LUV

Southwest Airlines reported Q3 2026 revenue of $8.42 billion, up 21.2% year-over-year, beating Wall Street's $8.27 billion estimate by 1.89%. EPS came in at $0.66 versus consensus of $0.61, representing an 8.2% surprise.

However, the load factor of 79.8% missed analyst estimates of 82.3%, and fuel costs per gallon were higher than expected at $3.92 versus $3.52 estimated. The stock has a Zacks Rank #3 (Hold) rating and has declined 5.8% over the past month.

Southwest Airlines reported Q3 2026 earnings of $0.66 per share, beating consensus estimates of $0.61, with revenues of $8.42 billion exceeding expectations by 1.89%. However, the stock has underperformed the S&P 500 by 16.8% year-to-date. The company received a Zacks Rank #3 (Hold) rating with mixed estimate revisions, and the airline industry ranks in the bottom 6% of Zacks industries.

American Airlines is expected to report Q3 2026 earnings on October 22, with Wall Street forecasting a year-over-year earnings decline to -$0.28 per share despite revenue growth to $16.2 billion. The stock carries a Zacks Rank #4 with a negative Earnings ESP of -2.66%, making it unlikely to beat consensus estimates. Southwest Airlines is also expected to report with mixed signals despite a strong year-over-year EPS improvement.