FY2026 Earnings Forecast for HSBC Issued By Erste Group Bank

HSBC Holdings plc (NYSE:HSBC) – Equities researchers at Erste Group Bank lifted their FY2026 earnings per share (EPS) estimates for shares of HSBC in a research note issued on Thursday, October 8th. Erste Group Bank analyst S. Lingnau now forecasts that the financial services provider will post earnings per share of $8.70 for the year, up from their previous estimate of $8.40. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for HSBC’s current full-year earnings is $8.55 per share.

Several other equities analysts also recently commented on the stock. BNP Paribas Exane downgraded shares of HSBC from a “hold” rating to a “strong sell” rating and lowered their target price for the stock from $100.50 to $97.00 in a report on Tuesday, August 4th. Shore Capital Group downgraded shares of HSBC to a “sell” rating in a report on Wednesday, August 5th. Weiss Ratings reiterated a “hold (c)” rating on shares of HSBC in a report on Monday, August 3rd. Citigroup reiterated a “neutral” rating on shares of HSBC in a research note on Wednesday, September 23rd. Finally, Wall Street Zen raised shares of HSBC from a “hold” rating to a “buy” rating in a report on Saturday, August 29th. Three equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $97.00.

HSBC Trading Up 0.6%

Shares of HSBC opened at $94.90 on Wednesday. The firm has a market cap of $325.34 billion, a P/E ratio of 11.64, a price-to-earnings-growth ratio of 0.90 and a beta of 0.58. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.85 and a quick ratio of 0.92. HSBC has a 1 year low of $64.64 and a 1 year high of $107.92. The company has a 50 day simple moving average of $101.76 and a two-hundred day simple moving average of $96.34.

HSBC (NYSE:HSBC) last posted its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $2.25 earnings per share for the quarter, topping the consensus estimate of $2.24 by $0.01. HSBC had a return on equity of 13.80% and a net margin of 18.19%. The business had revenue of $19.04 billion during the quarter, compared to the consensus estimate of $18.66 billion.

Institutional Trading of HSBC

Large investors have recently added to or reduced their stakes in the company. Renaissance Technologies LLC raised its position in HSBC by 391.6% during the 1st quarter. Renaissance Technologies LLC now owns 524,122 shares of the financial services provider’s stock valued at $43,235,000 after purchasing an additional 417,500 shares in the last quarter. Janney Montgomery Scott LLC lifted its holdings in shares of HSBC by 843.7% in the 1st quarter. Janney Montgomery Scott LLC now owns 242,762 shares of the financial services provider’s stock worth $20,025,000 after buying an additional 217,037 shares during the period. Royal Bank of Canada grew its position in shares of HSBC by 17.3% during the 1st quarter. Royal Bank of Canada now owns 1,304,192 shares of the financial services provider’s stock worth $107,582,000 after buying an additional 192,133 shares in the last quarter. Bank of America Corp DE increased its stake in shares of HSBC by 5.5% during the first quarter. Bank of America Corp DE now owns 2,385,883 shares of the financial services provider’s stock valued at $196,811,000 after buying an additional 124,201 shares during the period. Finally, TD Waterhouse Canada Inc. increased its stake in shares of HSBC by 476.1% during the second quarter. TD Waterhouse Canada Inc. now owns 125,095 shares of the financial services provider’s stock valued at $11,999,000 after buying an additional 103,381 shares during the period. Institutional investors own 1.48% of the company’s stock.

HSBC Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, August 14th were issued a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a yield of 2.1%. The ex-dividend date was Friday, August 14th. HSBC’s dividend payout ratio (DPR) is currently 28.09%.

Trending Headlines about HSBC

Here are the key news stories impacting HSBC this week:

• Positive Sentiment: Higher earnings forecast: Erste Group Bank raised its FY2027 EPS estimate for HSBC to $9.55 from $9.50, although it retained a “Hold” rating. The revision provides a small positive signal for the bank’s earnings outlook. Erste Group Bank raises HSBC FY2027 EPS estimate
• Positive Sentiment: Digital-payments expansion: HSBC and Ant reportedly tested tokenized deposits for payments made by artificial-intelligence agents on the Jovay blockchain network. The initiative highlights HSBC’s efforts to develop institutional digital-currency and settlement capabilities, though it is not yet a material earnings contributor. HSBC and Ant test tokenized deposits
• Neutral Sentiment: Business and staffing updates: HSBC Singapore appointed Henry Tong to lead customer, international and marketing activities, while the bank promoted Tom Zhang. HSBC also launched a currency-conversion promotion offering KrisFlyer miles, MacBooks and Grab vouchers. These announcements may support customer engagement but are unlikely to materially affect near-term financial results. HSBC Singapore appoints Henry Tong
• Neutral Sentiment: Compensation restructuring: HSBC plans to phase out fixed-pay allowances for senior staff and shift more compensation into performance-linked bonuses. The move could better align pay with results, but its effect on expenses and employee retention remains uncertain. HSBC to phase out fixed-pay allowances
• Negative Sentiment: Potential dilution and macro caution: New employee share awards could modestly increase the share count, while HSBC strategist Max Kettner warned of weak sentiment heading into earnings season. Together, these factors may limit investor enthusiasm despite the improved EPS forecast. HSBC grants employee share awards

About HSBC

HSBC Holdings plc is a global banking and financial services group headquartered in London. Its origins date to the founding of The Hongkong and Shanghai Banking Corporation in 1865, established to support trade between Europe and Asia. HSBC operates through a network spanning major markets in Asia, Europe, the Middle East, North America and Latin America.

The company provides services to personal, commercial and institutional customers. Its activities include retail and wealth banking, commercial banking, global banking and markets, investment banking, trade finance, transaction banking, foreign exchange, lending, insurance and asset management.