Southwest Airlines (NYSE:LUV) Releases Q4 2026 Earnings Guidance

by · The Markets Daily

Southwest Airlines (NYSE:LUV – Get Free Report) issued an update on its fourth quarter 2026 earnings guidance on Friday morning. The company provided EPS guidance of 0.550-0.800 for the period, compared to the consensus estimate of 0.880. Southwest Airlines also updated its FY 2026 guidance to 2.600-2.850 EPS.

Southwest Airlines Price Performance

Shares of Southwest Airlines stock traded down $0.86 during trading on Friday, hitting $41.16. 3,604,962 shares of the stock traded hands, compared to its average volume of 7,424,783. Southwest Airlines has a 52 week low of $29.26 and a 52 week high of $55.11. The stock has a market cap of $20.14 billion, a price-to-earnings ratio of 25.29, a PEG ratio of 1.06 and a beta of 1.16. The firm’s fifty day moving average is $40.62 and its 200-day moving average is $42.89. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54.

Southwest Airlines (NYSE:LUV – Get Free Report) last released its earnings results on Wednesday, October 21st. The airline reported $0.66 EPS for the quarter, beating the consensus estimate of $0.57 by $0.09. The company had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.07%. The firm’s quarterly revenue was up 21.2% compared to the same quarter last year. During the same quarter last year, the firm earned $0.11 EPS. Research analysts expect that Southwest Airlines will post 2.91 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Investors of record on Thursday, September 3rd were issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is currently 44.17%.

Wall Street Analysts Forecast Growth

LUV has been the subject of a number of analyst reports. UBS Group dropped their target price on shares of Southwest Airlines from $53.00 to $52.00 and set a “buy” rating for the company in a report on Friday, October 16th. Bank of America boosted their price target on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a research report on Wednesday, July 1st. Rothschild & Co Redburn upgraded shares of Southwest Airlines from a “sell” rating to a “neutral” rating and raised their price objective for the stock from $35.00 to $40.00 in a report on Friday, September 18th. Raymond James Financial reduced their price target on Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating on the stock in a research note on Monday, August 24th. Finally, JPMorgan Chase & Co. dropped their price target on Southwest Airlines from $60.00 to $59.00 and set an “overweight” rating on the stock in a research report on Friday, July 24th. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $47.41.

View Our Latest Report on Southwest Airlines

More Southwest Airlines News

Here are the key news stories impacting Southwest Airlines this week:

  • Positive Sentiment: Southwest reported record third-quarter revenue of approximately $8.42 billion, up 21.2% year over year. Adjusted EPS of $0.66 exceeded the roughly $0.57 consensus estimate, while revenue per available seat mile increased 21.6% and the operating margin expanded to 4.5%. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
  • Positive Sentiment: Strong fares, passenger demand and ancillary revenue helped Southwest expand margins despite substantially higher operating costs. Management also indicated that fourth-quarter unit revenue could rise 19% to 21% year over year. Southwest Airlines posts record revenue as fuel costs surge
  • Neutral Sentiment: Wells Fargo initiated a Hold rating, while Susquehanna reduced its price target to $43 from $45, signaling limited near-term upside relative to the recent share price. Susquehanna Adjusts Price Target on Southwest Airlines
  • Negative Sentiment: Southwest lowered its full-year 2026 adjusted EPS guidance to $2.60–$2.85, versus a $2.85 analyst consensus. Fourth-quarter adjusted EPS guidance of $0.55–$0.80 is also below the $0.88 consensus estimate. Southwest Airlines cuts 2026 profit forecast on higher fuel
  • Negative Sentiment: Fuel expense increased by $821 million year over year, and management said it is planning for elevated jet-fuel prices to persist into 2027. The combination of higher fuel costs and cautious analyst sentiment is outweighing the strong quarterly results for investors today. US airlines favor higher fares over fuller planes as fuel costs squeeze profits

About Southwest Airlines

(Get Free Report)

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.

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