Delta Beats Q4 Earnings with $1.55 EPS, Guides FY26 EPS to $6.5–$7.5
Delta reported Q4 2025 adjusted EPS of $1.55, beating estimates, while revenues climbed 2.9% to $16.0B; adjusted operating margin fell to 10.1% from 12% as labor costs rose 11%. It forecasts Q1 EPS of $0.50–$0.90 and full-year EPS of $6.50–$7.50 with $3–4B free cash flow.
1. Q4 Financial Results
Delta reported Q4 2025 adjusted EPS of $1.55, topping consensus by $0.02, with total revenues of $16.0B, up 2.9% year-over-year despite a 2-point headwind from the government shutdown. Passenger revenue rose 1% to $12.91B, and adjusted operating revenues excluding refinery sales reached $14.6B.
2. Cost Pressures and Margin Compression
Total operating expenses increased 5% to $14.5B, driven by an 11% rise in salaries and related costs to $4.6B and a 4% uptick in non-fuel unit costs to 14.27 cents. The adjusted operating margin narrowed to 10.1% from 12% a year ago.
3. Q1 and Full-Year 2026 Guidance
Management forecasts Q1 2026 adjusted EPS of $0.50–$0.90, an operating margin of 4.5–6%, and revenue growth of 5–7% year-over-year. Full-year 2026 EPS guidance stands at $6.50–$7.50, implying roughly 20% growth.
4. Strengthened Balance Sheet and Cash Flow
Delta closed Q4 with $4.3B in cash and cash equivalents, reduced adjusted net debt to $14.3B, and generated $2.2B in operating cash flow. Quarterly free cash flow reached $1.8B after $877M in gross capital expenditures.