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

Southwest Airlines (NYSE:LUV) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 4.000- for the period, compared to the consensus estimate of 2.310. The company issued revenue guidance of -. Southwest Airlines also updated its Q1 2026 guidance to 0.450- EPS.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on the company. Raymond James Financial upped their target price on Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a research note on Friday, December 19th. Jefferies Financial Group raised their target price on Southwest Airlines from $42.00 to $45.00 and gave the company a “hold” rating in a report on Monday. Weiss Ratings restated a “hold (c)” rating on shares of Southwest Airlines in a research note on Monday, December 29th. Bank of America increased their price objective on shares of Southwest Airlines from $28.00 to $37.00 and gave the company an “underperform” rating in a research note on Tuesday, January 6th. Finally, TD Cowen upped their price target on Southwest Airlines from $31.00 to $42.00 and gave the company a “hold” rating in a research report on Friday, December 12th. Six analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $42.63.

Southwest Airlines Stock Down 1.0%

Southwest Airlines stock opened at $40.94 on Thursday. Southwest Airlines has a 52 week low of $23.82 and a 52 week high of $45.02. The stock has a market cap of $21.17 billion, a price-to-earnings ratio of 62.98, a PEG ratio of 0.37 and a beta of 1.16. The company’s 50-day moving average price is $40.07 and its two-hundred day moving average price is $35.05. The company has a current ratio of 0.49, a quick ratio of 0.42 and a debt-to-equity ratio of 0.52.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. The company had revenue of $7.44 billion for the quarter, compared to analysts’ expectations of $7.51 billion. Southwest Airlines had a return on equity of 6.39% and a net margin of 1.38%.The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. During the same period last year, the firm earned $0.56 EPS. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, analysts expect that Southwest Airlines will post 1.55 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Stockholders of record on Friday, December 26th were paid a dividend of $0.18 per share. The ex-dividend date of this dividend was Friday, December 26th. This represents a $0.72 annualized dividend and a dividend yield of 1.8%. Southwest Airlines’s dividend payout ratio (DPR) is currently 110.77%.

Trending Headlines about Southwest Airlines

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

• Positive Sentiment: Company set 2026 adjusted EPS guidance of at least $4.00 (big step up from 2025), signaling management expects a material profit surge tied to its business transformation and new revenue streams. PR Newswire Release
• Positive Sentiment: Q4 EPS beat consensus: Southwest reported $0.58 vs. the $0.56 consensus, showing modest upside on profitability for the quarter. Zacks: Q4 Beat
• Positive Sentiment: Management attributes improved outlook to new policies — assigned seating (ended 54-year open-seating) and ancillary fees — which management and press coverage say will boost unit revenue and margins. WSJ: Assigned Seating
• Positive Sentiment: Analyst support: Jefferies raised its LUV price target to $45, reflecting bullish take on the transformation and guidance. Analyst Note
• Neutral Sentiment: Revenue was up year-over-year ($7.44B, +7.4%) but slightly below some estimates, so top-line strength exists but didn’t fully satisfy sell‑side revenue expectations. Company Press Release
• Neutral Sentiment: Quarterly cash metrics were mixed: operating cash fell, capex rose and cash balances declined — highlights to monitor for liquidity and execution as management scales investments. QuiverQuant: Financial Details
• Negative Sentiment: Unusual options activity: a spike in put buying (≈40,382 puts) suggests some investors are positioning for near-term downside or hedging, which can add selling pressure.

Institutional Trading of Southwest Airlines

Several hedge funds and other institutional investors have recently modified their holdings of LUV. MUFG Securities EMEA plc acquired a new position in shares of Southwest Airlines in the 2nd quarter valued at about $55,000. Ossiam acquired a new position in shares of Southwest Airlines in the second quarter worth $61,000. Brown Brothers Harriman & Co. boosted its position in Southwest Airlines by 159.0% during the third quarter. Brown Brothers Harriman & Co. now owns 2,370 shares of the airline’s stock valued at $76,000 after purchasing an additional 1,455 shares during the last quarter. Federated Hermes Inc. purchased a new position in Southwest Airlines in the second quarter valued at about $80,000. Finally, Danske Bank A S acquired a new position in Southwest Airlines in the third quarter worth approximately $108,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

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.