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 guidance of 4.000- for the period, compared to the consensus earnings per share estimate of 2.310. The company issued revenue guidance of -. Southwest Airlines also updated its Q1 2026 guidance to 0.450- EPS.

Southwest Airlines Price Performance

Shares of LUV stock traded up $0.53 during trading hours on Friday, reaching $49.03. The stock had a trading volume of 1,810,488 shares, compared to its average volume of 9,585,461. The stock’s fifty day simple moving average is $40.42 and its 200 day simple moving average is $35.14. The firm has a market capitalization of $25.36 billion, a PE ratio of 58.46, a PEG ratio of 0.37 and a beta of 1.16. 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 has a 12 month low of $23.82 and a 12 month high of $49.85.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.11% and a net margin of 1.57%.The company had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter last year, the business posted $0.56 earnings per share. The firm’s revenue was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS. On average, equities research analysts predict that Southwest Airlines will post 1.55 EPS for the current year.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, January 16th. Investors of record on Friday, December 26th were given a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Friday, December 26th. Southwest Airlines’s dividend payout ratio is 110.77%.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Susquehanna lifted their target price on shares of Southwest Airlines from $35.00 to $45.00 and gave the company a “neutral” rating in a research report on Friday, January 9th. Seaport Research Partners upped their target price on shares of Southwest Airlines from $57.00 to $58.00 in a research report on Thursday. BMO Capital Markets upgraded Southwest Airlines from a “market perform” rating to an “outperform” rating and raised their price target for the company from $43.00 to $57.50 in a research report on Friday. JPMorgan Chase & Co. upgraded Southwest Airlines from an “underweight” rating to an “overweight” rating and upped their price objective for the stock from $36.00 to $60.00 in a report on Friday, January 9th. Finally, Bank of America raised their price objective on Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a report on Friday. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $44.34.

Key Headlines Impacting Southwest Airlines

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

• Positive Sentiment: Management raised FY‑2026 adjusted EPS guidance to at least $4.00 and described the company’s business transformation (assigned seating, bag/seat fees) as driving materially higher revenue and profits — the core catalyst for today’s rally. Press Release
• Positive Sentiment: Major analyst upgrades/price‑target raises contributed to the upside: Morgan Stanley moved to an “overweight” and lifted its target to $55, signaling confidence that the company can regain pre‑pandemic economics. Benzinga
• Positive Sentiment: BMO upgraded LUV from “market perform” to “outperform” and raised its target to $57.50, another bullish vote that likely supports buying interest. Benzinga TickerReport
• Positive Sentiment: Q4 results showed an EPS beat and improving operating metrics (EPS topped estimates; revenue growth and operating profit gains helped sentiment). Zacks: Q4 Results
• Neutral Sentiment: Other analysts raised targets modestly or kept in‑line ratings (Evercore ISI to $45 in‑line), reflecting mixed views on valuation despite the stronger outlook. AmericanBankingNews
• Neutral Sentiment: Street research roundups and transcripts are circulating (conference call/transcript coverage), helping investors re‑price LUV based on management commentary. 24/7 Wall St. roundup
• Negative Sentiment: Not all analysts are unequivocally bullish — Bank of America raised its target to $42 but kept an “underperform” stance, implying meaningful downside relative to current levels and signaling valuation/execution concerns. Benzinga
• Negative Sentiment: Management’s Q1 guidance (approx. $0.45) came in below consensus, indicating potential short‑term pressure even as full‑year guidance is strong — keep an eye on near‑term revenue/unit‑revenue trends. Press Release
• Negative Sentiment: Unusual options activity (spike in put purchases) suggests some investors are hedging or expressing near‑term caution, which can amplify volatility.

Institutional Trading of Southwest Airlines

A number of hedge funds have recently modified their holdings of the business. CIBC Private Wealth Group LLC lifted its stake in Southwest Airlines by 3.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 15,562 shares of the airline’s stock valued at $497,000 after acquiring an additional 462 shares during the period. Captrust Financial Advisors raised its stake in Southwest Airlines by 12.9% during the 3rd quarter. Captrust Financial Advisors now owns 80,668 shares of the airline’s stock valued at $2,574,000 after purchasing an additional 9,187 shares during the period. Coldstream Capital Management Inc. grew its holdings in Southwest Airlines by 10.2% during the 3rd quarter. Coldstream Capital Management Inc. now owns 7,995 shares of the airline’s stock valued at $255,000 after buying an additional 737 shares in the last quarter. Danske Bank A S bought a new position in shares of Southwest Airlines during the 3rd quarter valued at approximately $108,000. Finally, Advisory Services Network LLC purchased a new position in shares of Southwest Airlines in the third quarter valued at $248,000. Institutional investors 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.