Southwest Airlines stock surged following the company's fourth-quarter 2025 earnings announcement and strong 2026 guidance. The company reported fourth-quarter earnings per share of $0.58, exceeding analyst expectations of $0.57, though revenue of $7.4 billion missed the anticipated $7.5 billion. Southwest provided 2026 adjusted earnings per share guidance of at least $4.00, representing more than a 300% increase over 2025 levels. The company attributed this guidance to business transformations implemented in 2025, including the introduction of bag fees, basic economy fares, assigned seating, and improved operational reliability. The stock reached a four-year high, gaining approximately 18.70% on the announcement. BMO Capital upgraded Southwest Airlines from Market Perform to Outperform with a price target of $57.50. The stock currently trades at $48.50.
Read full analysisSouthwest Airlines stock surged following the company's fourth-quarter 2025 earnings announcement and strong 2026 guidance. The company reported fourth-quarter earnings per share of $0.58, exceeding analyst expectations of $0.57, though revenue of $7.4 billion missed the anticipated $7.5 billion. Southwest provided 2026 adjusted earnings per share guidance of at least $4.00, representing more than a 300% increase over 2025 levels. The company attributed this guidance to business transformations implemented in 2025, including the introduction of bag fees, basic economy fares, assigned seating, and improved operational reliability. The stock reached a four-year high, gaining approximately 18.70% on the announcement. BMO Capital upgraded Southwest Airlines from Market Perform to Outperform with a price target of $57.50. The stock currently trades at $48.50.
Southwest Airlines Co. (LUV) is a publicly traded company in the Industrials sector.