Southwest Airlines (NYSE:LUV) Issues Q3 2026 Earnings Guidance

Southwest Airlines (NYSE:LUV) issued an update on its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 0.500-0.750 for the period, compared to the consensus estimate of 0.720. The company issued revenue guidance of -. Southwest Airlines also updated its FY 2026 guidance to 3.250-4.250 EPS.

Analyst Upgrades and Downgrades

Several equities research analysts have issued reports on LUV shares. HSBC raised shares of Southwest Airlines from a “reduce” rating to a “hold” rating and raised their price target for the stock from $24.40 to $36.10 in a research note on Friday, April 24th. TD Cowen upped their price objective on shares of Southwest Airlines from $47.00 to $53.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Weiss Ratings lowered shares of Southwest Airlines from a “hold (c+)” rating to a “hold (c)” rating in a research report on Monday, June 8th. The Goldman Sachs Group lifted 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. Finally, Argus cut their price target on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 24th. Nine analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $49.58.

Southwest Airlines Trading Down 2.2%

LUV stock traded down $1.08 during trading on Wednesday, reaching $47.61. 6,051,974 shares of the stock traded hands, compared to its average volume of 8,255,570. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11. The business’s 50 day moving average price is $45.61 and its 200-day moving average price is $44.22. The firm has a market capitalization of $23.27 billion, a PE ratio of 30.71, a P/E/G ratio of 0.46 and a beta of 1.12. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, beating analysts’ consensus estimates of $0.51 by $0.43. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. 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. As a group, sell-side analysts forecast that Southwest Airlines will post 3.23 earnings per share for the current year.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Thursday, June 11th were paid a dividend of $0.18 per share. 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 (DPR) is 46.45%.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: Southwest posted second-quarter EPS of $0.94, well above the $0.51 consensus, and revenue of $8.72 billion versus $8.58 billion expected, showing stronger-than-expected profitability and demand. Article Title
• Positive Sentiment: The airline raised its full-year 2026 EPS outlook to $3.25-$4.25, which is above the current analyst estimate of $2.97, suggesting management expects solid earnings momentum for the rest of the year. Article Title
• Neutral Sentiment: Southwest said second-quarter profit rose more than 9% as higher fares helped offset a large increase in fuel costs, highlighting improved pricing power but also persistent cost pressure. Article Title
• Negative Sentiment: Third-quarter EPS guidance of $0.50-$0.75 came in below the $0.72 consensus, signaling some near-term pressure on earnings and helping explain why the stock is down. Article Title

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds have recently added to or reduced their stakes in LUV. Invesco Ltd. lifted its position in shares of Southwest Airlines by 9.2% in the 3rd quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock worth $218,175,000 after buying an additional 577,326 shares during the last quarter. Morgan Stanley raised its stake in Southwest Airlines by 4.1% during the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline’s stock worth $257,423,000 after acquiring an additional 244,891 shares during the period. Jacobs Levy Equity Management Inc. raised its stake in Southwest Airlines by 2.9% during the third quarter. Jacobs Levy Equity Management Inc. now owns 3,625,754 shares of the airline’s stock worth $115,698,000 after acquiring an additional 101,236 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in Southwest Airlines by 2.0% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,494,789 shares of the airline’s stock worth $144,440,000 after acquiring an additional 69,543 shares during the last quarter. Finally, Nearwater Capital Markets Ltd lifted its holdings in Southwest Airlines by 75.0% in the fourth quarter. Nearwater Capital Markets Ltd now owns 2,800,000 shares of the airline’s stock worth $115,724,000 after acquiring an additional 1,200,000 shares during the last quarter. Institutional investors and hedge funds 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.