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Citizens’ revenue, as counted for the consensus comparison, was $2.3 billion and missed the consensus by 0.28%; the estimate also rounded to $2.3 billion. Its adjusted earnings per share were $1.41, above the $1.38 consensus by 2.17%.
Citizens’ reported revenue was $3.3 billion, compared with $3.1 billion a year earlier. Diluted earnings per share rose to $1.41 from $1.05. The company reported net income of $636 million, up 29% year over year.
Citizens generated $1.68 billion in net interest income, up 13% from a year earlier. Management attributed the increase to growth in interest-earning assets and expansion of the net interest margin. It said capital markets, wealth, card and treasury-related activity supported fee revenue.
The company’s operating margin was 24.6%, compared with 20.4% a year earlier. Its free cash flow fell to $401.0 million from $1.7 billion.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $3.3 billion | $3.1 billion | 5.83% |
| Diluted EPS | $1.41 | $1.05 | 34.3% |
| Gross margin | 71.1% | 68.6% | 2.5 percentage points |
| Operating margin | 24.6% | 20.4% | 4.2 percentage points |
| Free cash flow | $401.0 million | $1.7 billion | −75.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.41 | $1.38 | Beat by 2.17% |
| Revenue | $2.3 billion | $2.3 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Citizens’ management said the rise in net interest income reflected both growth in interest-earning assets and a wider net interest margin. It also pointed to capital markets, wealth, card and treasury-related activity as contributors to fee revenue. Citizens said fee income was nevertheless down slightly from the previous quarter, mainly because capital-markets transactions were delayed.
Head of Commercial Banking Ted Swimmer said merger-and-acquisition and equity deal backlogs remained elevated, with only modest transaction delays. Citizens linked the lower fee income to capital-markets volatility and said some activity had been deferred to the coming quarter.
Management said the private bank was contributing growth in deposits, loans and client assets. It said the business maintained a spread between what it earned on loans and what it paid for deposits. Citizens also plans to reduce commercial real estate exposure while expanding residential and private-bank lending.
Aunoy Banerjee said changes in the allowance ratio reflected shifts in the loan mix and planned reductions in higher-risk assets. He said the company had detected no broad-based credit issues. On expenses, the chief financial officer said Citizens expected to exit 2026 with about $100 million of annualized pre-tax benefit from its cost initiative.
CEO Bruce Van Saun said Citizens remained confident in its positioning and outlook for Q4 and 2027.
Guidance
Citizens increased the available capacity under its share-repurchase program to $1.95 billion and raised its quarterly dividend by 13%. CEO Bruce Van Saun said he remained confident in the company’s positioning and outlook for Q4 and 2027.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Dividend | FY2027 | Brunello Cucinelli expects its dividend policy to remain unchanged in FY2027. | — | — |
| Capex growth | FY2027 | 6.00% | — | New |
| Debt, Net Debt | FY2027 | Brunello Cucinelli expects its net debt position to improve by the end of FY2027. | — | — |
| Customers | FY2026 | 500,000 | — | — |
| Revenue, Wholesale, constant Currency | FY2027 | Brunello Cucinelli expects wholesale revenue to grow in the mid-single digits at constant exchange rates in FY2027. | — | — |
| Operating margin | FY2026 | 6.00% | — | New |
| Operating expenses growth | FY2026 | 4.50% | — | New |
| Operating income, Reimagine the Bank | FY2026 | $100.0 million | — | New |
| Operating income, Reimagine the Bank | FY2028 | $450.0 million | — | New |