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Truist Financial Second-Quarter Earnings Top Views; Revenue Outlook Revised

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Truist Financial Second-Quarter Earnings Top Views; Revenue Outlook Revised

Truist Financial's (TFC) second-quarter earnings topped Wall Street's views amid higher investment banking, and trading and wealth management income, while the financial services company tempered its full-year revenue growth outlook.

Earnings jumped to $1.23 a share in the June quarter from $0.90 a year earlier, topping the FactSet-polled consensus of $1.08. Overall revenue on a taxable-equivalent basis increased to $5.31 billion from $5.04 billion.

Taxable-equivalent net interest income edged up 0.9% to $3.67 billion. Noninterest income jumped 17% to $1.64 billion, driven by a nearly 72% surge in investment banking and trading income on stronger client activity.

"During the quarter, we added new clients, deepened existing relationships, and grew profitably in the businesses and products where we've chosen to focus," Chief Executive Bill Rogers said during an earnings conference call, according to a FactSet transcript. "Average consumer and small business loans were up 2% versus the second quarter of 2025, as we slowed production in certain less strategic and less profitable consumer categories."

For 2026, Truist now expects revenue growth between 3.5% and 4%, which at midpoint is lower than its previous outlook for a 4% increase.

The revised guidance takes into account expectations for net interest income to grow 1% to 1.5%, down from the previous growth outlook of 2% to 3%, Chief Financial Officer Mike Maguire said on the call. Truist, however, revised its growth projection for noninterest income to around 10% from high-single digits previously, Maguire said.

"Consumer behavior remained resilient during the quarter, with stable liquidity spending and credit trends that remain within our expectations," said Rogers, who is set to be replaced by Michael Lyons as CEO, effective Sept. 1. Rogers will assume the executive chair role.

BofA Securities, UBS Securities and Raymond James recently downgraded their ratings on the Truist stock amid concerns over the leadership transition and the possible change in the company's strategy and targets.

Truist shares were down 0.7% in Friday afternoon trade. So far this year, the stock has gained 7.3% in value.

Price: $52.72, Change: $-0.53, Percent Change: -1.00%

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