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Northwest Bancshares
(NASDAQ:NWBI)
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Rating:69Neutral
Price Target:
$17.00
▲(10.82% Upside)
Action:Downgraded
Date:10/27/26
Overall score reflects stable fundamentals supported by strong cash generation, favorable valuation (low P/E and high dividend yield), and a constructive, upbeat earnings outlook. The main offsets are rising leverage and revenue pressure in the financial statements, plus near-overbought technical conditions and some credit/expense headwinds noted on the call.
Positive Factors
Record operating performance
Record revenue and net interest income indicate that Northwest is converting loan growth and its deposit franchise into stronger core earnings. The year-over-year increase provides evidence of operating momentum that can remain relevant across the next several quarters.
Negative Factors
Rising leverage
The meaningful increase in leverage reduces balance-sheet flexibility compared with recent years. If profitability weakens or funding costs remain elevated, higher debt can constrain capital allocation and leave less capacity to absorb operating or credit pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Record operating performance
Record revenue and net interest income indicate that Northwest is converting loan growth and its deposit franchise into stronger core earnings. The year-over-year increase provides evidence of operating momentum that can remain relevant across the next several quarters.
Read all positive factors
Northwest Bancshares (NWBI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.25B
Dividend Yield5.22%
Average Volume (3M)1.22M
Price to Earnings (P/E)11.1
Beta (1Y)0.56
Revenue Growth13.24%
EPS Growth55.58%
CountryUS
Employees2,169
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.05
Shares Outstanding146,459,120
10 Day Avg. Volume1,228,587
30 Day Avg. Volume1,216,933
Financial Highlights & Ratios
PEG Ratio0.73
Price to Book (P/B)0.93
Price to Sales (P/S)2.01
P/FCF Ratio12.42
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue3.42
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda21.66
Forecast
1Y Price Target
$17.00Price Target Upside10.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.41
Revenue Forecast (FY)$726.49M
Northwest Bancshares Business Overview & Revenue Model
Company Description
Northwest Bancshares, Inc. serves as the parent company for Northwest Bank, a state-chartered savings institution offering a full spectrum of banking solutions for both personal and business customers. Its deposit products encompass checking, savi...
How the Company Makes Money
NWBI primarily makes money through its banking subsidiary by (1) earning interest income on loans and other interest-earning assets and (2) generating noninterest income from fees and service charges. The core earnings engine is net interest incom...
Northwest Bancshares Earnings Call Summary
Earnings Call Date:Oct 26, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 25, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Management reported record revenue and net interest income, robust C&I and commercial lending growth, improving fee income, favorable net charge-off performance, continued Columbus expansion, and constructive full-year guidance. These strengths were partly offset by sequential EPS and NIM declines, CRE runoff, competitive deposit and loan pricing conditions, higher expenses, and an increase in NPAs, but the stated highlights significantly outweighed the challenges.Positive Updates
Record Revenue and Net Interest Income
Third-quarter revenue was $185 million and net interest income was $149 million, both company records, with each increasing more than 9% year over year. Revenue increased 2% quarter over quarter and 9.9% year over year.
Negative Updates
Sequential EPS Decline
GAAP and adjusted EPS each declined by $0.02 per share from the prior quarter, to $0.34 and $0.35, respectively.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Revenue and Net Interest Income
Third-quarter revenue was $185 million and net interest income was $149 million, both company records, with each increasing more than 9% year over year. Revenue increased 2% quarter over quarter and 9.9% year over year.
