U.S. Bancorp (USB) Q4 Earnings Beat Expectations with Record Deposits
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Earnings Beat: U.S. Bancorp reported Q4 GAAP EPS of $1.26, exceeding analyst estimates of $1.19 and up from $1.22 in Q3 and $1.01 a year ago, indicating sustained improvement in profitability.
- Strong Revenue Growth: The bank's total revenue for Q4 reached $7.37 billion, surpassing the consensus estimate of $7.32 billion, and increased from $7.33 billion in the previous quarter and $7.01 billion year-over-year, reflecting success in diversifying revenue streams.
- Record Deposits: Record consumer deposits this quarter contributed to net interest income growth of $4.31 billion, beating the Visible Alpha estimate of $4.29 billion, showcasing effective strategies in attracting customer deposits.
- Effective Cost Control: The bank anticipates a 1% increase in adjusted noninterest expense for FY2026, totaling $4.27 billion, which is below the Visible Alpha estimate, indicating effective cost management that supports overall profitability.
Analyst Views on USB
Wall Street analysts forecast USB stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for USB is 58.87 USD with a low forecast of 50.00 USD and a high forecast of 75.00 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.
20 Analyst Rating
12 Buy
7 Hold
1 Sell
Moderate Buy
Current: 54.400
Low
50.00
Averages
58.87
High
75.00
Current: 54.400
Low
50.00
Averages
58.87
High
75.00
About USB
U.S. Bancorp is a financial services holding company. Its segments are Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. It provides a full range of financial services, including lending and depository services, cash management, capital markets, and trust and investment management services. It also engages in credit card services, merchant and ATM processing, mortgage banking, insurance, brokerage and leasing. Its banking subsidiary, U.S. Bank National Association (USBNA), is engaged in the banking business, principally in domestic markets. USBNA provides a range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions. Its non-banking subsidiaries offer investment and insurance products to its customers principally within its domestic markets, and fund administration services to a range of mutual and other funds.
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.
