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

Key Points

• Southwest Airlines raised its FY 2026 earnings guidance to $3.25-$4.25 per share, above the consensus estimate of $2.97. It also set Q3 2026 EPS guidance at $0.50-$0.75.
• The company recently reported better-than-expected quarterly results, with EPS of $0.94 versus $0.51 expected and revenue of $8.72 billion versus $8.58 billion estimated.
• Shares fell about 2.2% in midday trading after the update, even as Southwest maintained a dividend and analysts’ consensus rating remained Hold with a target price of $49.58.

Southwest Airlines (NYSE:LUV - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share 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.

Southwest Airlines Trading Down 2.2%

Southwest Airlines stock traded down $1.08 during midday trading on Wednesday, reaching $47.61. 6,037,025 shares of the stock traded hands, compared to its average volume of 8,237,609. The company has a 50-day simple moving average of $45.61 and a two-hundred day simple moving average of $44.22. Southwest Airlines has a 12-month low of $28.98 and a 12-month high of $55.11. The firm has a market cap of $23.27 billion, a PE ratio of 30.71, a price-to-earnings-growth 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.

Southwest Airlines (NYSE:LUV - Get Free Report) last released its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.43. The company had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.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 expect that Southwest Airlines will post 3.23 earnings per share for the current fiscal year.

Southwest Airlines Announces Dividend

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

Wall Street Analysts Forecast Growth

LUV has been the topic of several recent research reports. The Goldman Sachs Group upped their target price on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a "sell" rating in a research note on Thursday, July 2nd. Wall Street Zen raised Southwest Airlines from a "hold" rating to a "buy" rating in a research report on Sunday, July 5th. BMO Capital Markets lifted their target price on Southwest Airlines from $45.00 to $58.50 and gave the company an "outperform" rating in a report on Thursday, July 2nd. Zacks Research upgraded Southwest Airlines from a "strong sell" rating to a "hold" rating in a report on Thursday, June 25th. Finally, Weiss Ratings downgraded Southwest Airlines from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, June 8th. Nine research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, Southwest Airlines has an average rating of "Hold" and a consensus target price of $49.58.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently made changes to their positions in LUV. Carter Financial Group INC. purchased a new stake in shares of Southwest Airlines during the 4th quarter worth $237,000. Boothbay Fund Management LLC purchased a new position in shares of Southwest Airlines during the 4th quarter worth approximately $227,000. OMERS ADMINISTRATION Corp acquired a new position in shares of Southwest Airlines in the fourth quarter worth $219,000. Aspen Grove Capital LLC purchased a new position in Southwest Airlines in the 4th quarter valued at about $205,000. Finally, Arkadios Wealth Advisors purchased a new stake in Southwest Airlines in the 4th quarter worth approximately $201,000. Hedge funds and other institutional investors own 80.82% of the company's stock.

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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