage and customer growth.
- Growing revenue from large commercial and industrial customers supported adjusted earnings.
- Higher earnings from Southern Power supported adjusted earnings.
- Traditional Electric Operating Companies contributed $0.32 to the third-quarter change in earnings per share as reported.
- Southern Power contributed $0.04 to the third-quarter change in earnings per share as reported.
- An increase in shares reduced third-quarter earnings per share as reported by $0.09.
Concerns
- Higher non-fuel operating expenses and taxes other than income taxes partially offset adjusted earnings drivers.
- The third-quarter estimated loss on Nicor Gas capital investments was $9 million ($7 million after tax), and the filing states that further charges may occur with uncertain amount and timing.
- Accelerated depreciation and decommissioning costs related to Southern Power wind-facility repowering are projected to continue through the third quarter 2027.
- At September 30, 2026, remaining pre-tax accelerated depreciation and decommissioning costs were projected to total approximately $100 million in 2026 and $135 million in 2027.
- Southern Power reported net income available to common of $52 million in the third quarter, but year-to-date net income available to common was $30 million compared with $141 million in the prior-year period.
What to watch
- Weather-adjusted total retail sales growth was 3.5 % in the third quarter and 2.7 % year-to-date September.
- Third-quarter commercial retail sales increased 10.1 %, including 7.3 % weather-adjusted growth; industrial retail sales increased 2.5 %, including 1.8 % weather-adjusted growth.
- Georgia Power operating revenues increased 18.6 % in the third quarter.
- Non-fuel operations and maintenance expense increased $205 million in the third quarter, while taxes other than income taxes increased $146 million.
- Interest expense, net of amounts capitalized, increased $87 million in the third quarter.
Balance sheet and cash flow
- Operating cash flow was not reported in the filing text.
- Free cash flow was not reported in the filing text.
- Cash, debt balances, and dividend payments were not reported in the filing text.
Analysis
Southern Company reported a strong third quarter. Operating revenues were $8,843 million, up 13.0 % from $7,823 million, while net income attributable to Southern Company rose to $2,046 million from $1,711 million. Basic earnings per share increased to $1.77 from $1.55, and basic earnings per share excluding items increased to $1.94 from $1.60. For the year-to-date September period, operating revenues were $24,218 million, up 7.3 %, and net income attributable to Southern Company was $4,577 million compared with $3,925 million.
Demand trends were favorable. Total retail sales increased 7.7 % in the third quarter, with 3.5 % weather-adjusted growth. Commercial retail sales rose 10.1 %, including 7.3 % weather-adjusted growth, while industrial retail sales increased 2.5 %, including 1.8 % weather-adjusted growth. Management identified warmer weather, increased usage, customer growth, and growing revenue from large commercial and industrial customers as adjusted earnings drivers.
The earnings mix was led by the Traditional Electric Operating Companies, which contributed $0.32 to the third-quarter increase in earnings per share as reported. Georgia Power produced the largest reported segment revenue increase, with operating revenues of $4,471 million, up 18.6 %. Southern Power's third-quarter operating revenues increased 14.0 % to $699 million and its net income available to common was $52 million, compared with $3 million. Southern Company Gas operating revenues increased 5.3 % to $773 million, while its net income available to common declined to $21 million from $25 million.
Costs also rose. Third-quarter non-fuel operations and maintenance expense increased $205 million, taxes other than income taxes increased $146 million, and interest expense increased $87 million. These items partly offset revenue and demand strength. The filing also identifies $118 million of pre-tax accelerated depreciation and decommissioning costs associated with wind-facility repowering, $43 million of debt-extinguishment costs, and a $9 million estimated Nicor Gas capital-investment loss during the quarter.
No forward financial guidance was provided in the filing text. The key forward operating items are the durability of weather-adjusted retail-sales growth, the contribution from large commercial and industrial customers, cost discipline, interest expense, and the scheduled continuation of repowering-related accelerated depreciation and decommissioning costs through the third quarter 2027.
Management, verbatim
The Southeast is growing at a pace that is both unprecedented and transformational, and we believe Southern Company is well positioned for today and in the future.
Chris Womack, chairman, president and CEO of Southern Company
Not in the filing
stated, not guessed- Forward guidance for revenue, earnings per share, operating expenses, tax rate, capital expenditures, or other financial metrics was not provided.
- Previous-period outlook was not provided.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash balance was not reported.
- Total debt balance was not reported.
- Dividend payments and share repurchases were not reported.
- Quarter-over-quarter comparisons were not reported for the listed metrics.
- Segment operating income, segment gross margin, and segment cash flow were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K Item 2.02 earnings release for Southern Company, a U.S. utility with NYSE ticker SO.
Ticker impact
Southern Company reported Q3 2026 earnings of $2.0 bn, $1.77 per share, up from $1.7 bn, $1.55 per share a year ago.
likely modest upside as the market prices in higher earnings
The earnings increase signals stronger demand and higher operating revenue, which should support the stock price in the short term.
Market effects
Utility sector may see a lift from Southern Company's earnings beat and growth in commercial/industrial demand.
Southeast U.S. energy markets could benefit from higher consumption forecasts.
Limited; primarily a domestic utility earnings story.
Counterpoint
If the earnings growth is already priced in, the stock could face a pullback on profit‑taking.
Key entities
- companySouthern Company
U.S. utility (NYSE: SO) reporting Q3 2026 earnings.
- executiveChris Womack
Chairman, President and CEO of Southern Company, quoted in the release.
