Power supplier The Southern Company (SO Quick QuoteSO - Free Report) delivered adjusted earnings per share of $1.32 in the first quarter of 2026, up 7.3% from $1.23 a year ago. The figure topped the Zacks Consensus Estimate of $1.21 by 9.1%.

Quarterly revenue came in at $8.4 billion, an 8% increase from $7.8 billion in the year-ago period. Revenues also beat the consensus mark of $8.1 billion by 3.8%. Management credited the quarter’s upside to higher utility revenues, supported by customer growth and usage, as weather-normal retail electricity sales increased 2.3% year over year.

SO Sees Broad-Based Demand Lift Across Classes

Weather-normal retail electricity sales rose across all three customer classes, reflecting a mix of usage and customer additions. Residential volumes were supported by 46,000 new customers added since March 2025, consistent with continued net migration into the company’s service areas.

Commercial electricity demand was a major growth driver, with power sales to businesses rising 4.5% from the year-ago period after adjusting for weather impacts. Data center usage expanded 42% year over year, driven by accelerating load ramps at large facilities. Industrial sales increased 1.5%, with particular strength cited in primary metals and pipeline-related activity.

Southern Company (The) Price, Consensus and EPS Surprise

Southern Company (The) price-consensus-eps-surprise-chart | Southern Company (The) Quote

Southern Company Revenue Mix Improves as Costs Rise

The revenue beat reflected strength in multiple buckets. Retail electric revenue increased on the fuel side, while wholesale electric revenues rose year over year. Natural gas revenues advanced as well, adding another source of top-line momentum.

Cost pressure remained visible across several line items. Total operating expenses rose year over year, including higher fuel and purchased power, a higher cost of natural gas, and higher depreciation and amortization. Interest expense also increased versus the prior-year quarter, consistent with management’s commentary that higher financing costs partly offset operating gains.

SO Adds Contracted Load and Advanced Generation Planning

Beyond near-term results, the quarter highlighted continued progress in large-load contracting. Southern discussed 23 gigawatts of projects either contracted or in late-stage development, with contracted large-load agreements exceeding 11 gigawatts across its electric subsidiaries. In recent months, the company also signed contracts representing 1.9 gigawatts of additional customer load with hyperscalers.

This rising demand is shaping the company’s future power generation plans. Georgia Power has started looking for new energy sources that can provide between 2 and 6 gigawatts of reliable power by 2032 and 2033. Management also noted that large customers signing these power agreements will be responsible for covering the additional costs needed to serve their growing electricity demand.

Southern Company Highlights DOE Loans and Equity Roadmap

A key balance-sheet development was the announcement of $26.5 billion in loan agreements with the U.S. Department of Energy (“DOE”) tied to infrastructure investment across Alabama and Georgia. Management expects low-cost financing to reduce capital market needs and projected cumulative customer savings of $7 billion over approximately 30 years.

On the financing side, Southern Company said it is taking steps to maintain a healthy balance sheet while funding future growth projects. The company has already raised $500 million through share sales and may need about $1.8 billion more in funding through 2030. Management also said that future expansion projects will likely be financed through a mix of debt and equity, helping the Zacks Rank #3 (Hold) company avoid taking on excessive borrowing while keeping its financial position stable over the long term.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SO Raises Dividend and Reaffirms 2026 Earnings Path

Shareholder returns remained a key theme. The board approved an annual dividend increase of 8 cents per share, lifting the annualized dividend rate to $3.04. This marked the 25th consecutive annual dividend increase and extended the company’s record of paying a dividend equal to or greater than the prior year to 79 consecutive years.

Looking ahead, Southern maintained its full-year 2026 adjusted earnings per share guidance range of $4.50 to $4.60 and provided an adjusted second-quarter earnings per share estimate of $1.00. Management’s commentary centered on executing a “rate stability” strategy while investing to serve accelerating load growth across the Southeast.

Some Key Utility Earnings

While we have discussed The Southern Company’s first-quarter results in detail, let’s see how some other utilities have fared this earnings season.
    
Exelon Corporation’s (EXC Quick QuoteEXC - Free Report) EPS of 91 cents surpassed the Zacks Consensus Estimate of 89 cents by 2.3%. The bottom line decreased 1.09% from the year-ago level of 92 cents. Exelon reported revenues of $7.2 billion, which surpassed the Zacks Consensus Estimate of $6.9 billion by 4.8%. The top line was 7.9% up from the year-ago quarter’s figure of $6.7 billion.

In the quarter reported, the number of customers served by Exelon increased 1.1% from the year-ago quarter. Total electric deliveries touched 21,084 gigawatt hours in the reported quarter and were down 1.1%, primarily due to lower volumes sold across all customer groups. As of March 31, 2026, Exelon’s cash and cash equivalents totaled $713 million compared with $626 million as of Dec. 31, 2025.

American Water Works Company (AWK Quick QuoteAWK - Free Report) posted EPS of $1.01, which lagged the Zacks Consensus Estimate of $1.10 by 8.2%. The bottom line also declined from the year-ago quarter's level. Meanwhile, AWK’s total quarterly revenues of $1.2 billion surpassed the Zacks Consensus Estimate of $1.1 billion by 8.2%. American Water Works’ top line also increased 5.7% from the year-ago figure.

On April 21, 2026, American Water Works stated that its merger with Essential Utilities, Inc. had received its first regulatory approval from the Kentucky Public Service Commission. American Water Works affirmed its 2026 EPS guidance in the range of $6.02-$6.12. AWK plans to invest $3.7 billion in 2026. The company still expects its long-term EPS and dividend growth to be 7-9% and rate-based growth to be 8-9%.

IDACORP, Inc. (IDA Quick QuoteIDA - Free Report) reported first-quarter 2026 earnings of $1.21 per share, which topped the Zacks Consensus Estimate of $1.12 by 8%. The company’s earnings improved 10% from $1.10 in the year-ago quarter. The outperformance was due to customer growth and rate changes. IDACORP’s customer volume increased 2.3% year over year for the 12 months ended on March 31, 2026. This boosted operating income by $5 million from the year-ago level.

As of March 31, 2026, IDACORP’s cash and cash equivalents were $337.8 million compared with $215.7 million as of Dec. 31, 2025. Other operations and maintenance expenses were $13.1 million, higher than the year-earlier level. This was mainly driven by increased wildfire mitigation program expenses and the amortization of previously deferred costs related to the conversion of generating units at the Jim Bridger power plant from coal to natural gas.