U.S. Bancorp (NYSE:USB) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

U.S. Bancorp (NYSE:USB) issued its quarterly earnings data on Thursday, October 15th. The financial services provider reported $1.34 earnings per share for the quarter, topping the consensus estimate of $1.32 by $0.02, Zacks reports. The company had revenue of $8.04 billion during the quarter, compared to analyst estimates of $8 billion. U.S. Bancorp had a return on equity of 13.85% and a net margin of 18.85%. The firm’s revenue for the quarter was up 8.7% compared to the same quarter last year. During the same period in the prior year, the business posted $1.22 earnings per share.

Here are the key takeaways from U.S. Bancorp’s conference call:

• Strong third-quarter performance: U.S. Bancorp reported record net revenue of approximately $8 billion and diluted EPS of $1.34, up 10% year over year. Revenue increased 8.7%, while disciplined expense management produced 240 basis points of positive operating leverage.
• Improved outlook and margin momentum: The bank raised its 2026 net revenue growth outlook to 8%–9% and expects approximately 300 basis points of positive operating leverage. Net interest margin expanded five basis points to 2.84%, with a similar increase expected in the fourth quarter and a path toward 3% in 2027.
• Growth in fees, payments and capital markets: Fee revenue rose 14.9% year over year, supported by broad-based gains and the BTIG acquisition, which contributed $226 million in third-quarter fee revenue. Management expects capital markets to reach 8%–10% or more of total revenue over the next three to five years.
• Healthy balance sheet and credit trends: Loans grew 1.0% sequentially and deposits 2.2%, while non-performing assets and net charge-offs declined. Management cited robust C&I and card pipelines, stable commercial credit quality, and continued growth in consumer and small-business deposits.
• Share repurchases remain dependent on capital conditions: U.S. Bancorp paused buybacks amid strong loan growth, higher interest rates and regulatory uncertainty, but expects to resume purchases within the next one or two quarters if loan demand, rates and capital requirements develop favorably. The bank remains committed to a 70%–75% payout ratio.

U.S. Bancorp Trading Down 1.9%

Shares of USB traded down $1.17 during mid-day trading on Friday, reaching $59.47. The company had a trading volume of 7,086,851 shares, compared to its average volume of 9,118,239. U.S. Bancorp has a fifty-two week low of $45.02 and a fifty-two week high of $66.07. The firm has a fifty day simple moving average of $59.93 and a 200-day simple moving average of $58.00. The stock has a market cap of $92.66 billion, a price-to-earnings ratio of 11.59, a price-to-earnings-growth ratio of 1.14 and a beta of 1.00. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.87.

U.S. Bancorp Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were given a dividend of $0.54 per share. This represents a $2.16 annualized dividend and a yield of 3.6%. This is a positive change from U.S. Bancorp’s previous quarterly dividend of $0.52. The ex-dividend date of this dividend was Wednesday, September 30th. U.S. Bancorp’s dividend payout ratio (DPR) is currently 42.11%.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Jefferies Financial Group upgraded U.S. Bancorp from a “hold” rating to a “buy” rating and raised their target price for the company from $60.00 to $75.00 in a report on Monday, July 6th. Raymond James Financial cut their price target on U.S. Bancorp from $74.00 to $72.00 and set a “strong-buy” rating on the stock in a research report on Tuesday, October 6th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of U.S. Bancorp in a report on Thursday. The Goldman Sachs Group reissued a “neutral” rating on shares of U.S. Bancorp in a research note on Thursday, October 15th. Finally, Wall Street Zen upgraded U.S. Bancorp from a “sell” rating to a “hold” rating in a research report on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, U.S. Bancorp presently has an average rating of “Moderate Buy” and an average target price of $69.19.

Insider Buying and Selling at U.S. Bancorp

In other news, CEO Gunjan Kedia sold 27,267 shares of U.S. Bancorp stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $62.37, for a total value of $1,700,642.79. Following the transaction, the chief executive officer directly owned 426,262 shares of the company’s stock, valued at $26,585,960.94. The trade was a 6.01% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 0.21% of the company’s stock.

About U.S. Bancorp

U.S. Bancorp (NYSE: USB) is a financial services holding company headquartered in Minneapolis, Minnesota, and the parent company of U.S. Bank National Association. U.S. Bank provides banking, lending, payment, investment and wealth-management services to individuals, businesses, institutions and government entities.

The company’s consumer and business banking operations offer deposit accounts, mortgages, home-equity and consumer loans, credit cards, small-business banking and commercial lending.