Truist Financial (NYSE:TFC) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Truist Financial (NYSE:TFC) posted its quarterly earnings data on Friday. The insurance provider reported $1.16 EPS for the quarter, missing the consensus estimate of $1.17 by ($0.01), FiscalAI reports. Truist Financial had a return on equity of 10.06% and a net margin of 19.13%. The company had revenue of $5.30 billion for the quarter, compared to analyst estimates of $5.35 billion. During the same quarter in the previous year, the firm posted $1.04 earnings per share. The company’s quarterly revenue was up 1.3% on a year-over-year basis.

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

• Adjusted third-quarter EPS rose 12% year over year to $1.16, while adjusted ROTCE improved 100 basis points to 14.6%. Deposit growth, wealth management performance and expense control exceeded or met expectations.
• Truist completed the $5.5 billion RAC auto-loan sale and agreed to sell $7.7 billion of LightStream loans, reducing credit risk and wholesale funding needs. Management said the transactions are expected to improve capital efficiency, tangible book value and future EPS/ROTCE, although they will reduce near-term net interest income.
• CEO Mike Lyons outlined a strategy centered on relationship-based consumer and wholesale banking, including stronger branch, digital, payments, treasury management, wealth and commercial-lending capabilities. Truist is conducting a company-wide review to redirect capital and expenses toward strategic businesses, with further details expected in early 2027.
• Average loans declined 1.1% sequentially as Truist reduced lower-return lending and experienced higher paydowns, while investment banking revenue was delayed by market volatility. The bank expects fourth-quarter net interest income of $3.65 billion to $3.7 billion, including a roughly $125 million impact from the RAC sale.
• Management reiterated its target for 15% ROTCE in 2027 and 16%–18% over the long term, alongside expectations for 3%–4% 2026 average loan growth excluding the RAC and LightStream sales. Truist also plans approximately $1 billion of fourth-quarter share repurchases while preserving a strong through-the-cycle capital position.

Truist Financial Stock Performance

Shares of Truist Financial stock traded up $0.60 during trading on Friday, hitting $47.17. 14,083,714 shares of the company’s stock were exchanged, compared to its average volume of 8,628,214. The stock has a market capitalization of $57.62 billion, a price-to-earnings ratio of 10.82, a PEG ratio of 1.03 and a beta of 0.92. The business has a 50-day simple moving average of $49.17 and a 200-day simple moving average of $49.61. Truist Financial has a 52-week low of $41.60 and a 52-week high of $56.19. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.86 and a current ratio of 0.86.

Truist Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Friday, August 14th were issued a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a dividend yield of 4.4%. The ex-dividend date of this dividend was Friday, August 14th. Truist Financial’s dividend payout ratio (DPR) is 47.71%.

Insider Buying and Selling at Truist Financial

In other Truist Financial news, CEO Michael Lyons purchased 21,000 shares of the stock in a transaction on Thursday, September 17th. The shares were bought at an average cost of $48.36 per share, with a total value of $1,015,560.00. Following the completion of the acquisition, the chief executive officer owned 21,000 shares in the company, valued at $1,015,560. This trade represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO William Rogers, Jr. sold 13,250 shares of the stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $52.36, for a total value of $693,770.00. The SEC filing for this sale provides additional information. Insiders sold a total of 30,516 shares of company stock valued at $1,584,428 in the last three months. Company insiders own 0.15% of the company’s stock.

Analyst Ratings Changes

A number of analysts have commented on the company. Citigroup cut Truist Financial from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $63.00 to $54.00 in a research report on Tuesday, June 30th. Keefe, Bruyette & Woods boosted their price target on Truist Financial from $53.00 to $55.00 and gave the company a “market perform” rating in a research note on Monday, July 20th. TD Cowen started coverage on Truist Financial in a report on Thursday, October 8th. They issued a “hold” rating and a $52.00 price objective on the stock. Wall Street Zen raised Truist Financial from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. Finally, Evercore reaffirmed an “outperform” rating and set a $57.00 target price on shares of Truist Financial in a report on Monday, July 6th. Seven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $54.39.

About Truist Financial

Truist Financial Corporation (NYSE:TFC) is a financial services company headquartered in Charlotte, North Carolina. Through its principal banking subsidiary, Truist Bank, the company provides a broad range of financial products and services to consumers, small businesses, commercial clients, and institutional customers.

Its offerings include deposit accounts, consumer and small-business lending, mortgages, credit cards, payments, treasury management, commercial and corporate banking, investment banking, wealth management, and asset management.