Delta Air Lines Inc. (DAL) delivered a classic good news, bad news scenario: the airline beat fourth-quarter earnings expectations, but its forward guidance left investors wanting more.

According to Goldman Sachs analyst Catherine O'Brien, who maintained a Buy rating and $77 price target on the stock, Delta reported quarterly adjusted earnings of $1.55 per share. That edged past the consensus estimate of $1.53 per share and came in ahead of the company's recently-lowered guidance of around $1.50 per share.

"The beat vs. our forecast was driven by better-than-expected revenue," O'Brien noted.

Here's where things get interesting: Delta guided to full-year 2026 earnings between $6.50 and $7.50 per share. The midpoint of that range falls below the consensus expectation of $7.28 per share. While the outlook represents 20% earnings growth and exceeds the company's three to five-year target of 10% average annual growth, it apparently isn't enough to satisfy investors.

"While the outlook represents 20% EPS growth, ahead of the company's 3 to 5 year target of 10% average EPS growth, it is below investors expectations per our recent conversations," O'Brien explained.

For the first quarter of 2026, Delta projected earnings between 50 cents and 90 cents per share, with the midpoint roughly matching consensus expectations of 72 cents per share.

Shares of Delta Air Lines declined 2.82% to $69.01 following the announcement.