Southwest Q3 FY2026: record $8.42 billion revenue, margins expand
Southwest's third quarter was a real step up: revenue hit a record $8.42 billion and adjusted EPS of $0.66 beat the $0.5816 consensus even as fuel costs rose $821 million. The catch is that reported EPS of $0.55 fell short of that same consensus, and $214 million of aircraft sale gains flattered operating income. Read this as margin progress, not a clean sweep.
1 · Expected vs. Actual
Free preview belowGAAP EPS of $0.55 landed about $0.03 below the $0.5816 consensus, while adjusted EPS of $0.66 beat it by roughly $0.08. The $0.11 gap between the two is mostly impairment, litigation and severance charges. The filing also shows $214 million of gains from aircraft retirements and sale-leasebacks in the quarter; without them, the 4.5% operating margin would look thinner.
Revenue of $8.42 billion rose 21.2% from $6.95 billion a year ago, a third-quarter record for the company. Almost all of the growth came from price rather than volume: unit revenue rose 21.6% while capacity fell 0.4% and passengers carried dropped 3.2% to 33.5 million. Average passenger fare was $231.69, up 26.9%.
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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 2026-10-23
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