JPMorgan cuts target for Southwest Airlines stock to USD 58.00 from USD 59.00
Published on 10/25/2026 at 13:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAnalyst target and earnings
- JPMorgan lowered its Southwest Airlines target to USD 58.00 from USD 59.00 on October 23, 2026.
- Southwest reported USD 8.42 billion in third-quarter 2026 revenue.
- Southwest Airlines stock closed at EUR 37.23 on October 23, 2026.
Southwest Airlines (ISIN US8447411088) drew a fresh analyst reset after MarketScreener reported on October 23, 2026 that JPMorgan cut its price target to USD 58.00 from USD 59.00. The change followed Southwest's third-quarter results and a lower full-year profit outlook shaped by higher fuel costs.
Fuel pressure changes the outlook
Southwest reported record third-quarter operating revenue of USD 8.42 billion for the period ended September 30, 2026, up 21.2 percent from USD 6.95 billion a year earlier, according to the company's Southwest Airlines release dated October 21, 2026.
GAAP net income reached USD 270 million, or USD 0.55 diluted earnings per share, compared with USD 54 million and USD 0.10 in the third quarter of 2025. Adjusted net income was USD 328 million, or USD 0.66 adjusted earnings per share, while the adjusted operating margin rose to 5.4 percent from 0.6 percent.
The improvement came with a clear cost constraint. Southwest said third-quarter fuel expense rose by USD 821 million year over year, while Reuters reported that the carrier lowered its 2026 adjusted earnings outlook to USD 2.60 to USD 2.85 per share from USD 3.25 to USD 4.25. That range puts the midpoint below the USD 2.85 analyst estimate cited in the report.
What do the analyst targets signal?
JPMorgan's October 23 target cut contrasts with BMO Capital's move to USD 55.00 from USD 50.00 on the same date, as reported by MarketScreener. The split reflects a balance between stronger fares and unit revenue and the pressure that fuel costs place on conversion from revenue to profit.
Three dated developments
On September 30, 2026, Southwest ended the quarter with USD 8.42 billion in operating revenue. On October 21, 2026, it reported USD 270 million in net income and cut its full-year adjusted earnings outlook. On October 23, 2026, JPMorgan reduced its target to USD 58.00 from USD 59.00.
Upcoming dates and strategy
Southwest's next two substantiated dates are January 27, 2027, for the fourth-quarter earnings release, and March 2, 2027, for its Capital Markets Day in New York City, according to MarketScreener. Management plans to present its longer-term financial framework at the March event.
Market value and trading reference
The Xetra close was EUR 37.23 on October 23, 2026. Southwest Airlines had a market capitalization of USD 20.4 billion on October 23, 2026, while its NYSE 52-week range was USD 29.26 to USD 55.11. The further course of trading is shown by the continuously updated real-time quote of Southwest Airlines stock.
Southwest Airlines facts
- Company: Southwest Airlines Co.
- ISIN: US8447411088
- Ticker: LUV
- Primary exchange: NYSE
- Xetra close (October 23, 2026): EUR 37.23
- Market capitalization: USD 20.4 billion (as of October 23, 2026)
- 52-week range: USD 29.26-55.11 (as of October 23, 2026)
- Sector / Industry: Industrials / Airlines, Airports and Air Services
Market context: Market report S&P 500.
