Axos Financial Reports Strong Q2 FY26 Earnings with Significant EPS and Net Income Growth
AX sits 74% above its 52-week low of $54.46.
Summary
Axos Financial reported a 23.3% increase in diluted EPS and a 22.6% rise in net income for Q2 FY26, driven by strong loan growth, improved net interest income, and contributions from the Verdant acquisition.
Key Events · Earnings and Guidance · AX
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Strong Earnings Growth
Diluted EPS increased 23.3% year-over-year to $2.22, with net income rising 22.6% to $128.4 million for the quarter ended December 31, 2025.
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Robust Loan and Deposit Expansion
Ending net loan balances grew by $1.6 billion linked quarter to $24.3 billion, and total deposits increased by $2.4 billion (23.1% annualized) to $23.2 billion at December 31, 2025.
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Improved Asset Quality
Non-performing assets to total assets decreased to 0.56% from 0.71% as of June 30, 2025, and net annualized charge-offs to average loans fell to 4 basis points from 10 basis points year-over-year.
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Increased Net Interest Income
Net interest income rose 18.4% year-over-year to $331.7 million, with net interest margin expanding to 4.94% for the quarter.
Analysis · AX · Finance
Axos Financial, Inc. delivered robust financial results for its fiscal second quarter, demonstrating strong operational performance and improved asset quality. The significant year-over-year increases in diluted EPS and net income, coupled with healthy loan and deposit growth, indicate a positive trajectory for the company. The contribution from the Verdant acquisition to non-interest income further diversified revenue streams. Investors should note the improved credit quality metrics, which suggest effective risk management in a growing loan portfolio.
At the time of this filing, AX was trading at $94.64 on NYSE in the Finance sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $54.46 to $99.82. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.