Southwest Airlines (NYSE:LUV) Releases Q4 2026 Earnings Guidance

Southwest Airlines (NYSE:LUV) issued an update on its fourth quarter 2026 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 0.550-0.800 for the period, compared to the consensus earnings per share estimate of 0.880. Southwest Airlines also updated its FY 2026 guidance to 2.600-2.850 EPS.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on LUV shares. Susquehanna dropped their price objective on shares of Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Citigroup lowered their target price on Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating for the company in a research note on Friday, July 24th. Wells Fargo & Company boosted their target price on Southwest Airlines from $44.00 to $50.00 and gave the stock an “equal weight” rating in a research report on Tuesday, June 30th. TD Cowen dropped their target price on Southwest Airlines from $48.00 to $47.00 and set a “buy” rating for the company in a research report on Friday, October 2nd. Finally, Rothschild & Co Redburn raised Southwest Airlines from a “sell” rating to a “neutral” rating and upped their price target for the company from $35.00 to $40.00 in a research note on Friday, September 18th. Nine analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $47.41.

Southwest Airlines Trading Down 2.2%

LUV stock traded down $0.93 during midday trading on Friday, reaching $41.10. The company’s stock had a trading volume of 1,290,043 shares, compared to its average volume of 7,413,531. The business’s 50-day simple moving average is $40.62 and its 200-day simple moving average is $42.89. The company has a quick ratio of 0.42, a current ratio of 0.49 and a debt-to-equity ratio of 0.54. Southwest Airlines has a 52 week low of $29.26 and a 52 week high of $55.11. The stock has a market cap of $20.11 billion, a PE ratio of 25.21, a price-to-earnings-growth ratio of 1.06 and a beta of 1.16.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, October 21st. The airline reported $0.66 earnings per share for the quarter, beating the consensus estimate of $0.57 by $0.09. The firm had revenue of $8.42 billion for the quarter, compared to analyst estimates of $8.25 billion. Southwest Airlines had a return on equity of 18.07% and a net margin of 3.34%. The company’s quarterly revenue was up 21.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.11 earnings per share. As a group, sell-side analysts expect that Southwest Airlines will post 2.91 EPS for the current year.

Southwest Airlines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is presently 44.17%.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Record revenue and earnings beat: Third-quarter operating revenue rose 21.2% year over year to a record $8.42 billion, exceeding the roughly $8.25 billion consensus estimate. Adjusted EPS was $0.66 versus expectations of approximately $0.57, compared with $0.11 a year earlier. LUV Q3 Earnings Beat on Record Revenues and Higher Fares
• Positive Sentiment: Pricing power improved margins: Passenger revenue increased 22.8%, revenue per available seat mile climbed 21.6%, and the operating margin expanded to 4.5% from 0.5% a year ago. Higher fares, fees and resilient travel demand helped Southwest absorb an $821 million increase in fuel expense. Southwest Airlines posts record revenue as fuel costs surge
• Positive Sentiment: Near-term demand remains constructive: Management expects fourth-quarter adjusted EPS of $0.55 to $0.80 and projected fourth-quarter unit revenue growth of roughly 19% to 21%, supporting the view that demand and pricing momentum remain strong.
• Neutral Sentiment: Analyst caution: Wells Fargo issued a Hold rating, while Susquehanna reduced its price target to $43 from $45, suggesting limited near-term upside despite the earnings beat. Susquehanna Adjusts Price Target on Southwest Airlines
• Negative Sentiment: Fuel costs lowered the full-year outlook: Southwest cut its 2026 adjusted EPS forecast to $2.60–$2.85 as jet-fuel prices remain elevated. Management said it is planning for higher fuel costs to persist into 2027, creating an ongoing risk to margins and profitability. Southwest Airlines cuts 2026 profit forecast as fuel costs spike

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.