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

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

Southwest Airlines Stock Performance

Southwest Airlines stock opened at $41.74 on Friday. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.47 and a quick ratio of 0.42. Southwest Airlines has a 1-year low of $29.26 and a 1-year high of $55.11. The firm has a market capitalization of $20.42 billion, a P/E ratio of 20.07, a price-to-earnings-growth ratio of 1.20 and a beta of 1.16. The company’s 50-day moving average is $40.57 and its 200 day moving average is $42.88.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, October 21st. The airline reported $0.66 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.57 by $0.09. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The business had revenue of $8.42 billion during the quarter, compared to the consensus estimate of $8.25 billion. During the same quarter last year, the firm earned $0.11 earnings per share. The firm’s quarterly revenue was up 21.2% compared to the same quarter last year. Research analysts forecast that Southwest Airlines will post 2.69 EPS for the current year.

Southwest Airlines Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.7%. The ex-dividend date was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is presently 34.62%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on LUV shares. BMO Capital Markets decreased their price target on Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating for the company in a research note on Monday, September 28th. Wall Street Zen lowered Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, September 5th. JPMorgan Chase & Co. decreased their target price on Southwest Airlines from $59.00 to $58.00 and set an “overweight” rating for the company in a research report on Friday. Raymond James Financial decreased their target price on Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a research report on Monday, August 24th. Finally, Citigroup lowered their target price on shares of Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating for the company in a research note on Friday, July 24th. Ten equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $47.45.

More Southwest Airlines News

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

• Positive Sentiment: Southwest reported third-quarter adjusted earnings of $0.66 per share, ahead of the roughly $0.57 consensus, while revenue rose 21.2% year over year to a record $8.42 billion. Higher fares, strong demand and a 21.6% increase in revenue per available seat mile helped expand margins despite higher fuel expenses. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Management indicated that travel demand remains constructive and forecast fourth-quarter unit revenue growth of approximately 19% to 21%, supporting optimism that Southwest’s pricing and commercial initiatives are gaining traction. Southwest Airlines Gains After Q3 Earnings Beat and Record Revenue
• Positive Sentiment: UBS raised its price target from $52 to $54 and assigned a Buy rating, while JPMorgan maintained an Overweight rating and still sees substantial upside with a $58 target. UBS Southwest Airlines Rating
• Neutral Sentiment: Analyst sentiment remains mixed: Susquehanna reduced its target to $43, and Wells Fargo initiated a Hold rating, suggesting that much of the earnings improvement may already be reflected in the shares.
• Negative Sentiment: Southwest lowered its fourth-quarter 2026 adjusted EPS outlook to $0.55-$0.80, below the $0.88 consensus, and set full-year EPS guidance at $2.60-$2.85 versus an $2.85 estimate. Southwest Cuts Outlook as US Airlines Battle Fuel Costs
• Negative Sentiment: Fuel costs increased by about $821 million, and management is planning for elevated jet-fuel prices to persist into 2027. Industry-wide pressure to raise fares could support revenue but risks weakening demand and profitability. US Airlines Favor Higher Fares Over Fuller Planes

Southwest Airlines Company Profile

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.