Axos Reports Q3 Revenue of $392.25M, Beating Consensus
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
0mins
Should l Buy AX?
Reports Q3 revenue $392.25M, consensus $369.32M. "Strong loan growth and good expense discipline resulted in double digit year-over-year increases in net interest income and diluted EPS," stated Greg Garrabrants, President and Chief Executive Officer of Axos. "Excluding the interest income impact of the FDIC-purchased loans and two fewer days in the quarter ended March 31, 2026, net interest income increased by $5.7 million linked quarter. Non-interest expense rose modestly by 0.7% linked quarter benefiting from lower salaries and benefits expenses and operational efficiencies across the enterprise. We deliberately reduced our higher-cost savings and time deposits in anticipation of the Jenius Bank deposit acquisition closing expected in the June quarter. The acquisition allows us to optimize our funding and prepare for additional organic loan growth."
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Analyst Views on AX
Wall Street analysts forecast AX stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 87.670
Low
110.00
Averages
111.75
High
115.00
Current: 87.670
Low
110.00
Averages
111.75
High
115.00
About AX
Axos Financial Inc. is the holding company for Axos Bank (the Bank), Axos Clearing LLC and Axos Invest, Inc. The Bank provides consumer and commercial banking products through its digital online and mobile banking platforms. Its segments include Banking Business and Securities Business. The Banking Business Segment includes a broad range of banking services, including online banking, concierge banking, and mortgage, vehicle and unsecured lending through online, low-cost distribution channels to serve the needs of consumers and small businesses nationally. In addition, the Banking Business Segment focuses on depositing products nationwide to industry verticals. The Securities Business Segment includes the clearing broker-dealer, registered investment advisor custody business, and introducing broker-dealer lines of businesses. These lines of business offer products independently to their own customers as well as to Banking Business Segment clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Branchless Structure Advantage: Axos Financial's branchless structure enhances its cost advantage, enabling it to offer higher deposit rates, thereby attracting more customers and improving profitability, further solidifying its competitive position in the digital banking sector.
- Financial Performance Exceeds Expectations: Axos Financial reported earnings per share of $2.25 for Q2 FY2026, surpassing the expected $2.07, with revenues of $385.1 million compared to the anticipated $347.25 million, demonstrating the effectiveness of its unique business model and strong market demand.
- Tech-Driven Financial Services: As a technology-driven financial services holding company, Axos Financial offers high-yield checking/savings accounts, commercial banking, and automated investing, fully leveraging its digital-first, branchless banking model to meet the needs of individuals and businesses nationwide.
See More
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- Significant Revenue Growth: Shopify's Q1 revenue surged 34% year-over-year to $3.17 billion, exceeding Wall Street's estimate of $3.09 billion, showcasing its robust performance in the e-commerce sector.
- Operating Income Doubles: Operating income nearly doubled to $382 million, reflecting the company's success in its higher-margin product mix, but this came with a notable increase in transaction and loan losses.
- Rising Loan Losses: Transaction and loan losses rose 55% to $116 million, now accounting for 3.7% of total revenue, a trend that could pressure future profitability and requires close monitoring by management.
- Cautious Outlook: The company guided for revenue growth in the “high-twenties” percentage range for the next quarter, which, while still strong, indicates a deceleration from the current quarter's pace, potentially prompting a reevaluation of its market valuation.
See More
Axos Bank Celebrates National Small Business Week
- Small Business Deposit Milestone: Axos Bank announces that its small business deposits have surpassed $1 billion, reflecting the trust that business owners place in its digital banking services, indicating success in providing fast, simple, and reliable banking solutions.
- Support for Small Business Growth: Axos serves over 40,000 small business customers, assisting them in managing their daily financial needs through digital account access and business banking tools, which enhances operational efficiency and financial management capabilities for small enterprises.
- Strategic Partnerships Expand Ecosystem: Axos continues to expand its small business ecosystem through collaborations with leading payroll and merchant services companies, aiming to provide seamless payment, payroll management, and financial operations support, helping entrepreneurs operate more efficiently.
