Zacks Research Has Negative Forecast for LUV FY2026 Earnings

Southwest Airlines Co. (NYSE:LUV) – Investment analysts at Zacks Research dropped their FY2026 earnings per share estimates for shares of Southwest Airlines in a research note issued to investors on Wednesday, November 4th. Zacks Research analyst Team now forecasts that the airline will post earnings of $2.85 per share for the year, down from their previous forecast of $3.31. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $2.77 per share. Zacks Research also issued estimates for Southwest Airlines’ Q4 2026 earnings at $0.80 EPS, Q1 2027 earnings at $0.38 EPS, Q4 2027 earnings at $1.03 EPS, FY2027 earnings at $3.71 EPS, Q1 2028 earnings at $0.65 EPS, Q2 2028 earnings at $1.88 EPS, Q3 2028 earnings at $1.46 EPS and FY2028 earnings at $5.56 EPS.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings data on Wednesday, October 21st. The airline reported $0.66 EPS for the quarter, topping the consensus estimate of $0.57 by $0.09. The business had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a net margin of 3.34% and a return on equity of 18.05%. The business’s revenue for the quarter was up 21.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.11 EPS.

Other analysts also recently issued research reports about the stock. Tigress Financial started coverage on shares of Southwest Airlines in a report on Friday, October 30th. They issued a “buy” rating and a $62.00 price target on the stock. Raymond James Financial dropped their price objective on shares of Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating for the company in a research note on Monday, August 24th. UBS Group lifted their price objective on Southwest Airlines from $52.00 to $54.00 and gave the stock a “buy” rating in a research report on Friday, October 23rd. JPMorgan Chase & Co. reduced their target price on Southwest Airlines from $59.00 to $58.00 and set an “overweight” rating on the stock in a research note on Friday, October 23rd. Finally, Rothschild & Co Redburn raised Southwest Airlines from a “sell” rating to a “neutral” rating and upped their target price for the company from $35.00 to $40.00 in a research note on Friday, September 18th. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $48.20.

Southwest Airlines Stock Performance

NYSE:LUV opened at $44.39 on Friday. The company has a current ratio of 0.47, a quick ratio of 0.40 and a debt-to-equity ratio of 0.51. The firm has a 50-day moving average price of $41.07 and a two-hundred day moving average price of $43.52. Southwest Airlines has a twelve month low of $30.84 and a twelve month high of $55.11. The company has a market capitalization of $21.73 billion, a P/E ratio of 21.34, a price-to-earnings-growth ratio of 0.67 and a beta of 1.23.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Eurizon Capital SGR S.p.A. raised its stake in shares of Southwest Airlines by 57.4% during the third quarter. Eurizon Capital SGR S.p.A. now owns 7,276 shares of the airline’s stock valued at $303,000 after purchasing an additional 2,653 shares during the period. Fifth Third Bancorp boosted its stake in shares of Southwest Airlines by 0.8% in the third quarter. Fifth Third Bancorp now owns 77,801 shares of the airline’s stock valued at $3,240,000 after purchasing an additional 580 shares during the period. King Luther Capital Management Corp boosted its stake in shares of Southwest Airlines by 15.1% in the third quarter. King Luther Capital Management Corp now owns 5,371 shares of the airline’s stock valued at $224,000 after purchasing an additional 704 shares during the period. Bingham Private Wealth LLC grew its holdings in Southwest Airlines by 3.5% during the 3rd quarter. Bingham Private Wealth LLC now owns 12,434 shares of the airline’s stock valued at $518,000 after purchasing an additional 417 shares in the last quarter. Finally, Maryland State Retirement & Pension System grew its holdings in Southwest Airlines by 13.3% during the 3rd quarter. Maryland State Retirement & Pension System now owns 27,961 shares of the airline’s stock valued at $1,164,000 after purchasing an additional 3,285 shares in the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Southwest Airlines News

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

• Positive Sentiment: Zacks Research raised its 2028 EPS estimates for Q2 to $1.88 from $1.29 and Q3 to $1.46 from $1.07, signaling improved expectations for those quarters. Southwest Airlines analyst estimates
• Neutral Sentiment: An article points to falling oil prices as a potential tailwind for travel companies through lower fuel costs. The effect on Southwest was not quantified in the article. 3 Consumer And Travel Stocks To Watch As Oil Falls And The Dollar Softens
• Negative Sentiment: Zacks cut its full-year EPS forecasts to $2.85 for 2026 from $3.31, $3.71 for 2027 from $5.02, and $5.56 for 2028 from $5.90. It also reduced estimates for Q4 2026, Q1 2027, Q4 2027, and Q1 2028. The broad downward revisions—and Zacks’ “Strong Sell” rating—suggest weaker earnings expectations, despite the increases to Q2 and Q3 2028 forecasts. Southwest Airlines analyst estimates

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.