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Banco Santander
(BME:SAN)
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Rating:66Neutral
Price Target:
€11.50
▼(-9.52% Downside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by solid underlying financial performance and a very constructive earnings call with upgraded confidence in 2026 profit and capital targets. Valuation is supportive with a low P/E and moderate yield. These positives are tempered by weak technicals (broadly below moving averages with negative MACD) and fundamentals-related risk factors including higher leverage and cash-flow volatility.
Positive Factors
Strong profit and revenue growth
Record underlying profit and broad revenue growth indicate strong customer demand across Santander’s global franchise. Continued expansion in earnings and revenue can strengthen internal capital generation, support investment in digital platforms, and improve resilience over the next several quarters.
Negative Factors
Higher balance-sheet leverage
The higher leverage profile increases sensitivity to credit-cycle deterioration and funding conditions, even though equity has grown and returns on equity remain healthy. Greater balance-sheet leverage can constrain flexibility if losses rise or funding markets become less supportive.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profit and revenue growth
Record underlying profit and broad revenue growth indicate strong customer demand across Santander’s global franchise. Continued expansion in earnings and revenue can strengthen internal capital generation, support investment in digital platforms, and improve resilience over the next several quarters.
Read all positive factors
Banco Santander (SAN) vs. iShares MSCI Spain ETF (EWP)
Market Cap
€147.13B
Dividend Yield2.49%
Average Volume (3M)25.15M
Price to Earnings (P/E)9.1
Beta (1Y)1.66
Revenue Growth14.61%
EPS Growth21.71%
CountryES
Employees186,151
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.11
Shares Outstanding14,556,482,000
10 Day Avg. Volume27,137,402
30 Day Avg. Volume25,152,160
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)1.45
Price to Sales (P/S)1.25
P/FCF Ratio1.93
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€13.67Price Target Upside7.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)1.04
Revenue Forecast (FY)€63.85B
Banco Santander Business Overview & Revenue Model
Company Description
Founded in 1856 and headquartered in Madrid, Spain, Banco Santander, S.A. is a prominent global financial services provider. The institution caters to a broad spectrum of clients, from individual consumers and small and medium-sized businesses to ...
How the Company Makes Money
Banco Santander primarily makes money by earning income on financial intermediation and by charging fees for banking and related services. A core revenue stream is net interest income: the bank takes deposits and other funding, then lends those fu...
Banco Santander Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with record profit, broad revenue growth, improving efficiency, robust capital generation, resilient credit quality excluding Argentina, and reaffirmed medium-term targets. Management also highlighted strong performance in the U.K., U.S., CIB, Wealth, Payments, and insurance. The main challenges were Argentina-related provisions, Brazil's de-risking and profitability outlook, competitive deposit markets, Mexico's sequential NII decline, and pending integration and regulatory charges, but these issues were presented as contained or actively managed.Positive Updates
Record Underlying Profit and Strong Growth
Underlying profit for the first nine months of 2026 reached a record EUR 11.2 billion. Underlying profit grew 14% year-on-year in constant euros, and management said the group is comfortably on track to exceed its guidance of more than EUR 14.1 billion of 2026 profit excluding M&A and to deliver above EUR 15 billion of underlying net profit including M&A for the full year.
Negative Updates
Brazil Loan Growth Timing Remains Uncertain
Santander said it is not yet clear when the Brazilian de-risking exercise will be completed or when it can return to the market more aggressively. The bank plans to assess market conditions day by day before restarting broader loan growth, given inflation of 4.22% expected and rates at 14%.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Underlying Profit and Strong Growth
Underlying profit for the first nine months of 2026 reached a record EUR 11.2 billion. Underlying profit grew 14% year-on-year in constant euros, and management said the group is comfortably on track to exceed its guidance of more than EUR 14.1 billion of 2026 profit excluding M&A and to deliver above EUR 15 billion of underlying net profit including M&A for the full year.
