Southwest Airlines (NYSE:LUV) Posts Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Southwest Airlines (NYSE:LUV) issued its quarterly earnings results on Wednesday. The airline reported $0.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.09, FiscalAI reports. The business had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.25 billion. Southwest Airlines had a return on equity of 14.15% and a net margin of 2.78%. The firm’s revenue for the quarter was up 21.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.11 earnings per share.

Southwest Airlines Trading Up 0.5%

Shares of LUV stock opened at $39.85 on Thursday. The company has a market cap of $19.50 billion, a P/E ratio of 24.45, a PEG ratio of 1.02 and a beta of 1.16. The stock has a 50 day simple moving average of $40.68 and a two-hundred day simple moving average of $42.86. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.42 and a current ratio of 0.49. Southwest Airlines has a fifty-two week low of $29.26 and a fifty-two week high of $55.11.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 24th. Stockholders of record on Thursday, September 3rd were given a $0.18 dividend. The ex-dividend date of this dividend was Thursday, September 3rd. This represents a $0.72 annualized dividend and a dividend yield of 1.8%. Southwest Airlines’s dividend payout ratio (DPR) is 44.17%.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. UBS Group reduced their price objective on Southwest Airlines from $53.00 to $52.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. The Goldman Sachs Group boosted their target price on Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a research note on Thursday, July 2nd. BMO Capital Markets dropped their target price on shares of Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating for the company in a report on Monday, September 28th. Weiss Ratings upgraded shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, August 18th. Finally, Wall Street Zen downgraded shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday, September 5th. Nine analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $47.41.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Quarterly results exceeded expectations. Adjusted earnings were $0.66 per share versus the $0.57–$0.61 analyst consensus, while revenue reached a record $8.42 billion, above the $8.25 billion estimate. Earnings improved substantially from $0.11 per share a year earlier. Southwest Airlines Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Demand and pricing remained strong. Passenger revenue increased 22.8% year over year, revenue per available seat mile rose 21.6%, and higher fares and fees helped drive a 21.2% increase in total revenue despite a 0.4% capacity decline. Operating margin expanded to 4.5% from 0.5% a year earlier. Southwest Airlines Reports Third Quarter 2026 Results
• Positive Sentiment: Liquidity supports the turnaround. Southwest ended the quarter with $5.6 billion of liquidity and returned $176 million through dividends, offering financial flexibility as it works to improve profitability. Fourth-quarter adjusted EPS guidance of $0.55 to $0.80 also indicates continued expected earnings. Southwest Reports Record Third-Quarter Revenue
• Neutral Sentiment: Southwest is pursuing additional revenue from services such as bags, seats and boarding, which could improve unit revenue but may risk customer dissatisfaction or weaken its traditionally simple, low-cost brand positioning. Southwest CEO Message on Additional Fees
• Negative Sentiment: Fuel costs cloud the outlook. Third-quarter fuel expense increased by $821 million, and Southwest cut its 2026 adjusted EPS forecast to $2.60–$2.85. Brent crude above $110 per barrel could continue pressuring airline margins if elevated prices persist. Southwest Cuts 2026 Profit Forecast on Higher Fuel

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.