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

Southwest Airlines (NYSE:LUV) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.250-4.250 for the period, compared to the consensus estimate of 2.970. The company issued revenue guidance of -. Southwest Airlines also updated its Q3 2026 guidance to 0.500-0.750 EPS.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. JPMorgan Chase & Co. decreased their price target on Southwest Airlines from $58.00 to $56.00 in a research report on Friday, March 27th. Barclays boosted their price objective on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Jefferies Financial Group raised their target price on Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a research note on Wednesday, July 1st. Wells Fargo & Company lifted their price target on Southwest Airlines from $44.00 to $50.00 and gave the company an “equal weight” rating in a report on Tuesday, June 30th. Finally, Citigroup upped their price target on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a research report on Friday, June 26th. Nine investment 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. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $49.58.

Southwest Airlines Trading Down 2.2%

Shares of LUV stock traded down $1.08 on Wednesday, reaching $47.61. 6,045,233 shares of the stock were exchanged, compared to its average volume of 8,255,548. 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 has a one year low of $28.98 and a one year high of $55.11. The stock has a market cap 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 stock has a 50 day moving average price of $45.61 and a 200 day moving average price of $44.22.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.51 by $0.43. The firm had revenue of $8.72 billion during the quarter, compared to analyst estimates 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. Equities research analysts forecast that Southwest Airlines will post 3.23 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were given a dividend of $0.18 per share. The ex-dividend date was Thursday, June 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is currently 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

Hedge funds and other institutional investors have recently bought and sold shares of the business. Parkside Financial Bank & Trust grew its holdings in Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock valued at $127,000 after buying an additional 213 shares in the last quarter. Benjamin Edwards Inc. grew its stake in shares of Southwest Airlines by 1.4% in the second quarter. Benjamin Edwards Inc. now owns 24,857 shares of the airline’s stock valued at $806,000 after acquiring an additional 333 shares in the last quarter. Zacks Investment Management increased its position in Southwest Airlines by 0.4% during the third quarter. Zacks Investment Management now owns 83,070 shares of the airline’s stock worth $2,651,000 after acquiring an additional 348 shares during the period. Smartleaf Asset Management LLC increased its position in Southwest Airlines by 30.1% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,852 shares of the airline’s stock worth $76,000 after acquiring an additional 428 shares during the period. Finally, CIBC Private Wealth Group LLC boosted its holdings in Southwest Airlines by 3.1% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 15,562 shares of the airline’s stock valued at $497,000 after purchasing an additional 462 shares during the period. 80.82% of the stock is owned by institutional investors.

About Southwest Airlines

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.