Overview
Southern Co said on Thursday it has increased its five-year spending plan and provided profit guidance for 2026 that sits marginally beneath analyst projections. The Atlanta-based utility pointed to unusually large power requirements from major customers as a driver of higher investment needs.
Capital plan and customer commitments
The company now expects to invest about $81 billion from 2026 through 2030, compared with its earlier five-year plan of $76 billion. Southern Co said it has contracted 10 gigawatts of large-load customers across Alabama, Georgia and Mississippi, naming Google, Meta, Microsoft and Compass Datacenters among those customers.
Quarterly results and guidance
For the quarter ended December 31, Southern Co reported adjusted earnings of $0.55 per share, below the $0.57 per-share figure analysts were expecting, according to data compiled by LSEG. Operating expenses rose 14.7% in the quarter while revenue increased 10%.
Looking ahead to 2026, the company said it expects adjusted earnings in a range of $4.50 to $4.60 per share. The midpoint of that range sits slightly under the $4.56-per-share estimate.
Market reaction and scale
Shares of Southern Co rose more than 2% in premarket trading following the announcement. With roughly 9 million customers, Southern Co is the second-largest U.S. utility by customer count, providing service in Alabama, Georgia, Illinois, Mississippi, Tennessee and Virginia.
Context cited by the company
The company framed its higher capital plan as a response to the need to support unprecedented power demand from large-load customers, including data centers and industrial users. The company and the broader U.S. utility sector have been investing in grid upgrades amid rising demand from data centers dedicated to AI and cryptocurrency, and shifts toward electric heating and transport, alongside pressures from extreme weather on infrastructure.
Implications
The combination of increased capital commitments and higher operating expenses, paired with profit guidance that is slightly below consensus, highlights the near-term financial trade-offs Southern Co is navigating as it supports substantial new load on the grid.