FY2028 Earnings Forecast for LUV Issued By Zacks Research

Key Points

• Zacks Research downgraded Southwest from "Strong‑Buy" to "Hold" and trimmed its FY2028 EPS estimate to $5.00 from $5.10, signaling weaker analyst conviction.
• Analyst coverage is mixed—8 Buys, 9 Holds and 4 Sells—giving a consensus Hold and an average target of $47.34 while the stock trades near $38.68 with a PE of about 46 and a 52‑week range of $23.82–$55.11.
• Southwest beat Q results ($0.58 vs. $0.56 est.) with revenue up 7.4% YoY, provided FY2026 guidance around $4.00 EPS (Q1 ~ $0.45), and announced a quarterly dividend of $0.18 (1.9% yield, 85.7% payout ratio).

Southwest Airlines Co. (NYSE:LUV - Free Report) - Equities researchers at Zacks Research lowered their FY2028 earnings estimates for shares of Southwest Airlines in a report issued on Thursday, March 12th. Zacks Research analyst Team now anticipates that the airline will post earnings of $5.00 per share for the year, down from their previous forecast of $5.10. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Southwest Airlines' current full-year earnings is $1.55 per share.

LUV has been the subject of a number of other reports. Deutsche Bank Aktiengesellschaft raised their target price on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a "buy" rating in a report on Friday, December 12th. Evercore increased their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an "in-line" rating in a research report on Thursday, January 29th. Sanford C. Bernstein boosted their target price on shares of Southwest Airlines from $31.00 to $34.00 and gave the stock a "market perform" rating in a report on Thursday, November 20th. Wells Fargo & Company increased their price target on shares of Southwest Airlines from $45.00 to $50.00 and gave the company an "equal weight" rating in a report on Friday, January 30th. Finally, Citigroup lifted their price target on Southwest Airlines from $44.00 to $54.00 in a research report on Tuesday, February 3rd. Eight research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines has a consensus rating of "Hold" and an average target price of $47.34.

Southwest Airlines Price Performance

NYSE:LUV traded up $0.07 during trading hours on Friday, reaching $38.68. The stock had a trading volume of 817,539 shares, compared to its average volume of 10,391,864. The stock has a market capitalization of $19.00 billion, a PE ratio of 45.98, a PEG ratio of 0.30 and a beta of 1.10. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $55.11. The company has a 50 day moving average price of $46.72 and a two-hundred day moving average price of $38.62. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, beating analysts' consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The firm had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same quarter last year, the business posted $0.56 earnings per share. The business's quarterly revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS.

Southwest Airlines Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date is Thursday, March 12th. Southwest Airlines's dividend payout ratio is currently 85.71%.

Institutional Trading of Southwest Airlines

Institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC grew its stake in Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline's stock worth $1,303,000 after buying an additional 19,729 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Southwest Airlines by 5.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline's stock worth $2,050,000 after acquiring an additional 3,141 shares during the last quarter. Empowered Funds LLC raised its holdings in shares of Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline's stock worth $250,000 after buying an additional 527 shares during the last quarter. Savant Capital LLC lifted its stake in shares of Southwest Airlines by 11.7% during the second quarter. Savant Capital LLC now owns 18,854 shares of the airline's stock worth $612,000 after buying an additional 1,973 shares during the period. Finally, Wedbush Securities Inc. grew its holdings in shares of Southwest Airlines by 32.8% during the second quarter. Wedbush Securities Inc. now owns 8,687 shares of the airline's stock valued at $282,000 after buying an additional 2,144 shares during the last quarter. Institutional investors own 80.82% of the company's stock.

Southwest Airlines News Summary

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

• Positive Sentiment: Redburn raised its price target on LUV to $35 (from $27) despite keeping a Sell rating — a sign some boutiques see more downside limited or valuation support near current levels. Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn Despite Sell Rating
• Neutral Sentiment: Coverage pieces note LUV has outperformed over the past year but has seen a sharp drawdown in the last month, framing today’s weakness as part of a recent pullback rather than an entirely new story. Southwest Price Prediction: What Wall Street Thinks LUV Is Worth in 2026
• Neutral Sentiment: Industry/color pieces around peer booking strength (United) suggest demand resilience, which could limit downside for U.S. carriers if booking trends hold — but that hasn’t outweighed other negatives for LUV. United Airlines Just Had Its Best Ever Day of Bookings. There’s Hope Amid Fuel Fears.
• Negative Sentiment: Zacks Research downgraded LUV from "Strong-Buy" to "Hold" and trimmed its FY2028 EPS forecast to $5.00 (from $5.10), signaling weaker analyst conviction and pressuring sentiment. Zacks.com
• Negative Sentiment: Jefferies cut its price target to $41 and moved to a Hold rating — the new target implies limited upside from current levels and contributed directly to selling pressure. Southwest Airlines NYSE: LUV Price Target Lowered to $41.00 at Jefferies Financial Group
• Negative Sentiment: Rising oil/jet-fuel prices tied to the U.S.–Iran conflict and supply concerns are increasing operating-cost risk for airlines, a direct negative for margins and profitability. Why Is Southwest Airlines Stock Sliding Thursday?
• Negative Sentiment: Broader operational headwinds — TSA slowdowns and reports that rising jet fuel could add billions in industry costs — add risk to short-term cash flow and margins across U.S. carriers, pressuring LUV alongside company-specific analyst moves. US airlines hit turbulence with TSA delays, fuel cost pressures

Southwest Airlines Company Profile

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.

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