SO earnings analysis
What we found in SO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Southern Company reported Q1 2026 revenue of $7.78 billion, reflecting a 7.2% increase from Q1 2025's $7.27 billion. Gross margin decreased to 68.9% while operating margin improved slightly to 25.9%. EPS remained stable at $1.21. The company faced headwinds such as increased interest expenses and adverse weather impacts on retail electric revenues.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Year-Over-Year
- Q1 2026 revenue was $7.78 billion, a 7.2% increase from $7.27 billion in Q1 2025.
- Stable EPS Performance
- Diluted EPS remained unchanged at $1.21 compared to Q1 2025.
- Improved Gross Margin
- Gross margin improved to 68.9%, down from 77.2% in Q4 2025.
- Retail Electric Revenue Increase
- Retail electric revenues increased slightly to $4.64 billion from $4.60 billion in Q1 2025.
- Net Income Stability
- Net income for Q1 2026 was $1.36 billion, up from $1.33 billion in Q1 2025.
- Segment Performance
- Southern Power projects to add up to 400 MWs of capacity by 2031, indicating growth prospects.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increased Interest Expense
- Interest expense increased, impacting overall profitability.
- Weather-Related Revenue Decline
- Retail electric revenues decreased by $21 million due to adverse weather impacts.
- Depreciation and Amortization Raise
- Increased depreciation and amortization costs negatively affected earnings.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.21
- Gross margin
- 68.9%
- Operating margin
- 25.9%
- Segment
- Alabama Power
- Segment
- Georgia Power
- Segment
- Mississippi Power
- Segment
- Southern Power
- Segment
- Southern Company Gas
What they said about what is next.
Management indicated focus on retail electric growth and mentioned expected increases in revenues.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 19, 2026
- Southern Company reports consolidated net income attributable of $4.341 billion and diluted EPS of $3.92 for 2025, with retail electric operating revenues of $23.777 billion for the electricity business. The company has…
- 10-Q · May 1, 2025
- Southern Company reported first-quarter 2025 revenue of $7,775 million (up $1,129 million, +17.0% vs Q1 2024) and consolidated operating income of $2,010 million, supporting diluted EPS of $1.21 (vs $1.03 in Q1 2024).…
- 10-Q · August 1, 2024
- Southern Company reported Q2 revenue of $6,463 million (Q2 2023: $5,748 million) and diluted EPS of $1.09 (Q2 2023: $0.76), driven by higher retail electric revenues and improved operating income. Operating income rose…
- 10-Q · May 2, 2024
- Southern Company reported Q1 operating revenues of $6,646 million (up $166 million, +2.6% YoY) and diluted EPS of $1.03 (vs $0.79 YoY), beating consensus. Operating income improved to $1,703 million (vs $1,218 million a…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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