Southwest Gas (NYSE:SWX) Issues FY 2026 Earnings Guidance

Key Points

• FY2026 EPS guidance 4.170–4.320, which is slightly below the Street consensus of 4.260.
• The board raised the quarterly dividend to $0.645 (annualized $2.58), implying a 2.8% yield and a payout ratio around 37.8%.
• Most recent quarter: $1.91 EPS vs. $2.02 expected with revenue down 21.6% year-over-year; analysts still rate the stock a "Moderate Buy" on average with a $88.40 target and notable upgrades such as Citigroup's move to "Buy" ( $99 target).

Southwest Gas (NYSE:SWX - Get Free Report) issued an update on its FY 2026 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 4.170-4.320 for the period, compared to the consensus estimate of 4.260. The company issued revenue guidance of -.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on the company. Citigroup upgraded Southwest Gas from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $82.00 to $99.00 in a report on Thursday, January 15th. Wall Street Zen cut Southwest Gas from a "hold" rating to a "sell" rating in a research report on Saturday, April 18th. Finally, Mizuho set a $96.00 price target on shares of Southwest Gas in a research note on Wednesday, February 11th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $88.40.

Southwest Gas Price Performance

Shares of NYSE SWX opened at $93.14 on Tuesday. The company has a market cap of $6.74 billion, a PE ratio of 14.18, a price-to-earnings-growth ratio of 2.38 and a beta of 0.62. The company has a quick ratio of 1.18, a current ratio of 1.28 and a debt-to-equity ratio of 0.87. The business's 50 day moving average price is $88.72 and its two-hundred day moving average price is $84.18. Southwest Gas has a twelve month low of $66.93 and a twelve month high of $94.43.

Southwest Gas (NYSE:SWX - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The utilities provider reported $1.91 earnings per share for the quarter, missing the consensus estimate of $2.02 by ($0.11). Southwest Gas had a net margin of 14.77% and a return on equity of 6.62%. During the same quarter in the prior year, the firm earned $1.58 earnings per share. The business's quarterly revenue was down 21.6% compared to the same quarter last year. Southwest Gas has set its FY 2026 guidance at 4.170-4.320 EPS. On average, analysts predict that Southwest Gas will post 4.27 EPS for the current year.

Southwest Gas Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be given a dividend of $0.645 per share. This represents a $2.58 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, May 15th. This is a boost from Southwest Gas's previous quarterly dividend of $0.62. Southwest Gas's dividend payout ratio (DPR) is currently 37.75%.

Hedge Funds Weigh In On Southwest Gas

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quantinno Capital Management LP increased its position in shares of Southwest Gas by 37.4% in the second quarter. Quantinno Capital Management LP now owns 4,496 shares of the utilities provider's stock worth $334,000 after purchasing an additional 1,223 shares during the period. Captrust Financial Advisors lifted its position in Southwest Gas by 14.0% during the fourth quarter. Captrust Financial Advisors now owns 4,067 shares of the utilities provider's stock worth $325,000 after purchasing an additional 500 shares during the period. Zacks Investment Management acquired a new stake in Southwest Gas during the fourth quarter worth about $298,000. NewEdge Advisors LLC increased its holdings in Southwest Gas by 7.4% in the 3rd quarter. NewEdge Advisors LLC now owns 3,194 shares of the utilities provider's stock valued at $250,000 after buying an additional 219 shares during the period. Finally, Armistice Capital LLC acquired a new position in shares of Southwest Gas in the 4th quarter valued at approximately $233,000. 92.77% of the stock is owned by institutional investors and hedge funds.

Southwest Gas Company Profile

Southwest Gas Corporation NYSE: SWX is a publicly traded natural gas utility that provides regulated gas distribution services to residential, commercial, industrial and electric generation customers. The company's core activities include the transportation, distribution and sale of natural gas through an extensive network of pipelines, service lines and metering facilities. Southwest Gas also offers related services such as system maintenance, pipeline safety inspections, emergency response and line extensions to support customer growth and ensure reliable gas delivery.

Founded in 1931 in southern Nevada, Southwest Gas has grown through strategic acquisitions and organic expansion to become one of the nation's larger natural gas utilities by customer count.

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