DAL · Q3 FY2026
DELTA AIR LINES, INC. Q3 FY2026 earnings analysis
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue (GAAP) | $20.186B | $16.673B (yr ago) | Beat |
| EPS (GAAP, diluted) | $1.15 | $2.17 (yr ago) | Miss |
| Free Cash Flow (adjusted) | $463M | $833M (yr ago) | Miss |
| Gross Margin | Not disclosed | Not disclosed | Miss |
| Operating Margin (GAAP) | 7.2% | 10.1% (yr ago) | Miss |
What changed
Delta reported record September-quarter GAAP revenue of $20.186 billion, up 21% year over year, while adjusted operating revenue rose 16% on flat capacity. Higher fuel and other costs absorbed much of that growth: GAAP operating margin fell to 7.2% from 10.1%, and adjusted free cash flow declined to $463 million from $833 million. Management now expects approximately 20% December-quarter revenue growth and full-year EPS of $5.10 to $5.60.
Impact on the investment thesis
The quarter supports the demand and revenue-mix thesis, but higher fuel and 7.3% adjusted non-fuel unit-cost growth keep cash conversion and margins under pressure. We set fair value at $75 per share using the newly disclosed full-year EPS outlook and an explicitly assumed 14x multiple; that is below the $82.14 share price, but the print does not warrant a separate change to the risk-heavy scenario framework.
Full analysis: Delta Air Lines stock: record revenue meets a fuel-cost squeeze
Explore DELTA AIR LINES, INC. research →