LUV
Southwest Airlines Q2 2026 earnings beat, Q3 forecast misses
Article Summary
BUY- Southwest Airlines Co. (NYSE: LUV) reported strong Q2 2026 earnings that beat expectations driven by record operating revenue, though its outlook for the summer quarter came in below Wall Street forecasts.
- Southwest Airlines Co. posted adjusted earnings of 94 cents per share for the three months ended June 30, up 9.4% year-over-year despite a near-$900 million increase in fuel costs, while operating revenue reached $8.7 billion, the highest in company history.
- Ticket prices averaged $225.61 per passenger, up nearly 21%, while managed business revenue rose 30% and Rapid Rewards enrollments reached nearly 100 million members, also a record.
- Southwest revised full-year adjusted earnings guidance to $3.25 to $4.25 per share, replacing its previous target of at least $4â€$4.00, with unit revenue expected to rise 17.5% to 19.5%, while available seat miles expected to hold to no worse than a 1% decline relative to last summer.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 9.5% | 25% | 35.0 ptsBelow Screener (9.5%) - Weak growth |
| EPS Growth Next 5Y ? | 78.6% | 25% | 100.0 ptsExceptional (78.6%) - Very high expectations |
| Target Price Upside ? | 17.7% | 20% | 60.0 ptsModerate Upside (17.7%) - Target: $53.43 vs Current: $45.41 |
| Gross Margin % ? | 18.7% | 15% | 20.0 ptsThin (18.7%) - Low-margin business |
| Drawdown from 52-Wk High ? | -17.6% | 15% | 40.0 ptsMild Pullback (-17.6%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About LUV
- Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally.
- It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee.
- In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors.
- As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.
- Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.