BMO Q3 Earnings: Adjusted EPS Up 22% Despite C$962M Goodwill Charge
BMO sits 51% above its 52-week low of $113.6.
Summary
BMO reported Q3 2026 adjusted EPS of C$3.96, up 22% YoY, despite a C$962M goodwill charge from divesting its Transportation and Vendor Finance businesses. The bank also announced a new 25M-share buyback program.
Key Events · Earnings and Guidance · BMO
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Adjusted EPS Beats Prior Year
Adjusted net income rose 19% to C$2,859M with adjusted EPS of C$3.96, up 22% from C$3.23 in Q3 2025. Reported net income fell 25% to C$1,750M due to a C$962M after-tax goodwill impairment.
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Goodwill Charge from Divestitures
The C$962M after-tax charge (C$1,092M pre-tax) relates to the announced sale of BMO's Transportation Finance and Vendor Finance businesses, primarily goodwill. This is a non-cash item tied to the divestiture strategy.
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New 25M-Share Buyback Announced
BMO announced intention to establish a new NCIB for up to 25 million common shares, subject to OSFI and TSX approval. During Q3, BMO repurchased 3.8M shares at an average price of C$239.37.
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Dividend Increased 5%
Q4 2026 dividend set at C$1.71 per common share, up C$0.08 or 5% from the prior year, equivalent to an annual dividend of C$6.84 per share.
Analysis · BMO · Finance
BMO's third-quarter results tell a tale of two numbers: reported net income fell 25% to C$1,750 million due to a C$962 million after-tax goodwill impairment tied to the announced sale of its Transportation and Vendor Finance businesses, while adjusted net income rose 19% to C$2,859 million on strength across all business segments. The goodwill charge is a non-cash accounting item reflecting the divestiture, not an operational deterioration. Adjusted EPS of C$3.96 beat the prior year's C$3.23 by 22%, and every segment posted record pre-provision pre-tax earnings. The bank also announced a new NCIB for up to 25 million shares and maintained its CET1 ratio at 13.0%, signaling capital strength. This follows the August 10 announcement of the Moneris stake sale for ~C$1.0 billion, part of a broader capital reallocation strategy.
How filings like this one have moved
In the 30 days to Aug 25, 2026, 37.4% of the 3413 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BMO was trading at $171.69 on NYSE in the Finance sector, with a market capitalization of approximately $121.2B. The 52-week trading range was $113.60 to $187.22. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.