Southwest Airlines (NYSE:LUV) Posts Earnings Results

Southwest Airlines (NYSE:LUV) released its quarterly earnings data on Wednesday. The airline reported $0.94 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.42, FiscalAI reports. The firm had revenue of $8.72 billion for the quarter, compared to analyst estimates of $8.58 billion. Southwest Airlines had a net margin of 2.83% and a return on equity of 10.66%. The business’s quarterly revenue was up 16.4% compared to the same quarter last year. During the same period last year, the firm earned $0.43 earnings per share. Southwest Airlines updated its FY 2026 guidance to 3.250-4.250 EPS and its Q3 2026 guidance to 0.500-0.750 EPS.

Southwest Airlines Trading Down 2.2%

Shares of LUV opened at $47.61 on Thursday. The business has a 50-day moving average of $45.77 and a 200 day moving average of $44.26. Southwest Airlines has a fifty-two week low of $28.98 and a fifty-two week high of $55.11. The firm has a market cap of $23.27 billion, a P/E ratio of 30.71, a price-to-earnings-growth ratio of 0.46 and a beta of 1.12. The company has a debt-to-equity ratio of 0.66, a quick ratio of 0.41 and a current ratio of 0.48.

Southwest Airlines Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, July 2nd. Stockholders of record on Thursday, June 11th were paid a dividend of $0.18 per share. The ex-dividend date was Thursday, June 11th. This represents a $0.72 annualized dividend and a dividend yield of 1.5%. Southwest Airlines’s dividend payout ratio is presently 46.45%.

Analyst Ratings Changes

Several analysts have recently commented on LUV shares. JPMorgan Chase & Co. lowered their target price on shares of Southwest Airlines from $58.00 to $56.00 in a report on Friday, March 27th. Bank of America raised their target price on Southwest Airlines from $40.00 to $45.00 and gave the company an “underperform” rating in a research report on Wednesday, July 1st. Weiss Ratings upgraded Southwest Airlines from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday. Wall Street Zen raised shares of Southwest Airlines from a “hold” rating to a “buy” rating in a report on Sunday, July 5th. Finally, The Goldman Sachs Group boosted their price target on shares of Southwest Airlines from $30.00 to $35.00 and gave the stock a “sell” rating in a report on Thursday, July 2nd. Nine investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat.com, Southwest Airlines has a consensus rating of “Hold” and a consensus price target of $49.58.

Institutional Investors Weigh In On Southwest Airlines

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

Southwest Airlines News Summary

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

• Positive Sentiment: Southwest posted Q2 EPS of $0.94, well above the consensus estimate of $0.52, and revenue of $8.72 billion also came in ahead of expectations. Southwest Airlines Reports Second Quarter 2026 Results; Earnings Power on Full Display
• Positive Sentiment: The company said Q2 profit rose more than 9% as higher fares helped offset fuel costs, and management highlighted record revenue, margin expansion, and strong customer demand. Southwest Airlines profit jumps 9% as passengers pick up fuel tab, but third-quarter forecast falls short
• Neutral Sentiment: Southwest raised its full-year adjusted EPS outlook to $3.25 to $4.25, which is above the current consensus estimate, suggesting management still expects solid profitability for the year. MarketBeat Southwest Airlines stock report
• Negative Sentiment: Despite the strong quarter, the airline’s third-quarter EPS guidance of $0.50 to $0.75 came in below Wall Street expectations, raising concern that earnings momentum may slow. Southwest Airlines Stock Slides as Q3 Guidance Comes in Light
• Negative Sentiment: Southwest also cut its full-year outlook from an earlier target of at least $4 per share, citing higher fuel expenses, which is likely weighing on the stock today. Southwest Cuts Full-Year Outlook as Fuel Expenses Weigh on Second-Quarter Profit

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.