# The Southern Company (SO)

> Source: Nexqual · https://nexqual.com/SO · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, The Southern Company (SO), nexqual.com/SO" · informational, not investment advice.

**Price:** USD 93.82 (+3.79% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 90.39 · day 90.99–93.88 · 52w 81.69–99.58 · market cap $108B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $30.2B, net income $4.66B (15.4% margin), free cash flow -$3.27B (SEC filings).
- Valuation: P/E 23.2x (avg 20.8x at the last 3 fiscal year-ends), EV/EBITDA 12.9x, net debt $67.9B.
- Earnings quality: non-operating income -$2.06B vs operating income $7.30B over the last four quarters; P/E excluding non-operating income ≈16.7x (estimate: non-operating income taxed at the company's 12.8% effective rate).
- Analysts: Hold (mean 2.79 on a 1–5 scale) (24 analysts), mean target USD 96.05 (range 74–112).
- Total return with dividends: 1Y +0.8% vs S&P 500 +14.9%; 5Y +78.9% vs S&P 500 +80.3%.
- Next earnings: 2026-11-05, EPS estimate USD 1.71, revenue estimate $8.41B.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $23.1B | $29.3B | $25.3B | $26.7B | $29.6B | $30.2B |
| Operating income | $3.70B | $5.37B | $5.83B | $7.07B | $7.29B | $7.30B |
| Net income | $2.31B | $3.43B | $3.98B | $4.40B | $4.34B | $4.66B |
| EPS (diluted) | $2.24 | $3.26 | $3.62 | $3.99 | $3.92 | — |
| Free cash flow | -$1.42B | -$1.62B | -$1.54B | $833M | -$2.94B | -$3.27B |
| Operating margin | 16.0% | 18.3% | 23.1% | 26.4% | 24.7% | 24.2% |
| Net margin | 10.0% | 11.7% | 15.7% | 16.5% | 14.7% | 15.4% |
| Revenue growth | +13.4% | +26.7% | -13.8% | +5.8% | +10.6% | — |
| Cash + short-term investments | $1.80B | $1.92B | $748M | $1.07B | $1.64B | — |
| Total debt | $51.6B | $53.3B | $59.5B | $60.1B | $66.4B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 23.2x · P/E ex non-operating (est.) ≈16.7x · P/S 3.6x · EV/EBITDA 12.9x · EV/Sales 5.8x · P/B 2.5x · FCF yield -3.03% · Earnings yield 4.31% · Dividend yield (paid, TTM) 2.87% · Net debt $67.9B · EV $176B
P/E at fiscal year-ends: Dec 2025 22.3x, Dec 2024 20.6x, Dec 2023 19.4x.

## Analysts
Consensus Hold (mean 2.79 on a 1–5 scale), 24 analysts; mean target USD 96.05 (low 74, high 112).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-22 | HSBC | Initiated | Buy | $99.5 |
| 2026-10-21 | Morgan Stanley | Target lowered | Underweight | $85 → $84 |
| 2026-10-20 | Jefferies | Target lowered | Hold | $96 → $95 |
| 2026-10-16 | Barclays | Target lowered | Equal-Weight | $101 → $92 |
| 2026-10-15 | Truist Securities | Target lowered | Hold | $97 → $93 |
| 2026-10-13 | JP Morgan | Target lowered | Neutral | $101 → $94 |
| 2026-10-13 | Keybanc | Target lowered | Underweight | $79 → $74 |
| 2026-09-25 | Citigroup | Target lowered | Buy | $114 → $104 |
| 2026-09-18 | Morgan Stanley | Target lowered | Underweight | $89 → $85 |
| 2026-08-21 | Morgan Stanley | Target lowered | Underweight | $92 → $89 |
| 2026-08-13 | Truist Securities | Target lowered | Hold | $100 → $97 |
| 2026-07-27 | BMO Capital | Target raised | Outperform | $102 → $104 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +0.8% | +78.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +0.8% | +12.3% |
| Volatility (annualized) | 17.9% | 18.2% |
| Max drawdown | -15.5% (Mar 2026→Sep 2026) | -20.8% (Aug 2022→Oct 2022) |

