Q1 EPS Estimate for Southwest Airlines Decreased by Analyst

Southwest Airlines Co. (NYSE:LUV) – Zacks Research cut their Q1 2026 EPS estimates for shares of Southwest Airlines in a research report issued on Thursday, March 12th. Zacks Research analyst Team now forecasts that the airline will post earnings per share of $0.40 for the quarter, down from their previous estimate of $0.45. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.55 per share. Zacks Research also issued estimates for Southwest Airlines’ Q2 2026 earnings at $1.29 EPS, Q3 2026 earnings at $0.85 EPS, Q4 2026 earnings at $1.36 EPS, FY2026 earnings at $3.90 EPS, Q1 2027 earnings at $0.49 EPS, Q2 2027 earnings at $1.36 EPS, Q3 2027 earnings at $0.91 EPS, Q4 2027 earnings at $1.95 EPS and FY2027 earnings at $4.71 EPS.

A number of other brokerages have also issued reports on LUV. Sanford C. Bernstein raised their price target on Southwest Airlines from $31.00 to $34.00 and gave the stock a “market perform” rating in a research note on Thursday, November 20th. Jefferies Financial Group reduced their target price on Southwest Airlines from $48.00 to $41.00 and set a “hold” rating on the stock in a research note on Thursday. Evercore lifted their target price 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. Bank of America boosted their target price on shares of Southwest Airlines from $37.00 to $42.00 and gave the company an “underperform” rating in a research note on Friday, January 30th. Finally, Morgan Stanley upped their price target on shares of Southwest Airlines from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, January 30th. Eight research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $47.34.

Southwest Airlines Trading Up 0.4%

LUV opened at $38.77 on Monday. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52. The stock’s 50 day moving average price is $46.67 and its 200-day moving average price is $38.74. Southwest Airlines has a one year low of $23.82 and a one year high of $55.11. The stock has a market cap of $19.05 billion, a price-to-earnings ratio of 46.15, a P/E/G ratio of 0.28 and a beta of 1.10.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data on Wednesday, January 28th. The airline reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. Southwest Airlines had a net margin of 1.57% and a return on equity of 6.18%. The company had revenue of $7.44 billion for the quarter, compared to analyst estimates of $7.51 billion. During the same period in the prior year, the company posted $0.56 EPS. The firm’s revenue for the quarter was up 7.4% on a year-over-year basis. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS.

Southwest Airlines Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders of record on Thursday, March 12th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s dividend payout ratio is currently 85.71%.

Hedge Funds Weigh In On Southwest Airlines

Institutional investors have recently made changes to their positions in the company. Elevation Point Wealth Partners LLC purchased a new position in Southwest Airlines during the 2nd quarter valued at about $25,000. SHP Wealth Management purchased a new position in Southwest Airlines during the fourth quarter valued at approximately $25,000. GHP Investment Advisors Inc. bought a new position in Southwest Airlines in the fourth quarter worth approximately $26,000. Entrust Financial LLC bought a new position in Southwest Airlines in the fourth quarter worth approximately $26,000. Finally, Los Angeles Capital Management LLC purchased a new stake in Southwest Airlines during the fourth quarter worth $26,000. Hedge funds and other institutional investors own 80.82% of the company’s stock.

More Southwest Airlines News

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

• Positive Sentiment: Unusual call buying — Traders purchased roughly 49,224 LUV calls (about a 104% jump vs. typical daily call volume), which suggests short-term bullish speculative activity or hedging that can support the share price.
• Neutral Sentiment: Valuation pieces highlight recent share weakness and longer-term gains — Coverage notes LUV has declined in the past month and 3 months, prompting fresh valuation discussion even as 1‑year returns remain strong; these analyses may attract bargain hunters or prompt more selling depending on investor view. Assessing Southwest Airlines (LUV) Valuation After Recent Share Price Weakness
• Neutral Sentiment: Price-target and thematic pieces summarize street views for 2026 — Roundups of Wall Street price predictions and longer-term outlooks provide context but don’t move fundamentals immediately. Southwest Price Prediction: What Wall Street Thinks LUV Is Worth in 2026
• Neutral Sentiment: Redburn raised its price target to $35 but kept a Sell rating — mixed signal: a higher target is constructive while the Sell stance keeps downside narrative alive. Southwest Airlines Co. (LUV) Target Increased to $35 at Redburn Despite Sell Rating
• Negative Sentiment: Southwest will end service at Chicago O’Hare and Washington Dulles — exits from two major airports shrink network reach and could reduce revenue or market share in those metros, raising near-term growth concerns. Southwest Airlines ends service to Chicago’s O’Hare and Washington’s Dulles airports Southwest Airlines to end service at O’Hare, Dulles
• Negative Sentiment: Analyst downgrades and lower earnings estimates — Jefferies cut its price target to $41 (Hold) and Zacks moved LUV from Strong‑Buy to Hold while trimming FY2028 EPS — these reduce analyst support and can pressure sentiment. Southwest Airlines (NYSE:LUV) Price Target Lowered to $41.00 at Jefferies Financial Group Zacks.com
• Negative Sentiment: Oil spike and geopolitical risk — Coverage warns that oil returning toward $100/barrel amid the Iran conflict materially raises jet fuel costs and could compress margins across carriers; sector pain can drag LUV despite company-specific factors. Airline Stocks Were Pricing 2026 Like A Runway―Oil Just Made It A Cliff Edge Only 3 U.S. Airlines Can Remain Profitable at Current Oil Prices
• Negative Sentiment: Near-term selling pressure — multiple outlets noted shares sliding last week/month and premarket weakness tied to oil and supply concerns, which can amplify short-term volatility. Why Is Southwest Airlines Stock Sliding Thursday?

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.