FY2026 Earnings Estimate for HSBC Issued By Erste Group Bank

Key Points

• Erste Group Bank raised its FY2026 earnings estimate for HSBC to $8.35 per share from $8.25, and also lifted its FY2027 forecast to $9.15 EPS. The new FY2026 view is still slightly below the broader consensus estimate of $8.51.
• HSBC’s stock has drawn a mixed analyst response: five analysts rate it a Buy, six rate it Hold, and the consensus target price is $63.00. Recent rating changes included downgrades from Zacks Research and BNP Paribas Exane, while Goldman Sachs initiated coverage with a Buy rating.
• The bank recently reported quarterly EPS of $0.44 on revenue of $19.13 billion and also announced a $0.50 quarterly dividend, equal to an annualized yield of about 2.2%. Meanwhile, an insider sold a large block of shares, though institutional ownership remains relatively low at 1.48%.

HSBC Holdings plc (NYSE:HSBC - Free Report) - Equities researchers at Erste Group Bank boosted their FY2026 earnings estimates for HSBC in a report released on Tuesday, May 12th. Erste Group Bank analyst S. Lingnau now expects that the financial services provider will earn $8.35 per share for the year, up from their prior forecast of $8.25. The consensus estimate for HSBC's current full-year earnings is $8.51 per share. Erste Group Bank also issued estimates for HSBC's FY2027 earnings at $9.15 EPS.

HSBC has been the subject of a number of other research reports. The Goldman Sachs Group assumed coverage on shares of HSBC in a report on Thursday, March 26th. They set a "buy" rating for the company. Royal Bank Of Canada reissued a "sector perform" rating on shares of HSBC in a report on Thursday. Weiss Ratings lowered shares of HSBC from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 6th. Zacks Research lowered shares of HSBC from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 5th. Finally, BNP Paribas Exane lowered shares of HSBC from an "outperform" rating to a "neutral" rating in a report on Tuesday, April 14th. Five investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $63.00.

HSBC Price Performance

HSBC stock opened at $90.18 on Tuesday. HSBC has a 52-week low of $58.14 and a 52-week high of $94.79. The firm has a market capitalization of $309.94 billion, a price-to-earnings ratio of 14.78, a PEG ratio of 0.89 and a beta of 0.56. The company has a fifty day simple moving average of $86.45 and a 200-day simple moving average of $81.97. The company has a quick ratio of 0.92, a current ratio of 0.92 and a debt-to-equity ratio of 0.52.

HSBC (NYSE:HSBC - Get Free Report) last released its earnings results on Tuesday, March 31st. The financial services provider reported $0.44 earnings per share (EPS) for the quarter. HSBC had a net margin of 16.06% and a return on equity of 13.35%. The business had revenue of $19.13 billion during the quarter.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of HSBC. Transamerica Financial Advisors LLC lifted its position in HSBC by 287.1% in the fourth quarter. Transamerica Financial Advisors LLC now owns 329 shares of the financial services provider's stock valued at $26,000 after buying an additional 244 shares during the last quarter. Measured Wealth Private Client Group LLC acquired a new position in HSBC in the third quarter valued at about $26,000. Binnacle Investments Inc lifted its position in HSBC by 80.5% in the third quarter. Binnacle Investments Inc now owns 444 shares of the financial services provider's stock valued at $32,000 after buying an additional 198 shares during the last quarter. Whipplewood Advisors LLC acquired a new position in HSBC in the first quarter valued at about $41,000. Finally, JPL Wealth Management LLC acquired a new position in HSBC in the third quarter valued at about $41,000. Institutional investors and hedge funds own 1.48% of the company's stock.

Insider Activity

In other HSBC news, insider Daniel Scott Palomaki sold 23,123 shares of the company's stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $18.11, for a total value of $418,757.53. Following the transaction, the insider owned 4,973 shares of the company's stock, valued at $90,061.03. This represents a 82.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.01% of the company's stock.

HSBC Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 26th. Investors of record on Friday, May 15th will be issued a $0.50 dividend. The ex-dividend date of this dividend is Friday, May 15th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 2.2%. HSBC's dividend payout ratio is currently 32.46%.

Key Headlines Impacting HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Erste Group Bank raised its FY2026 and FY2027 earnings estimates for HSBC, signaling higher profit expectations and reinforcing the view that current consensus may still be conservative.
• Positive Sentiment: HSBC launched a $4 billion credit facility to back mainland Chinese clean-tech companies expanding globally, which could strengthen fee income and deepen the bank’s position in high-growth sectors. Article Title
• Positive Sentiment: HSBC’s updated silver price outlook for the rest of 2026 suggests the bank sees constructive commodity trends, which may support related market activity and client flows. Article Title
• Neutral Sentiment: HSBC was also mentioned in a Zacks note on foreign bank stocks that may hold up despite industry headwinds, reflecting a generally favorable but broad sector view.
• Neutral Sentiment: HSBC Continental Europe issued a pre-stabilisation notice tied to a bond offering for ams-OSRAM AG, a routine capital-markets role that is unlikely to materially affect near-term earnings.
• Neutral Sentiment: HSBC economists forecast a sizeable India balance-of-payments deficit, but this appears to be more of a macro commentary item than a direct HSBC stock driver.

About HSBC

HSBC Holdings plc NYSE: HSBC is a multinational banking and financial services organization headquartered in London. It traces its origins to the Hongkong and Shanghai Banking Corporation, founded in 1865 to facilitate trade between Europe and Asia, and has since grown into one of the world's largest banking groups. The company is publicly listed in multiple markets, including the London Stock Exchange, the Hong Kong Stock Exchange and as an American depositary receipt on the New York Stock Exchange.

HSBC operates a universal banking model, serving retail, commercial, corporate and institutional clients.

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