U.S. Bancorp (NYSE:USB) reported first-quarter 2026 results Thursday.
First-Quarter Details
The bank reported first-quarter adjusted earnings per share of $1.18, beating the analyst consensus estimate of $1.14. Quarterly sales of $7.288 billion outpaced the Street view of $7.277 billion.
“Strong revenue growth drove 440 basis points of positive operating leverage, as ongoing investments for growth and continued cost savings drove 260 basis points of year-over-year improvement in our efficiency ratio,” said CEO Gunjan Kedia.
In the quarter under review, net interest income totaled $4.263 billion, up 4.2% year over year.
Provision of credit losses jumped 7.3% year over year to $576 million. The increase on a year-over-year basis was primarily driven by loan portfolio growth.
The bank said it is closely watching economic uncertainty, including interest rates, inflation, trade policy, and geopolitical risks, as these factors could impact borrowers’ financial health.
Net interest margin was 2.77% in the first quarter of 2026, compared with 2.72% in the first quarter of 2025. The increase in net interest margin compared with the prior-year quarter was primarily due to the benefits from fixed asset repricing.
Net income attributable to U.S. Bancorp was $1.945 billion for the first quarter of 2026, $236 million higher than the first quarter of 2025 and $100 million lower than the fourth quarter of 2025.
Outlook
U.S. Bancorp expects net interest income and fees to grow 6%–7% in the second quarter. The bank also guides full-year revenue growth of 4%–6% with operating leverage of over 200 basis points.
Earnings Call Highlights
U.S. Bancorp management struck a cautiously optimistic tone on the call, highlighting strong underlying business momentum and improving core demand despite a still-uncertain macro backdrop.
Executives pointed to broad-based loan growth, solid fee income trends and continued positive operating leverage, while noting that competitive pressures persist in areas like deposit pricing and loan spreads.
Kedia said client sentiment has stabilized compared with last year, when tariff-related uncertainty weighed on investment activity, with current pipelines reflecting a shift toward core middle-market expansion and capital expenditure.
CFO John Stern added that while revenue visibility remains solid, the bank is mindful of uncertainty around interest rates and credit spreads, which could influence net interest income trends.
Overall, management expressed confidence in sustaining growth and meeting full-year targets, supported by disciplined expense management and strategic initiatives including partnerships and acquisitions.
Technical Analysis
U.S. Bancorp is trading near the upper end of its 52-week range, which suggests a strong performance over the past year. The stock is currently positioned 4.3% above its 20-day simple moving average (SMA), indicating a bullish short-term trend, while it is also 1.2% above its 50-day SMA, suggesting continued strength in the intermediate term.
The relative strength index (RSI) is at 65.02, which is considered neutral, indicating that the stock is neither overbought nor oversold at this time. This positioning suggests that there is still room for upward movement without immediate selling pressure.
- Key Resistance: $56.50 — A level where selling pressure may increase.
- Key Support: $50.50 — A potential area for buyers to step in.
U.S. Bancorp has shown a solid 12-month performance, gaining 46.64%, reflecting strong investor interest and confidence in its long-term prospects. This upward trajectory suggests that the stock has been resilient despite recent fluctuations.
Sector Performance
U.S. Bancorp is currently underperforming within the Financials sector, which has seen a modest decline of 0.15% today. This mid-tier ranking among sectors highlights the challenges facing financial institutions in the current economic environment, especially when compared to top-performing sectors like Energy and Communication Services.
Over the past 30 days, the Financials sector has gained 5.13%, but the 90-day performance shows a decline of 4.30%. This mixed performance indicates that while there may be short-term recovery, longer-term trends remain uncertain, impacting stocks like U.S. Bancorp.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for U.S. Bancorp, highlighting its strengths and weaknesses compared to the broader market:
- Growth: 84.09 — The stock is showing strong growth potential.
- Quality: 35.49 — Indicates some concerns about the company’s overall quality metrics.
- Momentum: 77.47 — Suggests that the stock is performing well in the current market environment.
The Verdict: U.S. Bancorp’s Benzinga Edge signal reveals a growth-heavy profile, but with some quality concerns that investors should monitor closely as they assess future performance.
Price Action
USB Stock Price Activity: U.S. Bancorp shares were down 1.67% at $55.43 at the time of publication on Thursday, according to Benzinga Pro data.
Image by Ken Wolter via Shutterstock
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