The Southern Company (SOMN) AI Stock Analysis

The Southern Company, through its subsidiaries, engages in the sale of electricity to retail and wholesale customers, alongside energy-related products and services in natural gas choice markets. The company develops, constructs, acquires, owns, operates, and manages power generation assets and battery energy storage projects. It also sells wholesale electricity at market-based rates and deploys microgrids for commercial, industrial, governmental, and utility customers. In addition, it distributes natural gas across Illinois, Georgia, Virginia, and Tennessee, provides energy and resilience solutions, and invests in telecommunications.

Revenue grew at a 5-year CAGR of 7.7% from FY2020 to FY2025. Annual revenue expanded from $23.11B in FY2021 to $29.28B in FY2022, declined 13.8% to $25.25B in FY2023, reached $26.72B in FY2024, and rose 10.6% to $29.55B in FY2025. Operating margin was 16.0% in FY2021, 18.3% in FY2022, 23.1% in FY2023, 26.4% in FY2024, and 24.6% in FY2025. Annual net income increased from $2.41B in FY2021 to $4.34B in FY2025. For the trailing twelve months ending June 30, 2026, revenue stood at $30.18B with quarterly revenue growth of 0.1% and quarterly earnings growth of 30.4%.

As of June 30, 2026, the company held $2.98B in cash and short-term investments against $77.09B in total debt, resulting in net debt of $74.10B. Shareholders' equity was $39.57B, yielding a debt-to-equity ratio of 1.95 and a current ratio of 0.79. In FY2025, operating cash flow reached $9.80B while capital expenditures totaled $12.74B, resulting in free cash flow of -$2.94B. Capital deployment in FY2025 also included $3.02B in dividends paid, while the 5-year share count change was 7.4%.

The Southern Company carries an enterprise value of $132.21B. Multiple sector benchmarks for the median of its US-listed Utilities peers show a trailing P/E of 20.6x, a forward P/E of 17.2x, a price-to-sales of 2.4x, and an EV-to-EBITDA of 12.1x. The company's TTM operating margin of 29.6% compares to the peer median operating margin of 22.6%. The stock closed at $48.10 on October 16, 2026, delivering a year-to-date return of 1.5%. By comparison, the S&P 500 (SPY) returned 16.8% over one year and 83.0% over five years.

Consensus analyst estimates project revenue of $30.92B for the current fiscal year ending December 31, 2026. For the following fiscal year, analysts estimate revenue of $32.76B, representing an expected annual revenue growth rate of 6.0%. These projections compare to the company's trailing twelve months revenue of $30.18B and its FY2025 revenue of $29.55B, which previously grew 10.6%. The company closed at $48.10 on October 16, 2026, trading 0.5% below its 200-day moving average.

This page is an AI-written research summary of The Southern Company (SOMN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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