Southwest Airlines (NYSE:LUV) Updates Q3 2026 Earnings Guidance

Southwest Airlines (NYSE:LUV) issued an update on its third quarter 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 0.500-0.750 for the period, compared to the consensus estimate of 0.720. The company issued revenue guidance of -. Southwest Airlines also updated its FY 2026 guidance to 3.250-4.250 EPS.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on LUV. Barclays boosted their price target on Southwest Airlines from $56.00 to $65.00 and gave the stock an “overweight” rating in a research note on Thursday, June 25th. Argus reduced their price objective on Southwest Airlines from $55.00 to $45.00 and set a “buy” rating for the company in a report on Friday, April 24th. TD Cowen lifted their price objective on Southwest Airlines from $47.00 to $53.00 and gave the stock a “buy” rating in a report on Thursday, July 2nd. Weiss Ratings upgraded shares of Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday. Finally, Jefferies Financial Group raised their price target on shares of Southwest Airlines from $44.00 to $50.00 and gave the company a “hold” rating in a report on Wednesday, July 1st. Nine investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $49.58.

Southwest Airlines Stock Performance

Shares of LUV opened at $44.75 on Friday. The firm has a market capitalization of $21.87 billion, a P/E ratio of 27.45, a PEG ratio of 0.45 and a beta of 1.12. The company has a debt-to-equity ratio of 0.66, a current ratio of 0.48 and a quick ratio of 0.41. Southwest Airlines has a one year low of $28.98 and a one year high of $55.11. The business has a fifty day moving average of $45.88 and a 200 day moving average of $44.29.

Southwest Airlines (NYSE:LUV) last posted its earnings results on Wednesday, July 22nd. The airline reported $0.94 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42. The company had revenue of $8.72 billion for the quarter, compared to the consensus estimate of $8.58 billion. Southwest Airlines had a return on equity of 13.93% and a net margin of 2.78%.Southwest Airlines’s revenue was up 16.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.43 earnings per share. 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. As a group, sell-side analysts anticipate that Southwest Airlines will post 3.23 EPS for the current year.

Southwest Airlines Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were paid a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.6%. The ex-dividend date was Thursday, June 11th. Southwest Airlines’s dividend payout ratio is 46.45%.

Southwest Airlines News Summary

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

• Positive Sentiment: Southwest beat Q2 expectations with adjusted EPS of $0.94 versus $0.52 consensus, and revenue of $8.72 billion topped estimates, supported by record quarterly revenue, higher fares, and margin expansion. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Positive Sentiment: The company said its full-year EPS guide of $3.25 to $4.25 remains above the recent analyst consensus, suggesting improved earnings power despite cost pressure. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Neutral Sentiment: Southwest also highlighted transformational initiatives, broad demand strength, and strong Customer engagement, which support the long-term operating story. Southwest Airlines Co (LUV) Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Analysts and media coverage noted that airlines are dealing with volatile jet fuel prices, which are becoming a moving target for earnings forecasts across the sector. Fuel Swings Turn US Airline Earnings Forecasts Into Moving Targets
• Negative Sentiment: Investors are reacting to a softer Q3 outlook: Southwest guided third-quarter EPS to $0.50 to $0.75, below Wall Street’s expectation, while fuel costs rose by roughly $889 million. Southwest Airlines Profit Jumps 9% as Passengers Pick Up Fuel Tab, but Third-Quarter Forecast Falls Short
• Negative Sentiment: Southwest cut its full-year outlook, with fuel expense pressures and weaker near-term profit expectations overshadowing the earnings beat. Southwest Cuts Full-Year Outlook as Fuel Expenses Weigh on Second-Quarter Profit

Institutional Trading of Southwest Airlines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Corient Private Wealth LLC raised its stake in shares of Southwest Airlines by 25.8% in the fourth quarter. Corient Private Wealth LLC now owns 84,394 shares of the airline’s stock worth $3,284,000 after buying an additional 17,320 shares during the period. Strive Financial Group LLC bought a new position in shares of Southwest Airlines during the 4th quarter valued at approximately $50,000. Mercer Global Advisors Inc. ADV increased its holdings in Southwest Airlines by 8.1% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 60,423 shares of the airline’s stock worth $2,498,000 after acquiring an additional 4,502 shares in the last quarter. FAS Wealth Partners Inc. increased its holdings in Southwest Airlines by 6.2% in the 4th quarter. FAS Wealth Partners Inc. now owns 86,751 shares of the airline’s stock worth $3,585,000 after acquiring an additional 5,052 shares in the last quarter. Finally, EP Wealth Advisors LLC bought a new stake in Southwest Airlines during the 4th quarter worth approximately $298,000. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Company Profile

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.