Adjusted earnings per share for the most recent quarter reached $0.66, against an analyst estimate of $0.57, as Southwest Airlines reported adjusted revenue of $8.42B, topping the $8.25B forecast. Adjusted net income for the period was $328M, compared with the $284M expected by analysts. However, the airline lowered its full year 2026 adjusted EPS guidance to a range of $2.60 to $2.85, falling below the $2.87 estimated by Wall Street, citing rising jet fuel costs.
The company also provided a fourth quarter adjusted EPS outlook of $0.55 to $0.80, which is lower than the $0.85 consensus. Southwest plans to spend between $2.5B and $2.75B in net capital during 2026 and has returned $176M to shareholders through dividends. Management intends to launch the Southwest Icon Lounge network in 2027 and has scheduled a Capital Markets Day for March 2, 2027.
