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

Southwest Airlines (NYSE:LUV) updated its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 3.250-4.250 for the period, compared to the consensus estimate of 2.970. The company issued revenue guidance of -. Southwest Airlines also updated its Q3 2026 guidance to 0.500-0.750 EPS.

Southwest Airlines Stock Performance

NYSE:LUV opened at $44.75 on Friday. Southwest Airlines has a twelve month low of $28.98 and a twelve month high of $55.11. The firm has a market capitalization of $21.87 billion, a price-to-earnings ratio of 27.45, a PEG ratio of 0.45 and a beta of 1.12. 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’s fifty day simple moving average is $45.88 and its 200 day simple moving average is $44.29.

Southwest Airlines (NYSE:LUV) last announced its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating the consensus estimate of $0.52 by $0.42. The business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 13.93% and a net margin of 2.78%.The company’s revenue was up 16.4% on a year-over-year basis. During the same period last year, the business posted $0.43 EPS. Southwest Airlines has set its FY 2026 guidance at 3.250-4.250 EPS and its Q3 2026 guidance at 0.500-0.750 EPS. As a group, equities research analysts expect that Southwest Airlines will post 3.23 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were paid a dividend of $0.18 per share. The ex-dividend date was Thursday, June 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.6%. Southwest Airlines’s dividend payout ratio (DPR) is currently 46.45%.

Wall Street Analyst Weigh In

LUV has been the topic of a number of analyst reports. Barclays lifted their target price on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research report on Thursday, June 25th. Citigroup raised their price objective on Southwest Airlines from $44.00 to $55.00 and gave the company a “neutral” rating in a research note on Friday, June 26th. HSBC upgraded Southwest Airlines from a “reduce” rating to a “hold” rating and lifted their price objective for the stock from $24.40 to $36.10 in a report on Friday, April 24th. Jefferies Financial Group increased their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research note on Wednesday, July 1st. Finally, TD Cowen raised their price target on shares of Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a research report on Thursday, July 2nd. Nine research analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $49.58.

Southwest Airlines News Roundup

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

• Positive Sentiment: Southwest beat Q2 expectations with adjusted EPS of $0.94 versus $0.52 consensus, and revenue of $8.72 billion topped estimates, supported by record quarterly revenue, higher fares, and margin expansion. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Positive Sentiment: The company said its full-year EPS guide of $3.25 to $4.25 remains above the recent analyst consensus, suggesting improved earnings power despite cost pressure. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Neutral Sentiment: Southwest also highlighted transformational initiatives, broad demand strength, and strong Customer engagement, which support the long-term operating story. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Analysts and media coverage noted that airlines are dealing with volatile jet fuel prices, which are becoming a moving target for earnings forecasts across the sector. Fuel Swings Turn US Airline Earnings Forecasts Into Moving Targets
• Negative Sentiment: Investors are reacting to a softer Q3 outlook: Southwest guided third-quarter EPS to $0.50 to $0.75, below Wall Street’s expectation, while fuel costs rose by roughly $889 million. Southwest Airlines Profit Jumps 9% as Passengers Pick Up Fuel Tab, but Third-Quarter Forecast Falls Short
• Negative Sentiment: Southwest cut its full-year outlook, with fuel expense pressures and weaker near-term profit expectations overshadowing the earnings beat. Southwest Cuts Full-Year Outlook as Fuel Expenses Weigh on Second-Quarter Profit

Institutional Investors Weigh In On Southwest Airlines

A number of hedge funds have recently made changes to their positions in the business. Los Angeles Capital Management LLC acquired a new stake in Southwest Airlines in the fourth quarter worth approximately $26,000. DV Equities LLC bought a new stake in Southwest Airlines during the fourth quarter worth approximately $30,000. Quarry LP acquired a new stake in shares of Southwest Airlines during the 4th quarter valued at $35,000. IFC & Insurance Marketing Inc. bought a new stake in shares of Southwest Airlines during the 4th quarter worth $47,000. Finally, Strive Financial Group LLC bought a new stake in shares of Southwest Airlines during the 4th quarter worth $50,000. Institutional investors own 80.82% of the company’s stock.

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.