Q3 EPS Estimate for Southwest Airlines Raised by Analyst

Southwest Airlines Co. (NYSE:LUV) – Stock analysts at Zacks Research upped their Q3 2027 earnings per share (EPS) estimates for Southwest Airlines in a report released on Wednesday, February 11th. Zacks Research analyst Team now expects that the airline will post earnings of $0.93 per share for the quarter, up from their prior forecast of $0.86. Zacks Research currently has a “Strong-Buy” 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’ Q4 2027 earnings at $1.97 EPS and FY2028 earnings at $5.10 EPS.

A number of other brokerages have also weighed in on LUV. UBS Group increased their price target on Southwest Airlines from $45.00 to $51.00 and gave the stock a “neutral” rating in a research note on Monday, February 2nd. TD Cowen increased their target price on Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a research report on Friday, January 30th. Evercore raised their price target on Southwest Airlines from $40.00 to $45.00 and gave the stock an “in-line” rating in a research note on Thursday, January 29th. Susquehanna lifted their price target on Southwest Airlines from $45.00 to $55.00 and gave the company a “neutral” rating in a report on Tuesday, February 3rd. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a research note on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, Southwest Airlines currently has a consensus rating of “Hold” and a consensus target price of $46.92.

Southwest Airlines Stock Performance

Shares of LUV opened at $50.80 on Thursday. Southwest Airlines has a 1 year low of $23.82 and a 1 year high of $54.70. The company’s 50 day simple moving average is $43.81 and its 200 day simple moving average is $36.21. The company has a market capitalization of $24.96 billion, a price-to-earnings ratio of 60.48, a PEG ratio of 0.36 and a beta of 1.15. The company has a debt-to-equity ratio of 0.57, a quick ratio of 0.45 and a current ratio of 0.52.

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

Southwest Airlines Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, April 2nd. Investors of record on Thursday, March 12th will be issued a $0.18 dividend. The ex-dividend date is Thursday, March 12th. This represents a $0.72 annualized dividend and a yield of 1.4%. Southwest Airlines’s dividend payout ratio (DPR) is presently 85.71%.

Institutional Investors Weigh In On Southwest Airlines

Several large investors have recently made changes to their positions in LUV. MCF Advisors LLC lifted its holdings in shares of Southwest Airlines by 28.5% during the 4th quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after acquiring an additional 203 shares in the last quarter. World Investment Advisors lifted its stake in shares of Southwest Airlines by 1.0% during the fourth quarter. World Investment Advisors now owns 21,148 shares of the airline’s stock worth $843,000 after purchasing an additional 210 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its stake in shares of Southwest Airlines by 1.5% during the fourth quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock worth $682,000 after purchasing an additional 235 shares in the last quarter. Transcend Capital Advisors LLC boosted its position in shares of Southwest Airlines by 4.2% in the fourth quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after buying an additional 272 shares during the period. Finally, Asset Management One Co. Ltd. grew its stake in shares of Southwest Airlines by 1.7% in the fourth quarter. Asset Management One Co. Ltd. now owns 19,268 shares of the airline’s stock valued at $792,000 after buying an additional 315 shares in the last quarter. Institutional investors and hedge funds own 80.82% of the company’s stock.

Southwest Airlines News Roundup

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

• Positive Sentiment: Zacks Research raised earnings estimates across upcoming quarters and issued a “Strong‑Buy” for LUV, lifting Q3 and Q4 2027 and FY2028 EPS views — a sign analysts see stronger profitability ahead, which supports valuation and investor confidence. Zacks Research raises estimates
• Positive Sentiment: Southwest announced it will roll out SpaceX Starlink ultra‑fast WiFi across its network starting this summer — a potential revenue/differentiation boost (better passenger experience, ancillary sales) that could support yields and ancillary growth. SOUTHWEST AIRLINES BRINGS STARLINK ULTRA-FAST WIFI ONBOARD
• Positive Sentiment: Third‑party analysis highlights “massive cash flow growth” versus sector peers, reinforcing the narrative that Southwest’s cash generation and operational recovery are improving relative to competitors. That supports multiple expansion if sustained. Southwest Airlines (LUV): Massive Cash Flow Growth Vs. Sector Peers
• Neutral Sentiment: Southwest announced upcoming board changes — management and the board are being reconfigured after activist involvement. Governance changes can reduce activism risk but create short‑term uncertainty until the new board is settled. Southwest Airlines Announces Upcoming Board of Directors Changes
• Neutral Sentiment: Reports confirm two Elliott‑appointed directors will step down — this may signal a de‑escalation with the activist, but the ultimate impact depends on who fills those seats and any remaining strategic demands. Southwest Airlines directors representing Elliott to step down
• Negative Sentiment: Halper Sadeh LLC issued a notice urging Southwest shareholders to contact the firm about potential claims — this suggests risk of shareholder litigation or investigations, which can create legal costs, distraction and negative sentiment. Halper Sadeh LLC Encourages Southwest Airlines Co. Shareholders to Contact the Firm

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.