Valued at a market cap of $18.4 billion, Southwest Airlines Co. (LUV) is a passenger airline company that provides scheduled air transportation services. The Dallas, Texas-based company is scheduled to announce its fiscal Q1 earnings for 2026 in the near future.
Ahead of this event, analysts expect this airline company to report a profit of $0.50 per share, up 484.6% from a loss of $0.13 per share recorded in the year-ago quarter. The company has topped Wall Street’s earnings estimates in three of the last four quarters, while missing on another occasion. In Q4 2025, LUV’s EPS of $0.58 surpassed the consensus estimates by 3.6%.
For the current fiscal year, ending in December, analysts expect LUV to report a profit of $4.22 per share, representing a 353.8% increase from $0.93 per share in fiscal 2025. Its EPS is expected to further grow 22% year-over-year to $5.15 in fiscal 2027.
LUV has gained 8.8% over the past 52 weeks, trailing both the S&P 500 Index's ($SPX) 11.9% return and the State Street Industrial Select Sector SPDR ETF’s (XLI) 21.4% uptick over the same time period.
On Jan. 28, LUV delivered its Q4 results, and its shares skyrocketed 18.7% in the subsequent trading session. While the company’s revenue increased 7.4% year-over-year to $7.4 billion, it missed analyst expectations of $7.52 billion. However, its adjusted EPS of $0.58 grew 3.6% from the same period last year, topping Wall Street estimates of $0.56.
Management’s outlook further supported investor confidence. For Q1 fiscal 2026, the company expects adjusted EPS of at least $0.45, marking a turnaround from a loss of $0.13 per share in Q1 2025.
Wall Street analysts are moderately optimistic about LUV’s stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 10 recommend "Strong Buy," one advises a "Moderate Buy,” nine suggest "Hold," one indicates a "Moderate Sell," and three suggest "Strong Sell.” The mean price target for LUV is $46.38, indicating a 26.3% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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