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Bank of America Corporation BAC

Financial  —  Banks Diversified
56.70 0.67 1.20% as of 25 Sep
Market cap
$392.9B
P/E
12.9×
S&P 500 Member Dividend Champion (10y)
Indexes indicate stock being part of an index,
Growth Flags show if company had growth for consecutive years
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

Bank of America Corporation (BAC) Financial Analysis

Updated · Covers results through Q2 FY2026 · How this is made

Snapshot

Bank of America had a market capitalisation of $400.7 billion as of September 24, 2026. Revenue was $191.6 billion, operating income was $37.7 billion, and net income was $30.5 billion in FY2025. Diluted EPS was $3.81 in FY2025, with weighted average shares of 7.5 billion shares in FY2025.

In Q2 FY2026, revenue was $49.4 billion, gross profit was $31.6 billion, operating income was $11.6 billion, and net income was $9.1 billion. Diluted EPS was $1.21 in Q2 FY2026. Over the trailing twelve months to Q2 FY2026, revenue was $193.3 billion and net income was $33.6 billion.

Growth

Revenue was $191.6 billion in FY2025, a change of −2.46% in FY2025 against FY2024. Revenue compound annual growth was 18.5% over FY2022–FY2025 and 15.4% over FY2020–FY2025. Net income was $30.5 billion in FY2025 and grew 13.1% in FY2025 against FY2024. Diluted EPS was $3.81 in FY2025, increasing 18.7% in FY2025 against FY2024; its compound annual growth was 6.10% over FY2022–FY2025.

Free cash flow was $12.6 billion in FY2025, and its growth was not meaningful in FY2025 against FY2024 because the earlier value was zero or negative. In Q2 FY2026, revenue was $49.4 billion, up 3.15% against Q1 FY2026 and 3.67% against Q2 FY2025. Diluted EPS was $1.21 in Q2 FY2026, up 9.01% against Q1 FY2026 and 36.0% against Q2 FY2025.

Profitability

Gross margin was 59.0% in FY2025, an increase of 5.1 percentage points over FY2024–FY2025, but a change of −32.2 percentage points over FY2020–FY2025. Operating margin was 19.7% in FY2025, increasing by 2.8 percentage points over FY2024–FY2025 and changing by −0.6 percentage points over FY2020–FY2025. Net margin was 15.9% in FY2025, up 2.2 percentage points over FY2024–FY2025 and down 3.2 percentage points over FY2020–FY2025.

Return on equity was 10.6% in FY2025, compared with 9.49% in FY2024. Return on assets was 0.87% in FY2025, compared with 0.79% in FY2024. In Q2 FY2026, gross margin was 63.9% and operating margin was 23.4%. No industry-median profitability measures are reported.

Balance sheet

Total debt was $317.8 billion in FY2025, compared with $283.3 billion in FY2024. Cash and short-term investments were $922.9 billion in FY2025, compared with $885.7 billion in FY2024. Net debt was −$605.0 billion in FY2025 and −$670.5 billion in Q2 FY2026. Shareholders’ equity was $303.2 billion in FY2025, while book value per share was $40.31 in FY2025.

The current ratio was 0.8× in Q2 FY2026, and debt to equity was 1.1× in Q2 FY2026. Working capital was −$549.9 billion in FY2025. The Q2 FY2026 net-debt figure was $454.0 million higher against Q2 FY2025 and $894.0 million higher against Q1 FY2026.

Cash flow & capital return

Operating cash flow was $12.6 billion in FY2025, following −$8.8 billion in FY2024. Free cash flow was $12.6 billion in FY2025, following −$8.8 billion in FY2024, and represented 41.3% of net income in FY2025. Over the trailing twelve months to Q2 FY2026, operating cash flow and free cash flow were each $94.7 billion. Capital expenditures are not reported.

Dividends paid were $9.6 billion in FY2025, and net share repurchases were $18.6 billion in FY2025. Capital returned to shareholders was $28.2 billion in FY2025 and $112.6 billion over FY2021–FY2025. Weighted average shares were 7.5 billion shares in FY2025, a change of −14.1% over FY2020–FY2025. In Q2 FY2026, weighted average shares were 7.2 billion shares, down −5.67% against Q2 FY2025.

Valuation

The P/E was 12.7× as of September 24, 2026, higher than the five-year median of 12.4× as of September 24, 2026, over the five fiscal years to FY2025, and lower than the ten-year median of 13.1× as of September 24, 2026, over the ten fiscal years to FY2025. The P/S was 2.1× as of September 24, 2026, lower than the five-year median of 2.2× and the ten-year median of 2.4× as of September 24, 2026.

The P/B was 1.5× as of September 24, 2026, higher than the five-year median of 1.3× and the ten-year median of 1.2× as of September 24, 2026. No industry-median valuation multiples are reported. EV/Sales and EV/Cash flow were not meaningful as of September 24, 2026 because earnings or book value were negative.

What changed since last quarter

Revenue was $49.4 billion in Q2 FY2026, up 3.15% against Q1 FY2026 and 3.67% against Q2 FY2025. Net income was $9.1 billion in Q2 FY2026, compared with $8.6 billion in Q1 FY2026 and $7.2 billion in Q2 FY2025. Diluted EPS was $1.21 in Q2 FY2026, up 9.01% against Q1 FY2026 and 36.0% against Q2 FY2025.

Gross margin was 63.9% in Q2 FY2026, increasing 0.7 percentage points against Q1 FY2026 and 6.3 percentage points against Q2 FY2025. Operating margin was 23.4% in Q2 FY2026, increasing 1.7 percentage points against Q1 FY2026 and 5.2 percentage points against Q2 FY2025. Free cash flow was $29.0 billion in Q2 FY2026, down −30.5% against Q1 FY2026; the change against Q2 FY2025 was not meaningful because the earlier value was zero or negative. Management’s reasons for these changes are not reported.

Open questions

  • What factors drove the decline in revenue in FY2025 while net income increased?
  • What explains the variation in free cash flow across recent quarters?
  • What drove the increase in total debt between FY2024 and FY2025?
  • What factors contributed to the changes in gross and operating margins in Q2 FY2026?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.