Zions 3Q26 EPS Rises 20% to $1.78 on Credit Improvement; Issues Upbeat 2027 Outlook
ZION sits 32% above its 52-week low of $47.77.
Summary
Zions earned $1.78 per diluted share in 3Q26, up 20% year over year, as credit costs collapsed to near zero. Management guided to 8-12% net interest income growth and 6-9% fee growth for the year ahead.
Key Events · Earnings and Guidance · ZION
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3Q26 EPS Up 20% to $1.78
Net earnings of $262 million versus $221 million a year ago; net interest income rose 2% to $684 million while the margin slipped 5 bps to 3.23%.
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Credit Costs Collapse
Provision for credit losses was an $8 million benefit versus a $49 million expense a year ago; net charge-offs fell to 0.02% of loans annualized from 0.37%, and classified loans dropped to 3.40% of loans from 4.00%.
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Forward Outlook Issued
For 3Q27 versus 3Q26, management guides to 2-4% loan growth, 8-12% net interest income growth, 6-9% adjusted fee income growth and 4-6% adjusted expense growth, expecting positive operating leverage.
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Capital Return and Balance Sheet
Estimated CET1 was 11.8% versus 11.3% a year ago; tangible book value per share rose 13% to $43.50. The company repurchased 1.1 million shares for $75 million in the quarter and raised the dividend to $0.48 from $0.45.
Analysis · ZION · Finance
The headline beat was driven by the cleanest credit in years, not by revenue: net charge-offs fell to 0.02% of loans from 0.37%, and the provision swung to an $8 million benefit from a $49 million expense. That credit swing, not revenue, drove the 20% EPS increase — net interest income grew only 2% and the margin slipped 5 bps to 3.23%. More consequential is the forward outlook: management projects 8-12% net interest income growth and 6-9% fee income growth for 3Q27 versus 3Q26, with positive operating leverage, a materially more constructive guide than the flat sequential loan trend would suggest. Capital remains solid at an estimated 11.8% CET1, and the company bought back 1.1 million shares for $75 million while raising the dividend to $0.48.
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At the time of this filing, ZION was trading at $63.14 on NASDAQ in the Finance sector, with a market capitalization of approximately $9.2B. The 52-week trading range was $47.77 to $73.34. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.