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Today's Featured News Delta Hit Turbulence in Q4—Now Comes the OpportunityAuthored by Thomas Hughes. Originally Published: 1/14/2026. 
In Brief - 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 price dropped after its Q4 fiscal year 2025 earnings release, creating what we view as a buying opportunity. The pullback reflects conservative guidance that, despite its cautious tone, still calls for sustained growth, acceleration and margin strength that support robust capital returns. Delta reported record results—including strong free cash flow—and is projecting continued momentum. The modest guidance and the volatility it prompted look like near-term turbulence; the uptrend that began in 2025 remains intact, and fresh highs are possible in 2026. Delta's Record Quarter Drives Cash Flow and Debt Reduction While President Trump's official salary is $400,000 per year... his tax returns reveal he's been collecting up to $250,000 PER MONTH from one hidden source. Until recently, most Americans couldn't touch the type of investment that makes up this investment. But thanks to Executive Order 14330, that just changed. If you love investing in disruptive new companies... Discover how to invest in the fund Trump uses to collect this income >> Delta had a strong quarter. Its 1.2% revenue growth outperformed estimates by 200 basis points and was supported by margin strength. The company noted softness in some domestic markets—partly tied to the government shutdown—but that weakness was offset by strength in international, consumer, loyalty and business segments, which are expected to underpin growth in 2026. The margin picture is mixed: Delta preserved operational quality despite higher costs and softer fares, but earnings missed some analyst expectations. Still, adjusted EPS of $1.55 met company forecasts, matched last year's result and supports continued balance sheet improvement and dividend payments. Guidance is constructive, though below some analysts' hopes. The company forecasts 5% to 7% revenue growth in Q1 2026, accompanied by wider margins. Full-year adjusted earnings are guided to grow about 20%, which could be conservative given current trends. Oil prices are expected to stay low, and fiscal and monetary tailwinds should help drive business across segments, including Delta's higher-margin premium offerings. Delta Reduces Debt and Poised to Raise Distributions Delta's record operating and free cash flow allowed it to pay down debt, bringing its leverage ratio to just over 2.0x and putting the company on track to reach long-term targets within a few quarters. The cash flow also supports dividend payments that annualize to approximately 1.05% as of mid-January, bolstering the outlook for future increases. Management appears on track to move payouts closer to pre-COVID-19 levels—a change that would roughly double distributions and add about 100 basis points to yield. Some analysts flagged modest earnings growth in 2026, but that concern was quickly discounted. The relatively slow near-term growth reflects increased investment, including the purchase of Dreamliner aircraft. Fleet modernization and expansion are expected to be catalysts, supporting higher-margin services and stronger earnings in subsequent years. Among the 24 analysts tracked by MarketBeat, consensus remains a Buy—100% of analysts rate the stock as a Buy—and price target trends point toward above-consensus levels and potential new highs. Price target momentum supports that outlook. Stock Action at a Technical Turning Point Delta Air Lines' stock is consolidating in January and setting up for its next move. The most likely path is higher, supported by earnings growth, cash flow and capital returns, though a pullback to around $65 is possible before a rebound. For now, support appears near $67.50, aligned with prior highs, which may serve as a springboard to higher prices. 
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