Q4 EPS Estimate for Southwest Airlines Decreased by Analyst

Southwest Airlines Co. (NYSE:LUV) – Analysts at Zacks Research lowered their Q4 2026 earnings per share (EPS) estimates for shares of Southwest Airlines in a note issued to investors on Wednesday, May 6th. Zacks Research analyst Team now expects that the airline will post earnings of $1.15 per share for the quarter, down from their prior estimate of $1.36. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $2.90 per share. Zacks Research also issued estimates for Southwest Airlines’ Q2 2027 earnings at $1.22 EPS, Q4 2027 earnings at $1.74 EPS and FY2027 earnings at $4.63 EPS.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, April 22nd. The airline reported $0.45 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.45. The business had revenue of $7.25 billion during the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.Southwest Airlines’s revenue was up 12.8% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.13) EPS. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS.

LUV has been the subject of a number of other reports. BMO Capital Markets cut their price target on Southwest Airlines from $57.50 to $45.00 and set an “outperform” rating for the company in a research note on Tuesday, March 31st. Wells Fargo & Company cut their price target on Southwest Airlines from $50.00 to $44.00 and set an “equal weight” rating for the company in a research note on Monday, March 16th. Susquehanna cut their price target on Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating for the company in a research note on Thursday, April 2nd. Seaport Research Partners boosted their price target on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Finally, Citigroup cut their price target on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research note on Friday, March 20th. Nine equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, Southwest Airlines currently has an average rating of “Hold” and a consensus price target of $44.11.

Southwest Airlines Trading Up 4.5%

Southwest Airlines stock opened at $41.51 on Thursday. The business has a 50-day simple moving average of $41.08 and a two-hundred day simple moving average of $40.56. The company has a market cap of $20.29 billion, a P/E ratio of 26.78, a P/E/G ratio of 0.42 and a beta of 1.12. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11. The company has a quick ratio of 0.41, a current ratio of 0.48 and a debt-to-equity ratio of 0.66.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in LUV. Norges Bank bought a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $172,038,000. Ameriprise Financial Inc. boosted its stake in Southwest Airlines by 43.7% in the 3rd quarter. Ameriprise Financial Inc. now owns 12,335,167 shares of the airline’s stock worth $393,615,000 after purchasing an additional 3,753,183 shares during the period. SG Americas Securities LLC boosted its stake in Southwest Airlines by 2,468.4% in the 4th quarter. SG Americas Securities LLC now owns 3,752,352 shares of the airline’s stock worth $155,085,000 after purchasing an additional 3,606,255 shares during the period. Massachusetts Financial Services Co. MA bought a new position in Southwest Airlines in the 4th quarter worth approximately $143,450,000. Finally, Franklin Resources Inc. boosted its stake in Southwest Airlines by 7.0% in the 4th quarter. Franklin Resources Inc. now owns 40,200,530 shares of the airline’s stock worth $1,661,488,000 after purchasing an additional 2,626,853 shares during the period. 80.82% of the stock is currently owned by institutional investors.

About Southwest Airlines

Southwest Airlines Co is a U.S.-based low-cost carrier that operates a point-to-point domestic and near-international airline network. Headquartered in Dallas, Texas, the company primarily flies Boeing 737 aircraft and offers no-frills, single-class service designed to keep fares competitive. Southwest’s operating model emphasizes high aircraft utilization, quick turnaround times and an open seating policy, allowing customers to board and select seats on a first-come, first-served basis.

Founded in 1967 by Herb Kelleher and Rollin King as Air Southwest Company, Southwest began commercial service in 1971, initially connecting Dallas, Houston and San Antonio.