Zacks Research Has Negative Estimate for LUV FY2028 Earnings

Southwest Airlines Co. (NYSE:LUV) – Analysts at Zacks Research dropped their FY2028 EPS estimates for Southwest Airlines in a research report issued to clients and investors on Thursday, March 12th. Zacks Research analyst Team now forecasts that the airline will post earnings per share of $5.00 for the year, down from their prior estimate of $5.10. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Southwest Airlines’ current full-year earnings is $1.55 per share.

Southwest Airlines (NYSE:LUV) last issued its earnings results on Wednesday, January 28th. The airline reported $0.58 EPS for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $7.51 billion. During the same quarter in the previous year, the company posted $0.56 EPS. The business’s revenue for the quarter was up 7.4% compared to the same quarter last year. Southwest Airlines has set its FY 2026 guidance at 4.000- EPS and its Q1 2026 guidance at 0.450- EPS.

LUV has been the topic of a number of other research reports. Citigroup raised their target price on Southwest Airlines from $44.00 to $54.00 in a report on Tuesday, February 3rd. Raymond James Financial increased their price target on shares of Southwest Airlines from $42.00 to $49.00 and gave the company an “outperform” rating in a research report on Friday, December 19th. Rothschild & Co Redburn lifted their price objective on shares of Southwest Airlines from $27.00 to $35.00 and gave the stock a “sell” rating in a research note on Thursday, March 5th. BMO Capital Markets upgraded shares of Southwest Airlines from a “market perform” rating to an “outperform” rating and boosted their price objective for the company from $43.00 to $57.50 in a report on Friday, January 30th. Finally, TD Cowen lowered their target price on shares of Southwest Airlines from $66.00 to $55.00 and set a “buy” rating for the company in a research note on Monday, March 9th. Eight 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 data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $47.34.

Southwest Airlines Stock Up 0.4%

Shares of Southwest Airlines stock opened at $38.77 on Friday. The business has a fifty day simple moving average of $46.67 and a 200 day simple moving average of $38.66. The stock has a market cap of $19.05 billion, a PE ratio of 46.15, a price-to-earnings-growth ratio of 0.28 and a beta of 1.10. The company has a quick ratio of 0.45, a current ratio of 0.52 and a debt-to-equity ratio of 0.57. Southwest Airlines has a 12 month low of $23.82 and a 12 month high of $55.11.

Southwest Airlines Announces Dividend

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

Institutional Trading of Southwest Airlines

Hedge funds have recently bought and sold shares of the stock. MCF Advisors LLC boosted its holdings in shares of Southwest Airlines by 28.5% in the fourth quarter. MCF Advisors LLC now owns 915 shares of the airline’s stock valued at $38,000 after buying an additional 203 shares during the period. World Investment Advisors raised its holdings 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 acquiring an additional 210 shares during the period. Parkside Financial Bank & Trust lifted its position in Southwest Airlines by 7.5% in the 4th quarter. Parkside Financial Bank & Trust now owns 3,063 shares of the airline’s stock valued at $127,000 after acquiring an additional 213 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC lifted its position in Southwest Airlines by 1.5% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 16,437 shares of the airline’s stock valued at $682,000 after acquiring an additional 235 shares in the last quarter. Finally, Transcend Capital Advisors LLC boosted its stake in Southwest Airlines by 4.2% in the 4th quarter. Transcend Capital Advisors LLC now owns 6,726 shares of the airline’s stock worth $278,000 after purchasing an additional 272 shares during the period. 80.82% of the stock is currently owned by institutional investors and hedge funds.

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.