Southern Company (SO) shares climbed after the utility heavyweight delivered a solid fourth-quarter performance, with revenue growth that handily beat Wall Street's expectations even as earnings per share came in just shy of consensus.

Revenue Beats, Earnings Miss

The company posted operating revenue of $6.98 billion for the fourth quarter of fiscal 2025, up 10.1% from the prior year and well ahead of the $6.49 billion analysts were expecting. That's the good news. Adjusted EPS of 55 cents missed the consensus estimate of 57 cents by a couple pennies. Operating expenses rose to $6.06 billion from $5.28 billion in the same quarter last year.

Segment Performance

Growth came from across Southern's footprint. Alabama Power brought in $1.937 billion in operating revenue, up 10.6% year over year. Georgia Power posted $2.713 billion, a 4.9% increase. Mississippi Power contributed $394 million, up 14.2%. Southern Power generated $472 million in revenue, climbing 13.2%. Southern Company Gas saw the strongest growth at $1.492 billion, up 20.7% from the prior year.

Demand Strength

Kilowatt-hour sales rose 4.9% year over year, with retail sales up 1.7% and wholesale sales jumping 14.5%. Commercial business grew 3.0%, residential increased 1.3%, and industrial edged up 0.7%. The customer base expanded too, with total regulated utility customers up 0.8% as of December's end. Traditional electric operating companies saw customers rise 0.9%, while Southern Company Gas grew 0.6%.

"2025 was another outstanding year for Southern Company, and it was also a transformative one. Southern Company is meeting the growing demand responsibly, while continuing to deliver value and benefits to all of our customers," said Chris Womack, chairman, president, and CEO.

Looking Ahead

For fiscal 2026, Southern Company projects adjusted earnings per share of $4.50 to $4.60, compared with the analyst consensus of $4.56. The first quarter forecast is a bit softer, with the company expecting adjusted EPS of $1.20 versus the Street's $1.28 estimate.

SO Price Action: Southern shares were up 3.49% at $94.21 at the time of publication on Thursday.