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Southwest Airlines Co.

LUV

Industrials Airlines

Southwest Airlines Co.’s revenue for fiscal 2025 (year ended December 2025) was $28.1 billion, up 2.11% from fiscal 2024.

Revenue
+21.2%
EPS
+450.0%
Free cash flow
+46.9%
Total debt
+43.5%

Quarter to September 2026, against a year earlier

44.45 0.01 +0.02%
Market cap
$21.8B
P/E
21.1×
Fwd P/E
17.9×
Dividend yield
1.62%
F-score
7/9
ROIC
9.02%
Net debt / EBITDA
0.8×
Dividend safety
24/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Segments Valuation Filings

Revenue by products and services Fiscal 2025

  • Passenger
  • Other
  • Freight

Every year since 2016 →

Insider Decisions last twelve months

Net sold
$306.5K
Trades
2 sells · 0 buys
Ownership
0.96%

Capital & Financial Ratios $m

Size
Market Cap 21,760
Revenue ttm 31,545
Net income ttm 1,053
Free cash flow ttm 177
Net debt Q 2,263
Valuation
P/E 21.1
Forward P/E 17.9
Price / sales 0.7
Forward P/S Powerpack
Price / FCF 122.8
Price / book 3.0
Financial health
Current ratio Q 0.5 (below 1: weak)
Debt / equity Q 0.8
Interest coverage Q 5.4
Growth
Revenue growth Q +21.2% (above 0%: growing)
Operating income growth Q +980.0% (above 0%: growing)
EPS, this year +196.3% (at or above 15%: strong)
EPS, next year A +45.9% (at or above 15%: strong)
Revenue, next year A +19.6% (at or above 10%: strong)
EPS, past 5 yrs —
EPS, next 5 yrs A +81.9% (at or above 15%: strong)

Green and red mark values outside typical ranges; (Q) is the latest quarter, (A) analysts’ estimates; n/m is not meaningful, as a P/E on a loss. How we judge →

Valuation vs history

EV/Sales, ten years
EV/Sales is 0.8×, against a ten-year median of 1.2×; over the ten years it ranged from 0.4× in 2023 to 4.9× in 2021.
P/E against its own 10 years 49.66%
10-year low 10-year high
P/S against its own 10 years 19.46%
10-year low 10-year high
P/B against its own 10 years 59.49%
10-year low 10-year high
EV/Sales against its own 10 years 33.58%
10-year low 10-year high
EV/FCF against its own 10 years 99.94%
10-year low 10-year high

Dividends

Yield
1.62%
Annual rate
0.72
Payout ratio
34.6%
Growth, 2017–25
+5.34%/yr
  1. 0.48 ’17
  2. 0.61 ’18 +27
  3. 0.70 ’19 +16
  4. 0.18 ’20 −74
  5. 0.00 ’21 −100
  6. 0.00 ’22
  7. 0.90 ’23
  8. 0.72 ’24 −20
  9. 0.72 ’25 +0
  10. 0.72 ’26e +0
paid forecast change on the year, % Powerpack

Assets vs Liabilities $m

2023 2024 2025 Q'26
Cash 11,474 8,725 3,231 3,624
Receivables 1,154 1,110 1,149 1,313
Inventory 807 800 775 997
Other — — — —
13,955 11,274 5,645 6,506
2023 2024 2025 Q'26
Payables 1,862 1,818 1,991 1,847
ST’ Debt 29 1,630 324 2,153
Other 6,551 6,294 5,945 7,078
12,256 12,276 10,921 13,738

Compound Annual Growth %

10y 5y 3y
Sales 3.54% 25.41% 5.63%
Cash Flow (5.48%) 0.00% (21.38%)
Earnings (14.75%) 0.00% (6.40%)
Book Value 0.82% (2.10%) (9.27%)

Earnings Trends EPS, adjusted, against the consensus

Q3 FY26 Estimate 0.61 Actual 0.66

Earnings per share against the consensus, by quarter
Quarter Estimate Reported Result
Q4 FY25 0.56 0.58 Beat by 0.02
Q1 FY26 0.45 0.45 Met by 0.00
Q2 FY26 0.52 0.94 Beat by 0.42
Q3 FY26 0.61 0.66 Beat by 0.05
Q4 FY26 0.72 — Reports 27 January 2027

EPS $

Mar Jun Sep Dec Year
’26 0.45 0.47 0.55 — —
’25 (0.26) 0.39 0.10 0.61 0.79
’24 (0.39) 0.58 0.11 0.42 0.76
’23 (0.27) 1.08 0.31 (0.37) 0.76
’22 (0.47) 1.20 0.44 (0.37) 0.87
’21 0.19 0.57 0.73 0.11 1.61
’20 (0.18) (1.63) (1.96) (1.54) (5.44)
Fiscal quarters ending in the months shown.