Read all positive updates
Company Guidance
For 2026, loan and deposit growth outlook remains unchanged; revenue is expected to be at the high end of the stated range, net interest margin is expected to be at 73 basis points for the fourth quarter 26 and 3.71% for the full year of 2026, noninterest income is expected to exceed the high end of the range, non interest expense is expected to be at the high end of the range, net charge offs are expected to be at the low end of the range, and the tax rate is expected to drift up to 24%; management expects at least 1 more rate hike later in this year or early in 2027, about 2 basis points of benefit from the sub debt payoff, fourth-quarter NIM of around the 3.73%, $7 million to $8 million in quarterly other noninterest income, 200 basis points of positive operating leverage on an annual basis, CRE’s overall net decline to shrink and maybe turn slightly positive within the next quarter, certainly within the next 2 quarters, and may consider buybacks entering into the mix in 2027 under the $50 million authorization.Northwest Bancshares Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 843.55M | 876.99M | 754.09M | 700.05M | 557.84M | 534.14M |
| Gross Profit | 558.97M | 599.13M | 495.96M | 524.94M | 501.41M | 522.68M |
| EBITDA | 133.06M | 164.91M | 150.89M | 199.57M | 180.14M | 207.76M |
| Net Income | 152.96M | 126.01M | 100.28M | 134.96M | 133.67M | 154.32M |
Balance Sheet | ||||||
| Total Assets | 17.21B | 16.77B | 14.41B | 14.42B | 14.11B | 14.50B |
| Cash, Cash Equivalents and Short-Term Investments | 248.50M | 1.82B | 1.40B | 1.17B | 1.36B | 2.83B |
| Total Debt | 857.10M | 446.28M | 444.70M | 642.66M | 924.32M | 391.72M |
| Total Liabilities | 15.29B | 14.88B | 12.81B | 12.87B | 12.62B | 12.92B |
| Stockholders Equity | 1.93B | 1.89B | 1.60B | 1.55B | 1.49B | 1.58B |
Cash Flow | ||||||
| Free Cash Flow | 137.64M | 141.78M | 125.36M | 84.33M | 171.11M | 187.94M |
| Operating Cash Flow | 153.68M | 153.41M | 127.67M | 92.89M | 175.43M | 205.46M |
| Investing Cash Flow | -419.18M | -127.35M | 174.97M | -239.68M | -917.42M | -232.97M |
| Financing Cash Flow | 222.68M | -80.79M | -136.52M | 129.69M | -397.90M | 570.49M |
Northwest Bancshares Technical Analysis
Positive
15.34
Price Trends
15.21
Positive
15.15
Positive
13.98
Positive
Market Momentum
0.05
Negative
55.57
Neutral
46.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWBI, the sentiment is Positive. The current price of 15.34 is above the 20-day moving average (MA) of 15.04, above the 50-day MA of 15.21, and above the 200-day MA of 13.98, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 55.57 is Neutral, neither overbought nor oversold. The STOCH value of 46.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWBI.
Northwest Bancshares Risk Analysis
Northwest Bancshares disclosed 48 risk factors in its most recent earnings report. Northwest Bancshares 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
Northwest Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.80B | 13.03 | 10.12% | 2.92% | 2.26% | ― | |
74 Outperform | $2.75B | 12.67 | 11.31% | 2.95% | 9.63% | 38.35% | |
73 Outperform | $3.73B | 10.93 | 8.88% | 3.91% | 16.54% | 77.61% | |
70 Outperform | $2.12B | 12.44 | 11.17% | 2.65% | 3.76% | ― | |
69 Neutral | $2.25B | 11.12 | 10.53% | 5.24% | 13.24% | 55.58% | |
69 Neutral | $2.56B | 12.68 | 7.54% | 3.55% | 7.98% | -19.37% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NWBI
Northwest Bancshares
15.34
4.23
38.10%
FCF
First Commonwealth
21.02
6.02
40.11%
FRME
First Merchants
41.09
6.63
19.25%
NBTB
NBT Bancorp
52.97
13.81
35.28%
STBA
S&T Bancorp
51.09
15.58
43.88%
WSBC
WesBanco
38.90
9.98
34.53%
Northwest Bancshares Corporate Events
Business Operations and StrategyM&A Transactions
Northwest Bancshares Highlights Strategy at Upcoming Bank Forums
Positive
Sep 8, 2026
Northwest Bancshares announced it will present at the Raymond James US Bank and Banking on Tech Conferences on September 9, 2026 and the Stephens 16th Annual Bank Forum on September 24, 2026. The company made its September 2026 investor presentati...
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.