Truist Financial (NYSE:TFC) Posts Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Truist reported Q1 EPS of $1.09, beating consensus by $0.09, with revenue of $5.20 billion (up 5% year-over-year) and a net margin of 17.09%.
• Management trimmed net interest income guidance to 2%–3% growth for 2026 and said net interest margin will not reach the previously-expected 3% exit this year due to delayed Fed cuts, deposit competition and rate-sensitive liabilities.
• Capital returns were stepped up: Q1 buybacks totaled $1.1 billion and Truist now targets $5B of share repurchases for 2026 (up from $4B), while reaffirming ROTCE targets of 14% (2026), 15% (2027) and a long-term goal of 16%–18%.

Truist Financial (NYSE:TFC - Get Free Report) posted its quarterly earnings results on Friday. The insurance provider reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.00 by $0.09, FiscalAI reports. The firm had revenue of $5.20 billion during the quarter, compared to analysts' expectations of $5.18 billion. Truist Financial had a net margin of 17.09% and a return on equity of 9.03%. The firm's revenue for the quarter was up 5.0% on a year-over-year basis. During the same period in the prior year, the company posted $0.87 earnings per share.

Here are the key takeaways from Truist Financial's conference call:

• Truist reported GAAP net income available to common of $1.4 billion (EPS up 25% y/y) and improved ROTCE to 13.8%, and management reaffirmed a near-term target of 14% (2026) and 15% (2027) with a new long-term ROTCE goal of 16%-18%.
• Net interest income guidance was trimmed to 2%-3% growth for 2026 (from 3%-4%) after the bank pushed out expected Fed cuts, and management said NIM will not hit the previously-expected 3% exit this year amid deposit competition and rate-sensitive liabilities.
• Non-interest income is accelerating—investment banking and trading revenue was the strongest since 2021 and overall fee businesses grew notably, supporting management’s view that higher fee growth offsets some NII pressure.
• Capital return was stepped up: Q1 repurchases were $1.1B and Truist now targets $5B of share buybacks for 2026 (vs. $4B prior), and the effective tax rate was reduced (to ~14.5% GAAP) partly due to project finance activity, both supporting EPS upside.
• Asset quality remained stable with net charge-offs guidance of ~55 bps for 2026, and management characterized the 12% NDFI exposure as diversified and conservatively underwritten, while a reporting change increased reported non-performing indirect auto loans without changing cash flows or loss expectations.

Truist Financial Stock Performance

Shares of TFC stock opened at $50.66 on Friday. The stock has a fifty day moving average price of $48.43 and a 200 day moving average price of $47.85. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.86 and a current ratio of 0.87. The stock has a market cap of $62.87 billion, a PE ratio of 13.30, a P/E/G ratio of 0.86 and a beta of 0.89. Truist Financial has a 1 year low of $35.00 and a 1 year high of $56.19.

Truist Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Friday, February 13th were issued a dividend of $0.52 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $2.08 annualized dividend and a yield of 4.1%. Truist Financial's payout ratio is currently 54.59%.

Insider Buying and Selling at Truist Financial

In other news, CFO Michael Baron Maguire sold 13,000 shares of the firm's stock in a transaction on Monday, January 26th. The stock was sold at an average price of $50.13, for a total value of $651,690.00. Following the completion of the transaction, the chief financial officer owned 74,323 shares in the company, valued at $3,725,811.99. This trade represents a 14.89% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CAO Cynthia B. Powell sold 3,500 shares of Truist Financial stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $52.49, for a total value of $183,715.00. Following the transaction, the chief accounting officer directly owned 667 shares of the company's stock, valued at $35,010.83. This trade represents a 83.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.15% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Truist Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Mindset Wealth Management LLC grew its position in shares of Truist Financial by 0.6% in the fourth quarter. Mindset Wealth Management LLC now owns 34,667 shares of the insurance provider's stock valued at $1,706,000 after purchasing an additional 201 shares during the last quarter. Quadrant Capital Group LLC raised its position in shares of Truist Financial by 0.6% during the 4th quarter. Quadrant Capital Group LLC now owns 37,637 shares of the insurance provider's stock worth $1,852,000 after purchasing an additional 228 shares during the last quarter. CreativeOne Wealth LLC raised its position in shares of Truist Financial by 1.8% during the 4th quarter. CreativeOne Wealth LLC now owns 13,902 shares of the insurance provider's stock worth $684,000 after purchasing an additional 244 shares during the last quarter. Keel Point LLC lifted its stake in Truist Financial by 1.8% in the 4th quarter. Keel Point LLC now owns 14,485 shares of the insurance provider's stock valued at $713,000 after buying an additional 253 shares in the last quarter. Finally, CHICAGO TRUST Co NA lifted its stake in Truist Financial by 2.6% in the 4th quarter. CHICAGO TRUST Co NA now owns 10,403 shares of the insurance provider's stock valued at $512,000 after buying an additional 264 shares in the last quarter. Institutional investors and hedge funds own 71.28% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Evercore reaffirmed an "outperform" rating on shares of Truist Financial in a report on Thursday, February 5th. Argus raised their price target on Truist Financial from $54.00 to $58.00 and gave the company a "buy" rating in a report on Friday, January 23rd. Morgan Stanley decreased their price target on Truist Financial from $69.00 to $63.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 31st. Barclays lowered Truist Financial from an "equal weight" rating to an "underweight" rating and upped their price objective for the stock from $47.00 to $56.00 in a report on Monday, January 5th. Finally, Citigroup increased their price objective on Truist Financial from $60.00 to $63.00 and gave the stock a "buy" rating in a research report on Wednesday, December 31st. Nine analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Truist Financial currently has a consensus rating of "Moderate Buy" and an average target price of $55.03.

Truist Financial Company Profile

Truist Financial Corporation is an American bank holding company that provides a broad range of financial services through its primary subsidiary, Truist Bank, and other operating units. The company offers traditional retail banking products and services such as deposit accounts, consumer and residential mortgage lending, and credit and debit card services. Truist also serves commercial clients with middle-market and corporate lending, treasury and payment solutions, and specialty finance products.

Beyond core banking, Truist operates wealth management, asset management, insurance and capital markets businesses.