Research Alert: Usb: Q1 Earnings Beat But Growth Remains Unspectacular
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:USB reported mixed Q1 2026 results with GAAP EPS of $1.18 vs $1.03 the prior year, beating the consensus by $0.04, while revenue of $7.3B was in line with estimates and up 5% Y/Y. Fee income continued momentum with 7% Y/Y growth, led by trust and investment management fees (+10% Y/Y to $745M) and capital markets revenue (+29% Y/Y to $377M). Net interest income grew 4% Y/Y, though the net interest margin of 2.77% remained unchanged sequentially and up only 5 bps Y/Y, continuing to lag historical levels and peer performance. Credit quality showed mixed trends as net charge-offs deteriorated 2 bps sequentially to 56 bps, though nonperforming assets declined to $1.53B from $1.73B the prior year. Balance sheet growth reflected commercial strength offsetting consumer weakness, with average total loans up 4% Y/Y to $394B due to commercial loan growth of 11% Y/Y to $150B, while average deposits grew modestly 2% Y/Y to $515B.