Key Moments
- Southern Co increased its 2026-2030 capital spending outlook to about $81 billion, up from a prior $76 billion plan.
- The company reported adjusted earnings of 55 cents per share for the quarter ended December 31, missing the 57-cent consensus.
- Southern Co projected 2026 adjusted earnings of $4.50 to $4.60 per share, with the midpoint slightly under the $4.56 estimate.
Expanded Investment Plan to Meet Rising Power Needs
Southern Co forecast annual earnings that came in below analysts’ expectations and simultaneously raised its five-year capital spending plan as it positions itself to meet rapidly growing electricity demand from large-load customers such as data centers and industrial users.
U.S. utilities have been directing substantial investment into modernizing and strengthening electric grids as they manage a combination of more frequent extreme weather events and rapidly rising power consumption. That increase in demand is being driven by data centers dedicated to AI and cryptocurrency, as well as a broader shift by households and businesses toward electric heating and transportation.
Against that backdrop, Southern Co now anticipates investing about $81 billion from 2026 through 2030, compared with a prior five-year spending plan of $76 billion.
Large-Load Contracts and Customer Footprint
The company disclosed that it has secured contracts for 10 gigawatts of large-load customers across Alabama, Georgia, and Mississippi. Those customers include Google, Meta, Microsoft, and Compass Datacenters. Following the update, Southern Co shares rose more than 2% in premarket trading.
Southern Co serves 9 million customers and is the second-largest U.S. utility, with operations spanning Alabama, Georgia, Illinois, Mississippi, Tennessee, and Virginia.
Quarterly Results and Cost Dynamics
For the quarter ended December 31, Southern Co reported adjusted earnings of 55 cents per share. That result fell short of analysts’ expectations of 57 cents per share, based on data compiled by LSEG.
Operating expenses increased 14.7% during the quarter, while revenue advanced 10% over the same period.
| Metric | Quarter Ended Dec. 31 | Analyst Expectation / Prior Plan |
|---|---|---|
| Adjusted earnings per share | $0.55 | $0.57 (LSEG consensus) |
| Operating expenses change | +14.7% | Not stated |
| Revenue change | +10% | Not stated |
| 2026-2030 spending plan | $81 billion | $76 billion (prior plan) |
Profit Outlook Below Street View
The Atlanta, Georgia-based utility provided guidance for 2026 adjusted earnings of $4.50 to $4.60 per share. The midpoint of that range is slightly below the $4.56 per share estimate cited from analyst projections.
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