U.S. Bancorp Beats on Q3 EPS, Raises Full-Year Revenue and Operating Leverage Guidance
USB sits 25% above its 52-week low of $45.02.
Summary
Q3 GAAP EPS of $1.34 beat consensus by $0.02, but total revenue of $7.97B missed the $8.01B estimate by less than 1% as net interest income and fee revenue came in slightly light. Expense control did the heavy lifting: noninterest expense of $4.49B beat the $4.54B consensus and the efficiency ratio improved to 55.9% from 57.1% in Q2. The real news is guidance — management raised FY2026 net revenue growth to 8%-9% from 7%-9% and lifted the operating leverage outlook to roughly 300 bps from 200+ bps. For Q4, the bank guided net interest income (FTE) of $4.57B-$4.61B, up 4%-6% Y/Y, and fee revenue up 13%-14% Y/Y, implying $3.45B-$3.48B. Credit costs ticked up with a $654M provision versus $538M in Q2, though the net charge-off ratio improved to 0.51%. Shares were unchanged premarket; the conference call is at 9:00 AM ET.
At the time of this announcement, USB was trading at $56.26 on NYSE in the Finance sector, with a market capitalization of approximately $87.7B. The 52-week trading range was $45.02 to $66.08. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.