Q3 EPS Estimate for Southwest Airlines Increased by Analyst

Southwest Airlines Co. (NYSE:LUV) – Equities research analysts at Zacks Research upped their Q3 2027 earnings per share (EPS) estimates for Southwest Airlines in a research note issued on Wednesday, February 11th. Zacks Research analyst Team now expects that the airline will earn $0.93 per share for the quarter, up from their previous estimate 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.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings data 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. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.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 business earned $0.56 EPS. Southwest Airlines’s revenue 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.

Several other research analysts also recently commented on LUV. Citigroup raised their price target on shares of Southwest Airlines from $44.00 to $54.00 in a research note on Tuesday, February 3rd. Evercore increased their price objective on shares of Southwest Airlines from $40.00 to $45.00 and gave the company an “in-line” rating in a research note on Thursday, January 29th. Barclays raised shares of Southwest Airlines from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $34.00 to $56.00 in a research report on Tuesday, December 16th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Southwest Airlines from $40.00 to $48.00 and gave the stock a “buy” rating in a report on Friday, December 12th. Finally, TD Cowen upped their target price on Southwest Airlines from $42.00 to $50.00 and gave the company a “hold” rating in a research report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $46.92.

Southwest Airlines Stock Up 0.5%

NYSE:LUV opened at $51.06 on Thursday. The company has a market cap of $25.09 billion, a price-to-earnings ratio of 60.79, a price-to-earnings-growth ratio of 0.36 and a beta of 1.15. Southwest Airlines has a twelve month low of $23.82 and a twelve month high of $54.70. The company has a current ratio of 0.52, a quick ratio of 0.45 and a debt-to-equity ratio of 0.57. The stock has a fifty day simple moving average of $44.08 and a 200-day simple moving average of $36.34.

Southwest Airlines Announces Dividend

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

Hedge Funds Weigh In On Southwest Airlines

A number of hedge funds have recently made changes to their positions in the company. GHP Investment Advisors Inc. purchased a new stake in shares of Southwest Airlines during the fourth quarter worth approximately $26,000. Entrust Financial LLC acquired a new stake in Southwest Airlines during the 4th quarter worth $26,000. Los Angeles Capital Management LLC purchased a new stake in shares of Southwest Airlines during the fourth quarter worth $26,000. Optima Capital LLC acquired a new stake in shares of Southwest Airlines in the fourth quarter valued at about $27,000. Finally, Lodestone Wealth Management LLC purchased a new position in Southwest Airlines in the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 80.82% of the company’s stock.

Key Stories Impacting Southwest Airlines

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

• Positive Sentiment: The company implemented assigned seating and introduced bag fees, which investors see as durable revenue levers that helped ignite a year-to-date rally after the January earnings call. Southwest Airlines Shares Jump 23% in 2026 After Launching Assigned Seating and Bag Fees
• Positive Sentiment: Zacks Research sharply raised EPS forecasts across multiple quarters and years (FY2026, FY2027, FY2028 and quarterly calls), and rates LUV a “Strong‑Buy” — suggesting analysts expect materially stronger profitability and cash flow going forward. This upward revision cycle is a key driver of bullish investor sentiment. MarketBeat LUV – Zacks Research coverage
• Positive Sentiment: Coverage pieces highlighting strong cash‑flow growth versus peers reinforce the narrative that Southwest’s structural changes (revenue initiatives + cost control) are translating into superior financial performance. Southwest Airlines (LUV): Massive Cash Flow Growth Vs. Sector Peers | 2-Minute Analysis
• Positive Sentiment: Product upgrades (Starlink in-flight WiFi and a cabin overhaul) could improve ancillary revenue, customer satisfaction and competitive positioning if rollout and monetization succeed. Investors view this as a potential medium-term positive catalyst. Southwest’s Starlink WiFi and Cabin Overhaul Might Change The Case For Investing In Southwest Airlines (LUV)
• Neutral Sentiment: Management announced upcoming board of director changes; governance shifts can be neutral-to-positive depending on experience and execution but are not an immediate revenue driver. Southwest Airlines Announces Upcoming Board of Directors Changes
• Neutral Sentiment: Some analysts remain mixed on the stock; divergent views imply upside is tied to execution of revenue initiatives and cost control. Analysts’ Opinions Are Mixed on These Industrial Goods Stocks
• Negative Sentiment: A shareholder‑rights law firm (Halper Sadeh) is soliciting contacts from Southwest shareholders, signaling potential litigation or scrutiny that could create legal costs, distraction, or reputational risk. Monitor filings for specifics. Halper Sadeh LLC Encourages Southwest Airlines Co. Shareholders to Contact the Firm

About Southwest Airlines

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.