Southwest Airlines (NYSE:LUV) Posts Earnings Results, Hits Expectations

23 Apr 2026, 10:34 by Renee Jackson · The Cerbat Gem

Southwest Airlines (NYSE:LUV – Get Free Report) posted its quarterly earnings results on Wednesday. The airline reported $0.45 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.45, FiscalAI reports. The business had revenue of $7.25 billion during the quarter, compared to analyst estimates of $8.46 billion. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business’s revenue was up 12.8% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.13) earnings per share. Southwest Airlines updated its Q2 2026 guidance to 0.350-0.650 EPS.

Southwest Airlines Trading Down 2.7%

Southwest Airlines stock traded down $1.06 during mid-day trading on Thursday, hitting $38.29. The company’s stock had a trading volume of 1,809,300 shares, compared to its average volume of 9,527,045. Southwest Airlines has a 1 year low of $24.63 and a 1 year high of $55.11. The stock’s fifty day moving average is $43.22 and its two-hundred day moving average is $40.16. The firm has a market capitalization of $18.80 billion, a PE ratio of 45.66, a price-to-earnings-growth ratio of 0.46 and a beta of 1.19. 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 Announces Dividend

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the company. Invesco Ltd. boosted its position in shares of Southwest Airlines by 9.2% during the third quarter. Invesco Ltd. now owns 6,837,197 shares of the airline’s stock worth $218,175,000 after buying an additional 577,326 shares during the period. Morgan Stanley boosted its position in shares of Southwest Airlines by 4.1% during the fourth quarter. Morgan Stanley now owns 6,228,475 shares of the airline’s stock worth $257,423,000 after buying an additional 244,891 shares during the period. Jacobs Levy Equity Management Inc. boosted its position in shares of Southwest Airlines by 2.9% during the third quarter. Jacobs Levy Equity Management Inc. now owns 3,625,754 shares of the airline’s stock worth $115,698,000 after buying an additional 101,236 shares during the period. Charles Schwab Investment Management Inc. boosted its position in shares of Southwest Airlines by 2.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,494,789 shares of the airline’s stock worth $144,440,000 after buying an additional 69,543 shares during the period. Finally, Nearwater Capital Markets Ltd boosted its position in shares of Southwest Airlines by 75.0% during the fourth quarter. Nearwater Capital Markets Ltd now owns 2,800,000 shares of the airline’s stock worth $115,724,000 after buying an additional 1,200,000 shares during the period. 80.82% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Wall Street Zen lowered Southwest Airlines from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Citigroup lowered their price objective on Southwest Airlines from $54.00 to $44.00 and set a “neutral” rating for the company in a research report on Friday, March 20th. Evercore increased their price objective on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research report on Thursday, January 29th. Seaport Research Partners increased their price objective on Southwest Airlines from $57.00 to $58.00 in a research report on Thursday, January 29th. Finally, Zacks Research lowered Southwest Airlines from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, March 11th. Eight investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, Southwest Airlines presently has an average rating of “Hold” and an average target price of $44.22.

Get Our Latest Stock Analysis on Southwest Airlines

Trending Headlines about Southwest Airlines

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

Positive Sentiment: Record Q1 top-line and margin improvement: Southwest reported a first-quarter operating revenue record and said business-transformation initiatives delivered meaningful margin expansion and strong operating cash flow, showing the company’s revenue actions are working. SOUTHWEST AIRLINES REPORTS FIRST-QUARTER RESULTS
Positive Sentiment: EPS in line with expectations: Southwest reported $0.45 EPS for Q1, roughly meeting consensus and marking a return to profitability versus a loss a year earlier. Southwest Airlines (LUV) Q1 Earnings Match Estimates
Neutral Sentiment: Mixed analyst views: BNP Paribas Exane raised its price target but kept an underperform rating, reflecting divergent analyst sentiment despite operational improvements. BNP Paribas Exane Forecasts Strong Price Appreciation for Southwest Airlines (NYSE:LUV) Stock
Negative Sentiment: Q2 guidance disappointed: Southwest set Q2 EPS guidance of $0.35–$0.65 versus a consensus near $0.60 (midpoint below street), prompting investor concern that near-term profitability will be weaker than expected. Southwest Airlines forecasts second-quarter profit below estimates as fuel costs soar
Negative Sentiment: Rising jet fuel and macro uncertainty: Management cited higher fuel costs (partly tied to Middle East tensions) and broader economic uncertainty, and withheld a FY2026 profit update — signaling risk to margins and longer-term guidance. Southwest Airlines withholds FY26 profit update on high fuel costs, macroeconomic uncertainty
Negative Sentiment: Sector-wide fuel pressure: Other U.S. carriers (e.g., American, United) have cut or trimmed outlooks because of a multi-billion-dollar jet fuel hit — reinforcing investor concerns that industry margins will be squeezed. American Airlines Cuts Guidance, Flags $4 Billion Jet Fuel Hit
Negative Sentiment: Immediate market reaction: Stocks sold off after the report and guidance—traders are re-pricing LUV for the fuel headwind and the lower Q2 midpoint despite the operational progress. Southwest Airlines Stock Falls On Q1 Results, Guidance

Southwest Airlines Company Profile

(Get Free Report)

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.