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Here is how Southwest Airlines (LUV) and Westinghouse Air Brake Technologies (WAB) have performed compared to their sector so far this year.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Southwest Airlines Co. (LUV) Q4 2025 Earnings Call Transcript
LUV posts mixed Q4 results with earnings topping estimates but revenues missing the mark. LUV expects first-quarter 2026 unit revenues to grow at least 9.5% year over year.
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Southwest Airlines Co (NYSE:LUV) shares added more than 6% after the carrier issued profit guidance for 2026 that significantly exceeded Wall Street expectations. The Dallas-based airline said it expects to earn at least $4 per share in 2026, well above analysts' consensus estimate of $3.19 and more than triple its adjusted earnings in 2025.
The airline says its new economic model is critical to catch industry rivals, even if passengers have to pay more.
Southwest Airlines is rated a sell due to valuation concerns, execution risks, and opportunity costs versus peers like Alaska Air Group. LUV's 2026 guidance targets adjusted EPS of at least $4, but this is seen as potentially optimistic given industry risks and operational uncertainties. Southwest's strong balance sheet, $2.6B in share buybacks, and cost reduction initiatives are positives, but recent strategic changes introduce customer and volatility risks.
Although the revenue and EPS for Southwest (LUV) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Southwest Airlines (LUV) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.56 per share a year ago.
Southwest's five-decade era of open seating ended on Tuesday.