Regions Financial (RF) Q4 Earnings Miss Estimates, Stock Drops 4.2%

Written by Emily J. Thompson, Senior Investment Analyst

RF-2.91%

Source: seekingalpha

Updated: 1h ago

0mins

Source: seekingalpha

Earnings Decline: Regions Financial reported an adjusted EPS of $0.57 for Q4, missing the analyst estimate of $0.61, indicating pressure on profitability that may affect investor confidence.
Revenue Guidance Miss: The bank expects net interest income growth of 2.5%-4% for 2026, translating to $5.11B-$5.19B, which falls short of the Visible Alpha consensus of $5.19B, suggesting potential future performance below market expectations.
Noninterest Income Drop: Adjusted noninterest income came in at $640M, missing the $646M estimate and down from $684M in the previous quarter, reflecting challenges in generating noninterest revenue.
Loan and Deposit Dynamics: Average loans decreased to $95.7B from $96.7B in the prior quarter, while average deposits increased slightly to $129.9B, indicating the bank's efforts to maintain its customer base in a competitive environment.

$27.67+Infinity%1D

Analyst Views on RF

Wall Street analysts forecast RF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RF is 29.00 USD with a low forecast of 26.00 USD and a high forecast of 33.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

15 Analyst Rating

7 Buy

7 Hold

1 Sell

Moderate Buy

Current: 28.520

Low

26.00

Averages

29.00

High

33.00

Current: 28.520

Low

26.00

Averages

29.00

High

33.00

Goldman Sachs

Buy

maintain

$30 -> $32

Al Analysis

2026-01-06

Reason

Goldman Sachs

Price Target

$30 -> $32

Al Analysis

2026-01-06

maintain

Buy

Reason

Goldman Sachs raised the firm's price target on Regions Financial to $32 from $30 and keeps a Buy rating on the shares. Regional banks underperformed the market by 200-300 basis points in 2025, weighed by macro concerns and credit worries, though stocks rallied 13% late in the year, the analyst tells investors in a research note. Looking to 2026, solid loan growth, net interest income momentum, positive operating leverage, and improving returns support continued multi-year fundamental improvement, with credit risk as the main wildcard, Goldman says.

Evercore ISI

John Pancari

In Line -> Underperform

downgrade

$27 -> $29

2026-01-06

Reason

Evercore ISI

John Pancari

Price Target

$27 -> $29

2026-01-06

downgrade

In Line -> Underperform

Reason

Evercore ISI analyst John Pancari downgraded Regions Financial to Underperform from In Line with a price target of $29, up from $27. The firm sees limited material catalysts to a "relatively full valuation" and is cautious around Q4 results tied to likely elevated net charge-offs, which management has attributed to Regions' portfolios of interest that remain in runoff mode.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for RF

Unlock Now

Barclays

Underweight

maintain

$27 -> $30

2026-01-05

Reason

Barclays

Price Target

$27 -> $30

2026-01-05

maintain

Underweight

Reason

Barclays raised the firm's price target on Regions Financial to $30 from $27 and keeps an Underweight rating on the shares. The firm adjusted ratings and price targets in the large cap bank group as part of its 2026 outlook. Barclays expects the trends that drove double-digit earnings growth and bank stock outperformance in 2025 to carry into 2026.

Truist

Hold

maintain

$26 -> $29

2025-12-22

Reason

Truist

Price Target

$26 -> $29

2025-12-22

maintain

Hold

Reason

Truist raised the firm's price target on Regions Financial to $29 from $26 and keeps a Hold rating on the shares as part of a broader research note refreshing the firm's models on Banks amid management outlook updates and check-ins with Investor Relations. A bigger step-up in variable customer engagement expenses than the firm had originally budgeted is being offset by operating leverage on operating expenses and marketing, the analyst tells investors in a research note. Consensus is building in a slight EPS deceleration across the group, but the general vibe from management teams "feels more optimistic", the firm added.

About RF

Regions Financial Corporation is a full-service provider of consumer and commercial banking, wealth management, and mortgage products and services. It serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,250 banking offices and more than 2,000 ATMs. Its segments include Corporate Bank, Consumer Bank and Wealth Management. The Corporate Bank segment represents its commercial banking functions, including commercial and industrial, commercial real estate and investor real estate lending. The Consumer Bank segment represents its branch network, including consumer banking products and services related to residential first mortgages, home equity lines and loans, consumer credit cards and other consumer loans, as well as the corresponding deposit relationships. The Wealth Management segment offers credit-related products, trust and investment management, asset management, retirement and savings solutions and estate planning.

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.