What You Need to Know Ahead of Southwest Airlines' Earnings Release

Core Viewpoint - Southwest Airlines Co. (LUV) is expected to report significant earnings growth in the upcoming fiscal Q1 2026, with analysts projecting a profit of $0.50 per share, a substantial increase from the previous year's loss of $0.13 per share [2][7]. Earnings Expectations - For fiscal Q1 2026, analysts anticipate an adjusted EPS of at least $0.45, marking a recovery from a loss in the same quarter last year [7]. - For the current fiscal year ending in December, LUV is projected to report a profit of $4.22 per share, reflecting a 353.8% increase from $0.93 per share in fiscal 2025 [3]. - EPS is expected to grow further by 22% year-over-year to $5.15 in fiscal 2027 [3]. Earnings History - In Q4 2025, LUV reported an EPS of $0.58, exceeding consensus estimates by 3.6% [2][6]. - The earnings history shows that LUV has surpassed Wall Street's earnings estimates in three of the last four quarters, with notable surprises in Q4 2025 [4]. Stock Performance - Over the past 52 weeks, LUV's stock has gained 8.8%, underperforming compared to the S&P 500 Index's 11.9% return and the State Street Industrial Select Sector SPDR ETF's 21.4% increase [5]. - Following the Q4 results announcement, LUV's shares surged by 18.7% in the subsequent trading session [6]. Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for LUV, with 10 out of 24 analysts recommending "Strong Buy" and a mean price target of $46.38, indicating a potential upside of 26.3% from current levels [8].