Southwest Airlines (NYSE:LUV – Get Free Report) updated its second quarter 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 0.350-0.650 for the period, compared to the consensus earnings per share estimate of 0.600. The company issued revenue guidance of -.
Southwest Airlines Trading Down 2.7%
Shares of Southwest Airlines stock opened at $38.30 on Thursday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The business has a fifty day simple moving average of $43.22 and a two-hundred day simple moving average of $40.16. Southwest Airlines has a 1 year low of $24.63 and a 1 year high of $55.11. The company has a market capitalization of $18.81 billion, a price-to-earnings ratio of 45.51, a P/E/G ratio of 0.46 and a beta of 1.19.
Southwest Airlines (NYSE:LUV – Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.45. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The company had revenue of $7.25 billion during the quarter, compared to analysts’ expectations of $8.46 billion. During the same quarter in the previous year, the company posted ($0.13) earnings per share. The business’s revenue was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. Research analysts forecast that Southwest Airlines will post 2.72 EPS for the current year.
Southwest Airlines Announces Dividend
Analyst Ratings Changes
Several brokerages have weighed in on LUV. Morgan Stanley lifted their price objective on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Evercore raised their target price on shares of Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a report on Thursday, January 29th. Citigroup dropped their price target on shares of Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research report on Friday, March 20th. TD Cowen cut their price target on Southwest Airlines from $56.00 to $46.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. Finally, Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Eight research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $44.22.
Key Southwest Airlines News
Here are the key news stories impacting Southwest Airlines this week:
- Positive Sentiment: Record Q1 top-line and margin improvement: Southwest reported a first-quarter operating revenue record and said business-transformation initiatives delivered meaningful margin expansion and strong operating cash flow, showing the company’s revenue actions are working. SOUTHWEST AIRLINES REPORTS FIRST-QUARTER RESULTS
- Positive Sentiment: EPS in line with expectations: Southwest reported $0.45 EPS for Q1, roughly meeting consensus and marking a return to profitability versus a loss a year earlier. Southwest Airlines (LUV) Q1 Earnings Match Estimates
- Neutral Sentiment: Mixed analyst views: BNP Paribas Exane raised its price target but kept an underperform rating, reflecting divergent analyst sentiment despite operational improvements. BNP Paribas Exane Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock
- Negative Sentiment: Q2 guidance disappointed: Southwest set Q2 EPS guidance of $0.35–$0.65 versus a consensus near $0.60 (midpoint below street), prompting investor concern that near-term profitability will be weaker than expected. Southwest Airlines forecasts second-quarter profit below estimates as fuel costs soar
- Negative Sentiment: Rising jet fuel and macro uncertainty: Management cited higher fuel costs (partly tied to Middle East tensions) and broader economic uncertainty, and withheld a FY2026 profit update — signaling risk to margins and longer-term guidance. Southwest Airlines withholds FY26 profit update on high fuel costs, macroeconomic uncertainty
- Negative Sentiment: Sector-wide fuel pressure: Other U.S. carriers (e.g., American, United) have cut or trimmed outlooks because of a multi-billion-dollar jet fuel hit — reinforcing investor concerns that industry margins will be squeezed. American Airlines Cuts Guidance, Flags $4 Billion Jet Fuel Hit
- Negative Sentiment: Immediate market reaction: Stocks sold off after the report and guidance—traders are re-pricing LUV for the fuel headwind and the lower Q2 midpoint despite the operational progress. Southwest Airlines Stock Falls On Q1 Results, Guidance
Institutional Trading of Southwest Airlines
A number of hedge funds have recently added to or reduced their stakes in the stock. AQR Capital Management LLC boosted its stake in shares of Southwest Airlines by 100.6% during the first quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after purchasing an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Southwest Airlines by 5.4% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after buying an additional 3,141 shares during the period. Empowered Funds LLC boosted its position in Southwest Airlines by 7.6% during the 1st quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock worth $250,000 after buying an additional 527 shares during the period. EverSource Wealth Advisors LLC grew its holdings in Southwest Airlines by 73.4% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock worth $185,000 after acquiring an additional 2,408 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Southwest Airlines by 47.4% in the 2nd quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock valued at $9,979,000 after acquiring an additional 98,986 shares during the period. Institutional investors and hedge funds own 80.82% of the company’s stock.
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.
Further Reading
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