Southern Company (SO) stock traded higher Thursday after the utility reported better-than-expected third-quarter 2026 results and raised its full-year earnings outlook. Warmer weather, higher electricity demand, and customer growth all pitched in, with stronger demand from large commercial and industrial customers giving earnings an extra boost.

CEO Chris Womack described the Southeast's growth as "unprecedented and transformational," pointing to rising demand for reliable electricity. That power boom helped lift quarterly results, with total electricity sales climbing 7.3%. Southern also raised its 2026 adjusted earnings forecast to $4.70 per share, above Wall Street's $4.59 estimate.

Southern Company Beats Earnings And Revenue Estimates

Southern reported adjusted earnings of $1.94 per share, beating Wall Street's estimate of $1.71. Operating revenue rose 13% year over year to $8.843 billion, topping the $8.359 billion consensus estimate. The company also benefited from stronger contributions from Southern Power compared with the year-earlier quarter.

Womack said unprecedented growth across the Southeast is creating new opportunities for Southern Company.

Electricity Demand And Customer Growth Accelerate

Southern's total electricity sales rose 7.3% to 60.79 billion kilowatt-hours. Retail electricity sales increased 7.7% to 45.65 billion kilowatt-hours, including 3.5% weather-adjusted growth.

Residential and commercial electricity sales climbed 10.2% and 10.1%, respectively. Industrial sales increased 2.5%. On a weather-adjusted basis, residential sales grew 1.3%, commercial sales rose 7.3%, and industrial sales increased 1.8%. Wholesale electricity sales climbed 6.2% to 15.14 billion kilowatt-hours.

Southern's regulated utility customer base grew 0.7% to nearly 9 million in September. Electric utility customers increased 1.1% to 4.63 million, while natural gas customers rose 0.3% to 4.37 million.

Southern Raises 2026 Earnings Outlook

Southern expects fourth-quarter adjusted earnings of 30 cents per share, below Wall Street's estimate of 45 cents. However, the company raised its full-year 2026 adjusted earnings forecast to $4.70 per share from its previous range of $4.50 to $4.60. The new forecast exceeds analysts' estimate of $4.59.

Southern also maintained its 2028 adjusted earnings forecast of $5.25 to $5.45 per share, compared with the $5.36 consensus estimate.

SO Price Action: Southern shares were up 1.58% at $94.59 at the time of publication on Thursday, according to market data.