Southwest Airlines Company (LUV) Stock Rises on Q4 2025 Earnings

Southwest Airlines Company (LUV) reported Q4 2025 results. Total revenue rose 7.4% year-over-year to $7.44 billion, and gross profit increased 8.2% to $5.26 billion.

Operating profit climbed 40.7% to $391 million.

Net income attributable to common shareholders was $323 million, up 23.8% year-over-year.

Diluted earnings per share were $0.61, a 45.2% increase versus the prior year.

Cost of sales totaled $2.18 billion, up 5.5%.

Cash flow and balance sheet highlights included sizable changes in liquidity and investment.

Cash from operating activities fell 38.0% to $295 million.

Capital expenditures rose 86.7% to $859 million.

Cash and cash equivalents declined 57.0% to $3.23 billion.

Total liabilities decreased 9.9% to $21.08 billion.

The quarter saw a mixed result versus expectations: EPS of $0.61 topped the estimate of $0.58, while revenue of $7.44 billion trailed the consensus of $7.59 billion. Shares moved after the release, rising 4.94% since market close.

Note: This financials data is sourced from a third-party provider and has not been independently verified by Quiver.

Southwest Airlines Company Insider Trading Activity

Southwest Airlines Company insiders have traded $LUV stock on the open market 5 times in the past 6 months. Of those trades, 4 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $LUV stock by insiders over the last 6 months:

JUSTIN JONES (EVP Operations) sold 8,085 shares for an estimated $302,055
GREGG A SARETSKY has made 2 purchases buying 3,345 shares for an estimated $100,447 and 0 sales.
SARAH FEINBERG has made 2 purchases buying 1,500 shares for an estimated $45,007 and 0 sales.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

Southwest Airlines Company Hedge Fund Activity

We have seen 331 institutional investors add shares of Southwest Airlines Company stock to their portfolio, and 394 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

UBS GROUP AG added 17,978,284 shares (+174.5%) to their portfolio in Q3 2025, for an estimated $573,687,042
CAPITAL WORLD INVESTORS removed 8,468,269 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $270,222,463
NOMURA HOLDINGS INC removed 7,698,971 shares (-66.6%) from their portfolio in Q3 2025, for an estimated $245,674,164
GOLDMAN SACHS GROUP INC added 5,490,321 shares (+161.2%) to their portfolio in Q3 2025, for an estimated $175,196,143
VANGUARD GROUP INC removed 5,121,198 shares (-7.7%) from their portfolio in Q3 2025, for an estimated $163,417,428
INTERVAL PARTNERS, LP added 4,017,235 shares (+inf%) to their portfolio in Q3 2025, for an estimated $128,189,968
AMERIPRISE FINANCIAL INC added 3,753,183 shares (+43.7%) to their portfolio in Q3 2025, for an estimated $119,764,069

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Southwest Airlines Company Government Contracts

We have seen $198,619 of award payments to $LUV over the last year.

Here are some of the awards which we have have seen pay out the most over the last year:

IGF:OT:IGF DOMESTIC CHARTER - AIR TRANSPORTATION SERVICES: $82,700
DOMESTIC CHARTER - AIR TRANSPORTATION SERVICES: $79,500
DOMESTIC CHARTER - AIR TRANSPORTATION SERVICES: $33,419
CIVIL RESERVE AIR FLEET - AIR TRANSPORTATION SERVICES: $3,000

To track government contracts to publicy traded companies, check out Quiver Quantitative's government contracts dashboard.

Southwest Airlines Company Congressional Stock Trading

Members of Congress have traded $LUV stock 2 times in the past 6 months. Of those trades, 1 have been purchases and 1 have been sales.

Here’s a breakdown of recent trading of $LUV stock by members of Congress over the last 6 months:

REPRESENTATIVE GILBERT RAY CISNEROS, JR. has traded it 2 times. They made 1 purchase worth up to $15,000 on 09/05 and 1 sale worth up to $15,000 on 08/05.

To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.

Southwest Airlines Company Analyst Ratings

Wall Street analysts have issued reports on $LUV in the last several months. We have seen 1 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

JP Morgan issued a "Overweight" rating on 01/09/2026

To track analyst ratings and price targets for Southwest Airlines Company, check out Quiver Quantitative's $LUV forecast page.

Southwest Airlines Company Price Targets

Multiple analysts have issued price targets for $LUV recently. We have seen 15 analysts offer price targets for $LUV in the last 6 months, with a median target of $44.0.

Here are some recent targets:

Sheila Kahyaoglu from Jefferies set a target price of $45.0 on 01/26/2026
Catherine O'Brien from Goldman Sachs set a target price of $29.0 on 01/13/2026
Christopher Stathoulopoulos from Susquehanna set a target price of $45.0 on 01/09/2026
Jamie Baker from JP Morgan set a target price of $60.0 on 01/09/2026
John Godyn from Citigroup set a target price of $44.0 on 01/07/2026
Atul Maheswari from UBS set a target price of $45.0 on 01/06/2026
Andrew Didora from B of A Securities set a target price of $37.0 on 01/06/2026