Zacks Research Has Negative Estimate for LUV Q1 Earnings

Southwest Airlines Co. (NYSE:LUV) – Equities research analysts at Zacks Research lowered their Q1 2026 earnings per share (EPS) estimates for Southwest Airlines in a research note issued to investors on Thursday, March 12th. Zacks Research analyst Team now expects that the airline will post earnings of $0.40 per share for the quarter, down from their previous forecast of $0.45. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.55 per share. Zacks Research also issued estimates for Southwest Airlines’ Q2 2026 earnings at $1.29 EPS, Q3 2026 earnings at $0.85 EPS, Q4 2026 earnings at $1.36 EPS, FY2026 earnings at $3.90 EPS, Q1 2027 earnings at $0.49 EPS, Q2 2027 earnings at $1.36 EPS, Q3 2027 earnings at $0.91 EPS, Q4 2027 earnings at $1.95 EPS and FY2027 earnings at $4.71 EPS.

Southwest Airlines (NYSE:LUV) last released its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business had revenue of $7.44 billion during the quarter, compared to analyst estimates of $7.51 billion. During the same period in the prior year, the firm posted $0.56 EPS. Southwest Airlines’s quarterly 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.

Other research analysts have also issued reports about the stock. Sanford C. Bernstein raised their price target on shares of Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research report on Thursday, November 20th. JPMorgan Chase & Co. raised shares of 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 research report on Friday, January 9th. Wall Street Zen lowered shares of Southwest Airlines from a “buy” rating to a “hold” rating in a research note on Saturday. Seaport Research Partners boosted their target price on Southwest Airlines from $57.00 to $58.00 in a research note on Thursday, January 29th. Finally, TD Cowen reduced their target price on Southwest Airlines from $66.00 to $55.00 and set a “buy” rating for the company in a report on Monday, March 9th. Eight research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $46.29.

Southwest Airlines Price Performance

LUV opened at $40.18 on Monday. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $55.11. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The company has a market capitalization of $19.74 billion, a price-to-earnings ratio of 47.84, a P/E/G ratio of 0.28 and a beta of 1.10. The firm’s fifty day moving average price is $46.63 and its two-hundred day moving average price is $38.79.

Hedge Funds Weigh In On Southwest Airlines

Several large investors have recently modified their holdings of LUV. Elevation Point Wealth Partners LLC purchased a new stake in shares of Southwest Airlines during the 2nd quarter valued at approximately $25,000. SHP Wealth Management purchased a new position in Southwest Airlines in the 4th quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new stake in Southwest Airlines during the 4th quarter valued at $26,000. Entrust Financial LLC bought a new stake in Southwest Airlines during the 4th quarter valued at $26,000. Finally, Los Angeles Capital Management LLC purchased a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be issued a dividend of $0.18 per share. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $0.72 annualized dividend and a yield of 1.8%. Southwest Airlines’s dividend payout ratio is 85.71%.

Southwest Airlines News Summary

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

• Positive Sentiment: UBS lowered its price target on LUV to $59 but kept a “buy” rating, noting upside from current levels; the note supports constructive sentiment despite the cut. Read More.
• Positive Sentiment: UBS says US airline stocks may be near a bottom even after recent declines and expects many carriers to hit the midpoint of Q1 guidance, which helps sector-wide sentiment. Read More.
• Positive Sentiment: A short-term sector rebound — airlines rallied after two rough weeks when jet fuel spiked — is lifting peers including LUV. Read More.
• Neutral Sentiment: Airline CEOs urged Congress to end a government shutdown to avoid travel disruptions over spring break — this is an industry-wide operational risk rather than a Southwest-specific issue. Read More.
• Negative Sentiment: UBS cut price targets and estimates across its U.S. airline coverage, citing “significant uncertainty” around fuel costs and 2026 outlook — a headwind for valuation and analyst sentiment. Read More.
• Negative Sentiment: Wells Fargo trimmed its LUV target from $50 to $44 and moved to an “equal weight” rating, reducing near-term upside expectations. Read More. Read More.
• Negative Sentiment: Southwest will stop flying to Chicago O’Hare and Washington Dulles starting June 4, a network change that could lower revenue from those markets and upset some customers. Read More.
• Negative Sentiment: Longtime flyers are publicly reacting negatively to changes in Southwest’s A-List benefits, signaling potential customer-satisfaction and loyalty risks. Read More.
• Negative Sentiment: Zacks Research has issued negative earnings estimates for LUV, adding downward pressure to near-term expectations. Read More.

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.