U.S. Bancorp Q3 2026 Earnings Recap

U.S. Bancorp shares rose 4.4% after earnings, as investors responded to record revenue of $8 billion, 10% year-over-year EPS growth, and expanding net interest margin. Results also showed positive operating leverage and improving credit metrics, though EPS included a reserve-build impact.

Key Takeaways

• Diluted EPS was $1.34, up approximately 10% year over year; a $0.07 reserve build reduced reported earnings, and EPS growth was 16% excluding it.
• Revenue increased 8.7% to a record $8 billion, or 6.4% adjusting for BTIG and securities losses. Expenses rose 7.1%, or 2.0% excluding BTIG.
• Net interest margin expanded 5 basis points sequentially to 2.84%; loans grew 1.0% and deposits 2.2% sequentially.
• Credit indicators improved: nonperforming assets declined 1.6% sequentially and net charge-offs fell 2 basis points to 51 basis points. CET1 remained 10.8%.
• BTIG contributed $226 million in third-quarter fee revenue. Management expects capital markets to grow from 8% to 10% or more of company revenue over the next 3 to 5 years.