Truist Q3 2026: EPS Beat Masks a Deliberate Revenue Overhaul

Truist Financial posted adjusted diluted EPS of $1.16 for the third quarter of 2026, beating the consensus estimate. Reported revenue fell well short of consensus because management chose to dismantle two large, lower-return portfolios in a single quarter.

The twin moves were the sale of the Regional Acceptance Corporation auto loan book and the repositioning of $8.6 billion of lower-yielding available-for-sale securities into higher-yielding investments. Together they depressed reported revenue and triggered a pre-tax loss on the securities sales, which is why GAAP earnings looked different from the adjusted figure.

Asset quality improved alongside the restructuring, with nonperforming loans falling to 0.40% of total loans held for investment. Wealth management income climbed to a record level and digital transactions reached a larger share of total volume, signaling that the core franchise is expanding even as the balance sheet shrinks by design.

The CET1 ratio slipped to 10.7% during the quarter after share repurchases and the capital consumed by the securities repositioning. Management expects the pending sale of the LightStream unsecured lending portfolio to Carlyle Group to close in Q4 2026, adding roughly 20 basis points of CET1 capital.

For the fourth quarter, Truist guided revenue-TE back to approximately $5.35 billion, already accounting for the RAC loan sale and the securities repositioning. The company also expects further share repurchases in Q4 and declared a common dividend of $0.52 per share during the third quarter. The strategic review of loan portfolios is ongoing.