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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.
