Zacks Research Weighs in on Southwest Airlines Co.’s Q1 2026 Earnings (NYSE:LUV)

Southwest Airlines Co. (NYSE:LUV) – Analysts at Zacks Research decreased their Q1 2026 earnings estimates for shares of Southwest Airlines in a research note issued on Thursday, August 8th. Zacks Research analyst S. Goswami now forecasts that the airline will post earnings per share of $0.48 for the quarter, down from their prior forecast of $0.57. The consensus estimate for Southwest Airlines’ current full-year earnings is $0.31 per share.

Southwest Airlines (NYSE:LUV) last announced its quarterly earnings results on Thursday, July 25th. The airline reported $0.58 EPS for the quarter, topping the consensus estimate of $0.51 by $0.07. Southwest Airlines had a return on equity of 5.92% and a net margin of 0.41%. The business had revenue of $7.40 billion for the quarter, compared to analyst estimates of $7.32 billion. During the same quarter in the previous year, the company earned $1.09 EPS. The company’s quarterly revenue was up 5.2% on a year-over-year basis.

LUV has been the topic of a number of other research reports. TD Cowen lowered their target price on Southwest Airlines from $26.00 to $19.00 and set a “hold” rating on the stock in a report on Wednesday, July 17th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $29.00 price objective (down previously from $32.00) on shares of Southwest Airlines in a research note on Friday, July 26th. Jefferies Financial Group downgraded shares of Southwest Airlines from a “hold” rating to an “underperform” rating and cut their target price for the company from $28.00 to $20.00 in a research note on Monday, April 29th. Citigroup decreased their price target on shares of Southwest Airlines from $29.00 to $28.25 and set a “neutral” rating on the stock in a research note on Monday, July 29th. Finally, HSBC started coverage on shares of Southwest Airlines in a research report on Monday, May 13th. They issued a “hold” rating and a $27.80 price objective for the company. Four investment analysts have rated the stock with a sell rating, ten have issued a hold rating and three have given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $28.47.

Southwest Airlines Stock Up 0.2 %

Southwest Airlines stock opened at $25.42 on Monday. Southwest Airlines has a fifty-two week low of $21.91 and a fifty-two week high of $35.18. The firm has a market capitalization of $15.23 billion, a price-to-earnings ratio of 40.35, a price-to-earnings-growth ratio of 17.89 and a beta of 1.15. The stock’s fifty day moving average is $27.41 and its two-hundred day moving average is $28.83. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.85 and a current ratio of 0.90.

Institutional Trading of Southwest Airlines

A number of hedge funds and other institutional investors have recently modified their holdings of LUV. Arizona State Retirement System raised its position in shares of Southwest Airlines by 0.8% in the 4th quarter. Arizona State Retirement System now owns 40,926 shares of the airline’s stock valued at $1,182,000 after purchasing an additional 339 shares in the last quarter. International Assets Investment Management LLC raised its holdings in Southwest Airlines by 2,207.1% in the fourth quarter. International Assets Investment Management LLC now owns 149,797 shares of the airline’s stock valued at $4,326,000 after acquiring an additional 143,304 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new position in Southwest Airlines during the 4th quarter worth $439,000. Cerity Partners LLC bought a new stake in shares of Southwest Airlines in the 4th quarter worth about $692,000. Finally, Valeo Financial Advisors LLC increased its position in shares of Southwest Airlines by 17.8% in the 4th quarter. Valeo Financial Advisors LLC now owns 15,143 shares of the airline’s stock worth $437,000 after purchasing an additional 2,291 shares during the last quarter. 80.82% of the stock is owned by hedge funds and other institutional investors.

Southwest Airlines Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 25th. Shareholders of record on Wednesday, September 4th will be issued a $0.18 dividend. The ex-dividend date is Wednesday, September 4th. This represents a $0.72 dividend on an annualized basis and a yield of 2.83%. Southwest Airlines’s dividend payout ratio is currently 114.29%.

About Southwest Airlines

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.