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

Southwest Airlines (NYSE:LUV) updated 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.

Wall Street Analysts Forecast Growth

LUV has been the topic of a number of recent analyst reports. Morgan Stanley lifted their price objective on Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. Jefferies Financial Group raised their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a report on Wednesday, July 1st. Evercore raised their target price on Southwest Airlines from $44.00 to $52.00 in a report on Thursday, June 25th. UBS Group dropped their price target on Southwest Airlines from $53.00 to $52.00 and set a “buy” rating on the stock in a research report on Friday, October 16th. Finally, Weiss Ratings raised Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday, August 18th. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Southwest Airlines has an average rating of “Hold” and an average target price of $47.41.

Southwest Airlines Stock Performance

Shares of LUV traded down $0.93 on Friday, reaching $41.10. 1,290,043 shares of the stock traded hands, compared to its average volume of 7,413,531. The stock’s 50-day moving average price is $40.62 and its 200-day moving average price is $42.89. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. The firm has a market cap of $20.11 billion, a price-to-earnings ratio of 25.21, a P/E/G ratio of 1.06 and a beta of 1.16. Southwest Airlines has a 12 month low of $29.26 and a 12 month high of $55.11.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, October 21st. The airline reported $0.66 EPS for the quarter, topping the consensus estimate of $0.57 by $0.09. Southwest Airlines had a return on equity of 18.07% and a net margin of 3.34%. The firm had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.25 billion. During the same period last year, the business earned $0.11 earnings per share. Southwest Airlines’s quarterly revenue was up 21.2% compared to the same quarter last year. Equities analysts forecast that Southwest Airlines will post 2.91 EPS for the current fiscal year.

Southwest Airlines Dividend Announcement

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

Key Southwest Airlines News

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

• Positive Sentiment: Record revenue and earnings beat: Third-quarter operating revenue rose 21.2% year over year to a record $8.42 billion, exceeding the roughly $8.25 billion consensus estimate. Adjusted EPS was $0.66 versus expectations of approximately $0.57, compared with $0.11 a year earlier. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Pricing power improved margins: Passenger revenue increased 22.8%, revenue per available seat mile climbed 21.6%, and the operating margin expanded to 4.5% from 0.5% a year ago. Higher fares, fees and resilient travel demand helped Southwest absorb an $821 million increase in fuel expense. Southwest Airlines posts record revenue as fuel costs surge
• Positive Sentiment: Near-term demand remains constructive: Management expects fourth-quarter adjusted EPS of $0.55 to $0.80 and projected fourth-quarter unit revenue growth of roughly 19% to 21%, supporting the view that demand and pricing momentum remain strong.
• Neutral Sentiment: Analyst caution: Wells Fargo issued a Hold rating, while Susquehanna reduced its price target to $43 from $45, suggesting limited near-term upside despite the earnings beat. Susquehanna Adjusts Price Target on Southwest Airlines
• Negative Sentiment: Fuel costs lowered the full-year outlook: Southwest cut its 2026 adjusted EPS forecast to $2.60–$2.85 as jet-fuel prices remain elevated. Management said it is planning for higher fuel costs to persist into 2027, creating an ongoing risk to margins and profitability. Southwest Airlines cuts 2026 profit forecast as fuel costs spike

About Southwest Airlines

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.