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Further Reading from MarketBeat.com Delta Hit Turbulence in Q4—Now Comes the OpportunitySubmitted by Thomas Hughes. Article Published: 1/14/2026. 
Article Highlights - 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 fell after its Q4 fiscal year 2025 earnings release, creating a buying opportunity. The pullback looks inviting because the cautious guidance—viewed as conservative by analysts—still calls for sustained growth, acceleration and margin strength that support robust capital returns. Delta delivered record results, including strong free cash flow, and is projecting continued momentum. The softer guidance and the volatility it sparked 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 A widely followed Wall Street analyst is highlighting AES Corp (AES) as a stock to watch right now, based on signals from his proprietary Power Gauge system. The model tracks factors like momentum, financial strength, and institutional activity across thousands of U.S. stocks.
He breaks down the full reasoning in a short briefing, including why AES is showing unusual strength at this stage of the market. See the full analysis here Delta Air Lines reported a strong quarter: mild 1.2% revenue growth outperformed estimates by about 200 basis points and was complemented by margin strength. The company noted softness in domestic markets—partly linked to the government shutdown—but offsetting strength across international, consumer, loyalty and business segments should underpin growth in 2026. The margin picture is mixed. Delta maintained operational quality despite higher costs and softer fares, and while earnings missed some analyst expectations, adjusted EPS of $1.55 met the company's forecast, matched last year's result and supports continued balance sheet improvements and dividend payments. Guidance is constructive, though below some analysts' hopes. The company forecasts 5%–7% revenue growth in Q1 2026 with expanding margins, and full-year adjusted earnings are expected to grow about 20%—a pace some view as conservative given current trends. Oil prices are anticipated to remain muted, and fiscal and monetary tailwinds could boost demand across segments, particularly in higher-margin premium services. 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 reach long-term targets within a few quarters. Strong cash flow also supported dividend payments, which annualize to roughly 1.05% as of mid-January, and bolstered the outlook for future distribution increases. Management is on track to restore the payout toward pre-COVID-19 levels—a move that would roughly double the distribution and lift yield by about 100 basis points. Analysts noted modest near-term earnings growth, but attributed it to increased investment—including a large order for Dreamliner models—which should support higher-margin services and stronger earnings in subsequent years. The takeaway: among the 24 analysts tracked by MarketBeat, consensus remained unanimous. All 24 analysts rate the stock a Buy, and the trend in price targets points to above-consensus upside and potential 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. The key question is whether it will correct, trade sideways, or resume higher. Upside is likely given earnings momentum, cash flow and capital returns, but the stock could pull back to $65 or lower before rebounding and establishing a new high. For now, key support sits near $67.50, aligned with prior highs, and could serve as the springboard to higher prices. 
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