U.S. Bancorp (NYSE:USB) Issues Earnings Results

Key Points

• U.S. Bancorp exceeded third-quarter earnings expectations, reporting adjusted EPS of $1.41 versus the $1.32 consensus estimate. Net income rose 10% year over year to $2.21 billion, while revenue increased approximately 8.7% to nearly $8 billion.
• The bank raised its quarterly dividend to $0.54 per share, equivalent to an annualized $2.16 dividend and a 3.8% yield.
• Analysts remain moderately bullish, with a consensus “Moderate Buy” rating and a $67.48 target price, although higher credit-loss provisions, slightly weaker revenue than some estimates and insider share sales present potential concerns.

U.S. Bancorp (NYSE:USB - Get Free Report) released its quarterly earnings results on Thursday. The financial services provider reported $1.41 EPS for the quarter, beating analysts' consensus estimates of $1.32 by $0.09, FiscalAI reports. The company had revenue of $8.04 billion during the quarter, compared to analysts' expectations of $8 billion. U.S. Bancorp had a return on equity of 13.69% and a net margin of 18.49%.

U.S. Bancorp Price Performance

Shares of NYSE USB opened at $56.29 on Thursday. The stock has a market capitalization of $87.71 billion, a price-to-earnings ratio of 11.35, a PEG ratio of 1.06 and a beta of 1.00. U.S. Bancorp has a 12 month low of $45.02 and a 12 month high of $66.07. The firm's 50 day simple moving average is $61.05 and its 200-day simple moving average is $58.97. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.83 and a quick ratio of 0.82.

U.S. Bancorp Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a $0.54 dividend. The ex-dividend date is Wednesday, September 30th. This represents a $2.16 annualized dividend and a yield of 3.8%. This is a boost from U.S. Bancorp's previous quarterly dividend of $0.52. U.S. Bancorp's payout ratio is currently 43.11%.

Analyst Upgrades and Downgrades

USB has been the topic of several recent analyst reports. JPMorgan Chase & Co. cut their price objective on shares of U.S. Bancorp from $69.00 to $65.00 and set a "neutral" rating on the stock in a report on Friday, October 2nd. CLSA set a $67.50 target price on shares of U.S. Bancorp in a research note on Monday, July 20th. Morgan Stanley boosted their target price on shares of U.S. Bancorp from $64.00 to $67.00 and gave the stock an "equal weight" rating in a research report on Monday, June 29th. Jefferies Financial Group upgraded shares of U.S. Bancorp from a "hold" rating to a "buy" rating and upped their price target for the company from $60.00 to $75.00 in a research note on Monday, July 6th. Finally, Keefe, Bruyette & Woods upped their price target on shares of U.S. Bancorp from $63.00 to $66.00 and gave the company a "market perform" rating in a research note on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat, U.S. Bancorp currently has an average rating of "Moderate Buy" and a consensus target price of $67.48.

U.S. Bancorp News Summary

Here are the key news stories impacting U.S. Bancorp this week:

• Positive Sentiment: Third-quarter earnings exceeded expectations. U.S. Bancorp reported GAAP diluted EPS of $1.34, up from $1.22 a year earlier, while adjusted EPS was reported at $1.41 versus the $1.32 consensus estimate. Net income rose 10% year over year to $2.21 billion. U.S. Bancorp Reports Third-Quarter 2026 Revenue
• Positive Sentiment: Revenue growth and expense control were constructive. Third-quarter net revenue increased 8.7% year over year to $7.97 billion, supported by 13.1% growth in noninterest income and a 69.3% increase in capital-markets revenue. Noninterest expense grew more slowly, helping offset pressure from the revenue miss. Average loans increased 8.0%, and the 10.8% Basel III standardized common-equity Tier 1 ratio indicates solid capital levels. U.S. Bancorp Q3 Earnings Beat
• Neutral Sentiment: Full-year revenue guidance was broadly in line. U.S. Bancorp forecast FY 2026 revenue of $31.0 billion to $31.3 billion, bracketing the $31.1 billion analyst consensus. The outlook does not provide a clear upward revision catalyst.
• Negative Sentiment: Credit costs and the revenue miss may be weighing on shares. Revenue fell slightly short of some estimates, while provision for credit losses climbed to $654 million from $571 million a year earlier. The stock was also facing technical pressure before earnings, trading below its 50-day moving average. Broader scrutiny of major banks’ reputation-risk and “debanking” policies adds a regulatory overhang for the sector. Treasury Banking Review

Insider Buying and Selling at U.S. Bancorp

In related news, CEO Gunjan Kedia sold 27,267 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $62.37, for a total transaction of $1,700,642.79. Following the sale, the chief executive officer directly owned 426,262 shares of the company's stock, valued at approximately $26,585,960.94. This represents a 6.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Stephen L. Philipson sold 36,906 shares of the firm's stock in a transaction on Monday, July 20th. The shares were sold at an average price of $63.08, for a total transaction of $2,328,030.48. Following the sale, the insider owned 74,969 shares in the company, valued at approximately $4,729,044.52. This represents a 32.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.21% of the company's stock.

About U.S. Bancorp

U.S. Bancorp is a financial services holding company headquartered in Minneapolis, Minnesota, and the parent company of U.S. Bank National Association. The company provides banking, lending, payment, investment, and wealth management services to individuals, businesses, government entities, and institutional clients.

Through U.S. Bank, its principal subsidiary, U.S. Bancorp offers checking and savings accounts, credit cards, mortgages, consumer and business loans, commercial banking, treasury management, investment services, and financial planning.

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