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

Posted by Geri Gentry on Jul 23rd, 2026

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

Analysts Set New Price Targets

LUV has been the topic of several research analyst reports. Weiss Ratings raised shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research report on Tuesday. BNP Paribas Exane upped their price target on shares of Southwest Airlines from $24.00 to $33.00 and gave the stock an “underperform” rating in a research report on Tuesday, April 21st. Susquehanna increased their price target on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research note on Tuesday, July 7th. Wells Fargo & Company lifted their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. Finally, Jefferies Financial Group upped their price objective on Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a report on Wednesday, July 1st. Nine analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $49.58.

Read Our Latest Analysis on Southwest Airlines

Southwest Airlines Stock Down 2.2%

Shares of NYSE LUV opened at $47.61 on Thursday. Southwest Airlines has a 12-month low of $28.98 and a 12-month high of $55.11. The company has a market cap of $23.27 billion, a P/E ratio of 30.71, a P/E/G ratio of 0.46 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 stock has a fifty day moving average price of $45.77 and a 200 day moving average price of $44.26.

Southwest Airlines (NYSE:LUV – Get Free Report) last issued its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The company had revenue of $8.72 billion for the quarter, compared to analysts’ expectations of $8.58 billion. During the same quarter in the previous year, the firm posted $0.43 earnings per share. The firm’s quarterly revenue was up 16.4% on a year-over-year basis. 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. Research analysts anticipate that Southwest Airlines will post 3.23 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were issued a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Thursday, June 11th. Southwest Airlines’s dividend payout ratio is currently 46.45%.

Key Stories Impacting Southwest Airlines

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

Positive Sentiment: Southwest posted Q2 EPS of $0.94, well above the consensus estimate of $0.52, and revenue of $8.72 billion also came in ahead of expectations. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
Positive Sentiment: The company said Q2 profit rose more than 9% as higher fares helped offset fuel costs, and management highlighted record revenue, margin expansion, and strong customer demand. Southwest Airlines profit jumps 9% as passengers pick up fuel tab, but third-quarter forecast falls short
Neutral Sentiment: Southwest raised its full-year adjusted EPS outlook to $3.25 to $4.25, which is above the current consensus estimate, suggesting management still expects solid profitability for the year. MarketBeat Southwest Airlines stock report
Negative Sentiment: Despite the strong quarter, the airline’s third-quarter EPS guidance of $0.50 to $0.75 came in below Wall Street expectations, raising concern that earnings momentum may slow. Southwest Airlines Stock Slides as Q3 Guidance Comes in Light
Negative Sentiment: Southwest also cut its full-year outlook from an earlier target of at least $4 per share, citing higher fuel expenses, which is likely weighing on the stock today. Southwest Cuts Full-Year Outlook as Fuel Expenses Weigh on Second-Quarter Profit

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LUV. Los Angeles Capital Management LLC purchased a new position in Southwest Airlines in the 4th quarter valued at about $26,000. DV Equities LLC purchased a new stake in shares of Southwest Airlines during the fourth quarter worth about $30,000. Quarry LP purchased a new stake in shares of Southwest Airlines during the fourth quarter worth about $35,000. IFC & Insurance Marketing Inc. acquired a new position in shares of Southwest Airlines in the fourth quarter worth about $47,000. Finally, Strive Financial Group LLC acquired a new position in shares of Southwest Airlines in the fourth quarter worth about $50,000. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

(Get Free Report)

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.