What is Southwest Airlines's capitalized software licenses?

Southwest Airlines (LUV) reported capitalized software licenses of $1.30B in Q4 2025.

How has Southwest Airlines's capitalized software licenses changed year-over-year?

Southwest Airlines's capitalized software licenses increased by 18.2% year-over-year, from $1.10B to $1.30B.

What is the long-term trend for Southwest Airlines's capitalized software licenses?

Over 5 years (2020 to 2025), Southwest Airlines's capitalized software licenses has grown at a 13.3% compound annual growth rate (CAGR), from $697.00M to $1.30B.

What does capitalized software licenses mean?

The value of software the company owns and uses to run its business, after accounting for depreciation.

Non-Current Assets

Capitalized software licenses

Southwest Airlines Capitalized software licenses increased by 18.2% to $1.30B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 18.2%, from $1.10B to $1.30B. Over 5 years (FY 2020 to FY 2025), Capitalized software licenses shows an upward trend with a 13.3% CAGR. This is a positive signal — higher values indicate stronger performance for this metric.

Analysis

StatementBalance Sheet Statement

SectionNon-Current Assets

CategoryEfficiency

SignalHigher is better

VolatilityModerate

First reportedQ4 2014

Last reportedQ4 2025Feb 5, 2026

How to read this metric

An increase indicates ongoing investment in digital transformation, IT infrastructure, or internal efficiency tools.

Detailed definition

The net book value of software developed or purchased for internal use, which provides future economic benefits beyond t...

Peer comparison

Reflects the intensity of digital investment; varies based on the company's reliance on proprietary technology for operations.

Metric ID: non_current_assets_capitalized_computer_software_net

Historical Data

5 periods

	Q4 '21	Q4 '22	Q4 '23	Q4 '24	Q4 '25
Value	$886.00M	$928.00M	$1.00B	$1.10B	$1.30B
QoQ Change	—	+4.7%	+7.8%	+10.0%	+18.2%
YoY Change	—	+4.7%	+7.8%	+10.0%	+18.2%

Range$886.00M – $1.30B

CAGR+46.7%

Avg YoY Growth+10.2%

Median YoY Growth+8.9%

Current Streak4+ quarters growth

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Frequently Asked Questions

What is Southwest Airlines's capitalized software licenses?: Southwest Airlines (LUV) reported capitalized software licenses of $1.30B in Q4 2025.
How has Southwest Airlines's capitalized software licenses changed year-over-year?: Southwest Airlines's capitalized software licenses increased by 18.2% year-over-year, from $1.10B to $1.30B.
What is the long-term trend for Southwest Airlines's capitalized software licenses?: Over 5 years (2020 to 2025), Southwest Airlines's capitalized software licenses has grown at a 13.3% compound annual growth rate (CAGR), from $697.00M to $1.30B.
What does capitalized software licenses mean?: The value of software the company owns and uses to run its business, after accounting for depreciation.