8/109 sources · 8 publishersUpdated Oct 21, 22:07 UTC
Southwest Airlines reports record Q3 2026 revenue and cuts full‑year profit forecast
Southwest Airlines posted third‑quarter 2026 operating revenue of $8.4 billion, up 21.2% year‑over‑year, and adjusted diluted EPS of $0.66. Despite an $821 million increase in fuel costs, operating margin rose to 4.5% (adjusted margin 5.4%). The company lowered its full‑year 2026 adjusted EPS guidance to $2.60‑$2.85, down from $3.25‑$4.25, citing higher fuel prices.
Why it matters
The reduced full‑year profit forecast narrows the earnings outlook for investors, as noted by the company’s guidance revision. The lower guidance may pressure the stock and affect valuation models that relied on the prior $3.25‑$4.25 range.
Key facts
- 1Operating revenues were $8.4 billion, up 21.2% year‑over‑year. sec.gov
- 2Adjusted diluted EPS for the quarter was $0.66. sec.gov
- 3Operating margin was 4.5%, with adjusted operating margin of 5.4%, up 4.0 and 4.8 points respectively year‑over‑year. sec.gov
- 4Fuel expense increased by $821 million year‑over‑year, representing a $1.08 headwind to adjusted EPS. sec.gov
- 5Full‑year 2026 adjusted EPS guidance was cut to $2.60‑$2.85 per share, down from $3.25‑$4.25. investing.com
- 6The company returned $176 million to shareholders through dividends. sec.gov
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.