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Southern Company to Report Q3 Earnings: Here's How It Will Fare
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Key Takeaways
Southern Company is expected to report Q3 EPS of $1.71 on revenues of $8.47 billion.
Rising data center demand, higher electricity sales and customer additions could support revenue growth.
Elevated depreciation, operating costs and financing expenses may limit earnings gains in Q3.
Southern Company (SO - Free Report) is set to release third-quarter results on Nov. 5. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $1.71 per share on revenues of $8.47 billion.
Let us delve into the factors that might have influenced the power supplier’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of SO’s Q2 Earnings & Surprise History
In the last reported quarter, the Atlanta, GA-based service provider beat the consensus mark, driven by higher customer usage and growth, increased utility investments, higher equity-method earnings and lower income taxes. Southern Company reported adjusted earnings per share of $1.13, which surpassed the Zacks Consensus Estimate by $1.01. However, sales of $6.98 billion missed the consensus mark by 5.18%.
SO’s earnings topped the Zacks Consensus Estimate in three of the past four quarters and missed in the other. The utility has a trailing four-quarter earnings surprise of 6.46%, on average.
The Zacks Consensus Estimate for the third-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 6.88% rise year over year. The Zacks Consensus Estimate for revenues, meanwhile, implies an 8.32%increase from the year-ago period.
Factors to Consider Ahead of SO’s Q3 Release
SO’s total revenues are likely to have increased in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is pegged at a higher mark than the year-ago quarter’s level. Southern Company is likely to have benefited from continued growth in electricity demand, particularly from data centers and other large-load customers. In the second quarter of 2026, data center electricity usage increased 55% year over year, while usage rose 49% in the first half of the year. System-wide data center load exceeded 1.2 gigawatts, supported by accelerating demand from large-load customers.
Southern Company is expected to have benefited from higher electricity sales and continued customer additions in the third quarter. During the first half of 2026, weather-normal retail electricity sales increased 2.3% year over year, reflecting growth across residential, commercial and industrial customer categories. The company added approximately 11,000 residential electric customers in the second quarter, taking net additions to more than 40,000 over the past year. Management expects the positive sales and customer growth momentum to continue in the second half of 2026. This trend is likely to have supported operating revenues and earnings in the third quarter.
On the bearish side, higher operating costs and financing expenses are likely to have remained a headwind for Southern Company's third-quarter earnings. In the second quarter of 2026, depreciation and amortization expenses increased 8.4% year over year to $1.43 billion, while other operations and maintenance expenses rose 1.2% to $1.71 billion. The increase in depreciation was primarily due to accelerated depreciation related to wind repowering projects and additional plant placed into service.
With these repowering projects expected to continue through the third quarter of 2026, depreciation expenses are likely to have been elevated. Additionally, higher operating and maintenance costs and financing requirements might have added to the company's expense burden. We expect these factors to have limited the earnings benefits from stronger electricity demand and put pressure on third-quarter profitability.
What Does Our Model Say About SO?
Our proven model predicts an earnings beat for SO this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
Earnings ESP of SO: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +0.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SO’s Zacks Rank: SO currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other firms from other sectors that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
EquipmentShare.com provides technology-enabled construction solutions, including equipment rentals, new and used equipment sales, maintenance services and fleet management through its proprietary T3 platform. EQPT is valued at $4.35 billion.
AMC Global Media Inc. (AMCX - Free Report) has an Earnings ESP of +681.82% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 9, 2026.
AMC Global Media operates entertainment businesses, including television networks, streaming services, film distribution and television production through AMC Studios. AMCX is valued at $325.46 million.
CNH Industrial (CNH - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 9, 2026.
CNH Industrial designs, manufactures and sells agricultural and construction equipment, including tractors, harvesters, combines, excavators and other machinery under its Case IH and New Holland brands. CNH is valued at $14.56 billion.
View the Zacks #1 Rank List
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Southern Company to Report Q3 Earnings: Here's How It Will Fare
Key Takeaways
Southern Company (SO - Free Report) is set to release third-quarter results on Nov. 5. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $1.71 per share on revenues of $8.47 billion.
Let us delve into the factors that might have influenced the power supplier’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.
Highlights of SO’s Q2 Earnings & Surprise History
In the last reported quarter, the Atlanta, GA-based service provider beat the consensus mark, driven by higher customer usage and growth, increased utility investments, higher equity-method earnings and lower income taxes. Southern Company reported adjusted earnings per share of $1.13, which surpassed the Zacks Consensus Estimate by $1.01. However, sales of $6.98 billion missed the consensus mark by 5.18%.
SO’s earnings topped the Zacks Consensus Estimate in three of the past four quarters and missed in the other. The utility has a trailing four-quarter earnings surprise of 6.46%, on average.
This is depicted in the graph below:
Southern Company (The) Price and EPS Surprise
Southern Company (The) price-eps-surprise | Southern Company (The) Quote
SO’s Trend in Estimate Revision
The Zacks Consensus Estimate for the third-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 6.88% rise year over year. The Zacks Consensus Estimate for revenues, meanwhile, implies an 8.32%increase from the year-ago period.
Factors to Consider Ahead of SO’s Q3 Release
SO’s total revenues are likely to have increased in the quarter to be reported. The Zacks Consensus Estimate for second-quarter revenues is pegged at a higher mark than the year-ago quarter’s level. Southern Company is likely to have benefited from continued growth in electricity demand, particularly from data centers and other large-load customers. In the second quarter of 2026, data center electricity usage increased 55% year over year, while usage rose 49% in the first half of the year. System-wide data center load exceeded 1.2 gigawatts, supported by accelerating demand from large-load customers.
Southern Company is expected to have benefited from higher electricity sales and continued customer additions in the third quarter. During the first half of 2026, weather-normal retail electricity sales increased 2.3% year over year, reflecting growth across residential, commercial and industrial customer categories. The company added approximately 11,000 residential electric customers in the second quarter, taking net additions to more than 40,000 over the past year. Management expects the positive sales and customer growth momentum to continue in the second half of 2026. This trend is likely to have supported operating revenues and earnings in the third quarter.
On the bearish side, higher operating costs and financing expenses are likely to have remained a headwind for Southern Company's third-quarter earnings. In the second quarter of 2026, depreciation and amortization expenses increased 8.4% year over year to $1.43 billion, while other operations and maintenance expenses rose 1.2% to $1.71 billion. The increase in depreciation was primarily due to accelerated depreciation related to wind repowering projects and additional plant placed into service.
With these repowering projects expected to continue through the third quarter of 2026, depreciation expenses are likely to have been elevated. Additionally, higher operating and maintenance costs and financing requirements might have added to the company's expense burden. We expect these factors to have limited the earnings benefits from stronger electricity demand and put pressure on third-quarter profitability.
What Does Our Model Say About SO?
Our proven model predicts an earnings beat for SO this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
Earnings ESP of SO: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +0.84%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SO’s Zacks Rank: SO currently carries a Zacks Rank #3.
Other Stocks With the Favorable Combination
Here are a few other firms from other sectors that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
EquipmentShare.com Inc. (EQPT - Free Report) has an Earnings ESP of +900.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 9, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
EquipmentShare.com provides technology-enabled construction solutions, including equipment rentals, new and used equipment sales, maintenance services and fleet management through its proprietary T3 platform. EQPT is valued at $4.35 billion.
AMC Global Media Inc. (AMCX - Free Report) has an Earnings ESP of +681.82% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 9, 2026.
AMC Global Media operates entertainment businesses, including television networks, streaming services, film distribution and television production through AMC Studios. AMCX is valued at $325.46 million.
CNH Industrial (CNH - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 9, 2026.
CNH Industrial designs, manufactures and sells agricultural and construction equipment, including tractors, harvesters, combines, excavators and other machinery under its Case IH and New Holland brands. CNH is valued at $14.56 billion.