Webster Financial (NYSE:WBS) Issues Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Webster Financial (NYSE:WBS) posted its earnings results on Friday. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.52 by $0.07, FiscalAI reports. Webster Financial had a net margin of 21.32% and a return on equity of 11.07%. The business had revenue of $760.48 million for the quarter, compared to analyst estimates of $731.95 million. During the same period in the prior year, the company posted $1.43 EPS.

Here are the key takeaways from Webster Financial’s conference call:

• Strong 2025 results — Webster reported a 17% ROTCE, 1.2% ROA, EPS up 10%, loans +8% and deposits +6%, increased tangible book value 13% and repurchased 10.9 million shares, highlighting solid profitability and capital returns.
• Credit remediation and asset quality improvement — commercial classified loans were down 7% year‑over‑year, nonperforming assets down 8%, criticized loans down 6% and charge‑offs were 35 bps, allowing a modest reduction in the allowance.
• 2026 financial outlook — management guides loan growth of 5%–7%, deposit growth 4%–6%, NII $2.57B–$2.63B (assumes Fed cuts), fees $390M–$410M and expenses $1.46B–$1.48B, with NIM expected around the mid‑330 bps range.
• HSA Bank, Ametros and tuck‑ins — management expects HSA eligibility tailwinds to drive $1.0–$2.5 billion of incremental deposits over five years (including $50M–$100M in 2026), is scaling direct‑to‑consumer and added SecureSave to expand employer‑sponsored saving products.
• Deposit competition and near‑term expense pressure — elevated pricing competition in the franchise, seasonal public‑fund outflows and planned Q1 payroll/merit costs may pressure deposit margins and cause a few percentage points spike in first‑quarter expenses.

Webster Financial Trading Down 3.2%

Shares of Webster Financial stock opened at $64.13 on Friday. The company has a debt-to-equity ratio of 0.42, a current ratio of 0.85 and a quick ratio of 0.85. The stock’s 50 day simple moving average is $62.60 and its 200-day simple moving average is $60.15. The stock has a market cap of $10.34 billion, a P/E ratio of 11.94, a P/E/G ratio of 0.55 and a beta of 1.05. Webster Financial has a 1-year low of $39.43 and a 1-year high of $67.43.

Webster Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Monday, November 10th were paid a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Monday, November 10th. Webster Financial’s dividend payout ratio (DPR) is 29.80%.

Key Headlines Impacting Webster Financial

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Q4 earnings beat — Adjusted EPS of $1.59 topped consensus and net income rose year-over-year; revenue of ~$760.5M also exceeded estimates, driven by loan growth. These beats are the primary fundamental drivers supporting the shares. Business Wire: Webster Reports Fourth Quarter 2025
• Positive Sentiment: Loan-led revenue growth highlighted by multiple outlets — analysts point to core loan expansion as a key revenue driver this quarter, supporting margin stability. Zacks: Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst bullish case: Seeking Alpha keeps WBS as a Buy with a $70 target, citing low‑cost, sticky deposit mix (notably the HSA franchise), resilient credit quality, and strong capital — factors that can sustain earnings and limit rate‑sensitivity vs. peers. Seeking Alpha: Low-Cost Deposit Growth Can Drive Further Upside
• Neutral Sentiment: Earnings call transcript and slides are available for deeper read — management commentary and slides will be useful to assess sustainability of loan growth, deposit trends, and one-time items included in results. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst estimate revisions were active ahead of the print — some shops updated forecasts pre-earnings, which can amplify intraday moves even when results beat. Benzinga: Analysts Revise Forecasts Ahead Of Earnings
• Negative Sentiment: CRE exposure is a noted risk — Seeking Alpha flags roughly $1.3B in rent‑regulated loans and other CRE concentrations; while reserves and capital are positioned well, this portfolio remains a potential headwind if localized stress emerges. Seeking Alpha: CRE Exposure Note
• Negative Sentiment: Market reaction: despite the beat, the stock is trading lower on the session with above-average volume — suggests profit-taking, where investors are parsing one-time items (gains on debt redemption, charitable items) and portfolio risks rather than the headline beat. MarketBeat: WBS Stock Page

Insider Buying and Selling

In related news, CEO John R. Ciulla sold 8,000 shares of Webster Financial stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $55.45, for a total transaction of $443,600.00. Following the transaction, the chief executive officer owned 231,872 shares in the company, valued at approximately $12,857,302.40. This trade represents a 3.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 0.54% of the company’s stock.

Institutional Trading of Webster Financial

A number of hedge funds and other institutional investors have recently modified their holdings of WBS. Alyeska Investment Group L.P. boosted its position in shares of Webster Financial by 7,442.8% during the 3rd quarter. Alyeska Investment Group L.P. now owns 2,032,937 shares of the financial services provider’s stock valued at $120,838,000 after acquiring an additional 2,005,985 shares during the last quarter. AQR Capital Management LLC raised its stake in Webster Financial by 221.0% during the second quarter. AQR Capital Management LLC now owns 1,565,623 shares of the financial services provider’s stock worth $85,483,000 after purchasing an additional 1,077,819 shares during the period. Balyasny Asset Management L.P. raised its stake in Webster Financial by 2,735.9% during the third quarter. Balyasny Asset Management L.P. now owns 735,151 shares of the financial services provider’s stock worth $43,697,000 after purchasing an additional 709,228 shares during the period. Orion Porfolio Solutions LLC boosted its holdings in Webster Financial by 642.2% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 233,824 shares of the financial services provider’s stock valued at $12,767,000 after purchasing an additional 202,318 shares during the last quarter. Finally, Qube Research & Technologies Ltd boosted its holdings in Webster Financial by 51.4% in the 2nd quarter. Qube Research & Technologies Ltd now owns 557,173 shares of the financial services provider’s stock valued at $30,422,000 after purchasing an additional 189,149 shares during the last quarter. 85.58% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have commented on the company. UBS Group reissued a “buy” rating on shares of Webster Financial in a report on Tuesday, January 6th. Keefe, Bruyette & Woods lifted their price target on shares of Webster Financial from $70.00 to $75.00 and gave the company an “outperform” rating in a research note on Tuesday, December 16th. TD Cowen cut their price target on shares of Webster Financial from $78.00 to $77.00 and set a “buy” rating for the company in a report on Wednesday, January 7th. Truist Financial restated a “buy” rating and set a $72.00 price objective on shares of Webster Financial in a research report on Friday, January 9th. Finally, Barclays increased their price objective on shares of Webster Financial from $78.00 to $80.00 and gave the company an “overweight” rating in a report on Tuesday, November 11th. Thirteen analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, Webster Financial has a consensus rating of “Moderate Buy” and a consensus price target of $72.77.

About Webster Financial

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.