United Airlines Holdings, Inc. (NASDAQ:UAL) saw its shares rise on Wednesday following the release of its fourth-quarter earnings report, which exceeded Wall Street projections. The company announced adjusted earnings per share (EPS) of $3.10, surpassing the consensus estimate of $2.94. Additionally, revenue for the quarter reached $15.397 billion, slightly above the anticipated $15.396 billion.
The airline reported a 6.5% expansion in capacity compared to the same period last year, underscoring its operational scaling during the quarter. United achieved a significant milestone by transporting a record 181 million passengers throughout 2025 and operated the largest mainline flight schedule in its history during the quarter.
Revenue streams across several sectors showed positive momentum, with premium travel, loyalty programs, and Basic Economy fare categories all demonstrating year-over-year increases in revenue during the fourth quarter. From a cash flow perspective, United generated $8.4 billion in operating cash flow and $2.7 billion in free cash flow over the full year.
However, the company noted that the recent government shutdown had a detrimental effect on its fourth-quarter pre-tax earnings, reducing them by approximately $250 million. Looking ahead, United expects to sustain similar levels of free cash flow in 2026 as in the prior year.
For the upcoming first quarter, United Airlines has provided guidance of adjusted EPS in the range of $1.00 to $1.50, compared with the consensus forecast of $1.13. For the fiscal year 2026, the company projects adjusted EPS between $12.00 and $14.00, narrowly bracketing the analyst consensus of $13.13.
Technical Stock Insights
As of the latest trading session, United Airlines' stock price stood approximately 1.5% below its 20-day simple moving average (SMA), yet it remains 8.6% above its 100-day SMA. This positioning illustrates a degree of longer-term upward strength despite recent short-term softness. Over the trailing twelve months, shares declined by about 1.76%, though the current price is closer to the year’s high than its low, suggesting relative resilience within its trading range.
The Relative Strength Index (RSI) measures at 44.92, signaling a neutral condition where the stock is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) indicator is positioned below its signal line, indicating some bearish momentum. The juxtaposition of the neutral RSI and bearish MACD portrays a mixed technical momentum outlook for United Airlines.
Quantitative Ratings Overview
According to a recent scorecard evaluating United Airlines Holdings against market peers, the company showed notable strengths and moderate weaknesses:
- Momentum: The airline attained a moderately positive momentum score of 58.1 out of 100, reflecting steady price movement strength.
- Value: Scoring a strong 81.74, United is assessed as favorably valued relative to its industry counterparts.
- Growth: An impressive score of 87.26 indicates robust growth prospects for the company moving forward.
The overall assessment highlights that despite modest momentum strength, United Airlines demonstrates substantial growth potential coupled with attractive valuation metrics, positioning the stock favorably for possible future performance.
On the trading floor, shares of United Airlines increased by 2.84% to reach $111.65 during recent market activity.
Summary
United Airlines’ fourth-quarter financial results revealed solid operational and financial execution, surpassing profit and revenue estimates while expanding capacity and passenger volume. Though the government shutdown posed a meaningful profit headwind, the airline maintained strong cash flows. Guidance for 2026 points to continued earnings strength, underpinned by broad revenue gains across premium, loyalty, and economy segments. Technically, the stock shows signs of longer-term strength amid mixed momentum indicators. Valuation and growth scores further support a positive investment thesis as the company navigates a competitive and evolving airline industry landscape.