Revenue $m

Mar Jun Sep Dec Year
’26 7,249 8,432 8,422 — —
’25 6,428 7,244 6,949 7,442 28,063
’24 6,329 7,354 6,870 6,930 27,483
’23 5,706 7,037 6,525 6,823 26,091
’22 4,694 6,728 6,220 6,172 23,814
’21 2,052 4,008 4,679 5,051 15,790
’20 4,234 1,008 1,793 2,013 9,048
Fiscal quarters ending in the months shown.

Operating Cash Flow $m

Mar Jun Sep Dec Year
’26 1,418 529 513 — —
’25 860 401 286 295 1,842
’24 (104) (24) 114 476 462
’23 706 1,417 616 425 3,164
’22 1,071 1,906 234 579 3,790
’21 645 2,005 (575) 247 2,322
’20 (377) 897 (1,051) (596) (1,127)
Fiscal quarters ending in the months shown.

Free Cash Flow $m

Mar Jun Sep Dec Year
’26 980 (31) (208) — —
’25 359 (234) (392) (564) (831)
’24 (687) (518) (403) 16 (1,592)
’23 (340) 492 (225) (283) (356)
’22 561 919 (837) (777) (134)
’21 550 1,910 (710) 67 1,817
’20 (301) 913 (1,140) (686) (1,214)
Fiscal quarters ending in the months shown.

Valuation

The price implies free cash flow after share-based pay growing 32.1% a year for ten years.

Implied
32.1%
Open the model

Target Price Range

Analyst price targets

Recommendation Rating

2.4
1Buy 2 3Hold 4 5Sell

Ten years at a glance Fiscal years to December

Ten-year view Analyst estimates Powerpack
Group Line 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 TTM Sep ’26 Trend 10 yrs 2026e 2027e 2028e Next 3/yr
Income, $m
Income, $m Revenue 20,289 21,146 21,965 22,428 9,048 15,790 23,814 26,091 27,483 28,063 31,545 +3.7% 33,568 35,804 36,829 +9.5%
Gross margin, % 36.70 35.34 33.05 32.11 (7.02) 34.12 25.63 22.02 22.25 23.00 22.94 (13.7) pt
EBT 3,450 3,265 3,164 2,957 (4,256) 1,325 728 633 598 563 1,353 (18.2%)
EBT margin, % 17.00 15.44 14.40 13.18 (47.04) 8.39 3.06 2.43 2.18 2.01 4.29 (15.0) pt
Net income 2,183 3,357 2,465 2,300 (3,074) 977 539 465 465 441 1,053 (16.3%)
Per share, $
Per share, $ Revenue 32.36 35.18 38.33 41.69 16.01 26.67 40.16 43.85 45.96 51.97 64.51 +5.4%
Earnings 3.58 5.80 4.30 4.28 (5.44) 1.65 0.91 0.78 0.78 0.82 2.11 (15.1%)
Cash flow 6.85 6.54 8.54 7.41 (1.99) 3.92 6.39 5.32 0.77 3.41 5.63 (7.4%)
Capex (3.25) (3.53) (3.35) (1.17) (0.15) (0.85) (6.62) (5.92) (3.43) (4.95) (5.27) +4.8%
Free cash flow 3.60 3.01 5.19 6.25 (2.15) 3.07 (0.23) (0.60) (2.66) (1.54) 0.36 n/m
Book value 13.46 16.04 17.20 18.28 15.71 17.59 18.02 17.67 17.31 14.78 14.99 +1.0%
Shares, m 627 601 573 538 565 592 593 595 598 540 504 (1.6%)
Valuation, ×
Valuation, × P/E 13.96 11.35 10.78 12.58 0.00 25.96 35.82 34.31 43.66 47.51 21.07 23.6
P/S 1.54 1.88 1.21 1.29 2.91 1.61 0.81 0.65 0.73 0.80 0.69 1.3
P/B 3.71 4.13 2.70 2.95 2.97 2.44 1.81 1.61 1.94 2.80 2.97 2.7
EV/Sales 1.60 1.97 1.28 1.24 2.61 1.30 0.64 0.52 0.66 0.85 0.76 1.3
EV/FCF 14.41 23.05 9.43 8.27 (19.47) 11.33 (112.89) (37.86) (11.36) (28.87) 135.59 (14.4)
Cash, $m
Cash, $m Operating cash flow 4,293 3,929 4,893 3,987 (1,127) 2,322 3,790 3,164 462 1,842 2,755 (9.0%)
Capex (2,038) (2,123) (1,922) (627) (87) (505) (3,924) (3,520) (2,054) (2,673) (2,578) +3.1%
Free cash flow 2,255 1,806 2,971 3,360 (1,214) 1,817 (134) (356) (1,592) (831) 177 n/m
Balance, $m
Balance, $m Working capital (2,346) (2,048) (2,877) (2,978) 7,667 8,872 4,430 1,699 (1,002) (5,276) (7,232) +9.4%
Net debt 1,160 1,785 1,389 (1,243) (2,694) (4,777) (4,204) (3,467) (2,026) 1,670 2,263 +4.1%
Shareholders’ equity 8,441 9,641 9,853 9,832 8,876 10,414 10,687 10,515 10,350 7,981 7,329 (0.6%)
Returns, %
Returns, % ROA 9.79 13.87 9.60 8.82 (10.16) 2.76 1.50 1.35 1.38 1.41 3.58 (8.4) pt
ROIC 22.93 18.64 17.82 21.52 (38.58) 19.08 9.80 1.99 2.41 2.77 9.02 (20.2) pt
ROE 27.63 37.13 25.29 23.37 (32.86) 10.13 5.11 4.57 4.65 4.82 13.96 (22.8) pt
People
People Employees 53,500 56,100 58,800 60,800 56,500 55,100 66,656 74,806 72,450 72,790 — +3.5%
Revenue/emp, $m 0.38 0.38 0.37 0.37 0.16 0.29 0.36 0.35 0.38 0.39 — +0.2%
Negative figures in brackets.
estimates

All 10 years →

Fiscal years to Dec 2025 · latest quarter Sep 2026 · fundamentals updated 2 Nov 2026

Business profile

Updated

Southwest Airlines Co. operates scheduled passenger flights in the United States and near-international markets. It was founded in 1967, is headquartered in Dallas, and is led by President and Chief Executive Officer Robert E. Jordan.

The airline sells transportation primarily through a network designed around direct, point-to-point flights rather than the hub-and-spoke model used by many major U.S. airlines. It also designs parts of its network around core stations to offer both nonstop flights and one-stop itineraries. This model is intended to support frequent flights in selected markets, including short-haul, mid-range, and longer-haul routes.

Where the money comes from and where it goes Fiscal 2025

Fiscal 2025: revenue by products and services, and margins
Passenger 25,535 90.99%
Other 2,357 8.40%
Freight 171 0.61%
Gross margin 23.00%
Operating margin 1.53%
Pre-tax margin 2.01%

Revenue by segment since 2016

Southwest Airlines Co. vs peers in Airlines (Q) = latest quarter vs a year earlier

Company Market cap P/E Fwd P/E Revenue growth (Q) EPS growth (Q) FCF growth (Q) Gross margin (Q) EBIT margin (Q) Compare
DAL Delta Air Lines, Inc. $57.4B 17.3× 17.6× +21.07% (above 0%: growing) −47.25% (below 0%: shrinking) −56.40% (below 0%: shrinking) 21.85% 7.20% Compare
UAL United Airlines Holdings Inc $36.6B 10.3× 13.0× +17.41% (above 0%: growing) +8.28% (above 0%: growing) −615.58% (below 0%: shrinking) 64.34% 8.08% Compare
RYAAY Ryanair Holdings PLC $30.7B 14.5× — +2.39% (above 0%: growing) −62.31% (below 0%: shrinking) −150.18% (below 0%: shrinking) 60.67% 31.94% Compare
LUV Southwest Airlines Co. $21.8B 21.1× 17.9× +21.20% (above 0%: growing) +450.00% (above 0%: growing) +46.94% (above 0%: growing) 21.40% 4.49%
LTM LATAM Airlines Group S.A. $13.6B 8.4× 9.6× +17.97% (above 0%: growing) +17.79% (above 0%: growing) −13.57% (below 0%: shrinking) 23.04% 13.14% Compare
AAL American Airlines Group Inc. $8.7B — (loss-making) — (loss-making) +19.31% (above 0%: growing) n/m −43.12% (below 0%: shrinking) 19.23% 0.70% Compare
CPA Copa Holdings, S.A. $5.9B 9.4× 9.4× +25.72% (above 0%: growing) −53.74% (below 0%: shrinking) +207.63% (above 0%: growing) 50.85% 8.65% Compare
ALK Alaska Air Group, Inc. $4.4B — (loss-making) — (loss-making) +14.39% (above 0%: growing) n/m −16.83% (below 0%: shrinking) 100.00% 1.90% Compare
SKYW SkyWest, Inc. $3.0B 7.6× 7.5× +6.41% (above 0%: growing) +7.27% (above 0%: growing) −119.57% (below 0%: shrinking) 69.21% 15.75% Compare
Median of peers $11.2B 9.9× 9.6× +17.69% −19.99% −49.76% 55.76% 8.37%

All 19 Airlines stocks →

From the latest earnings call

Updated

  • Chief Commercial Officer Justin Jones said passenger fares and volumes exceeded Southwest’s expectations, with business travel and adoption of new products contributing to demand.
  • CEO Robert Jordan said Southwest is expanding Rapid Rewards benefits, adding lounges and a premium credit card, and installing Wi-Fi across its fleet.

Largest institutional holders 13F, quarter to 30 June 2026

Held by institutions 92.79%
Held by the ten largest 58.56%
Holder Shares Stake Change
Vanguard 59.70m 12.20% +785.47k
PRIMECAP Management 48.80m 9.97% +1.73m
Franklin Templeton 46.58m 9.52% +2.19m
BlackRock 29.92m 6.12% +1.34m
State Street 29.33m 5.99% −192.82k
Elliott Investment Management L.P. 24.31m 4.97% −6.04m
T. Rowe Price 13.91m 2.84% +10.71k
Geode Capital Management 12.74m 2.60% −236.71k
Ameriprise (Columbia Threadneedle) 10.78m 2.20% +792.92k
Goldman Sachs 10.41m 2.13% +6.89m
13F filings for the quarter to 30 June 2026: long positions in US-listed shares reported by managers with $100m or more, ~45 days after the quarter.

Pay and ownership Proxy statement filed 27 March 2026

Ownership

Directors and executive officers, together less than 1%
The Vanguard Group 13.30%
PRIMECAP Management Company 10.00%
Elliott Investment Management L.P. 9.30%
State Street CorporationState Street Global Advisors Trust Company 8.30%
Franklin Resources, Inc. 8.20%
BlackRock, Inc. 6.70%
Ownership is the proxy’s own table: the directors and officers as a group, and every holder of 5% or more. Read the proxy statement

Southwest Airlines Co. (LUV) Latest News

6 Nov

Impact 3 · · Zacks
Impact 3 · · Zacks

2 Nov

Impact 3 · · TheStreet

28 Oct

Impact 3 · · TIKR

26 Oct

Impact 4 · · PR Newswire

22 Oct

Impact 4 · · Simply Wall St.
Impact 4 · · MarketBeat
Impact 4 · · The Motley Fool
Impact 4 · · The Motley Fool transcript
Impact 4 · · TIKR
Impact 4 · · Proactive Investors
Impact 4 · · Moby
Impact 3 · · Simply Wall St.
Impact 3 · · Zacks

21 Oct

Impact 4 · · PR Newswire earnings
Impact 4 · · 24/7 Wall St.
Impact 3 · · Zacks
Impact 3 · · Zacks
Impact 3 · · Associated Press

20 Oct

Impact 4 · · TheStreet

19 Oct

Impact 3 · · MT Newswires

16 Oct

Impact 4 ·
Impact 4 · · Simply Wall St.
Impact 3 · · Zacks

15 Oct

Impact 4 · · tennessean.com
Impact 4 · · PR Newswire
Impact 3 · · Trefis

14 Oct

Impact 3 · · Zacks
Impact 3 · · Zacks

13 Oct

Impact 3 · · Trefis

LUV metrics, ten years each

stockrow.com/LUV · Data as of Nov 2, 2026 · For information only; not investment advice. · © 2026 stockrow.com