Truist Financial Corporation
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.32%.
Did TFC Beat Earnings? Q1 2026 Results
Truist Financial delivered a notably strong first quarter for 2026, with earnings per share of $1.09 beating the consensus estimate of $1.00 by 8.98%, even as revenue of $5.15 billion came in fractionally below expectations, missing by 0.63%. The EPS beat was underpinned by disciplined expense management, with noninterest expense falling 5.9% sequentially to $2.98 billion, and a surge in fee income, particularly a 36.3% jump in investment banking and trading revenue to $372 million, which helped push noninterest income up 12% year-over-year to $1.55 billion. Net income available to common shareholders reached $1.38 billion, generating 250 basis points of positive operating leverage and an improved efficiency ratio of 57.9%. The year-over-year revenue decline of 30.2% reflects prior-period asset sales rather than underlying deterioration. Looking ahead, management raised its 2026 share buyback target to $5 billion and reaffirmed confidence in achieving a 15% ROTCE by 2027, though at least one analyst firm moved to a neutral rating following the print.
- 25% diluted EPS growth year-over-year
- 12% noninterest income growth year-over-year driven by investment banking and trading, wealth management, and mortgage banking
- 250 basis points of positive operating leverage year-over-year
- Fixed-rate asset repricing benefiting net interest income
- Noninterest expense down 5.9% sequentially due to lower other expense, personnel expense, and professional fees
- Lower effective tax rate of 12.4% driven by discrete tax benefits and tax credit activity
- 7.0% year-over-year average loan growth led by commercial and industrial
- Total deposit costs declined 24 basis points year-over-year to 1.55%
“We delivered a strong first quarter, with earnings per share up 25% from the first quarter of 2025, driven by disciplined execution against our strategic priorities and continued momentum across the franchise.”
Truist Financial CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, Truist expects revenue (TE) to be stable versus Q1, noninterest expense to increase 3-4%, and share repurchases of approximately $1.2 billion. For full year 2026, revenue (TE) is expected to increase approximately 4% versus 2025, noninterest expense to increase approximately 1.75%, net charge-off ratio of approximately 55 basis points, effective tax rate of approximately 14.5% (FTE approximately 16.5%), and share repurchases of approximately $5 billion (up from $4 billion previously). Net interest income is expected to increase 2-3% in 2026 versus 2025 driven by 3-4% average loan growth, a stable Fed Funds rate, and fixed-rate asset repricing. The company is on track to achieve a 2027 ROTCE target of 15% and is establishing a long-term ROTCE target of 16% to 18%.
TFC YoY Financials
TFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.