Southern

Q2 FY2026 EarningsQ2 FY26 results presented a mixed profile, missing top-line and operating profit consensus while beating on bottom-line earnings. Revenue of $6.98B missed the $7.27B expectation by 4.06%, and Operating Income of $1.78B fell 10.60% short of consensus. However, Diluted EPS of $1.03 exceeded the $1.00 consensus, driven primarily by a significantly lower effective tax rate of 13.60% (vs. 23.00% expected) and strong non-operating performance, including $86M in equity investment earnings. Management highlighted a massive 16 GW pipeline of large load contracts, primarily data centers, which supports a robust long-term growth outlook despite near-term cost pressures from accelerated depreciation.