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This Week's Bonus Article Delta Hit Turbulence in Q4—Now Comes the OpportunitySubmitted by Thomas Hughes. Article Published: 1/14/2026. 
Key Takeaways - Delta shares dropped after the company reported Q4 earnings, despite posting a record free cash flow and providing strong full-year guidance, creating a potential buying opportunity.
- The airline is reducing debt, expanding its premium fleet, and positioning for long-term margin growth supported by favorable macro trends.
- Analysts remain bullish with 100% Buy ratings, citing strong fundamentals and upside potential to new highs in 2026.
Delta Air Lines' (NYSE: DAL) stock fell after its Q4 fiscal year 2025 earnings release, creating what looks like a buying opportunity. Although guidance was viewed as cautious by analysts, it still calls for sustained growth, accelerating margins and robust capital returns. Delta reported record results—including strong free cash flow—and projects continued momentum. The tepid guidance and the volatility it triggered appear to be near-term turbulence; the uptrend that began in 2025 remains intact, and fresh highs are likely in 2026. Delta's Record Quarter Drives Record Cash Flow and Debt Reduction Central banks around the world have been increasing their gold holdings at an unprecedented pace, a shift that some analysts view as a signal of changing monetary priorities.
A new free report examines why gold has been gaining favor relative to government debt, what this trend may indicate about future policy decisions, and how individual investors can learn more about holding physical gold as part of a long-term strategy. Download the free report here Delta Air Lines delivered a strong quarter. The company's 1.2% revenue growth outperformed estimates by about 200 basis points and was accompanied by margin strength. Management reported softness in domestic markets—partly attributed to the government shutdown—but saw strength across international, consumer, loyalty and business segments, which should underpin growth in 2026. The margin picture is mixed. Delta maintained operational quality despite higher costs and softer fares, and while some earnings measures fell short of analyst expectations, adjusted EPS of $1.55 met company guidance, matched last year's result and supports ongoing balance-sheet improvements and dividend payments. Guidance is constructive, if a bit more conservative than some analysts hoped. Management expects 5% to 7% revenue growth in Q1 2026, with wider margins. Full-year adjusted earnings are projected to grow about 20%, which may be conservative given current trends: oil prices are expected to remain relatively low, and fiscal and monetary tailwinds could further boost demand across segments, including Delta's higher-margin premium offerings. Delta Reduces Debt and Pays Investors: Distribution Increase is Expected Delta's record operating and free cash flow allowed it to pay down debt, reducing its leverage ratio to just over 2.0x and putting the company on track to hit long-term targets within a few quarters. Strong cash flow also supported dividend payments that annualize to roughly 1.05% as of mid-January, and bolsters the case for distribution increases. Management is on track to restore payout levels toward the pre-COVID-19 range, which would roughly double distributions and raise yield by about 100 basis points. Analysts noted some concern about relatively tepid earnings growth in 2026, but that view was quickly revised. The modest near-term earnings growth reflects increased investment, including the purchase of Dreamliner aircraft. That fleet expansion and modernization is widely seen as a catalyst, supporting higher-margin services and stronger earnings in subsequent years. Importantly, all 24 analysts tracked by MarketBeat rate the stock a Buy, and the price-target trend points to an above-consensus target that could drive new stock-price highs. Delta Air Lines Stock Action at Turning Point Delta's stock is consolidating in January and setting up for its next move. It could correct, trade sideways or resume its uptrend, but odds favor higher prices given expected earnings growth, cash flow and capital returns. There is, however, a risk of a pullback toward $65 or lower before any sustained rebound. Near-term support sits around $67.50—aligned with prior highs—and could serve as a springboard to higher levels. 
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