Southwest Airlines' stock rose by 6.46% as it crossed above the 5-day SMA, reflecting positive investor sentiment following its recent earnings report.
The company reported a net income of $441 million for 2025 and raised its 2026 adjusted EPS guidance to at least $4.00, indicating over 300% growth from the previous year. This strong performance is attributed to effective revenue generation and cost control, alongside a commitment to enhancing shareholder value through $2.9 billion in returns via buybacks and dividends. The airline's operational improvements and customer-centric strategies have positioned it favorably in a competitive market.
This optimistic outlook and robust financial results suggest that Southwest Airlines is well-prepared for future growth, potentially attracting more investors and reinforcing its market position.
Wall Street analysts forecast LUV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUV is 44.21 USD with a low forecast of 34.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast LUV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LUV is 44.21 USD with a low forecast of 34.00 USD and a high forecast of 60.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
9 Hold
1 Sell
Hold
Current: 40.860
Low
34.00
Averages
44.21
High
60.00
Current: 40.860
Low
34.00
Averages
44.21
High
60.00
Deutsche Bank
Buy
upgrade
$48 -> $54
2026-01-29
New
Reason
Deutsche Bank
Price Target
$48 -> $54
AI Analysis
2026-01-29
New
upgrade
Buy
Reason
Deutsche Bank raised the firm's price target on Southwest to $54 from $48 and keeps a Buy rating on the shares. The firm upped estimates following the company's earnings beat.
Jefferies
Hold
maintain
$42 -> $45
2026-01-26
New
Reason
Jefferies
Price Target
$42 -> $45
2026-01-26
New
maintain
Hold
Reason
Jefferies raised the firm's price target on Southwest to $45 from $42 and keeps a Hold rating on the shares. Southwest completed the reconfigurations of its roughly 300 737-700s all in the month of January, on schedule with the January 27 start of flights featuring assigned and extra legroom (ELR) seating, the analyst tells investors. Seat bundles and fare classes are new, notes the analyst, who sees a $1.5B opportunity at a $50 average upsell across a 20% buy-up rate.
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Susquehanna
Christopher Stathoulopoulos
Neutral
maintain
$35 -> $45
2026-01-09
Reason
Susquehanna
Christopher Stathoulopoulos
Price Target
$35 -> $45
2026-01-09
maintain
Neutral
Reason
Susquehanna analyst Christopher Stathoulopoulos raised the firm's price target on Southwest to $45 from $35 and keeps a Neutral rating on the shares as part of a Q4 preview. The firm sees a "constructive fundamental backdrop" for the airlines into fiscal 2026. Select carriers will benefit from brand loyalty and diverse revenue streams, the analyst tells investors in a research note.
JPMorgan
Underweight -> Overweight
upgrade
$60
2026-01-09
Reason
JPMorgan
Price Target
$60
2026-01-09
upgrade
Underweight -> Overweight
Reason
JPMorgan upgraded Southwest to Overweight from Underweight with a $60 price target.
About LUV
Southwest Airlines Co. (Southwest) operates Southwest Airlines, a passenger airline that provides scheduled air transportation in the United States and near-international markets. The Company's fare products include four categories: Wanna Get Away, Wanna Get Away Plus, Anytime, and Business Select to provide customers options when choosing a fare. It also offers ancillary services, such as EarlyBird Check-In, Upgraded Boarding, and transportation of pets and unaccompanied minors, in accordance with Southwest’s respective policies. Its Rapid Rewards loyalty program enables program members to earn points for every dollar spent on Southwest base fares, also including purchases paid with LUV Vouchers, gift cards, or flight credit, with no portion of the purchase price paid with Rapid Rewards points. It operates over 803 Boeing 737 aircraft in its fleet and serves 117 destinations in 42 states, the District of Columbia, the Commonwealth of Puerto Rico, and ten near-international countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
