Zacks Research Issues Positive Outlook for LUV Earnings

Southwest Airlines Co. (NYSE:LUV) – Equities research analysts at Zacks Research raised their Q1 2026 earnings estimates for shares of Southwest Airlines in a report released on Wednesday, February 11th. Zacks Research analyst Team now forecasts that the airline will post earnings of $0.45 per share for the quarter, up from their previous forecast of $0.31. Zacks Research 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’ Q2 2026 earnings at $1.30 EPS, Q3 2026 earnings at $0.86 EPS, Q4 2026 earnings at $1.38 EPS, FY2026 earnings at $4.00 EPS, Q1 2027 earnings at $0.52 EPS, Q2 2027 earnings at $1.39 EPS and FY2027 earnings at $4.81 EPS.

Several other equities research analysts also recently commented on LUV. Wall Street Zen raised Southwest Airlines from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. Sanford C. Bernstein increased their price target on shares of Southwest Airlines from $31.00 to $34.00 and gave the company a “market perform” rating in a research note on Thursday, November 20th. TD Cowen boosted their price objective on shares of Southwest Airlines from $42.00 to $50.00 and gave the stock a “hold” rating in a research note on Friday, January 30th. Deutsche Bank Aktiengesellschaft upped their target price on shares of Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a report on Friday, December 12th. Finally, BNP Paribas Exane lifted their price target on Southwest Airlines from $19.00 to $24.00 and gave the stock an “underperform” rating in a report on Monday, December 8th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and a consensus target price of $46.92.

Southwest Airlines Stock Up 0.5%

LUV stock opened at $51.06 on Friday. The company has a market cap of $25.09 billion, a price-to-earnings ratio of 60.79, a P/E/G 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 business has a 50 day moving average price of $44.08 and a two-hundred day moving average price of $36.38. 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 (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. Southwest Airlines had a return on equity of 6.18% and a net margin of 1.57%.The business had revenue of $7.44 billion for the quarter, compared to the consensus estimate of $7.51 billion. During the same quarter in the previous year, the business earned $0.56 earnings per share. Southwest Airlines’s quarterly revenue 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 disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Stockholders of record on Thursday, March 12th will be issued a dividend of $0.18 per share. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date is Thursday, March 12th. Southwest Airlines’s payout ratio is currently 85.71%.

Institutional Trading of Southwest Airlines

Several hedge funds have recently added to or reduced their stakes in the company. GHP Investment Advisors Inc. bought a new position in Southwest Airlines during the 4th quarter worth $26,000. Entrust Financial LLC acquired a new position in shares of Southwest Airlines in the fourth quarter valued at about $26,000. Los Angeles Capital Management LLC bought a new position in Southwest Airlines during the fourth quarter worth about $26,000. Optima Capital LLC acquired a new stake in Southwest Airlines in the 4th quarter worth about $27,000. Finally, Lodestone Wealth Management LLC bought a new stake in Southwest Airlines in the 4th quarter valued at about $29,000. 80.82% of the stock is owned by institutional investors and hedge funds.

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.