Southern Co (0L8A) AI Stock Analysis

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Southern Co

(LSE:0L8A)

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Positive Factors

Regulated essential-service modelSouthern Company’s regulated electric and gas operations provide essential services under state oversight, creating a durable demand base and a framework for recovering eligible costs and earning authorized returns. This supports business resilience and visibility across the next several quarters.

Negative Factors

High financial leverageDebt-to-equity near two times leaves Southern Company financially rigid despite its regulated revenue base. Elevated leverage can increase interest and refinancing sensitivity, constrain discretionary capital allocation, and make it harder to absorb regulatory delays or cost increases without additional financing.

Southern Co (0L8A) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $107.12B
Dividend Yield: 3.22%
Average Volume (3M): 2,336
Price to Earnings (P/E): 22.3
Beta (1Y): 0.38
Revenue Growth: 6.40%
EPS Growth: 6.90%
Country: UK
Employees: 29,651
Sector: Utilities
Sector Strength: 66
Industry: Regulated Electric

Southern Co Business Overview & Revenue Model

Company Description

The Southern Company operates as an energy utility, primarily involved in the production, transmission, and distribution of electricity. Its operations are segmented into Gas Distribution Operations, Gas Pipeline Investments, Wholesale Gas Services,...

Southern Co Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:-0.93%|Next Earnings Date:Feb 17, 2027

Earnings Call SentimentPositive

The call was strongly positive, with record or accelerating sales growth, large-load and data center demand, strong earnings execution, higher 2026 earnings expectations, substantial economic development activity, customer rate benefits, and expanded capital investment opportunities. The company also reported strong storm response, reliability and financing progress. The principal challenges were higher nonfuel expenses and taxes, share dilution, regulatory and affordability uncertainty, possible data center policy changes, unresolved RFP and nuclear-development timing, and acknowledged upward pressure in generation costs.

Positive Updates

Strong Third-Quarter Earnings Performance

Third-quarter 2026 adjusted EPS was $1.94, $0.34 higher than the third quarter of 2025 and $0.29 above the company’s estimate. Each business contributed meaningfully to performance above the prior estimate, driven by warmer weather, increased usage and customer growth, higher revenue from large commercial and industrial customers including data centers, and higher earnings from Southern Power.

Negative Updates

Higher Operating Expenses, Taxes and Share Dilution

The positive year-over-year earnings drivers were partially offset by higher nonfuel operating expenses, higher taxes other than income taxes, and dilution impacts from additional shares outstanding.

Company Guidance

Management guided to fourth-quarter adjusted EPS of $0.30 per share, which would result in full-year 2026 adjusted earnings of $4.70, or $0.10 higher than the top of its original 2026 adjusted earnings guidance range and representing 9% year-over-year adjusted earnings growth; it expects to refresh its financial outlook through 2031 in February, with an opportunity to potentially raise the upper end of its near-term guidance ranges, supporting a 7% to 8% path starting in 2028 and well into the next decade. The capital plan could potentially approach $100 billion over a 5-year period versus the $81 billion base capital plan, including approximately $4 billion of projected investment above the base plan, with approximately $2 billion of remaining equity need through 2030 and approximately 40% equity or equity equivalents, while the company remains on a path towards 17% FFO to debt by 2029; base rates in Alabama and Georgia are expected to remain flat until at least 2029, and battery storage is expected to be real close to 6,000 megawatts by the end of the decade.

Southern Co Risk Analysis

Southern Co disclosed 30 risk factors in its most recent earnings report. Southern Co reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

1 New Risk

1.See RISK FACTORS in Item 1A of the Form 10-K for a discussion of the risk factors of the Registrants. There have been no material changes to these risk factors from those previously disclosed in the Form 10-K.Q2, 2026

Southern Co Peers Comparison

Overall Rating

UnderperformOutperform

Sector (66)

Financial Indicators

GB:0L8A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUK	79Outperform	$98.64B	19.46	9.88%	3.30%	6.33%	8.98%
AEP	73Outperform	$70.71B	20.91	10.49%	2.94%	9.75%	-9.77%
NEE	69Neutral	$176.87B	15.85	20.37%	2.75%	13.47%	76.73%
ETR	67Neutral	$52.04B	25.37	11.32%	2.29%	10.88%	7.12%
D	66Neutral	$58.74B	23.10	9.28%	3.83%	23.11%	2.81%
Sector *	66Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%

* Utilities Sector Average

Performance Comparison

GB:0L8A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0L8A	The Southern Company	92.34	4.21	4.77%
AEP	American Electric Power Company, Inc.	126.77	8.99	7.64%
D	Dominion Energy Inc	69.64	10.58	17.92%
DUK	Duke Energy	130.08	10.61	8.88%
ETR	Entergy Corp.	110.30	15.47	16.32%
NEE	NextEra Energy Inc.	88.25	6.67	8.17%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Southern Co AI Stock Analysis