Zacks Research Has Negative Forecast for LUV FY2026 Earnings

Southwest Airlines Co. (NYSE:LUV) – Investment analysts at Zacks Research reduced their FY2026 earnings per share estimates for Southwest Airlines in a report released on Wednesday, November 4th. Zacks Research analyst Team now anticipates that the airline will earn $2.85 per share for the year, down from their prior estimate of $3.31. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $2.77 per share. Zacks Research also issued estimates for Southwest Airlines’ Q4 2026 earnings at $0.80 EPS, Q1 2027 earnings at $0.38 EPS, Q4 2027 earnings at $1.03 EPS, FY2027 earnings at $3.71 EPS, Q1 2028 earnings at $0.65 EPS, Q2 2028 earnings at $1.88 EPS, Q3 2028 earnings at $1.46 EPS and FY2028 earnings at $5.56 EPS.

Southwest Airlines (NYSE:LUV) last released its earnings results on Wednesday, October 21st. The airline reported $0.66 EPS for the quarter, beating the consensus estimate of $0.57 by $0.09. Southwest Airlines had a return on equity of 18.05% and a net margin of 3.34%. The company had revenue of $8.42 billion during the quarter, compared to analysts’ expectations of $8.25 billion. During the same period in the prior year, the business posted $0.11 EPS. The business’s revenue was up 21.2% on a year-over-year basis.

A number of other equities research analysts have also issued reports on the stock. Raymond James Financial cut their target price on shares of Southwest Airlines from $60.00 to $54.00 and set an “outperform” rating on the stock in a research note on Monday, August 24th. Tigress Financial began coverage on Southwest Airlines in a research note on Friday, October 30th. They issued a “buy” rating and a $62.00 price target for the company. Susquehanna lowered their price objective on Southwest Airlines from $50.00 to $45.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Citigroup cut their price objective on Southwest Airlines from $55.00 to $50.00 and set a “neutral” rating on the stock in a research note on Friday, July 24th. Finally, Barclays cut their price objective on Southwest Airlines from $65.00 to $58.00 and set an “overweight” rating on the stock in a research note on Friday, September 11th. Eleven analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Southwest Airlines has an average rating of “Hold” and a consensus price target of $48.20.

Southwest Airlines Trading Down 4.4%

NYSE LUV opened at $44.39 on Friday. Southwest Airlines has a 12 month low of $30.84 and a 12 month high of $55.11. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.47 and a quick ratio of 0.40. The company has a market capitalization of $21.73 billion, a price-to-earnings ratio of 21.34, a price-to-earnings-growth ratio of 0.67 and a beta of 1.23. The company’s fifty day moving average price is $41.07 and its two-hundred day moving average price is $43.52.

Institutional Trading of Southwest Airlines

Institutional investors and hedge funds have recently modified their holdings of the business. Primecap Management Co. CA bought a new stake in shares of Southwest Airlines during the 2nd quarter valued at about $2,509,179,000. BlackRock Inc. acquired a new stake in Southwest Airlines during the second quarter worth about $1,538,382,000. Dimensional Fund Advisors LP raised its stake 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 worth $216,472,000 after acquiring an additional 117,833 shares during the period. Bank of New York Mellon Corp acquired a new stake in Southwest Airlines during the second quarter worth about $234,872,000. Finally, U S Global Investors Inc. lifted its holdings in Southwest Airlines by 13.9% in the third quarter. U S Global Investors Inc. now owns 2,260,841 shares of the airline’s stock worth $94,141,000 after acquiring an additional 275,204 shares during the last quarter. 80.82% of the stock is owned by institutional investors and hedge funds.

Southwest Airlines News Summary

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

• Positive Sentiment: Zacks Research raised its 2028 EPS estimates for Q2 to $1.88 from $1.29 and Q3 to $1.46 from $1.07, signaling improved expectations for those quarters. Southwest Airlines analyst estimates
• Neutral Sentiment: An article points to falling oil prices as a potential tailwind for travel companies through lower fuel costs. The effect on Southwest was not quantified in the article. 3 Consumer And Travel Stocks To Watch As Oil Falls And The Dollar Softens
• Negative Sentiment: Zacks cut its full-year EPS forecasts to $2.85 for 2026 from $3.31, $3.71 for 2027 from $5.02, and $5.56 for 2028 from $5.90. It also reduced estimates for Q4 2026, Q1 2027, Q4 2027, and Q1 2028. The broad downward revisions—and Zacks’ “Strong Sell” rating—suggest weaker earnings expectations, despite the increases to Q2 and Q3 2028 forecasts. Southwest Airlines analyst estimates

About Southwest Airlines

Southwest Airlines Co is a major U.S. passenger airline headquartered in Dallas, Texas. The company provides scheduled air transportation for leisure and business travelers, with service connecting cities throughout the United States and selected destinations in Mexico, the Caribbean, and Central America.

Southwest is known for its predominantly domestic network and point-to-point operating model. In addition to passenger flights, the company offers ancillary services and air cargo transportation.