Southwest Airlines (NYSE:LUV) Announces Quarterly Earnings Results

Southwest Airlines (NYSE:LUV) issued its quarterly earnings results on Wednesday. The airline reported $0.94 earnings per share for the quarter, topping analysts’ consensus estimates of $0.51 by $0.43, FiscalAI reports. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines updated its FY 2026 guidance to 3.250-4.250 EPS and its Q3 2026 guidance to 0.500-0.750 EPS.

Southwest Airlines Trading Down 2.2%

LUV traded down $1.08 during trading on Wednesday, hitting $47.61. 6,037,025 shares of the company’s stock were exchanged, compared to its average volume of 8,237,609. The stock has a 50 day moving average price of $45.61 and a 200 day moving average price of $44.22. Southwest Airlines has a 1 year low of $28.98 and a 1 year high of $55.11. The company has a current ratio of 0.48, a quick ratio of 0.41 and a debt-to-equity ratio of 0.66. The firm has a market cap of $23.27 billion, a P/E ratio of 30.71, a price-to-earnings-growth ratio of 0.46 and a beta of 1.12.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were paid a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.5%. The ex-dividend date was Thursday, June 11th. Southwest Airlines’s payout ratio is currently 46.45%.

Analyst Ratings Changes

A number of brokerages have recently commented on LUV. JPMorgan Chase & Co. lowered their price objective on Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. UBS Group increased their target price on Southwest Airlines from $53.00 to $61.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Raymond James Financial raised their price target on Southwest Airlines from $55.00 to $60.00 and gave the stock an “outperform” rating in a research note on Monday, July 6th. Susquehanna lifted their price target on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a report on Tuesday, July 7th. Finally, Jefferies Financial Group upped their price objective on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research note on Wednesday, July 1st. Nine research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $49.58.

Institutional Trading of Southwest Airlines

A number of institutional investors have recently added to or reduced their stakes in LUV. AQR Capital Management LLC lifted its position in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock worth $1,303,000 after acquiring an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in Southwest Airlines by 5.4% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after acquiring an additional 3,141 shares during the period. Empowered Funds LLC grew its position in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after acquiring an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in Southwest Airlines by 73.4% in the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after acquiring an additional 2,408 shares in the last quarter. Finally, First Trust Advisors LP raised its stake in shares of Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after purchasing an additional 98,986 shares during the period. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

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.