Southwest Airlines (NYSE:LUV – Get Free Report) updated its fourth quarter 2026 earnings guidance on Friday morning. The company provided 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 Price Performance
LUV stock traded down $0.29 during midday trading on Friday, hitting $41.74. 8,210,911 shares of the stock were exchanged, compared to its average volume of 6,459,668. The stock’s 50-day moving average price is $40.57 and its 200-day moving average price is $42.88. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.42 and a current ratio of 0.47. The stock has a market cap of $20.42 billion, a price-to-earnings ratio of 20.07, a PEG ratio of 1.21 and a beta of 1.16. Southwest Airlines has a fifty-two week low of $29.26 and a fifty-two week high of $55.11.
Southwest Airlines (NYSE:LUV – Get Free Report) last posted its earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.09. Southwest Airlines had a return on equity of 18.05% and a net margin of 3.34%. The company had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. During the same quarter in the prior year, the company earned $0.11 earnings per share. Southwest Airlines’s revenue was up 21.2% compared to the same quarter last year. Research analysts predict that Southwest Airlines will post 2.67 earnings per share for the current year.
Southwest Airlines Announces Dividend
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were issued a dividend of $0.18 per share. This represents a $0.72 annualized dividend and a yield of 1.7%. The ex-dividend date was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio (DPR) is 44.17%.
Analyst Ratings Changes
Several brokerages have issued reports on LUV. UBS Group upped their price target on shares of Southwest Airlines from $52.00 to $54.00 and gave the company a “buy” rating in a report on Friday. The Goldman Sachs Group upped their target price on Southwest Airlines from $30.00 to $35.00 and gave the company a “sell” rating in a research note on Thursday, July 2nd. Susquehanna lowered their target price on Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating on the stock in a report on Wednesday, October 7th. Wall Street Zen downgraded Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, September 5th. Finally, Morgan Stanley raised their price target on Southwest Airlines from $60.00 to $65.00 and gave the stock an “overweight” rating in a research report on Monday, July 6th. Ten equities 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 stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $47.45.
Check Out Our Latest Stock Report on LUV
Southwest Airlines News Summary
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
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.
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