EarningsQ3 2026 Earnings Report
MX:TFC Q3 2026 EPS Results
Actual EPS$10.52
Consensus EPS$21.40
Beat/MissMissed by -$10.88
One Year Ago EPS$19.54
MX:TFC Q3 2026 Revenue Results
Actual Revenue$119.20B
Expected Revenue$100.59B
Beat/MissBeat by +$18.61B
YoY Revenue Growth-19.41%
Earnings Announcement Details
QuarterQ3 2026
Date10/16/2026
TimeBefore Open
Conference CallFriday, October 16, 2026
MX:TFC Upcoming Earnings
Truist Financial's next earnings date is estimated for January 20, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:TFC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly constructive and strategically optimistic. Management reported 12% year-over-year adjusted EPS growth, a 100 basis point improvement in adjusted ROTCE, strong deposit growth, record wealth management income, disciplined expenses, improved credit risk, and reaffirmed ROTCE targets. These positives were accompanied by lower loan balances, delayed investment banking revenue, significant reported losses from portfolio repositioning, higher reported net charge-offs, and acknowledged historical underperformance. Overall, the number and significance of the stated strengths and forward investments outweighed the challenges.Company Guidance
Adjusted EPS and ROTCE Growth
Third-quarter adjusted EPS was $1.16 per share, up 12% year over year excluding the RAC sale and associated AFS repositioning. Adjusted ROTCE was 14.6%, a 100 basis point improvement from the third quarter of 2025, driven by higher earnings and continued capital return.
Strong Deposit Growth and Funding Improvement
Average deposits increased 1.4% linked quarter and 3.6% year over year, driven primarily by higher client deposit balances and interest checking. Average client deposits increased $16 billion versus the third quarter of 2025, while average total borrowings declined $4.5 billion, or 6.6% year over year, including a significant reduction in short-term borrowings.
RAC Sale Improved Credit Profile and Balance Sheet
Truist completed the sale of its $5.5 billion RAC auto loan portfolio, receiving $5.2 billion of net proceeds that were used to reduce borrowings. The sale reduced consolidated non-performing loans by 28% and expected annualized net charge-offs by 10 basis points, generated approximately $1 billion, or 23 basis points, of CET1 capital, and was immediately accretive to tangible book value per share.
AFS Securities Repositioning Enhanced Portfolio Economics
Truist sold $8.6 billion of lower-yielding agency MBS securities with a 2.67% book yield and 5.8-year duration, and purchased $7.2 billion of investment securities effectively yielding approximately 5.6% with a 2.3-year duration, adjusted for the new pay-fix swaps. The repositioning is expected to benefit EPS and ROTCE beginning in the fourth quarter.
LightStream Sale Announced
Truist signed an agreement to sell $7.7 billion of loans representing substantially all of LightStream's assets. The transaction is expected to close during the fourth quarter, generate net proceeds of $7.2 billion, create $850 million, or 20 basis points, of CET1 capital, and reduce consolidated annual net charge-offs by approximately 7 basis points.
Core Loan Growth and 2026 Loan Outlook Maintained
Outside strategic portfolio actions, core loan balances increased $0.8 billion linked quarter, led by consumer loans including Service Finance, Sheffield, and residential mortgage. Based on the current commercial loan pipeline, Truist expects average commercial loan balances to increase in the fourth quarter, supporting mid-single-digit commercial loan growth for the full year, and remains confident in delivering average loan growth of 3%-4% in 2026 excluding the RAC and LightStream sales.
Net Interest Income and Margin Improvement
Taxable equivalent net interest income increased $40 million, or 1.1%, linked quarter to $3.7 billion, primarily reflecting fixed-rate asset repricing and one additional day in the quarter. Net interest margin increased 2 basis points to 3%, driven by fixed-rate asset repricing and a slightly smaller balance sheet.
Record Wealth Management Quarter
Third-quarter wealth management income increased $32 million linked quarter to $407 million, representing Truist's best quarter ever in wealth, driven by favorable equity market performance.
Adjusted Non-Interest Income Growth Outlook
Adjusted non-interest income increased 2.5% versus the third quarter of 2025, driven by higher wealth management income. Excluding investment securities losses and the RAC loan sale, Truist expects adjusted non-interest income to increase about 5% in the fourth quarter versus the third quarter and about 10% for the full year.
Expense Discipline
Non-interest expense increased $50 million, or 1.6%, linked quarter to $3.1 billion, primarily due to $40 million of costs related to severance associated with the RAC sale. Excluding those costs, adjusted non-interest expense increased just 0.3% linked quarter and 1.7% year over year.
Strong Underlying Credit Metrics Excluding RAC
Third-quarter reported net charge-offs were $629 million, or 77 basis points. Adjusting for $317 million of RAC loan losses, adjusted net charge-offs were $312 million, or 38 basis points of average loans held for investment. The allowance for loan losses was 1.25%, while allowance coverage of non-performing loans improved from 2.9 times to 3.1 times and non-performing loans held for investment declined 11 basis points linked quarter to 40 basis points of total loans.
Capital Returned to Shareholders
Truist returned $1.8 billion of capital to shareholders during the quarter through a $632 million common dividend and $1.2 billion of share repurchases. The fourth-quarter outlook assumes approximately $1 billion of share repurchases.
Clearer Strategy and Strategic Resource Allocation
Management established a strategy focused on relationship-based businesses where Truist is competitively advantaged and can earn attractive returns. The company is reviewing businesses, operations, processes, and expenses using whether they are core to the strategy, generate targeted returns, protect the bank, or help clients, with the evaluation targeted for completion by the end of the year.
Investment in Consumer and Digital Capabilities
Truist plans to increase investment in branch and ATM networks, branch technology, mobile and digital banking, performance-based marketing, rewards, credit cards, home lending, unsecured loans, and other capabilities intended to grow in-footprint DDA relationships.
Wholesale Growth Investments and Hiring
Truist is continuing to build its treasury management platform and sees opportunities to expand sales teams in middle market banking, rates and FX, brokerage, and wealth advisory. The company recently added more than 40 bankers to its commercial middle market business and identified opportunities in small business lending, wealth lending, equipment finance, asset-based and asset-backed lending, securities-based lending, and private-equity-related products.
Experienced Leadership Additions
Truist appointed or announced several experienced leaders to support execution, including Steve Boland as Vice Chair, Shim Sameer as Chief Consumer Banking Officer, and Jeff Warner to lead small business banking. Management said the changes add experience and depth, flatten the organization, and support the growth plan.
ROTCE Targets Reaffirmed
Management reaffirmed its commitment to a 15% ROTCE target in 2027 and a 16%-18% long-term ROTCE target. Management also said the 16%-18% target remains a three to five year, medium- to long-term view.
Fourth-Quarter Revenue and Credit Guidance
Truist expects fourth-quarter revenue of approximately $5.35 billion, reported non-interest expense to increase approximately 2.5% linked quarter, net charge-offs of 45 basis points reflecting normal fourth-quarter seasonality, an effective tax rate of 13.5%, and an FTE tax rate of 15.5%.
MX:TFC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed