Southwest Airlines (LUV) stock
Industrials · Passenger Airlines
Southwest Airlines (LUV) is a Passenger Airlines company in the Industrials sector, headquartered in Dallas, Texas. As of October 23, 2026, LUV closed at $41.75, a market capitalization of $20.42 billion, the 403rd largest company in the S&P 500. Over the last twelve months it generated $31.55 billion in revenue (+21% year over year) and -$455.00 million in free cash flow. The stock trades at 20.4x trailing earnings and 10.1x forward earnings.
- 1-year total return: +34.3% (dividends reinvested)
- 5-year return: -0.9% a year
- 52-week range: $29.26 – $55.11
- Gross margin 22.1%, operating margin 4.5%
- Dividend yield: 1.72%
- FI Handbook report card: C+ across 10 metrics
- 64th largest of 83 Industrials stocks in the S&P 500
LUV price chart
1Y price change: +31.9% (price only; total returns below include dividends)
| Total return | 1M | YTD | 1Y | 3Y | 5Y | 10Y | MAX |
|---|---|---|---|---|---|---|---|
| LUV | +1.7% | +2.4% | +34.3% | +22.4% | -0.9% | +1.1% | +12.7% |
Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1980.
LUV key statistics
- Market cap
- $20.4B
- #403 in S&P 500
- P/E (TTM)
- 20.4x
- Forward P/E
- 10.1x
- EPS (TTM)
- $2.05
- Revenue (TTM)
- $31.5B
- +21%
- Free cash flow
- -$455.0M
- Gross margin
- 22.1%
- Operating margin
- 4.5%
- Return on equity
- 13.9%
- Dividend yield
- 1.72%
- 52-week range
- $29.26 – $55.11
- Beta
- 1.16
- Price / sales
- 0.6x
- EV / EBITDA
- 8.8x
- Debt / equity
- 0.94x
- Employees
- 73,092
LUV report card
C+Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.
- Revenue growth21.2%A
- Gross margin22.1%D
- Operating margin4.5%D
- FCF margin-1.4%F
- Return on equity13.9%C
- Net debt / EBITDA1.2xC
- Forward P/E10.1xA
- PEG ratio0.2xA
- Shareholder yield14.2%A
- Share count change / yr-0.2%C
Southwest Airlines financials
Revenue went from $20.3B in fiscal 2016 to $28.1B in fiscal 2025, growing 3.7% a year.
| Fiscal year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $20.3B | $21.1B | $22.0B | $22.4B | $9.0B | $15.8B | $23.8B | $26.1B | $27.5B | $28.1B |
| Operating income | $3.5B | $3.4B | $3.2B | $3.0B | -$3.8B | $1.7B | $1.0B | $224.0M | $321.0M | $428.0M |
| Net income | $2.2B | $3.4B | $2.5B | $2.3B | -$3.1B | $977.0M | $539.0M | $465.0M | $465.0M | $441.0M |
| EPS (diluted) | $3.45 | $5.57 | $4.29 | $4.27 | $-5.44 | $1.61 | $0.87 | $0.76 | $0.76 | $0.79 |
| Free cash flow | $2.3B | $1.8B | $3.0B | $3.0B | -$1.6B | $1.8B | -$134.0M | -$356.0M | -$1.6B | -$831.0M |
| Buybacks | $1.8B | $1.6B | $2.0B | $2.0B | $451.0M | $0 | $0 | $0 | $250.0M | $2.5B |
| Dividends paid | $222.0M | $274.0M | $332.0M | $372.0M | $188.0M | $0 | $0 | $428.0M | $430.0M | $399.0M |
| Diluted shares | 633.0M | 603.0M | 574.0M | 539.0M | 565.0M | 609.0M | 642.0M | 640.0M | 643.0M | 558.0M |
Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.
What's priced into LUV?
A reverse DCF asks what growth the current price requires. With an enterprise value of $23.7B and -$455.0M of trailing free cash flow, Southwest Airlines needs to grow free cash flow at a rate outside our model for ten years (fading to 3.0% terminal growth) to earn a 10% annual return.
