USB: EPS beat, record revenue, 2026 revenue growth guide raised

U.S. Bancorp reported third-quarter results on Thursday that topped expectations, with diluted EPS of $1.34 against a $1.32 consensus and record net revenue.

– Net revenue: $7.97B, up 8.7% YoY (just shy of ~$8B consensus)
– Net income: $2.2B, up 10% YoY
– Net interest income: $4.49B, up 5.6%; margin 2.84%
– Capital markets revenue: $640M, up 69.3% YoY

The BTIG acquisition is doing what management promised. The deal contributed $223M of the capital markets line, and fee revenue overall climbed 13.1%. Average loans grew 8% to $409.5B, and CEO Gunjan Kedia wants capital markets fees above 10% of total revenue within three to five years, from about 8% today.

Management also raised its full-year 2026 revenue growth forecast to 8–9%, up from 7–9%, while projecting roughly 300 basis points of positive operating leverage — 400 excluding BTIG. That’s the language of a bank confident in its operating model, not just its rate environment.

The caveats are familiar for regional banks. Provision for credit losses climbed 14.5% to $654M, revenue barely missed consensus, and the shares were already trading below their 50-day moving average. Still, the stock edged up in premarket trading — a muted but positive reaction.

What to watch next: credit quality through the BTIG integration, and whether the payments business — revenue up 6.5% to $1.87B — keeps accelerating.

Related reading: WFC: EPS beats at $1.87 but revenue and NII miss (https://bullounge.com/forums/topic/wfc-eps-beats-at-1-87-but-revenue-and-nii-miss-shares-slip/)

U.S. Bancorp wants investment-banking fees at 10% of revenue in a few years — does that make USB a different kind of bank stock than it was five years ago?

Sources: https://www.zacks.com/stock/news/3008846/us-bancorp-q3-earnings-beat-estimates-on-higher-nii-fee-revenue · https://finance.biggo.com/news/8903eb36-4524-46a5-975e-47b6d7f502d3

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Not financial advice.