Southwest Airlines (LUV)
NYSE:LUV
Want to see LUV full AI Analyst Report?
LUV Stock Chart & Stats
$42.70
-$0.31(-0.94%)
At close: 4:00 PM EST
$42.70
-$0.31(-0.94%)
Day’s Range― - ―
52-Week Range$28.98 - $55.11
Previous CloseN/A
Volume1.64M
Average Volume (3M)6.42M
Market Cap
$20.30B
Enterprise Value$24.51B
Total Cash (Recent Filing)$3.33B
Total Debt (Recent Filing)$6.40B
Price to Earnings (P/E)25.3
Beta1.22
Next Earnings
Jul 22, 2026EPS Estimate
0.48Next Dividend Ex-DateN/A
Dividend Yield1.73%
Share Statistics
EPS (TTM)1.58
Shares Outstanding488,773,700
10 Day Avg. Volume6,156,925
30 Day Avg. Volume6,416,716
Financial Highlights & Ratios
PEG Ratio40.99
Price to Book (P/B)2.80
Price to Sales (P/S)0.80
P/FCF Ratio-26.86
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit5.15
Enterprise Value/Ebitda8.99
Forecast
1Y Price Target
$45.09Price Target Upside5.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.65
Revenue Forecast (FY)$32.71B
Bulls Say, Bears Say
Bulls Say
Improved Leverage & Balance SheetSouthwest's marked improvement in leverage (debt-to-equity down to ~0.75 TTM and reported liquidity ~$4.8B) strengthens resilience across cycles. Lower leverage increases financial flexibility for fleet delivery funding, opportunistic buybacks, and buffers against demand shocks, supporting durable capital allocation options over months.
Record Revenues And Unit‑revenue StrengthSustained RASM gains and record quarterly revenue indicate durable pricing power and strong demand execution. Higher unit revenue provides a structural buffer to absorb cost inflation, underpins margin expansion, and supports reinvestment in products and network optimization over the next several months.
Ancillary And Loyalty Adoption AcceleratingRapid adoption of paid upgrades and notable loyalty enrollments drive higher revenue per passenger and recurring partner cash flows. Structural growth in ancillary sales and loyalty increases margin resiliency, diversifies revenue beyond base fares, and strengthens customer engagement over multiple quarters.
Bears Say
Persistent Negative Free Cash FlowAlthough operating cash flow is positive, consistent negative free cash flow means earnings are not translating into discretionary cash. This limits the company's ability to rapidly de‑leverage, expand buybacks, or increase capex without external funding, constraining strategic flexibility over the coming months.
Material Fuel Cost VolatilityLarge and unpredictable fuel swings can materially erode margins (management flagged a ~$1B Q2 hit). Fuel exposure forces conservative guidance and can negate revenue gains, creating structural earnings volatility and complicating multi-quarter planning despite operational improvements.
Revenue Recognition And Network Transition RisksChanges to ATL accounting and limited disclosure create uncertainty around reported revenue timing and comparability. Coupled with active network pruning and capacity redeployments, these structural shifts could compress near-term returns and raise execution risk as route and product changes settle over multiple quarters.
Southwest Airlines News
LUV FAQ
What was Southwest Airlines’s price range in the past 12 months?
Southwest Airlines lowest stock price was $28.98 and its highest was $55.11 in the past 12 months.
What is Southwest Airlines’s market cap?
Southwest Airlines’s market cap is $20.30B.
When is Southwest Airlines’s upcoming earnings report date?
Southwest Airlines’s upcoming earnings report date is Jul 22, 2026 which is in 45 days.
How were Southwest Airlines’s earnings last quarter?
Southwest Airlines released its earnings results on Apr 22, 2026. The company reported $0.45 earnings per share for the quarter, missing the consensus estimate of $0.473 by -$0.023.
Is Southwest Airlines overvalued?
According to Wall Street analysts Southwest Airlines’s price is currently Undervalued.
Does Southwest Airlines pay dividends?
Southwest Airlines pays a Quarterly dividend of $0.18 which represents an annual dividend yield of 1.73%. See more information on Southwest Airlines dividends here
What is Southwest Airlines’s EPS estimate?
Southwest Airlines’s EPS estimate is 0.48.
How many shares outstanding does Southwest Airlines have?
Southwest Airlines has 488,773,700 shares outstanding.
What happened to Southwest Airlines’s price movement after its last earnings report?
Southwest Airlines reported an EPS of $0.45 in its last earnings report, missing expectations of $0.473. Following the earnings report the stock price went down -4.066%.
Which hedge fund is a major shareholder of Southwest Airlines?
Currently, no hedge funds are holding shares in LUV
What is the TipRanks Smart Score and how is it calculated?
Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology
Southwest Airlines Stock Smart Score
Neutral
1
2
3
4
5
6
7
8
9
10
Analyst Consensus
Moderate Buy
Average Price Target:
$45.09 (5.60% Upside)
$45.09 (5.60% Upside)
Blogger Sentiment
Bullish
LUV Sentiment 70%
Sector Average ―
Sector Average ―
Hedge Fund Trend
Decreased
By 19.2M Shares
Last Quarter.
Last Quarter.
Insider Transactions
Sold Shares
Worth $4.5K over
the Last 3 Months
the Last 3 Months
Crowd Wisdom
Very Negative
Last 7 Days ▼ 0.6%
Last 30 Days ▼ 1.6%
Last 30 Days ▼ 1.6%
News Sentiment
Very Bearish
Bullish news 19%
Bearish news 100%
Bearish news 100%
Technicals
SMA
Positive
20 days / 200 days
Momentum
30.55%
12-Months-Change
Fundamentals
Return on Equity
10.67%
Trailing 12-Months
Asset Growth
-11.61%
Trailing 12-Months
Company Description
Southwest Airlines
Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2021, the company operated a total fleet of 728 Boeing 737 aircrafts; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services on Wi-Fi enabled aircrafts; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. The company was incorporated in 1967 and is headquartered in Dallas, Texas.
LUV Earnings Call
Q1 2026
0:00 / 0:00
Earnings Call Sentiment|Positive
The call emphasized substantial execution wins: a clear financial turnaround (positive EPS vs. loss last year), record revenues and unit-revenue strength, strong cash generation, rapid customer adoption of new products, margin expansion, and continued operational reliability. Those positive developments are tempered by a meaningful and volatile fuel cost spike that materially pressures margins and prompted management not to revise full-year EPS guidance; there are also investor questions about certain accounting changes (ATL) and ongoing network adjustments. On balance, the transformation appears to be working and driving durable improvements, but short‑term outlook uncertainty is elevated because of fuel.View all LUV earnings summariesLUV Revenue Breakdown
90.99% Passenger
0.61% Freight
8.40% Other
LUV Stock 12 Month Forecast
Average Price Target
$45.09
▲(5.60% Upside)
Technical Analysis
Alaska Air
―
Delta Air Lines
―
JetBlue Airways
―
United Airlines Holdings
―
American Airlines
―
Ownership Overview
0.32% Insiders
34.50% Mutual Funds
23.53% Other Institutional Investors
16.75% Public Companies and Individual Investors