Schaeffers Research·1d ago
Nasdaq Taps Fresh Record as Major Indexes Trade MixedMajor indexes are moving mixed, with the Nasdaq Composite (IXIC) hitting a new record high
Southwest Airlines is experiencing a strong revenue rebound, with Q2 2026 revenue growing 16.4% YoY to $8.4B, driven by robust demand and ancillary initiatives. However, profitability remains strained, as operating margin contracted to 3.4% despite revenue gro...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 16.4% YoY in Q2 2026, but operating margin contracted to 3.4% from 3.1% a year earlier, and COGS rose 10.2% YoY, indicating cost pressures are squeezing profitability.
Southwest Airlines reported net income of US$227 million in Q1 2026, signaling a return to profitability and strong financial performance.
The company achieved record operating revenue of US$7,249 million in Q1 2026, indicating robust demand and customer uptake of new offerings.
Southwest's flight deals and low fares are driving strong customer demand, as evidenced by their revenue growth and market presence.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $0.94+84.3% vs $0.51 | $8.4B-1.8% vs $8.6B |
Q2 2026 Apr 22, 2026 | $0.45-4.9% vs $0.47 | $7.2B-0.3% vs $7.3B |
Q1 2026 Jan 28, 2026 | $0.58+2.1% vs $0.57 | $7.4B-0.8% vs $7.5B |
Q4 2025 Oct 22, 2025 | $0.11+398.7% vs -$0.04 | $6.9B+0.5% vs $6.9B |
Major indexes are moving mixed, with the Nasdaq Composite (IXIC) hitting a new record high
U.S. Transportation Secretary Sean Duffy said a massive telecom outage that disrupted thousands of flights Monday will not occur again with a new modern resilient air traffic control system.
Southwest Airlines is rated a buy with 15–20% upside, driven by a commercial overhaul yielding record unit revenue and a resilient profit mix. LUV's transformation into a merchandised airline, with new fare ladders and ancillary products, has produced 20% adjusted unit revenue growth on flat capacity. Despite a $900M fuel headwind, LUV expanded operating income 27% and operating margin, leveraging its investment-grade balance sheet and disciplined capacity management.
A failed telecom circuit at a single Philadelphia air-traffic facility shut down every major airport in the New York City area for hours on Monday, snarling more than 1,000 flights as 130 world leaders flew in for the United Nations General Assembly, according to Reuters.
Benchmark LUV against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Southwest Airlines Co. (LUV)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $41.04 | $20.08B | 51.95 | 2.11% | 1.57% | 4.81% | 1.74% | |
| $81.75 | $53.76B | 10.67 | 2.79% | 5.79% | 19.33% | — | |
| $110.72 | $35.94B | 10.83 | 3.52% | 5.56% | 22.5% | — | |
| $13.35 | $8.84B | 78.53 | 0.78% | -0.56% | — | — | |
| $5.84 | $1.34B | -9.73 | -1.35% | -9.29% | -120.34% | — | |
| $77.26 | $1.49B | -31.15 | 3.74% | 0.9% | 2.1% | — |
Southwest Airlines Co. (LUV) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Southwest Airlines Co. (LUV) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 12, 2026·SEC
Aug 10, 2026·SEC
Aug 7, 2026·SEC
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Southwest Airlines Co. (LUV) stock FAQ — growth, dividends, profitability & financials explained
Southwest Airlines Co. (LUV) reported $30.07B in revenue for fiscal year 2025. This represents a 783% increase from $3.41B in 1996.
Southwest Airlines Co. (LUV) grew revenue by 2.1% over the past year. Growth has been modest.
Yes, Southwest Airlines Co. (LUV) is profitable, generating $837.0M in net income for fiscal year 2025 (1.6% net margin).
Yes, Southwest Airlines Co. (LUV) pays a dividend with a yield of 1.74%. This makes it attractive for income-focused investors.
Southwest Airlines Co. (LUV) has a return on equity (ROE) of 4.8%. This is below average, suggesting room for improvement.
Southwest Airlines Co. (LUV) had negative free cash flow of $621.0M in fiscal year 2025, likely due to heavy capital investments.