- Modern Banking Experience for Businesses: Axos is focused on building a connected ecosystem that integrates banking, payments, and payroll services, enabling small business owners to reduce financial complexity and dedicate more time to business growth, demonstrating a deep understanding of the needs of modern business ownership.
See More
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- Significant Revenue Growth: Axos Financial reported Q1 2026 revenue of $392.2 million, a 27% year-over-year increase that surpassed analyst expectations of $367.3 million, indicating strong momentum in loan origination.
- Profitability Under Pressure: Despite the revenue beat, the adjusted EPS of $1.90 fell short of the $2.13 consensus, leading to negative market reactions, highlighting the cost pressures associated with the Verdant Commercial Capital acquisition.
- Loan Growth Momentum: The company achieved $1.6 billion in net loan growth, driven by strong originations in commercial specialty real estate and auto lending, although declining prepayment rates in multifamily lending indicate some market challenges.
- AI Deployment Expansion: Axos Financial expanded its use of AI across risk, compliance, and operations, expecting further efficiency gains and reduced noninterest expenses, which will support future profitability growth.
See More
Axos Financial Reports Strong Q3 2026 Earnings Growth
- Net Interest Income Growth: Axos Financial reported year-over-year growth in net interest income for Q3 2026, with nearly $700 million in net loan growth and approximately $800 million increase in loan balances, indicating strong performance in the lending market that is expected to enhance future profitability.
- Non-Interest Income Increase: The company achieved non-interest income of $86 million in Q3, a significant rise from $53 million in the prior quarter, and even excluding the $22 million legal settlement, a $10 million increase was realized, showcasing success in diversifying revenue streams.
- Deposit Acquisition Strategy: Axos announced the acquisition of approximately $2.3 billion in online savings deposits from Jenius Bank and $3.2 billion in IRA deposits from Capital One, with completion of deposit conversion expected next month, enhancing liquidity to support future loan growth and demonstrating proactive market expansion efforts.
- Increased Credit Loss Provisions: The provision for credit losses rose to $41 million in Q3 from $25 million in Q2, primarily due to a specific reserve of approximately $20 million for commercial and industrial loans, reflecting the company's cautious approach towards potential credit risks.
See More
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- Rating Upgrade: Moody's upgraded five classes of notes in Verdant Receivables 2023-1 and 2024-1, reflecting strong collateral performance and ongoing credit enhancement, indicating stability in the company's equipment finance platform.
- Specific Upgrades: In the 2023-1 transaction, Class B was upgraded to Aaa (sf), Class C to Aa1 (sf), and Class D to A3 (sf); in the 2024-1 transaction, Class B was upgraded to Aa1 (sf) and Class C to Aa3 (sf), showcasing a robust foundation for the company's asset-backed securities.
- Credit Enhancement Drivers: Moody's cited sequential pay structures, non-declining reserve accounts, and increased overcollateralization as key factors for the upgrades, with cumulative net loss expectations for both transactions reduced to 1.50%, further boosting investor confidence.
- Management Commentary: Verdant's CEO Mike Rooney stated that these upgrades underscore the strength and consistency of the vendor platform, emphasizing the company's ability to deliver high-quality assets in the equipment financing market and its commitment to long-term success.
See More
Axos Financial Rated as Undervalued Growth Stock
- Buy Rating Reaffirmed: On March 9, DA Davidson reiterated a Buy rating on Axos Financial (NYSE:AX) with a $112 price target, reflecting strong confidence in its prospects as an internet bank, which is expected to drive stock price appreciation and attract more investor interest.
- Branchless Structure Advantage: Axos Financial's branchless structure enhances its cost advantage, enabling it to offer higher deposit rates, thereby attracting more customers and improving profitability, further solidifying its competitive position in the digital banking sector.
- Financial Performance Exceeds Expectations: Axos Financial reported earnings per share of $2.25 for Q2 FY2026, surpassing the expected $2.07, with revenues of $385.1 million compared to the anticipated $347.25 million, demonstrating the effectiveness of its unique business model and strong market demand.
- Tech-Driven Financial Services: As a technology-driven financial services holding company, Axos Financial offers high-yield checking/savings accounts, commercial banking, and automated investing, fully leveraging its digital-first, branchless banking model to meet the needs of individuals and businesses nationwide.
See More
