Southwest Q2 2026: revenue up 16.4%, adjusted EPS $0.94, guidance reset
Southwest posted record quarterly revenue of $8.43 billion, up 16.4%, and adjusted EPS of $0.94 against a $0.5152 consensus estimate. Reported EPS of $0.47 told a rougher story because it absorbed a $285 million breakage-revenue charge the company strips out of adjusted results. Read this as a strong operating beat paired with a softer full-year earnings reset, not as a demand problem.
1 · Expected vs. Actual
Free preview belowReported EPS of $0.47 came in below the $0.5152 consensus estimate, while adjusted EPS of $0.94 beat it by a wide margin — the $285 million breakage charge, $15 million of severance, and the related tax sit between those two numbers. Fuel expense rose $889 million year-over-year and cost $1.17 of adjusted EPS, yet adjusted operating margin still expanded 3.3 points to 6.7%. Diluted shares fell 8.9% to 493 million, which lifts per-share figures on both bases.
Reported revenue of $8.43 billion rose 16.4% from $7.24 billion, the highest quarterly total in company history. That number already carries a $285 million downward adjustment to breakage revenue on non-expiring flight credits; adding it back gives adjusted revenue of $8.72 billion, up 20.3%, on capacity growth of only 0.2%. Average passenger fare climbed 20.9% to $225.61 and managed business revenue set an all-time quarterly record, up 30%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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