Truist Financial Corporation
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.44%.
Did TFC Beat Earnings? Q4 2025 Results
Truist Financial delivered a disappointing finish to 2025, missing Wall Street expectations on both the top and bottom lines as a legal settlement accrual weighed heavily on results. The Charlotte-based bank posted Q4 earnings of $1.00 per diluted share, falling 8.50% short of the $1.09 consensus estimate, while revenue of $5.25 billion came in 1.33% below the $5.32 billion analysts had expected and slid 31.4% from a year ago. The primary culprit was a $130 million pre-tax legal accrual tied to the Bickerstaff v. SunTrust Bank settlement, which alone clipped earnings by $0.08 per share, alongside $63 million in severance-related charges. Stripping out those items, the underlying picture looked considerably better, with the adjusted efficiency ratio improving to 54.9%. Net interest margin held firm at 3.07% and average loans grew 1.3% sequentially to $324.80 billion, providing a constructive foundation. Management guided for full-year 2026 revenue growth of 4% to 5% and approximately $4 billion in share repurchases, reaffirming its 15% ROTCE target by 2027.
- Broad-based loan growth of 1.3% sequentially driven by commercial and industrial and CRE portfolios
- Net interest income growth of 1.9% sequentially driven by loan and deposit growth and fixed rate asset repricing
- Net interest margin improved 6 basis points sequentially to 3.07%
- Investment banking and trading income increased 27.9% year-over-year driven by higher M&A fees and capital markets activity
- Deposit cost of 1.64% declined 20 basis points sequentially
- Adjusted efficiency ratio improved to 54.9%, down 280 basis points year-over-year
- Positive operating leverage delivered for the full year 2025
“We delivered strong, purpose-driven performance in 2025 by deepening client relationships, enhancing operational efficiency, investing in talented teammates and innovative technology, and increasing capital return to shareholders. Through disciplined risk management and sound governance, we strengthened our foundation and positioned Truist for sustainable growth.”
Truist Financial CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Truist expects revenue (TE) to decline 2% to 3% vs. Q4 2025, noninterest expense to decline 4% to 5%, and share repurchases of approximately $1 billion. For full year 2026, management guides revenue (TE) growth of 4% to 5% vs. 2025, noninterest expense growth of 1.25% to 2.25%, a net charge-off ratio of approximately 55 basis points, an effective tax rate of approximately 16.5%, and share repurchases of approximately $4 billion. Net interest income is expected to increase 3% to 4% in 2026 driven by 3% to 4% average loan growth, two 25 basis point Fed Funds rate reductions, and fixed rate asset repricing. The company has a defined path toward its 2027 ROTCE target of 15%.
TFC YoY Financials
TFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.