Q2 26 EPS
$1.30
BEAT +4.00%
Est. $1.25
Q2 26 Revenue
$2.28B
Market Reaction
Did CFG Beat Earnings? Q2 2026 Results
Citizens Financial Group posted a strong second-quarter 2026 earnings beat, delivering adjusted EPS of $1.30 against a consensus estimate of $1.25, a 4.00% positive surprise that extends the Providence-based bank's streak of beating consensus EPS est… Read more Citizens Financial Group posted a strong second-quarter 2026 earnings beat, delivering adjusted EPS of $1.30 against a consensus estimate of $1.25, a 4.00% positive surprise that extends the Providence-based bank's streak of beating consensus EPS estimates to five consecutive quarters. Total revenue came in at $2.28 billion, though that figure reflected a 24.1% decline year-over-year, while net income surged 35% to $587.00 million, underpinned by meaningful net interest margin expansion. Net interest income of $1.63 billion rose 14% year-over-year as NIM widened 22 basis points to 3.17%, benefiting from terminated swap impacts, Non-Core portfolio runoff, and fixed-rate asset repricing, the single most material driver of the quarter's outperformance. Capital Markets fees also contributed, climbing 46% year-over-year to $153.00 million. Credit quality improved notably, with net charge-offs falling to 37 basis points from 48 basis points a year ago. Looking ahead, management guided third-quarter net interest income up 2.5% to 3.5% sequentially, with NIM projected to reach 3.30% to 3.50% by the fourth quarter of 2027 and a ROTCE target of 16% to 18% by year-end 2027.
Key Takeaways
- • NII growth of 14% YoY driven by 22 bps NIM expansion and 5% increase in interest-earning assets
- • Capital Markets fees up 46% YoY reflecting higher M&A, loan syndication, and debt underwriting
- • Wealth fees up 16% YoY from AUM growth via net inflows and market appreciation
- • Private Bank contributing $0.15 to EPS with ROE exceeding 25%
- • Positive operating leverage of 6.4% YoY
- • Favorable credit trends with NCOs declining to 37 bps from 48 bps YoY
- • Benefit from terminated swap impacts and Non-Core portfolio runoff on NIM
- • Fixed-rate asset repricing benefits
- • Pre-provision profit (non-GAAP) of $889 million, up 24% YoY
- • Return on average tangible common equity improved to 13.91% from 11.05% YoY
- • Total net charge-offs declined 19% YoY to $135 million from $167 million
- • Tangible book value per share increased to $38.29, up 9% YoY
CFG Forward Guidance & Outlook
For Q3 2026, Citizens expects NII up 2.5-3.5% QoQ, noninterest income up ~1%, noninterest expense stable to up slightly, net charge-offs stable to down slightly, CET1 ratio ~10.5% with ~$125 million in share repurchases, and a tax rate of ~22%. For full-year 2026, performance continues to trend favorably vs. January guidance, with NII expected above the guidance range and fees towards the high end; expenses slightly higher given strong revenue performance. The company expects ~600+ basis points of positive operating leverage for FY2026 with continuing favorable credit trends. NIM is projected to increase to 3.30-3.50% by Q4 2027. Citizens is targeting 16-18% ROTCE by end of 2027. The Reimagine the Bank program targets ~$100 million pre-tax run-rate benefit by year-end 2026, ~$200+ million by year-end 2027, and ~$450+ million by year-end 2028.
CFG YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
CFG Revenue by Segment
With YoY comparisons, source: SEC Filings
“We delivered an outstanding second quarter, led by strong revenue growth, significant positive operating leverage and favorable credit performance. We are executing well on our strategic initiatives, with continued strong growth in the Private Bank, record Wealth fees and record second quarter fees in Capital Markets, meaningful progress on Reimagine the Bank, and the successful launch of a new Consumer mobile platform. We were pleased about the DFAST stress loss results and anticipate further improvement under the new Fed models. We remain confident in our momentum and outlook through the remainder of 2026 and for 2027.”
— Bruce Van Saun, Q2 2026 Earnings Press Release
CFG Earnings Trends
CFG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
CFG EPS Trend
Earnings per share: estimate vs actual
CFG Revenue Trend
Quarterly revenue: estimate vs actual
CFG Quarterly Results
12 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $1.25 | $1.30 | +4.00% | $2.28B | — |
| Q1 26 BEAT | $1.09 | $1.13 | +3.96% | $2.17B | +0.41% |
| Q4 25 BEAT FY | $1.11 | $1.13 | +2.24% | $2.16B | +0.50% |
| FY Full Year | $3.83 | $3.86 | +0.79% | $8.25B | +0.15% |
| Q3 25 BEAT | $1.03 | $1.05 | +2.20% | $2.12B | +0.82% |
| Q2 25 BEAT | $0.88 | $0.92 | +4.36% | $2.04B | +1.41% |
| Q1 25 BEAT | $0.75 | $0.77 | +2.68% | $1.94B | -0.07% |
| Q4 24 MISS FY | $0.83 | $0.83 | -0.19% | $1.99B | +1.35% |
| FY Full Year | $3.20 | $3.03 | -5.38% | $7.81B | +0.29% |
| Q3 24 BEAT | $0.79 | $0.79 | +0.00% | $1.90B | -1.88% |
| Q2 24 BEAT | $0.78 | $0.82 | +5.13% | $1.96B | +0.83% |
| Q1 24 BEAT | $0.74 | $0.79 | +6.76% | $1.96B | -0.19% |
| Q4 23 BEAT FY | $0.71 | $0.85 | +19.72% | $1.99B | -0.39% |
| FY Full Year | — | $3.88 | — | $8.22B | — |
| Q3 23 MISS | $0.91 | $0.89 | -2.20% | $2.01B | -1.36% |