Southwest Airlines (NYSE:LUV) Updates Q2 2026 Earnings Guidance

Southwest Airlines (NYSE:LUV) issued an update on its second quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 0.350-0.650 for the period, compared to the consensus earnings per share estimate of 0.600. The company issued revenue guidance of -.

Southwest Airlines Price Performance

Shares of LUV stock opened at $37.79 on Friday. The stock has a 50 day moving average of $42.96 and a two-hundred day moving average of $40.14. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12 month low of $24.63 and a 12 month high of $55.11. The company has a market capitalization of $18.56 billion, a P/E ratio of 24.38, a P/E/G ratio of 0.44 and a beta of 1.19.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings data on Wednesday, April 22nd. The airline reported $0.45 EPS for the quarter, hitting analysts’ consensus estimates of $0.45. Southwest Airlines had a return on equity of 10.30% and a net margin of 2.83%.The company had revenue of $7.25 billion during the quarter, compared to the consensus estimate of $8.46 billion. During the same quarter last year, the company earned ($0.13) EPS. The company’s quarterly revenue was up 12.8% on a year-over-year basis. Southwest Airlines has set its Q2 2026 guidance at 0.350-0.650 EPS. As a group, equities analysts expect that Southwest Airlines will post 2.72 EPS for the current year.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th were given a $0.18 dividend. The ex-dividend date was Thursday, March 12th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.9%. Southwest Airlines’s dividend payout ratio (DPR) is currently 85.71%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on LUV. Susquehanna dropped their target price on Southwest Airlines from $55.00 to $42.00 and set a “neutral” rating for the company in a report on Thursday, April 2nd. Rothschild & Co Redburn increased their target price on Southwest Airlines from $27.00 to $35.00 and gave the stock a “sell” rating in a report on Thursday, March 5th. Weiss Ratings reissued a “hold (c)” rating on shares of Southwest Airlines in a report on Friday, March 27th. Bank of America dropped their target price on Southwest Airlines from $42.00 to $40.00 and set an “underperform” rating for the company in a report on Wednesday, April 1st. Finally, The Goldman Sachs Group dropped their target price on Southwest Airlines from $32.00 to $30.00 and set a “sell” rating for the company in a report on Wednesday, April 1st. Eight analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $44.22.

More Southwest Airlines News

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

• Positive Sentiment: Management says its transformation initiatives are in place and drove margin expansion, record first‑quarter revenues and improved operating performance — a structural improvement investors can model into future margins. Read More.
• Positive Sentiment: Raymond James raised its price target, citing stronger-than-expected margin performance from the transformation and higher unit revenues — a sign some analysts view the company’s strategy as working despite headwinds. Read More.
• Neutral Sentiment: Q1 results: EPS of $0.45 met consensus and the company reported $7.25B in revenue (year‑over‑year revenue growth), showing recovery in demand but only modest upside versus expectations. Read More.
• Neutral Sentiment: Analyst notes and transcripts: Earnings‑call transcripts and coverage highlight a turnaround in commercial execution while flagging key risks — useful for modeling scenarios but not a definitive buy/sell trigger. Read More.
• Negative Sentiment: Rising jet‑fuel costs are the dominant near‑term risk — management said higher fuel for the remainder of the year and warned that full‑year guidance is “at risk,” which increases forecast uncertainty and compresses margins. Read More.
• Negative Sentiment: Q2 guidance came in below some analysts’ expectations (EPS guide 0.35–0.65 with midpoint under consensus) and management said updating FY adjusted EPS isn’t productive amid macro/fuel uncertainty — a key reason the shares faded. Read More.
• Negative Sentiment: Multiple market writeups warn the stock may not be priced for a sustained fuel shock; headlines and broker notes are amplifying downside risk until fuel costs stabilize. Read More.

Institutional Investors Weigh In On Southwest Airlines

Hedge funds and other institutional investors have recently bought and sold shares of the business. Los Angeles Capital Management LLC acquired a new stake in Southwest Airlines during the 4th quarter valued at $26,000. DV Equities LLC acquired a new stake in Southwest Airlines during the 4th quarter valued at $30,000. Quarry LP acquired a new stake in Southwest Airlines during the 4th quarter valued at $35,000. IFC & Insurance Marketing Inc. acquired a new stake in Southwest Airlines during the 4th quarter valued at $47,000. Finally, Strive Financial Group LLC acquired a new stake in Southwest Airlines during the 4th quarter valued at $50,000. 80.82% of the stock is owned by institutional investors and hedge funds.

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.