Banco Santander (NYSE:SAN) Posts Earnings Results, Beats Expectations By $0.04 EPS

Banco Santander (NYSE:SAN) announced its quarterly earnings results on Tuesday. The bank reported $0.28 EPS for the quarter, beating analysts’ consensus estimates of $0.24 by $0.04, FiscalAI reports. The company had revenue of $18.90 billion during the quarter, compared to analysts’ expectations of $15.89 billion. Banco Santander had a return on equity of 11.68% and a net margin of 17.90%.

Here are the key takeaways from Banco Santander’s conference call:

• Company reported a record 2025 performance with €14.1 billion annual profit, +12% y/y (ex‑Argentina +15%), customer base up 8 million to 180 million, ROTE risen to 16.3% and CET1 at an all‑time high of 13.5%, with dividend per share up 14%.
• Management credited One Transformation (product simplification, common operating model and tech platforms) for driving efficiency gains (c.265 bps from transformation) — expenses fell 1% in absolute terms and net operating income hit ~€37 billion.
• Announced bolt‑on Webster acquisition for $12.2bn expected to deliver ~$800m pre‑tax cost synergies, raise Santander US ROTCE to ~18% by 2028 and produce 7–8% EPS accretion in 2028, though the deal will be funded 65% cash / 35% shares and reduce group CET1 by ~110–140 bps at closing.
• Board reaffirmed shareholder returns and capital hierarchy, approving a €5 billion buyback to start immediately (part of at least €10bn buybacks for 2025–26) while maintaining a 50% ordinary payout policy.
• Outlook and targets: 2026 is a transition year (ex‑M&A mid‑single digit revenue growth, costs lower, profit up), with guidance for double‑digit revenue and mid‑teens net profit in 2027 and a group ambition of ROTE in excess of 20% by 2028.

Banco Santander Price Performance

Shares of SAN traded down $0.14 during mid-day trading on Thursday, hitting $12.29. The stock had a trading volume of 15,769,538 shares, compared to its average volume of 8,561,484. Banco Santander has a 52 week low of $5.54 and a 52 week high of $13.11. The business has a fifty day moving average price of $11.84 and a 200-day moving average price of $10.52. The firm has a market cap of $182.88 billion, a P/E ratio of 13.03, a PEG ratio of 0.75 and a beta of 0.72.

Analyst Ratings Changes

SAN has been the subject of a number of analyst reports. Weiss Ratings reissued a “buy (b+)” rating on shares of Banco Santander in a research note on Wednesday, January 21st. UBS Group downgraded shares of Banco Santander from a “strong-buy” rating to a “hold” rating in a report on Friday, January 16th. Kepler Capital Markets upgraded Banco Santander from a “hold” rating to a “buy” rating in a research report on Tuesday, January 13th. DZ Bank downgraded Banco Santander from a “strong-buy” rating to a “hold” rating in a research report on Thursday, December 18th. Finally, The Goldman Sachs Group lowered shares of Banco Santander from a “strong-buy” rating to a “strong sell” rating in a report on Thursday, October 16th. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold”.

Institutional Trading of Banco Santander

A number of large investors have recently modified their holdings of the business. Binnacle Investments Inc lifted its holdings in Banco Santander by 96.2% in the 3rd quarter. Binnacle Investments Inc now owns 3,227 shares of the bank’s stock worth $34,000 after buying an additional 1,582 shares during the period. Tower Research Capital LLC TRC boosted its stake in shares of Banco Santander by 111.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,479 shares of the bank’s stock valued at $54,000 after purchasing an additional 3,411 shares in the last quarter. Larson Financial Group LLC lifted its holdings in Banco Santander by 73.9% in the third quarter. Larson Financial Group LLC now owns 6,501 shares of the bank’s stock worth $68,000 after buying an additional 2,762 shares during the period. Jones Financial Companies Lllp lifted its stake in shares of Banco Santander by 271.2% in the 1st quarter. Jones Financial Companies Lllp now owns 10,276 shares of the bank’s stock valued at $69,000 after purchasing an additional 7,508 shares during the period. Finally, Horizon Investments LLC bought a new position in Banco Santander in the third quarter worth $72,000. Institutional investors own 9.19% of the company’s stock.

More Banco Santander News

Here are the key news stories impacting Banco Santander this week:

• Positive Sentiment: Reported record 2025 results and launched a large shareholder return plan — Santander said 2025 produced its fourth consecutive year of record results and approved a roughly €5.0bn share buyback, which supports EPS and capital return. Banco Santander Delivers Record 2025 Results and Launches €5 Billion Buyback
• Positive Sentiment: Beating expectations on Q4 / FY metrics — Santander’s Q4 beat (EPS above consensus and revenue well ahead), with improved net interest income and fee income cited in earnings commentary. This underpins the board’s buyback and capital story. Full Year 2025 Earnings Call Highlights
• Neutral Sentiment: Strategic rationale for U.S. expansion — Santander announced it will buy Webster Financial (cash + stock) in a ~$12.2–12.3bn deal to build a top‑10 U.S. retail/commercial bank; the acquisition is strategic but will require integration. Santander to buy Webster Financial in $12.2 billion deal
• Neutral Sentiment: Removal of some contingent tax risks in Brazil — Santander (with peers) reached settlements to end certain tax disputes in Brazil, reducing one regulatory/legal overhang. Itau, Santander, Citi strike deals to end Brazilian tax disputes
• Negative Sentiment: Market reaction and execution concerns on Webster deal — Shares fell after the Webster announcement as analysts flagged short‑term execution risk, and investors questioned the multiple paid for the U.S. deal. That sentiment is driving near‑term downside. Santander shares fall on proposed $12.2 billion Webster deal
• Negative Sentiment: Legal/investor scrutiny of Webster transaction — A U.S. law firm has opened an investor inquiry into the adequacy of price/process for the Webster sale, which could lead to dissension or delays. Webster Financial Investor Alert
• Negative Sentiment: Company clarification flags additional risks and use of non‑IFRS metrics — Santander issued supplementary disclosure about alternative performance metrics and highlighted wide‑ranging risks to the outlook, adding caution for investors assessing forward guidance. Santander Clarifies Use of Non-IFRS Metrics and Flags Wide-Ranging Risks to Outlook

About Banco Santander

Banco Santander, SA (NYSE: SAN) is a Spanish multinational banking group headquartered in Santander, Spain. Founded in 1857, the bank has grown from a regional institution into one of Europe’s largest banking groups, operating a diversified financial services platform that serves retail, small and medium-sized enterprises, and large corporate clients. Santander is publicly listed in Spain and maintains American Depositary Receipts on the New York Stock Exchange under the ticker SAN.

The group’s core activities include retail and commercial banking—offering deposit accounts, payment services, mortgages, personal and auto loans, and small business financing—alongside corporate and investment banking services for larger institutional clients.