Why did Southwest Airlines (LUV) stock move recently?

On 7/23/2026, Southwest Airlines moved -6.2% — Southwest Airlines fell sharply after reporting Q2 results on July 22 that included lowered full-year 2026 adjusted EPS guidance of $3.25-$4.25 (vs. prior floor of at least $4) due to sharply higher fuel costs, plus Q3 EPS outlook of $0.50-$0.75 that missed Street estimates despite a Q2 beat. This is MarketChacha's decoded reason from filings and credible news; it is education, not buy/sell advice.

Is Southwest Airlines (LUV) overvalued or fairly valued?

MarketChacha shows Southwest Airlines's valuation in context — a trailing P/E of about 28.1, a forward P/E of about 9.2, a price-to-book of about 2.7 — alongside its revenue and profit growth and whether reported profit converts into operating cash, so you can judge value for yourself. MarketChacha does not issue ratings, price targets, or buy/sell advice.

Does Southwest Airlines's reported profit turn into cash?

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash. MarketChacha computes this cash-conversion check (3.99×) from reported figures — education, not a rating.

What is Southwest Airlines's revenue?

Southwest Airlines reported revenue of $28.1B for FY2025, with net profit of $441.0M, per official filings.

What is the share price of Southwest Airlines (LUV)?

Southwest Airlines last traded at $39.65 (+2.2% on the day), as of 10/20/2026 — a delayed quote shown for education, not investment advice.

Southwest Airlines

LUV · NYSE · Industrials · United States

Snapshot

TickerLUV

ExchangeNYSE

SectorIndustrials

IndustryAirlines

CountryUnited States

Employees73,456

HeadquartersDallas, United States

Websitewww.southwest.com

Filings tracked18

About Southwest Airlines

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee. In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors. As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.

Who owns it

Insiders1.0%
Institutions94.6%
Public & other4.4%

1,194 institutional holders

Ownership breakdown from public market data.

Top holders

Primecap Management Company9.97%
Franklin Resources, Inc.9.52%
Vanguard Capital Management LLC6.46%
Blackrock Inc.6.12%
State Street Corporation5.99%
Elliott Investment Management L.P.4.97%
Vanguard Portfolio Management LLC4.91%
Price (T.Rowe) Associates Inc2.84%

Largest institutional holders — last updated 6/30/2026.

Forensic scorecard

Latest ROE of 5.5% is on the low side — the business earns a modest return on shareholder capital.

Cash conversion3.99×

Over 3 years, operating cash flow fully covered reported profit — earnings are backed by real cash.

Net margin trend1.8% → 1.6%

Margin has held broadly steady over the period — stable profitability.

Return on equity5.5%

Latest ROE of 5.5% is on the low side — the business earns a modest return on shareholder capital.

Growth qualityrev 4% · PAT -3%

Profit growth is broadly tracking revenue growth — the earnings trend looks operational rather than one-off.

Computed by MarketChacha from reported figures (SEC XBRL). Education, not a rating or recommendation.

What's expected next

Next quarter

Rev $9.0B · EPS 0.86

Est. earnings growth +47.9%

Next fiscal year

Rev $35.0B · EPS 4.29

Est. earnings growth +52.4%

Analyst consensus estimates — not the company's own guidance.

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P/E ROE ROCE Margins Market cap

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Financials at a glance

Source: SEC XBRL

Annual

Quarterly · last 8

Revenue (FY2025)

$28.1B

Net margin

1.6%

ROE

5.5%

Revenue CAGR (2y)

+3.7%

Profit CAGR (2y)

-2.6%

EPS (FY2025)

0.79

Net profit (FY2025)

$441.0M

Ask MarketChacha about LUV

Get a cited, plain-English answer — the “why”, not just data. Finance research only, never buy/sell advice.

Why it moved

Jul 23, 2026
Southwest Airlines fell sharply after reporting Q2 results on July 22 that included lowered full-year 2026 adjusted EPS guidance of $3.25-$4.25 (vs. prior floor of at least $4) due to sharply higher fuel costs, plus Q3 EPS outlook of $0.50-$0.75 that missed Street estimates despite a Q2 beat.
source 1 ↗source 2 ↗source 3 ↗· confidence: high

Daily moves with the verified reason behind them. Education only — not investment advice.

Financials

Yearly

Period	Revenue	Net profit	EPS	Net margin	ROE
FY2025	$28.1B	$441.0M	0.79	1.6%	5.5%
FY2024	$27.5B	$465.0M	0.76	1.7%	4.5%
FY2023	$26.1B	$465.0M	0.76	1.8%	4.4%

Quarterly

Period	Revenue	Net profit	EPS	Net margin
2026Q2	$8.4B	$233.0M	0.47	2.8%
2026Q1	$7.2B	$227.0M	0.45	3.1%
2025Q3	$6.9B	$54.0M	0.10	0.8%
2025Q2	$7.2B	$213.0M	0.39	2.9%
2025Q1	$6.4B	$-149.0M	-0.26	-2.3%
2024Q3	$6.9B	$67.0M	0.11	1.0%
2024Q2	$7.4B	$367.0M	0.58	5.0%
2024Q1	$6.3B	$-231.0M	-0.39	-3.6%
2023Q3	$6.5B	$193.0M	0.31	3.0%
2023Q2	$7.0B	$683.0M	1.08	9.7%
2023Q1	$5.7B	$-159.0M	-0.27	-2.8%

Figures as reported, in reporting currency. Source: SEC XBRL.

Filings & announcements

2026

8-K — Material agreement, Termination of agreement, Material financial obligation, Exhibits
SEC8/12/2026material
8-K — Executive/director change
SEC8/10/2026material
8-K — Executive/director change
SEC8/7/2026material
10-Q — SECOND QUARTER 2026 10-Q
SEC7/23/2026
8-K — Results of operations, Exhibits
SEC7/22/2026material
8-K — Material agreement, Material financial obligation
SEC5/19/2026material
8-K — Shareholder vote results
SEC5/11/2026material
10-Q — FIRST QUARTER 2026 10-Q
SEC4/23/2026
8-K — Results of operations, Exhibits
SEC4/22/2026material
8-K — Material agreement, Material financial obligation
SEC3/12/2026material
8-K — Executive/director change
SEC2/10/2026material
10-K/A — FORM 10-K/A
SEC2/6/2026
10-K — FORM 10-K
SEC2/5/2026
8-K — Results of operations, Exhibits
SEC1/28/2026material

2025

8-K — Reg FD disclosure
SEC12/5/2025material
8-K — Material agreement, Material financial obligation, Other events, Exhibits
SEC11/3/2025material
10-Q — 3RD QUARTER 2025 FORM 10-Q
SEC10/23/2025
8-K — Results of operations, Reg FD disclosure, Exhibits
SEC10/22/2025material

In the news

Education and discussion only — not investment advice. Financials from official filings (SEC/BSE) and reported company statements; market figures (delayed market data) are delayed and shown for reference only. Verify with the linked sources before acting.