U.S. Bancorp (USB) Earnings & Analysis

Latest quarter

U.S. Bancorp reported Q3 FY2026 revenue of $11.3 billion, compared with $11.0 billion a year earlier. On the basis used for the consensus comparison, revenue was $8.0 billion against an estimate of $8.0 billion, with the result −0.46% against the consensus before rounding. Adjusted earnings per share were $1.34, above the $1.32 consensus.

The bank reported diluted earnings per share of $1.34, up from $1.22 a year earlier. Its net interest income rose 5.6%, while fee revenue increased 14.9% year over year. The BTIG acquisition added $226 million in fee revenue in its first full quarter, and fees represented 44% of revenue.

U.S. Bancorp’s net interest margin improved to 2.84%, while net charge-offs fell to 0.51% of loans from 0.56% a year earlier. The bank announced a quarterly dividend of $0.54 per share.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

In October, CEO Gunjan Kedia said client-facing AI applications would be rolled out cautiously because of privacy and confidence concerns. She also said U.S. Bancorp expected capital markets to grow from 8% to 10% or more of company revenue over the next 3 to 5 years. CFO John Stern said capital ratios were building, positioning the bank to resume share repurchases over the next quarter or two.

On the Q2 earnings call in July, Kedia described fee businesses as a way to deepen customer relationships as well as diversify revenue. She said the completed BTIG acquisition added equity trading and advisory businesses to the bank’s capital-markets offering. Asked about further deals, Kedia said the bank considered smaller acquisitions but did not expect to need another capital-markets acquisition.

Kedia also said the bank was shifting branch investment toward new locations and denser coverage in existing markets. She expected annual branch investment to rise from approximately $200 million historically to $300 million annually. Asked about the pace of expansion, Stern said it would ramp up but that the bank did not have a specific number in mind.

On deposits, Stern said commercial balances had fallen seasonally in Q2 while consumer deposits grew. He expected deposit growth to accompany loan growth and said deposit pricing would depend partly on loan demand. Asked about net interest margin, Stern said asset mix and fixed-asset repricing could help it progress, but the speed would depend on deposits and the shape of the yield curve.

For the quarter ahead, Stern said in July that the bank expected BTIG to contribute roughly $200 million per quarter in the second half. He also said the company expected approximately $160 million of reserve build associated with the anticipated Amazon Small Business Portfolio purchase.

Guidance

On the Q2 call in July, Stern raised U.S. Bancorp’s FY2026 total net revenue growth outlook to 7%-9% from the prior 4%-6% range. He said the revised outlook was 5%-7% excluding BTIG.