LUV Stock Earnings Estimates Increased by Zacks Research

Southwest Airlines Co. (NYSE:LUV) – Equities researchers at Zacks Research increased their Q3 2026 earnings estimates for Southwest Airlines in a research report issued to clients and investors on Wednesday, October 7th. Zacks Research analyst Team now forecasts that the airline will post earnings of $0.74 per share for the quarter, up from their prior forecast of $0.73. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $3.16 per share. Zacks Research also issued estimates for Southwest Airlines’ Q4 2026 earnings at $1.18 EPS, FY2026 earnings at $3.31 EPS, Q3 2027 earnings at $1.06 EPS, Q4 2027 earnings at $1.99 EPS, FY2027 earnings at $5.02 EPS, Q3 2028 earnings at $1.07 EPS and FY2028 earnings at $5.90 EPS.

Several other brokerages have also recently issued reports on LUV. Wells Fargo & Company raised 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. Barclays reduced their target price on shares of Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating for the company in a report on Friday, September 11th. TD Cowen dropped their price target on shares of Southwest Airlines from $48.00 to $47.00 and set a “buy” rating on the stock in a research note on Friday, October 2nd. BMO Capital Markets cut their price objective on shares of Southwest Airlines from $60.00 to $50.00 and set an “outperform” rating for the company in a research report on Monday, September 28th. Finally, Jefferies Financial Group upped their price objective on Southwest Airlines from $44.00 to $50.00 and gave the stock a “hold” rating in a research note on Wednesday, July 1st. 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’s stock. According to data from MarketBeat, Southwest Airlines presently has an average rating of “Hold” and an average price target of $47.45.

Southwest Airlines Stock Performance

Shares of LUV opened at $41.77 on Thursday. The firm has a market capitalization of $20.43 billion, a P/E ratio of 25.62, a PEG ratio of 0.41 and a beta of 1.16. The company has a debt-to-equity ratio of 0.54, a current ratio of 0.49 and a quick ratio of 0.42. Southwest Airlines has a one year low of $29.26 and a one year high of $55.11. The business has a fifty day moving average of $41.92 and a 200 day moving average of $42.75.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 EPS for the quarter, topping analysts’ consensus estimates of $0.52 by $0.42. The business had revenue of $8.72 billion during the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a net margin of 2.78% and a return on equity of 14.15%. The firm’s revenue was up 16.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.43 EPS. 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.

Southwest Airlines Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 24th. Shareholders of record on Thursday, September 3rd were given a $0.18 dividend. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date was Thursday, September 3rd. Southwest Airlines’s dividend payout ratio is presently 44.17%.

Institutional Trading of Southwest Airlines

Hedge funds and other institutional investors have recently modified their holdings of the company. Primecap Management Co. CA purchased a new position in shares of Southwest Airlines during the 2nd quarter valued at $2,509,179,000. BlackRock Inc. purchased a new stake in Southwest Airlines in the 2nd quarter worth $1,538,382,000. Bank of New York Mellon Corp bought a new stake in Southwest Airlines during the second quarter valued at about $234,872,000. Dimensional Fund Advisors LP raised its holdings in Southwest Airlines by 2.1% during the first quarter. Dimensional Fund Advisors LP now owns 5,763,154 shares of the airline’s stock valued at $216,472,000 after acquiring an additional 117,833 shares during the period. Finally, Capitolis Liquid Global Markets LLC lifted its position in shares of Southwest Airlines by 51.4% in the fourth quarter. Capitolis Liquid Global Markets LLC now owns 3,443,500 shares of the airline’s stock valued at $142,320,000 after acquiring an additional 1,169,150 shares in the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Key Southwest Airlines News

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

• Positive Sentiment: Southwest launched a first-of-its-kind U.S. airline plugin in ChatGPT, allowing customers to discover destinations, plan trips and shop for flights through an AI-powered experience developed with OpenAI and Amazon Web Services. The initiative could help Southwest reach travelers earlier in the booking process and improve customer engagement. Southwest Airlines launches ChatGPT airline plugin
• Neutral Sentiment: Susquehanna lowered its Southwest price target from $50 to $45 while maintaining a neutral rating. The revised target still implies potential upside from the current trading level, but the reduction signals more limited expectations. Susquehanna sets new Southwest price target
• Neutral Sentiment: Analyst views remain divided: Citi assigned a hold rating, while Bank of America reaffirmed its sell rating, highlighting uncertainty about Southwest’s earnings outlook and valuation.
• Negative Sentiment: Zacks Research downgraded LUV from “Hold” to “Strong Sell” and named Southwest its Bear of the Day. The downgrade adds fresh negative sentiment and may encourage additional selling. Zacks names Southwest Bear of the Day
• Negative Sentiment: Airline shares are being targeted by short sellers amid higher fuel costs and concerns that geopolitical tensions could keep oil prices elevated, creating a risk to Southwest’s profitability. Airline stocks face short-selling pressure

Southwest Airlines Company Profile

Southwest Airlines Co is a U.S. commercial airline headquartered in Dallas, Texas, and listed on the New York Stock Exchange under the symbol LUV. The company was founded in 1967 and began operating scheduled passenger service in 1971, initially serving cities in Texas before expanding across the United States.

Southwest primarily provides scheduled air transportation for passengers and also offers air cargo services. Its operations are centered on a large Boeing 737 fleet, supporting frequent service between major cities and regional airports.