What is Zacks Research’s Forecast for LUV FY2028 Earnings?

Southwest Airlines Co. (NYSE:LUV) – Investment analysts at Zacks Research decreased their FY2028 earnings per share (EPS) estimates for Southwest Airlines in a report issued on Thursday, March 12th. Zacks Research analyst Team now anticipates that the airline will earn $5.00 per share for the year, down from their prior forecast 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.

Other equities research analysts have also issued reports about the stock. The Goldman Sachs Group upped their price target on shares of Southwest Airlines from $29.00 to $32.00 and gave the company a “sell” rating in a report on Friday, January 30th. TD Cowen reduced their price objective on Southwest Airlines from $66.00 to $55.00 and set a “buy” rating for the company in a research note on Monday, March 9th. Deutsche Bank Aktiengesellschaft boosted their price objective on Southwest Airlines from $40.00 to $48.00 and gave the company a “buy” rating in a report on Friday, December 12th. Wells Fargo & Company raised their target price on Southwest Airlines from $45.00 to $50.00 and gave the stock an “equal weight” rating in a report on Friday, January 30th. Finally, BMO Capital Markets upgraded Southwest Airlines from a “market perform” rating to an “outperform” rating and lifted their price target for the company from $43.00 to $57.50 in a research report on Friday, January 30th. Eight analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat.com, Southwest Airlines presently has a consensus rating of “Hold” and a consensus price target of $47.34.

Southwest Airlines Stock Up 0.4%

NYSE:LUV opened at $38.77 on Friday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.52 and a quick ratio of 0.45. The company’s fifty day moving average price is $46.67 and its 200-day moving average price is $38.70. Southwest Airlines has a 1-year low of $23.82 and a 1-year high of $55.11. The firm has a market capitalization of $19.05 billion, a P/E ratio of 46.15, a PEG ratio of 0.28 and a beta of 1.10.

Southwest Airlines (NYSE:LUV) last posted its quarterly earnings results on Wednesday, January 28th. The airline reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 analyst estimates of $7.51 billion. During the same period last year, the firm posted $0.56 EPS. Southwest Airlines’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.

Institutional Investors Weigh In On Southwest Airlines

A number of institutional investors have recently modified their holdings of LUV. SHP Wealth Management purchased a new position in shares of Southwest Airlines in the 4th quarter valued at about $25,000. GHP Investment Advisors Inc. purchased a new position in Southwest Airlines during the fourth quarter worth approximately $26,000. Entrust Financial LLC acquired a new stake in Southwest Airlines in the fourth quarter valued at approximately $26,000. Los Angeles Capital Management LLC acquired a new stake in Southwest Airlines in the fourth quarter valued at approximately $26,000. Finally, Optima Capital LLC purchased a new stake in shares of Southwest Airlines in the fourth quarter valued at approximately $27,000. 80.82% of the stock is currently owned by institutional investors and hedge funds.

Southwest Airlines Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, April 2nd. Shareholders 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 dividend on an annualized basis and a dividend yield of 1.9%. Southwest Airlines’s dividend payout ratio is 85.71%.

Southwest Airlines News Roundup

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?

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.