Read all positive updates
Company Guidance
Management expects to exceed “more than EUR 14.1 billion profit in 2026, excluding M&A,” and is “on track to be above EUR 15 billion of underlying net profit, including M&A for the whole year”; revenue remains on track to deliver the “mid single-digit growth target,” year-end CET1 is expected to be “at or above our 12.8% target at the upper end of our 12%-13% CET1 operating range,” and the financial North Star is “to deliver an RoTE above 20% by 2028.” Brazil’s cost of risk is expected at “around 1.15% for 2026,” improving “towards 1.1% in 2027 and 2028”; Spain NII is expected to be “up mid-single digits or maybe a bit better than that” in 2027, with “Low to mid-single-digit growth in deposits in Spain”; Santander expects “400 million cost synergy targets” in the U.K., Part VII to finish “over the first quarter of next year,” Santander products to be offered to TSB customers “towards the third quarter of 2027,” U.S. RoTE to reach “around 18% by 2028,” and Danish Compromise approval “within the next two or three quarters.”Banco Santander Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.35B | 119.39B | 125.53B | 117.78B | 87.03B | 61.50B |
| Gross Profit | 47.54B | 47.51B | 48.17B | 44.41B | 43.36B | 41.02B |
| EBITDA | 22.76B | 21.86B | 20.53B | 18.09B | 18.23B | 17.30B |
| Net Income | 16.24B | 14.10B | 12.57B | 11.08B | 9.61B | 8.12B |
Balance Sheet | ||||||
| Total Assets | 1.95T | 1.87T | 1.84T | 1.80T | 1.73T | 1.60T |
| Cash, Cash Equivalents and Short-Term Investments | 466.93B | 457.58B | 237.41B | 288.46B | 223.07B | 210.69B |
| Total Debt | 450.85B | 520.75B | 483.38B | 310.98B | 282.96B | 249.02B |
| Total Liabilities | 1.84T | 1.75T | 1.73T | 1.69T | 1.64T | 1.50T |
| Stockholders Equity | 109.35B | 103.17B | 98.60B | 95.42B | 89.10B | 86.93B |
Cash Flow | ||||||
| Free Cash Flow | 56.17B | 77.68B | -32.65B | 66.92B | 16.87B | 45.29B |
| Operating Cash Flow | 61.67B | 83.53B | -24.16B | 80.56B | 27.71B | 56.69B |
| Investing Cash Flow | -91.00B | -97.83B | -3.71B | -80.91B | -3.90B | -3.71B |
| Financing Cash Flow | -11.90B | -14.20B | -5.51B | -2.06B | -9.96B | -1.32B |
Banco Santander Technical Analysis
Negative
12.71
Price Trends
12.14
Negative
12.11
Negative
11.14
Negative
Market Momentum
-0.46
Positive
23.61
Positive
3.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SAN, the sentiment is Negative. The current price of 12.71 is above the 20-day moving average (MA) of 11.59, above the 50-day MA of 12.14, and above the 200-day MA of 11.14, indicating a bearish trend. The MACD of -0.46 indicates Positive momentum. The RSI at 23.61 is Positive, neither overbought nor oversold. The STOCH value of 3.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ES:SAN.
Banco Santander Risk Analysis
Banco Santander disclosed 41 risk factors in its most recent earnings report. Banco Santander reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Banco Santander Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | €16.38B | 8.19 | 13.50% | 6.79% | -35.28% | 23.51% | |
74 Outperform | €115.76B | 10.32 | 20.15% | 4.61% | -6.76% | 13.85% | |
72 Outperform | €885.53M | 15.57 | 29.95% | 3.21% | 11.58% | 44.82% | |
68 Neutral | €12.16B | 10.36 | 12.31% | 4.53% | 4.58% | 10.93% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | €147.13B | 9.12 | 15.04% | 2.49% | 14.61% | 21.71% | |
61 Neutral | €8.15B | 12.40 | 9.44% | 6.02% | -6.69% | 5.62% |
* Financial Sector Average
ES:SAN
Banco Santander
10.12
1.46
16.89%
ES:SAB
Banco de Sabadell
3.44
0.62
22.11%
ES:BBVA
Banco Bilbao Vizcaya Argentaria
21.06
4.54
27.47%
ES:MAP
Mapfre, SA
3.99
0.29
7.87%
ES:UNI
Unicaja Banco SA
3.17
0.94
42.41%
ES:R4
Renta 4 Banco, S.A.
21.80
2.67
13.93%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.