New York, Feb 19, 2026, 12:23 (ET) — Regular session
- Southern Co shares up about 3% after lifting its five-year capital spending plan
- Utility guides 2026 adjusted profit slightly below Wall Street’s view
- Company points to a growing pipeline of “large-load” power demand, including data centers
Southern Co shares rose about 3% on Thursday after the U.S. utility lifted its five-year capital spending plan to meet rising electricity demand, even as it forecast 2026 profit a touch below analysts’ estimates.
The stock move matters because investors are trying to sort winners from the next wave of grid spending, as data centers and other big power users push utilities to build more generation and wires. Those projects can lift regulated earnings over time, but they also raise near-term financing needs.
Southern, based in Atlanta, sits in a region that has become a magnet for new industrial plants and data centers. The key question for the stock is how quickly contracted load turns into delivered megawatts — and how smoothly state regulators let the company recover the costs.
Southern said it expects to spend about $81 billion from 2026 through 2030, up from its prior five-year plan of $76 billion, and it has contracted 10 gigawatts of large-load customers across Alabama, Georgia and Mississippi, including Google, Meta, Microsoft and Compass Datacenters. “Southern continues to capitalize on its growth opportunities in a prudent manner,” Evercore ISI analyst Nicholas Amicucci said. (Reuters)
The company expects 2026 adjusted profit of $4.50 to $4.60 per share, with the midpoint slightly below the $4.56 estimate from analysts tracked by LSEG. For the quarter ended Dec. 31, it posted adjusted profit of 55 cents per share, shy of expectations for 57 cents, as operating expenses jumped 14.7% and revenue rose about 10%.
In its earnings presentation, Southern put its “large-load” pipeline at more than 75 gigawatts and said it now has 10 gigawatts of signed large-load contracts, alongside 10 gigawatts of new generation under construction. The slides also showed a 2026–2030 capital plan of about $81 billion, with roughly $67.7 billion earmarked for state-regulated electric utilities and $9.5 billion for state-regulated gas utilities. (Q4 Capital)
The company reported fourth-quarter 2025 earnings of $416 million, or 38 cents per share, and said it earned $612 million, or 55 cents per share, excluding certain items. “Southern Company is meeting the growing demand responsibly,” Chief Executive Chris Womack said, adding that the company would discuss results and guidance on a 1 p.m. Eastern analyst call. (SEC)
Southern shares were up about 3% at $93.79 in midday trading, after swinging between $90.80 and $96.05. The utilities sector was firmer too, with the Utilities Select Sector SPDR Fund up about 0.6%.
Big regulated utilities often trade on expectations for steady earnings and dividends, but the rate backdrop still matters: higher borrowing costs can squeeze returns when capital plans grow. Southern’s larger buildout also puts more weight on timely approvals in its state jurisdictions.
There is also execution risk. Load forecasts can cool if data center projects slip, and higher operating costs — already visible in the quarter — can blunt the benefit of demand growth if regulators resist faster rate relief.
Investors’ next stop is the 1 p.m. ET call, where they will press for detail on the timing of those data-center connections, the pace of new generation buildout, and how the company plans to fund an $81 billion spending run while keeping credit metrics intact.