## Peers (Utilities - Regulated Electric)
DUK (Duke Energy Corporation (Holdin) USD 125.4 +3.92% · NGG (National Grid Transco, PLC Nati) USD 82.64 +2.30% · AEP (American Electric Power Company) USD 130.64 +2.55% · NEE (NextEra Energy, Inc.) USD 81.9 +4.62% · D (Dominion Energy, Inc.) USD 65.4 +4.93% · ETR (Entergy Corporation) USD 108.19 +1.99%

## More
Full page: https://nexqual.com/SO · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by business segment (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Electric Utilities | $5.83B | 83.5% | +0.4% |
| Traditional Electric Operating Companies | $5.40B | 77.3% | +0.3% |
| SOUTHERN Co GAS | $966.0M | 13.8% | -1.3% |
| SOUTHERN POWER CO | $535.0M | 7.7% | -2.0% |
| Total revenue | $6.98B | 100% | — |
The lines above cover 182.4% of total revenue.

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Retail Electric | $4.81B | 69.0% | +0.7% |
| Retail electric revenues | $4.75B | 68.0% | -0.3% |
| Retail Electric Residential | $2.01B | 28.8% | -0.7% |
| Retail Electric Commercial | $1.76B | 25.2% | +2.4% |
| Retail Electric Industrial | $1.02B | 14.6% | +0.6% |
| Natural Gas | $966.0M | 13.8% | -1.3% |
| Natural Gas Distribution | $873.0M | 12.5% | -1.5% |
| Wholesale electric revenues | $699.0M | 10.0% | +2.6% |
| Wholesale Electric Revenues | $510.0M | 7.3% | -2.7% |
| Other Revenues | $450.0M | 6.4% | -1.5% |
| Natural Gas Distribution Transportation | $358.0M | 5.1% | +8.2% |
| — Other revenues (part of Natural Gas Distribution Transportation) | $325.0M | 4.7% | -3.0% |
| — Retail Electric Other (part of Natural Gas Distribution Transportation) | $29.0M | 0.4% | +0.0% |
| — Alternative revenue programs (part of Natural Gas Distribution Transportation) | $4.0M | 0.1% | -144.4% |
| Natural Gas Distribution Residential | $353.0M | 5.1% | -10.4% |
| — Wholesale Electric PPA Capacity Revenues (part of Natural Gas Distribution Residential) | $145.0M | 2.1% | -5.8% |
| — Other Natural Gas (part of Natural Gas Distribution Residential) | $75.0M | 1.1% | -12.8% |
| — Natural Gas Distribution Other (part of Natural Gas Distribution Residential) | $67.0M | 1.0% | +11.7% |
| — Wholesale Electric Non PPA Revenues (part of Natural Gas Distribution Residential) | $64.0M | 0.9% | +6.7% |
| — Other Natural Gas Other Natural Gas Revenues (part of Natural Gas Distribution Residential) | $2.0M | 0.0% | -60.0% |
| Wholesale Electric PPA Energy Revenues | $301.0M | 4.3% | -2.9% |
| Other electric revenues | $242.0M | 3.5% | +10.0% |
| Natural Gas Distribution Commercial | $89.0M | 1.3% | -5.3% |
| Other Natural Gas Gas Marketing Services | $73.0M | 1.0% | -9.9% |
| Natural Gas Distribution Industrial | $6.0M | 0.1% | -14.3% |
| Total revenue | $6.98B | 100% | — |
The lines above cover 276.1% of total revenue.

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.71 | $1.67 | +2.4% | $8.41B | 15 |
| Next quarter (ends 2026-12-31) | $0.44 | $0.57 | -22.1% | $6.99B | 13 |
| Current fiscal year (ends 2026-12-31) | $4.59 | $4.57 | +0.5% | $30.90B | 22 |
| Next fiscal year (ends 2027-12-31) | $4.92 | $4.92 | +0.1% | $32.74B | 23 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-06 (includes earnings 2026-11-05): ±4.2%; earnings reaction alone ±2.9%; last 8 reports averaged ±1.7%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-10-30 | 7 | 18.3% | ±2.2% |
| 2026-11-06 | 14 | 25.5% | ±4.2% |
| 2026-11-13 | 21 | 26.0% | ±5.1% |
| 2026-11-20 | 28 | 23.9% | ±5.6% |
| 2026-11-27 | 35 | 22.8% | ±5.9% |
| 2026-12-04 | 42 | 20.6% | ±5.8% |
| 2026-12-18 | 56 | 18.7% | ±6.1% |
| 2027-01-15 | 84 | 18.6% | ±7.3% |