Southwest Airlines Company
LUV
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Bull / bear case
Site-generated summary from fundamentals, news, and score — not investment advice. As of 2026-10-07.
- Southwest Airlines has a strong competitive position in the airline industry, characterized by a loyal customer base and a well-recognized brand.
- Revenue increased by 16% compared to the prior quarter, reaching $8.4 billion.
- The company has a strong buy recommendation with a score of 34.00, indicating positive market sentiment.
- The airline industry faces challenges from rising operational costs and fluctuating fuel prices, which can impact profit margins.
- Gross margin decreased to 16.4% from 18.9% in the prior quarter.
- The company reported a free cash flow of -$834.75 million, indicating potential liquidity concerns.
Fundamentals
| Market cap | $20.23B | Enterprise value | $23.33B | Trailing P/E | 25.85 | Forward P/E | 9.49 |
| PEG | 0.20 | Price / book | 2.86 | Beta | 1.16 | Dividend yield | 1.74% |
| Revenue growth | 16.4% | Earnings growth | 20.5% | Gross margin | 22.4% | Operating margin | 3.4% |
| Profit margin | 2.8% | ROE | 11.1% | ROA | 2.3% | Debt / equity | 0.97 |
| Current ratio | 0.49 | Free cash flow | -$834.75M | Analyst recommendation | buy | Mean target | $49.22 |
| 52w high | $55.11 | 52w low | $29.26 |
Quarterly
| 2026-Q2 | 2026-Q1 | 2025-Q4 | 2025-Q3 | 2025-Q2 | 2025-Q1 | |
|---|---|---|---|---|---|---|
| Revenue | $8.4B | $7.2B | $7.4B | $6.9B | $7.2B | — |
| Op margin | 3.4% | 4.6% | 5.3% | 0.5% | 3.1% | — |
| Net income | $233M | $227M | $323M | $54.0M | $213M | — |
| Gross margin | 16.4% | 18.9% | 20.3% | 16.7% | 18.7% | — |
| Gross profit | $1.4B | $1.4B | $1.5B | $1.2B | $1.4B | — |
| Operating income | $285M | $330M | $391M | $35.0M | $225M | — |
- Revenue +16% vs prior quarter ($8.4B vs $7.2B).
- Gross margin 16.4% (was 18.9% prior quarter).
Yearly (6y)
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | $28.1B | $27.5B | $26.1B | $23.8B | — |
| Op margin | 1.5% | 1.2% | 0.9% | 4.3% | — |
| Net income | $441M | $465M | $465M | $539M | — |
| Gross margin | 17.4% | 16.2% | 16.2% | 20.0% | — |
| Gross profit | $4.9B | $4.5B | $4.2B | $4.8B | — |
| Operating income | $428M | $321M | $224M | $1.0B | — |
Headlines — positive tone
• [OK · fundamentals] Delta Posted Record Revenue. Why It Slashed Earnings Guidance.
News
2026-10-09 · Update: Market Chatter: Southwest Airlines Leans Toward Boeing 787 for Potential Long-Haul Service
2026-10-09 · Latest Ambition Shows Southwest Is No Longer Your Parents’ Discount Airline
2026-10-09 · AM Best Affirms Credit Ratings of Triple Crown Assurance Co.
2026-10-09 · Market Chatter: Southwest Airlines Leans Toward Boeing 787 for Potential Long-Haul Service
2026-10-09 · Delta Posted Record Revenue. Why It Slashed Earnings Guidance.
2026-10-09 · Southwest Airlines (LUV) Cuts Guidance As Investors Ask If The Valuation Still Works
2026-10-09 · Southwest Airlines (LUV) Stock Could Trade At A Discount On AI Booking News
2026-10-08 · Higher Fuel Costs And Slower Capacity Growth Might Change The Case For Investing In Southwest (LUV)
2026-10-08 · Southwest turns notifications into rewards in mobile-forward campaign
2026-10-08 · Bear of the Day: Southwest Airlines (LUV)
2026-10-08 · Chevron highlighted as Zacks Bull and Southwest Airlines Bear of the Day
Price (daily)
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