P/E ratio history
Current 52.8x vs. median 24.7x (10th–90th percentile 10.3x–50.5x).
A model, not a forecast or advice. Small changes in assumptions move the answer a lot.
LUV dividend
- Dividend yield
- 1.72%
- Annual dividend
- $0.72
- Years of increases
- —
- 5-yr dividend growth
- 3.5%
- per year
- Payout ratio
- 35%
- Payments per year
- 4
Regular dividends per share by calendar year; special dividends excluded. Current year omitted until complete.
LUV analyst price targets
23 analysts' average 12-month target is $49.32 (+18% vs. $41.75). Targets range from $34.00 to $65.00. 44% rate it a buy.
LUV earnings
Next report: January 27, 2027. Southwest Airlines has beaten EPS estimates 2 quarters in a row.
| Report date | EPS estimate | EPS actual | Surprise |
|---|---|---|---|
| Oct 21, 2026 | $0.58 | $0.66 | +14.2% |
| Jul 22, 2026 | $0.52 | $0.94 | +80.2% |
| Apr 22, 2026 | $0.47 | $0.45 | -5.0% |
| Jan 28, 2026 | $0.57 | $0.58 | +1.8% |
| Oct 22, 2025 | $-0.04 | $0.11 | +401.0% |
| Jul 23, 2025 | $0.51 | $0.43 | -16.2% |
| Apr 23, 2025 | $-0.19 | $-0.13 | +32.2% |
| Jan 30, 2025 | $0.46 | $0.56 | +21.5% |
Stocks like LUV
| Name | Today | 1Y | Mkt cap | P/E | |
|---|---|---|---|---|---|
 DAL Delta Air Lines | -3.13% | +32% | $50.5B | 15.3x | Compare |
 UAL United Airlines | -3.99% | +2% | $31.8B | 9.0x | Compare |
 CAT Caterpillar | -2.42% | +33% | $315.8B | 29.6x | Compare |
 GE GE Aerospace | -2.69% | -6% | $296.4B | 32.6x | Compare |
 RTX RTX | -1.90% | +8% | $257.8B | 31.1x | Compare |
 GEV GE Vernova | -1.50% | +37% | $217.1B | 23.4x | Compare |
 DE Deere & | +0.39% | +39% | $174.2B | 35.9x | Compare |
 UNP Union Pacific | -1.75% | +36% | $174.0B | 22.8x | Compare |
LUV news
- Southwest Airlines (LUV) Stock Rallies As Q3 Earnings Counter Fuel Pressure · Oct 22, 2026
- What Early Southwest Airlines Buyers Saw · Oct 22, 2026
- What Southwest Airlines (LUV) Said on Its Q3 Earnings Call · Oct 22, 2026
- Southwest Airlines Beats Expectations but Slashes Profit Outlook on Rising Fuel Costs · Oct 22, 2026
- Southwest Airlines: 3 Key Takeaways for Long-Term Investors · Oct 22, 2026
LUV stock FAQ
What is LUV's market cap?
Southwest Airlines's market capitalization is $20.42 billion as of October 23, 2026, ranking 403rd in the S&P 500.
What is LUV's P/E ratio?
LUV trades at a trailing price-to-earnings ratio of 20.4x and a forward P/E of 10.1x. Its median P/E over the period we track is 24.7x.
Does LUV pay a dividend?
Yes. Southwest Airlines pays $0.72 per share a year, a 1.72% yield. Dividends grew 3.5% a year over the last five years.
How much has LUV stock returned?
Including reinvested dividends, LUV returned +34.3% over one year, -0.9% a year over five years, +1.1% a year over ten years through October 23, 2026.
What is the LUV price target?
23 analysts cover LUV with an average 12-month price target of $49.32, +18% from the current price. 44% of them rate it a buy.
When does LUV report earnings?
Southwest Airlines is expected to report earnings on January 27, 2027. It has beaten EPS estimates 2 quarters in a row.
How many employees does Southwest Airlines have?
Southwest Airlines has about 73,092 full-time employees, or $431,593 of revenue per employee.
Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology