Q1 2026 Earnings Estimate for Southwest Airlines Co. (NYSE:LUV) Issued By Zacks Research

Southwest Airlines Co. (NYSE:LUV) – Research analysts at Zacks Research cut their Q1 2026 EPS estimates for Southwest Airlines in a note issued to investors on Thursday, August 8th. Zacks Research analyst S. Goswami now forecasts that the airline will post earnings per share of $0.48 for the quarter, down from their previous forecast of $0.57. The consensus estimate for Southwest Airlines’ current full-year earnings is $0.31 per share.

Several other analysts have also commented on LUV. Susquehanna dropped their price target on shares of Southwest Airlines from $27.00 to $25.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 30th. HSBC assumed coverage on Southwest Airlines in a research note on Monday, May 13th. They issued a “hold” rating and a $27.80 price target for the company. Barclays increased their price target on Southwest Airlines from $26.00 to $27.00 and gave the stock an “equal weight” rating in a research report on Wednesday, July 10th. Jefferies Financial Group downgraded Southwest Airlines from a “hold” rating to an “underperform” rating and reduced their target price for the stock from $28.00 to $20.00 in a research note on Monday, April 29th. Finally, Melius reissued a “sell” rating and issued a $26.00 price target on shares of Southwest Airlines in a research note on Monday, June 10th. Four equities research analysts have rated the stock with a sell rating, ten have given a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $28.47.

Southwest Airlines Price Performance

Shares of NYSE LUV opened at $25.42 on Monday. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.90 and a quick ratio of 0.85. The stock has a market capitalization of $15.23 billion, a price-to-earnings ratio of 40.35, a PEG ratio of 17.89 and a beta of 1.15. The firm’s 50 day simple moving average is $27.41 and its 200-day simple moving average is $28.83. Southwest Airlines has a 12 month low of $21.91 and a 12 month high of $35.18.

Southwest Airlines (NYSE:LUV) last issued its quarterly earnings data on Thursday, July 25th. The airline reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.51 by $0.07. The business had revenue of $7.40 billion during the quarter, compared to analysts’ expectations of $7.32 billion. Southwest Airlines had a return on equity of 5.92% and a net margin of 0.41%. The company’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.09 EPS.

Institutional Trading of Southwest Airlines

Hedge funds and other institutional investors have recently modified their holdings of the stock. Hexagon Capital Partners LLC increased its position in Southwest Airlines by 374.0% during the fourth quarter. Hexagon Capital Partners LLC now owns 858 shares of the airline’s stock worth $25,000 after purchasing an additional 677 shares during the last quarter. Capital Advisors Ltd. LLC raised its position in shares of Southwest Airlines by 82.8% during the 4th quarter. Capital Advisors Ltd. LLC now owns 914 shares of the airline’s stock valued at $26,000 after buying an additional 414 shares during the period. First Horizon Advisors Inc. acquired a new position in Southwest Airlines in the fourth quarter valued at approximately $29,000. ICA Group Wealth Management LLC purchased a new position in Southwest Airlines in the fourth quarter worth approximately $29,000. Finally, Ashton Thomas Private Wealth LLC acquired a new stake in Southwest Airlines during the second quarter worth $29,000. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 25th. Shareholders of record on Wednesday, September 4th will be paid a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a yield of 2.83%. The ex-dividend date of this dividend is Wednesday, September 4th. Southwest Airlines’s dividend payout ratio (DPR) is currently 114.29%.

About Southwest Airlines

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.