Southwest Airlines Co.(LUV)Earnings, Financials & Key RatiosSouthwest Airlines Co. (LUV) stock price & volume — 10-year historical chart
Investment Thesis • Updated 2026Q1
the company's current ratio of 0.48 and the historical inconsistency of its free cash flow margins suggest significant liquidity risks that outweigh the potential benefits of recent revenue growth.
Southwest Airlines Co. (LUV) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Southwest Airlines Co. (LUV) EPS & revenue vs analyst estimates — last 4 quarters
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 22, 2026 | $0.45vs $0.47-4.9% | $7.2Bvs $7.3B-0.3% |
| Q1 2026 | Jan 28, 2026 | $0.58vs $0.57+2.1% | $7.4Bvs $7.5B-0.8% |
| Q4 2025 | Oct 22, 2025 | $0.11vs $0.04+398.7% | $6.9Bvs $6.9B+0.5% |
| Q3 2025 | Jul 23, 2025 | $0.43vs $0.51-15.9% | $7.2Bvs $7.3B-0.7% |
Recent stock market news and headlines for Southwest Airlines Co. (LUV)
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Defense spending is surging while airline profits are under pressure. The choice between these two funds comes down to which story you believe in more.
Southwest Airlines is initiated with a "Buy" rating, citing a turnaround, strong forward earnings trends, and favorable macro tailwinds. LUV expects EPS to more than triple to $2.96 this year, with out-year earnings potentially exceeding $4.50 and normalized growth by FY 2028. Valuation appears attractive; applying a low-teens P/E to $4.50 normalized EPS suggests shares could reach $60, supported by strong travel trends and lower energy costs.
Wall Street sent a coordinated bullish signal to the airline sector as Goldman Sachs analyst Catherine O'Brien and TD Cowen analyst Tom Fitzgerald raised their price targets across most major U.S.
Bank of America Securities (BofA) analyst Andrew G. Didora has adopted a more positive outlook on U.S. airlines ahead of second-quarter earnings, citing strong demand, stable fares, and lower fuel prices as key sector supports.
Key metrics vs top competitors for Southwest Airlines Co. (LUV)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $49.43 | $24.27B | 62.57 | 2.11% | 1.57% | 4.81% | 1.45% | |
| $88.63 | $58.23B | 11.57 | 2.79% | 6.87% | 23.14% | — | |
| $128.31 | $41.65B | 12.55 | 3.52% | 6.06% | 24.91% | — | |
| $17.20 | $11.36B | 101.18 | 0.78% | 0.36% | — | — | |
| $7.36 | $1.69B | -12.27 | -1.35% | -9.62% | -88.57% | — | |
| $111.14 | $2.03B | -44.81 | 3.74% | -1.3% | -3.25% | — |
Southwest Airlines Co. (LUV) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Southwest Airlines Co. (LUV) SEC filings — annual & quarterly reports (10-K, 10-Q)
Apr 22, 2026·SEC
Mar 12, 2026·SEC
Feb 10, 2026·SEC
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Southwest Airlines Co. (LUV) stock FAQ — growth, dividends, profitability & financials explained
Southwest Airlines Co. (LUV) reported $28.88B in revenue for fiscal year 2025. This represents a 748% increase from $3.41B in 1996.
Southwest Airlines Co. (LUV) grew revenue by 2.1% over the past year. Growth has been modest.
Yes, Southwest Airlines Co. (LUV) is profitable, generating $817.0M in net income for fiscal year 2025 (1.6% net margin).
Yes, Southwest Airlines Co. (LUV) pays a dividend with a yield of 1.45%. This makes it attractive for income-focused investors.
Southwest Airlines Co. (LUV) has a return on equity (ROE) of 4.8%. This is below average, suggesting room for improvement.
Southwest Airlines Co. (LUV) had negative free cash flow of $401.0M in fiscal year 2025, likely due to heavy capital investments.
