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

Southwest Airlines (NYSE:LUV) issued an update on its third quarter 2026 earnings guidance on Wednesday morning. 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.

Analysts Set New Price Targets

LUV has been the topic of several research reports. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a research report on Sunday, July 5th. Citigroup raised their price objective on shares of Southwest Airlines from $44.00 to $55.00 and gave the stock a “neutral” rating in a report on Friday, June 26th. HSBC upgraded shares of Southwest Airlines from a “reduce” rating to a “hold” rating and lifted their price objective for the company from $24.40 to $36.10 in a research note on Friday, April 24th. Argus dropped their target price on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating on the stock in a research report on Friday, April 24th. Finally, BMO Capital Markets lifted their price target on Southwest Airlines from $45.00 to $58.50 and gave the company an “outperform” rating in a research report on Thursday, July 2nd. Nine investment analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $49.58.

Southwest Airlines Trading Down 2.2%

Shares of LUV stock opened at $47.61 on Thursday. The company has a market capitalization of $23.27 billion, a PE ratio of 30.71, a price-to-earnings-growth ratio of 0.46 and a beta of 1.12. Southwest Airlines has a 52-week low of $28.98 and a 52-week high of $55.11. The business’s fifty day moving average is $45.77 and its 200 day moving average is $44.26. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping the consensus estimate of $0.52 by $0.42. The business had revenue of $8.72 billion during the quarter, compared to analysts’ expectations of $8.58 billion. Southwest Airlines had a return on equity of 10.66% and a net margin of 2.83%.The firm’s revenue was up 16.4% on a year-over-year basis. During the same period in the previous year, the business earned $0.43 earnings per share. 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. On average, equities research analysts anticipate that Southwest Airlines will post 3.23 EPS for the current fiscal year.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were issued a dividend of $0.18 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s payout ratio is presently 46.45%.

Southwest Airlines News Summary

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

• Positive Sentiment: Southwest posted Q2 EPS of $0.94, well above the consensus estimate of $0.52, and revenue of $8.72 billion also came in ahead of expectations. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Positive Sentiment: The company said Q2 profit rose more than 9% as higher fares helped offset fuel costs, and management highlighted record revenue, margin expansion, and strong customer demand. Southwest Airlines profit jumps 9% as passengers pick up fuel tab, but third-quarter forecast falls short
• Neutral Sentiment: Southwest raised its full-year adjusted EPS outlook to $3.25 to $4.25, which is above the current consensus estimate, suggesting management still expects solid profitability for the year. MarketBeat Southwest Airlines stock report
• Negative Sentiment: Despite the strong quarter, the airline’s third-quarter EPS guidance of $0.50 to $0.75 came in below Wall Street expectations, raising concern that earnings momentum may slow. Southwest Airlines Stock Slides as Q3 Guidance Comes in Light
• Negative Sentiment: Southwest also cut its full-year outlook from an earlier target of at least $4 per share, citing higher fuel expenses, which is likely weighing on the stock today. Southwest Cuts Full-Year Outlook as Fuel Expenses Weigh on Second-Quarter Profit

Institutional Investors Weigh In On Southwest Airlines

Several hedge funds have recently bought and sold shares of the stock. AQR Capital Management LLC raised its position in shares of Southwest Airlines by 100.6% during the 1st quarter. AQR Capital Management LLC now owns 39,347 shares of the airline’s stock valued at $1,303,000 after buying an additional 19,729 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in Southwest Airlines by 5.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 61,060 shares of the airline’s stock worth $2,050,000 after acquiring an additional 3,141 shares in the last quarter. Empowered Funds LLC increased its stake in Southwest Airlines by 7.6% in the first quarter. Empowered Funds LLC now owns 7,459 shares of the airline’s stock valued at $250,000 after acquiring an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Southwest Airlines by 73.4% during the second quarter. EverSource Wealth Advisors LLC now owns 5,690 shares of the airline’s stock valued at $185,000 after purchasing an additional 2,408 shares in the last quarter. Finally, First Trust Advisors LP lifted its stake in Southwest Airlines by 47.4% during the second quarter. First Trust Advisors LP now owns 307,602 shares of the airline’s stock worth $9,979,000 after purchasing an additional 98,986 shares during the last quarter. 80.82% of the stock is currently owned by institutional investors.

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.