Revenue growth reached 8.0% in 2026Q1, yet gross margins compressed to 46.5% from a 55.0% peak in 2025Q3, reflecting significant sensitivity to operational cost fluctuations.
| Sales/Revenue | 30.17B | 29.55B |
| Revenue Growth % | - | - |
| Cost of Goods Sold | 15.69B | 15.23B |
| COGS % of Revenue | - | 51.53% |
| Gross Profit | 14.49B | 14.32B |
| Gross Margin % | 48.01% | 48.47% |
| Gross Profit Growth % | - | - |
| Operating Expenses | 7.19B | 7.04B |
| OpEx % of Revenue | - | 23.82% |
| Selling, General & Admin | 0 | 0 |
| SG&A % of Revenue | - | - |
| Research & Development | 0 | 0 |
| R&D % of Revenue | - | - |
| Other Operating Expenses | 0 | - |
| Operating Income | 7.29B | 7.29B |
| Operating Margin % | 24.17% | 24.65% |
| Operating Income Growth % | - | - |
| EBITDA | 13.49B | 13.31B |
| EBITDA Margin % | 44.71% | 45.05% |
| EBITDA Growth % | - | - |
| D&A (Non-Cash Add-back) | 6.2B | 6.03B |
| EBIT | 8.32B | 8.24B |
| Net Interest Income | -3.3B | -3.24B |
| Interest Income | 0 | 0 |
| Interest Expense | 0 | - |
| Other Income/Expense | 0 | - |
| Pretax Income | 5.01B | 5B |
| Pretax Margin % | 16.62% | 16.92% |
| Income Tax | 776M | 828M |
| Effective Tax Rate % | 15.47% | 16.56% |
| Net Income | 4.36B | 4.34B |
| Net Margin % | 14.46% | 14.69% |
| Net Income Growth % | - | - |
| Net Income (Continuing) | 4.24B | 4.17B |
| Discontinued Operations | 0 | 0 |
| Minority Interest | 2.79B | 2.85B |
| EPS (Diluted) | 3.80 | 3.84 |
| EPS Growth % | - | - |
| EPS (Basic) | - | 3.90 |
| Diluted Shares Outstanding | 1.15B | 1.13B |
| Basic Shares Outstanding | 1.12B | 1.11B |
| Dividend Payout Ratio | - | 69.45% |
Regulatory rate recovery uncertainty
As indicated by the most recent quarterly filings, Southern Company achieved an 8.0% year-over-year revenue growth in 2026Q1, though this follows a period of inconsistent top-line performance that suggests underlying sensitivity to seasonal demand patterns and potential fluctuations in regulated rate structures across its service territories.
The revenue trajectory appears to be influenced by cyclical demand rather than sustained organic expansion. Investors should monitor whether the 8.0% growth rate in 2026Q1 represents a durable trend or merely a recovery from the lower revenue base observed in 2025Q4.
Based on reported financial statements, Southern Company's gross margin fluctuated significantly, reaching a peak of 55.0% in 2025Q3 before compressing to 46.5% by 2026Q1, highlighting the company's exposure to variable fuel and operational costs inherent in its regulated utility business model.
The volatility in gross margins suggests that the company may face challenges in passing through cost increases to end-users in a timely manner. This margin compression warrants further investigation into the regulatory lag associated with fuel cost recovery mechanisms.
According to the provided income statement data, Southern Company recorded a notable spike in stock-based compensation to $97.0 million in 2026Q1, which appears to have contributed to the slight 0.8% decline in diluted EPS despite the reported revenue growth during the same period.
The significant variance in stock-based compensation between quarters suggests that non-cash expenses may be creating noise in the bottom-line results. Analysts should consider the impact of these periodic charges when evaluating the underlying operational profitability of the firm.
While Southern Company maintains a consistent presence in the utility sector, the sharp contraction in net income from $1.7 billion in 2025Q3 to $1.4 billion in 2026Q1 suggests that the company may struggle to maintain profitability during periods of rising operational or compensation-related expenses.
Short-term fluctuations in net margins indicate that the company's cost structure may not be as defensive as typically expected for a regulated utility. The lack of clear SG&A and R&D reporting in the provided data makes it difficult to assess the true efficiency of the company's overhead management.
Quick answers to the most common questions about buying SOMN stock.
For fiscal year 2025, The Southern Company (SOMN) reported total revenue of $29.55B. This represents a 0.0% increase compared to $29.55B in 2025.
The Southern Company (SOMN) is profitable, generating $4.34B in net income for the fiscal year ending 2025 with a net profit margin of 14.7%.
The Southern Company (SOMN) reported an operating income of $7.29B, resulting in an operating profit margin of 24.7%. This margin reflects the operational efficiency of the business before interest and taxes.
The Southern Company (SOMN) generated $14.32B in gross profit for the year, representing a gross profit margin of 48.5%. This demonstrates the company's core pricing power and production efficiency.