LUV
FY2026 Q2 · Calendar Q3 2026
Southwest Airlines Co.
Southwest's Q2 was a sharp bottom-line beat -- adjusted EPS of $0.94 versus $0.51 consensus -- driven by 20% unit revenue growth and 6.7% operating margin from transformational initiatives including assigned seating, bag fees, and Starlink Wi-Fi. But the stock fell 4.95% on an abnormal basis in the session after the report, as the market digested lowered full-year EPS guidance of $3.25-$4.25 and the approaching headwind of lapped ancillary-fee rollouts that will pressure Q3 unit revenue. The tension: exceptional current results versus a less clear forward path with fuel assumptions adjusted and easy year-over-year comparisons fading.
EPS surprise+84.3%
Market move-6.2%
