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Southwest Airlines Co. LUV NYSE

NYSE • Industrials • Airlines, Airports & Air Services • US • USD

SharesGrow Score
52/100
2/7 Pass
SharesGrow Intrinsic Value
$62.96
+52.6%
Analyst Price Target
$51.27
+24.3%
SharesGrow 7-Criteria Score All 7 criteria scored · income-related highlighted on this page

Southwest Airlines Co. (LUV) reported moderate year-over-year revenue growth of +2.1% through 2025-12 (TTM revenue vs prior-year TTM). Net income showed earnings decline of -5% YoY, reaching $323M in the latest quarter. The net profit margin is 4.3%, which is thin. the company was profitable in 3 out of the last 4 quarters. The gross margin is 17.3% (low), down 0.2pp vs the prior year. With a $20B market cap, MOAT composite score of 52/100 (moderate competitive position).

Criteria proven by this page:

  • GROWTH (40/100, Partial) — growth is present but not consistently above 5% across both metrics
  • PAST (100/100, Partial) — profitability has been inconsistent. Looking at the full 41-year annual history, the company was profitable in 40 of 41 years — an excellent long-term track record
  • INCOME (30/100, Partial) — the company is profitable but margin is below 15%
  • MOAT (52/100, Partial) — some competitive advantages are present but not dominant

Overall SharesGrow Score: 52/100 with 2/7 criteria passed.

52/100
SG Score
View full scorecard →
VALUE
67/100
Price-to-Earnings & upside
→ IV page
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FUTURE
46/100
Analyst consensus
→ Forecast
PAST
100/100
3/4 qtrs profit
EPS $0.61
Proven by this page
HEALTH
33/100
Debt-to-Equity & liquidity
→ Health
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MOAT
47/100
Score: 52/100
GM 17.3% (-0.2pp)
Proven by this page
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GROWTH
40/100
Rev +2.1% YoY
NI -5% YoY
Proven by this page
INCOME
30/100
Margin 4.3%
$7.4B
Proven by this page
Southwest Airlines Co. Earnings and Revenue History
Revenue
Earnings & Profit Margin
Metric TTM Q4 FY2025 Q3 FY2025 Q2 FY2025 Q1 FY2025
Revenue $28.06B$7.44B$6.95B$7.24B$6.43B
Gross Profit $4.89B$1.51B$1.16B$1.36B$867M
Gross Margin 17.4%20.3%16.7%18.7%13.5%
Operating Income $428M$391M$35M$225M$-223M
Net Income $441M$323M$54M$213M$-149M
Net Margin 1.6%4.3%0.8%2.9%-2.3%
EPS (Diluted) $0.84$0.61$0.10$0.39$-0.26
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