Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Delta Air Lines reported Q1 2026 revenue of $15.85B (+12.9% YoY) but swung to a net loss of $289M as operating income fell 12% and margin compression weighed on profitability despite strong top-line growth.
Revenue
$15.85B
+12.92% YoY
EPS (Diluted)
-$0.44
-218.92% YoY
Operating Income
$501M
-11.95% YoY
Source: SEC XBRL
Delta Air Lines (DAL) reported Q1 FY2026 revenue of $15.85B, up 12.9% year over year. Operating margin was 3.2%, down 0.9 points from 4.1% a year earlier. Operating cash flow was $2.43B, up 2.3% year over year. DAL's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.56 | 1.49 | Beat +4.4% |
| Mar 2026This filing | 0.64 | 0.58 | Beat +10.7% |
| Dec 2025 | 1.55 | 1.54 | Beat +0.5% |
| Sep 2025 | 1.71 | 1.55 | Beat +10.5% |
Adjusted (non-GAAP) EPS of $0.64 versus the $0.58 analyst consensus — a +10.7% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was -$0.44.
Compiled by AI from this SEC filing
Total revenue grew 12.9% YoY to $15.85B in Q1 2026, up from $14.04B in Q1 2025, reflecting continued robust passenger demand and capacity expansion across Delta's network.
Source: 10-Q Income Statement Data
Operating income fell 12.0% YoY to $501M from $569M, with operating margin compressing approximately 90 basis points to 3.16%, indicating that cost growth outpaced revenue gains during the quarter.
Source: 10-Q Income Statement Data
Delta swung from a net income of $240M in Q1 2025 to a net loss of $289M in Q1 2026, a YoY deterioration of $529M (-220.4%), suggesting significant below-the-line costs such as fuel hedging losses, interest expense, or one-time charges impacted the bottom line.
Source: 10-Q Income Statement Data
Operating cash flow remained strong at $2.43B (+2.3% YoY), and cash & equivalents rose 36.2% to $5.05B, providing Delta with meaningful liquidity headroom despite the net loss.
Source: 10-Q Cash Flow Statement Data
Long-term debt declined 12.2% YoY to $13.24B while stockholders' equity surged 31.9% to $20.38B, reflecting ongoing balance sheet deleveraging and improved book value.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Despite a 12.9% revenue increase, operating margin contracted to 3.16% from 4.05%, and the company posted a net loss of $289M. This suggests cost pressures — likely fuel, labor, or maintenance — are growing faster than revenue, posing a risk to near-term profitability.
Source: 10-Q Income Statement Data
Delta reported a basic EPS of -$0.44 versus +$0.37 in Q1 2025, a swing of $0.81 per share. The divergence between strong revenue and a net loss points to significant non-operating costs or charges that could recur in subsequent quarters.
Source: 10-Q Income Statement Data
The current ratio stands at just 0.42, meaning current liabilities of $32.70B significantly exceed current assets of $13.66B. This is common in the airline industry due to advance ticket sales, but it leaves limited buffer for unexpected cash demands.
Source: 10-Q Balance Sheet Data
ROE of -1.42% and ROA of -0.34% reflect the net loss incurred in Q1 2026. If losses persist, these metrics could signal deteriorating capital efficiency and may pressure investor confidence.
Source: 10-Q Financial Ratios
Although long-term debt declined 12.2% to $13.24B, Delta still carries substantial leverage. In a rising interest rate or demand-shock environment, debt servicing costs could further compress already thin margins.
Source: 10-Q Balance Sheet Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 15.85 $B | 14.04 $B | +12.92% |
Operating Income $M | 501.00 $M | 569.00 $M | -11.95% |
Net Income $M | -289.00 $M | 240.00 $M | -220.42% |
EPS (Basic) $ | -0.44 $ | 0.37 $ | -218.92% |
EPS (Diluted) $ | -0.44 $ | 0.37 $ | -218.92% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, Delta Air Lines delivered strong top-line growth with revenue up 18.7% to $19.8B, but earnings fell as a sharp increase in fuel and other operating costs compressed margins and reduced net income to $1.6B.
Delta Air Lines delivered a strong FY2025 with revenue rising 2.8% to $63.4B and net income surging 44.8% to $5.0B, driven by robust travel demand and significant debt reduction, even as operating margin edged slightly lower.
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