Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Southern Company reported Q1 2026 revenue of $8.40B (+8.0% YoY) driven by strong top-line growth, though operating margin compressed to 24.0% and cash balances fell sharply by 57.8%, reflecting heavy capital investment in its regulated utility infrastructure.
Revenue
$8.4B
+8.00% YoY
EPS (Diluted)
$1.20
-0.83% YoY
Operating Income
$2.02B
+0.40% YoY
Source: SEC XBRL
Southern (SO) reported Q1 FY2026 revenue of $8.4B, up 8.0% year over year. Operating margin was 24.0%, down 1.9 points from 25.9% a year earlier. Operating cash flow was $1.23B, down 1.9% year over year. SO's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.13 | 1.03 | Beat +9.6% |
| Mar 2026This filing | 1.32 | 1.25 | Beat +5.9% |
| Dec 2025 | 0.55 | 0.59 | Miss -6.9% |
| Sep 2025 | 1.60 | 1.55 | Beat +3.1% |
Adjusted (non-GAAP) EPS of $1.32 versus the $1.25 analyst consensus — a +5.9% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.20.
Compiled by AI from this SEC filing
Revenue grew 8.0% YoY to $8.40B in Q1 2026 from $7.78B in Q1 2025, yet net income rose only 1.6% to $1.36B, indicating that cost growth is absorbing a significant portion of incremental revenue. Operating income increased just 0.4% to $2.02B, suggesting rising operating expenses are pressuring profitability.
Source: 10-Q Income Statement (XBRL Financial Data)
Operating margin declined approximately 180 basis points YoY to 24.0% from 25.9%, reflecting higher costs relative to revenue. This margin pressure is consistent with elevated capital project costs and inflationary pressures typical of large regulated utilities undergoing significant infrastructure investment cycles.
Source: 10-Q Key Ratios (XBRL Financial Data)
Investing cash outflows increased 20.7% YoY to -$3.42B from -$2.83B, underscoring Southern Company's continued heavy investment in utility infrastructure, generation assets, and potentially ongoing large-scale projects. This level of capital deployment is consistent with the company's long-term regulated asset base expansion strategy.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Cash and equivalents fell 57.8% YoY to $981M from $2.33B, while the current ratio stands at a low 0.65, with current liabilities of $15.32B exceeding current assets of $9.96B. The company offset capital needs through financing activities of $1.54B, though financing cash flows also declined 45.2% YoY.
Source: 10-Q Balance Sheet & Cash Flow Statement (XBRL Financial Data)
Total assets grew 6.0% YoY to $157.03B, supported by ongoing capital investment, while total liabilities rose 5.6% to $117.12B. The asset base expansion is characteristic of regulated utilities that recover capital costs through rate cases, providing a degree of earnings visibility over time.
Source: 10-Q Balance Sheet (XBRL Financial Data)
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
Southern Company's current ratio of 0.65 indicates current liabilities of $15.32B significantly exceed current assets of $9.96B, and cash has dropped 57.8% YoY to $981M. This near-term liquidity gap requires ongoing access to capital markets and credit facilities to fund operations and debt maturities. Any disruption to financing access could strain short-term financial flexibility.
Source: 10-Q Balance Sheet (XBRL Financial Data)
Investing outflows reached -$3.42B in Q1 2026 alone, a 20.7% increase YoY, reflecting the company's large-scale infrastructure investment program. Large utility capital projects carry risks of cost overruns, regulatory disallowances, and construction delays that could impair returns. Historical precedent with major projects in the utility sector highlights the materiality of this risk.
Source: 10-Q Cash Flow Statement (XBRL Financial Data)
Operating margin declined approximately 180 basis points to 24.0% in Q1 2026, as cost growth outpaced revenue growth. Sustained margin compression could reduce earnings power and limit the company's ability to service its substantial $117.12B liability base. If cost pressures persist without corresponding rate relief, profitability could be further impaired.
Source: 10-Q Key Ratios & Income Statement (XBRL Financial Data)
Total liabilities of $117.12B represent approximately 74.6% of total assets of $157.03B, reflecting the capital-intensive nature of regulated utilities. Rising liabilities (+5.6% YoY) in a higher interest rate environment could increase debt service costs and compress net margins over time. The company's ROA of 0.86% underscores the thin return generated on its massive asset base.
Source: 10-Q Balance Sheet (XBRL Financial Data)
Basic EPS was flat at $1.21 YoY and diluted EPS declined slightly to $1.20 from $1.21, despite an 8.0% increase in revenue. This disconnect between top-line growth and per-share earnings growth may reflect share dilution, higher costs, or increased interest expense, and could disappoint income-focused investors expecting earnings growth commensurate with revenue expansion.
Source: 10-Q Income Statement (XBRL Financial Data)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 8.40 $B | 7.78 $B | +8.00% |
Operating Income $B | 2.02 $B | 2.01 $B | +0.40% |
Net Income $B | 1.36 $B | 1.33 $B | +1.65% |
EPS (Basic) $ | 1.21 $ | 1.21 $ | 0.00% |
EPS (Diluted) $ | 1.20 $ | 1.21 $ | -0.83% |
Answers draw on this SEC filing and the data on this page
Southern Company delivered strong 2026-Q2 results with net income rising 33.4% YoY to $1.2 billion ($1.03 per share), driven by robust commercial demand from data centers, lower income taxes, and reduced interest expense.
Southern Company (SO) delivered 10.6% revenue growth to $29.6B in FY2025, but net income slipped 1.4% to $4.3B as rising costs and heavy capital investment pressured margins and earnings per share.
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