United Airlines reported fourth-quarter 2025 revenue of $15.4 billion, exceeding consensus estimates by roughly 0.35%, and delivered earnings per share of $3.10, representing a 5.4% beat versus the whisper number. Despite a government shutdown that cost the carrier an estimated $250 million in operational impact, United achieved record quarterly revenue, driven by strong demand in premium cabins and corporate channels. Year-over-year revenue increased by 3.2% and operating margin expanded by 120 basis points, underscoring the resilience of high-yield segments even as main-cabin traffic remains subdued among more price-sensitive customers.

Corporate ticket sales in early 2026 are running at a high-single-digit percentage above last year’s levels, Chief Commercial Officer Andrew Nocella described as “pretty amazing” during the post-earnings call. This resurgence in business volumes underpins United’s forecast for first-quarter earnings growth of approximately 37% compared to Q1 2025. Loyalty program revenue also posted double-digit gains, reflecting strength in corporate accounts and premium flights, while management reiterated expectations that business travel trends will continue to support margin improvement throughout the year.

United plans to take delivery of over 100 narrowbody aircraft and roughly 20 widebody jets in 2026, positioning itself to capture additional market share as demand recovers across both domestic and international networks. The new orders include a mix of fuel-efficient A320neo and 737 MAX models alongside Boeing’s latest long-haul widebodies, enabling route network flexibility and cost reductions estimated at $8 per available seat mile. Management emphasized that the expanded fleet will allow United to adjust capacity dynamically, aligning premium product availability with fluctuating demand profiles.

United currently trades at a trailing P/E of 11.1x and a forward multiple near 8x, representing a premium to its long-term average but offering a more attractive entry point on consensus estimates. Analysts maintain a bullish outlook, with a consensus price target of $134.94 implying over 20% upside, and several firms setting targets above $150. Citigroup’s high target of $153 underscores confidence in sustained earnings growth and margin expansion. Investors weighing valuation metrics against robust fundamentals may view the current range as an opportunity to establish or add to positions ahead of a potentially higher valuation cycle.