FreeTheAI

U.S. Bancorp Shares Rise After Strong Third-Quarter Earnings and Analyst Forecasts

BullishMedium impact
USB$58.49 1.92%AMZN$249.59 −2.03%

Shares of U.S. Bancorp (NYSE:USB) gained ground on Friday following solid third-quarter financial results and positive broker reviews. The regional lender reported third-quarter earnings of $1.34 per share, topping Wall Street expectations of $1.33. Revenue increased 10.9% year over year when excluding securities losses, driven by rising net interest income of $4.49 billion and an expanded net interest margin of 2.84%.

Improving credit quality, higher returns on repriced assets, and new growth initiatives are strengthening profitability. In August, U.S. Bancorp acquired a $1.7 billion small-business credit card portfolio from Amazon.com Inc. (NASDAQ:AMZN), adding about 70,000 co-branded account holders. That portfolio is projected to generate between $75 million and $85 million in quarterly revenue, helping position the bank toward a projected 3% net interest margin in 2027. Following the quarter, analysts raised 2026 earnings projections to $5.31 per share and 2027 projections to $5.86 per share.

Investors will monitor how the bank balances rising operating expenses from ongoing technology investments against its improving efficiency. Management intends to resume share buybacks within the next one to two quarters as capital levels build, while Wall Street maintains an overall positive view with an average price target of $69.65.

Key points

  • U.S. Bancorp reported third-quarter earnings of $1.34 per share, beating consensus estimates of $1.33 per share.
  • Revenue rose 10.9% year over year excluding securities losses, with net interest income climbing to $4.49 billion.
  • The bank acquired Amazon's $1.7 billion small-business credit card portfolio, expected to yield $75 million to $85 million in quarterly revenue.
  • Management plans to resume share repurchases within one to two quarters as capital levels build.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

How we writeDisclaimer

Questions and answers

Why did U.S. Bancorp stock go up?

U.S. Bancorp stock rose after reporting third-quarter earnings of $1.34 per share, beating consensus estimates, and delivering a 10.9% year-over-year increase in revenue excluding securities losses.

What is the impact of U.S. Bancorp's partnership with Amazon?

U.S. Bancorp acquired Amazon's $1.7 billion small-business credit card portfolio in August, adding 70,000 customers. The portfolio is expected to generate $75 million to $85 million in quarterly revenue.

When will U.S. Bancorp resume buying back shares?

U.S. Bancorp plans to resume share repurchases within the next one or two quarters as its capital levels improve.