Southwest Airlines (LUV) Expected to Announce Earnings on Wednesday

Key Points

• Southwest is expected to announce Q4 2025 results after the market close on Jan 28; analysts forecast $0.55 EPS and $7.51B in revenue, with an earnings call set for Jan 29 at 10:00 AM ET.
• In the prior quarter Southwest beat estimates with $0.11 EPS (vs. $0.01 expected) and $6.95B revenue (+1.1% YoY), and analysts project roughly $2 EPS for both the current and next fiscal year.
• The airline recently paid a quarterly dividend of $0.18 (annualized $0.72, 1.7% yield) despite a 110.77% payout ratio; the stock trades near $42 with a P/E of 65.23 and a market cap of ~$21.9B.

Southwest Airlines (NYSE:LUV - Get Free Report) will likely be announcing its Q4 2025 results after the market closes on Wednesday, January 28th. Analysts expect the company to announce earnings of $0.55 per share and revenue of $7.5103 billion for the quarter. Interested persons may visit the the company's upcoming Q4 2025 earning results page for the latest details on the call scheduled for Thursday, January 29, 2026 at 10:00 AM ET.

Southwest Airlines (NYSE:LUV - Get Free Report) last announced its earnings results on Wednesday, October 22nd. The airline reported $0.11 EPS for the quarter, topping the consensus estimate of $0.01 by $0.10. The business had revenue of $6.95 billion during the quarter, compared to analysts' expectations of $6.93 billion. Southwest Airlines had a net margin of 1.38% and a return on equity of 6.39%. The firm's revenue was up 1.1% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.15 earnings per share. On average, analysts expect Southwest Airlines to post $2 EPS for the current fiscal year and $2 EPS for the next fiscal year.

Southwest Airlines Stock Down 1.7%

Shares of LUV stock opened at $42.40 on Wednesday. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $45.02. The firm's fifty day moving average price is $38.94 and its two-hundred day moving average price is $34.77. The firm has a market capitalization of $21.93 billion, a P/E ratio of 65.23, a PEG ratio of 0.24 and a beta of 1.16.

Southwest Airlines Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, January 16th. Shareholders of record on Friday, December 26th were paid a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date was Friday, December 26th. Southwest Airlines's dividend payout ratio (DPR) is currently 110.77%.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently modified their holdings of LUV. Invesco Ltd. raised its holdings in Southwest Airlines by 9.2% in the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline's stock valued at $218,175,000 after acquiring an additional 577,326 shares during the period. Jacobs Levy Equity Management Inc. grew its position in shares of Southwest Airlines by 2.9% in the third quarter. Jacobs Levy Equity Management Inc. now owns 3,625,754 shares of the airline's stock valued at $115,698,000 after purchasing an additional 101,236 shares during the last quarter. Raymond James Financial Inc. increased its stake in shares of Southwest Airlines by 13.5% during the third quarter. Raymond James Financial Inc. now owns 1,409,075 shares of the airline's stock worth $44,964,000 after purchasing an additional 167,088 shares during the period. Canada Pension Plan Investment Board lifted its holdings in Southwest Airlines by 315.3% during the 2nd quarter. Canada Pension Plan Investment Board now owns 1,247,837 shares of the airline's stock worth $40,480,000 after purchasing an additional 947,346 shares during the last quarter. Finally, Amundi lifted its holdings in Southwest Airlines by 116.4% during the 3rd quarter. Amundi now owns 1,182,916 shares of the airline's stock worth $38,539,000 after purchasing an additional 636,261 shares during the last quarter. Institutional investors own 80.82% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on LUV shares. JPMorgan Chase & Co. raised Southwest Airlines from an "underweight" rating to an "overweight" rating and increased their price objective for the company from $36.00 to $60.00 in a report on Friday, January 9th. Raymond James Financial increased their price target on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an "outperform" rating in a research note on Friday, December 19th. Susquehanna boosted their price objective on shares of Southwest Airlines from $35.00 to $45.00 and gave the stock a "neutral" rating in a research note on Friday, January 9th. Evercore ISI upped their target price on shares of Southwest Airlines from $35.00 to $40.00 in a report on Friday, January 9th. Finally, Wall Street Zen upgraded shares of Southwest Airlines from a "sell" rating to a "hold" rating in a research note on Saturday, October 25th. Six equities research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $41.79.

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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