Truist Financial (NYSE:TFC) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Truist Financial (NYSE:TFC) issued its earnings results on Friday. The insurance provider reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.09, FiscalAI reports. Truist Financial had a net margin of 17.09% and a return on equity of 9.03%. The business had revenue of $5.20 billion during the quarter, compared to analysts’ expectations of $5.18 billion. During the same quarter in the prior year, the business posted $0.87 EPS. The company’s revenue for the quarter was up 5.0% on a year-over-year basis.

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

• Truist reported GAAP net income available to common of $1.4 billion (EPS up 25% y/y) and improved ROTCE to 13.8%, and management reaffirmed a near-term target of 14% (2026) and 15% (2027) with a new long-term ROTCE goal of 16%-18%.
• Net interest income guidance was trimmed to 2%-3% growth for 2026 (from 3%-4%) after the bank pushed out expected Fed cuts, and management said NIM will not hit the previously-expected 3% exit this year amid deposit competition and rate-sensitive liabilities.
• Non-interest income is accelerating—investment banking and trading revenue was the strongest since 2021 and overall fee businesses grew notably, supporting management’s view that higher fee growth offsets some NII pressure.
• Capital return was stepped up: Q1 repurchases were $1.1B and Truist now targets $5B of share buybacks for 2026 (vs. $4B prior), and the effective tax rate was reduced (to ~14.5% GAAP) partly due to project finance activity, both supporting EPS upside.
• Asset quality remained stable with net charge-offs guidance of ~55 bps for 2026, and management characterized the 12% NDFI exposure as diversified and conservatively underwritten, while a reporting change increased reported non-performing indirect auto loans without changing cash flows or loss expectations.

Truist Financial Stock Up 2.5%

Shares of NYSE:TFC opened at $50.66 on Friday. The stock has a market cap of $62.87 billion, a P/E ratio of 13.30, a P/E/G ratio of 0.86 and a beta of 0.89. The firm has a fifty day moving average price of $48.43 and a 200 day moving average price of $47.85. The company has a debt-to-equity ratio of 0.70, a current ratio of 0.87 and a quick ratio of 0.86. Truist Financial has a 1-year low of $35.00 and a 1-year high of $56.19.

Truist Financial Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, March 2nd. Investors of record on Friday, February 13th were paid a dividend of $0.52 per share. The ex-dividend date was Friday, February 13th. This represents a $2.08 dividend on an annualized basis and a yield of 4.1%. Truist Financial’s dividend payout ratio is currently 54.59%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on TFC. Morgan Stanley lowered their target price on shares of Truist Financial from $69.00 to $63.00 and set an “overweight” rating for the company in a report on Tuesday, March 31st. Evercore restated an “outperform” rating on shares of Truist Financial in a report on Thursday, February 5th. Raymond James Financial upped their target price on shares of Truist Financial from $50.00 to $56.00 and gave the company an “outperform” rating in a report on Wednesday, January 7th. Argus upped their target price on shares of Truist Financial from $54.00 to $58.00 and gave the company a “buy” rating in a report on Friday, January 23rd. Finally, Barclays cut shares of Truist Financial from an “equal weight” rating to an “underweight” rating and upped their target price for the company from $47.00 to $56.00 in a report on Monday, January 5th. Nine analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $55.03.

Insiders Place Their Bets

In related news, CFO Michael Baron Maguire sold 13,000 shares of the stock in a transaction on Monday, January 26th. The shares were sold at an average price of $50.13, for a total transaction of $651,690.00. Following the completion of the sale, the chief financial officer owned 74,323 shares in the company, valued at $3,725,811.99. This represents a 14.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Cynthia B. Powell sold 3,500 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $52.49, for a total transaction of $183,715.00. Following the sale, the chief accounting officer owned 667 shares of the company’s stock, valued at approximately $35,010.83. This represents a 83.99% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.15% of the stock is owned by corporate insiders.

Institutional Trading of Truist Financial

A number of large investors have recently bought and sold shares of TFC. Compound Planning Inc. increased its stake in shares of Truist Financial by 29.8% during the fourth quarter. Compound Planning Inc. now owns 25,463 shares of the insurance provider’s stock worth $1,253,000 after acquiring an additional 5,839 shares during the period. Invesco Ltd. lifted its position in Truist Financial by 1.8% in the fourth quarter. Invesco Ltd. now owns 14,067,457 shares of the insurance provider’s stock valued at $692,260,000 after purchasing an additional 247,634 shares during the period. Rare Wolf Capital LLC acquired a new stake in Truist Financial in the fourth quarter valued at about $208,000. Corient Private Wealth LLC boosted its holdings in Truist Financial by 5.3% in the 4th quarter. Corient Private Wealth LLC now owns 242,498 shares of the insurance provider’s stock valued at $11,036,000 after purchasing an additional 12,286 shares in the last quarter. Finally, Blue Sparrow LLC DE acquired a new position in Truist Financial during the 4th quarter worth approximately $8,858,000. Institutional investors and hedge funds own 71.28% of the company’s stock.

About Truist Financial

Truist Financial Corporation is an American bank holding company that provides a broad range of financial services through its primary subsidiary, Truist Bank, and other operating units. The company offers traditional retail banking products and services such as deposit accounts, consumer and residential mortgage lending, and credit and debit card services. Truist also serves commercial clients with middle-market and corporate lending, treasury and payment solutions, and specialty finance products.

Beyond core banking, Truist operates wealth management, asset management, insurance and capital markets businesses.