Huntington reported a strong Q1 with adjusted EPS of $0.37, up 9% YoY, and record capital markets fees. Management slightly trimmed NII guidance (low end of range) due to higher cash balances and slower loan growth, but raised fee revenue growth guidance and tightened expenses. They reaffirmed 2027 EPS of $1.90-$1.93 and ROTCE of 18-19%. Cadence and Veritex integrations are on track. Q1 adjusted EPS $0.37 beat plan; fee income grew 18% YoY with record capital markets revenue.
Buzzberg readManagement raised ROTCE target to 18-19% for 2027Huntington reported a strong Q1 with adjusted EPS of $0.37, up 9% YoY, and record capital markets fees. Management slightly trimmed NII guidance (low end of range) due to higher cash balances and slower loan growth, but raised fee revenue growth guidance and tightened expenses. They reaffirmed 2027 EPS of $1.90-$1.93 and ROTCE of 18-19%. Cadence and Veritex integrations are on track. Q1 adjusted EPS $0.37 beat plan; fee income grew 18% YoY with record capital markets revenue.Read full analysisCollapse analysis
Huntington reported a strong Q1 with adjusted EPS of $0.37, up 9% YoY, and record capital markets fees. Management slightly trimmed NII guidance (low end of range) due to higher cash balances and slower loan growth, but raised fee revenue growth guidance and tightened expenses. They reaffirmed 2027 EPS of $1.90-$1.93 and ROTCE of 18-19%. Cadence and Veritex integrations are on track. Q1 adjusted EPS $0.37 beat plan; fee income grew 18% YoY with record capital markets revenue.
NII guidance lowered to low end of range; NIM expected in high 320s (vs prior mid 330s) due to higher Fed cash and deposit cost trends.
Fee revenue growth outlook raised to 31-33% for 2026; expense growth tightened to lower half of 32.5-33.5%.
2027 EPS target maintained at $1.90-$1.93; ROTCE target raised to 18-19%.
Revenue$3.768B
+16% QoQ
EPS$0.25
-19% QoQ
Gross margin64.09%
reported
Op margin17.01%
reported
What changed this quarter
01
Guidance
Management raised ROTCE target to 18-19% for 2027
Guidance tone
02
Guidance
Fee income guidance raised to 31-33% growth
Guidance tone
03
Guidance
2026 NIM guidance lowered to high 320s
Guidance tone
04
Buybacks
Share repurchase plan increased to $550 million for 2026
Fee revenue growth outlook raised to 31-33% for 2026; expense growth tightened to lower half of 32.5-33.5%.
AI, capex & demand read
AI
Platform & monetization
Management discussed a comprehensive enterprise-wide AI program underway, claiming it is gaining momentum and already contributing to productivity and efficiency across the company. The program is applied in five key areas: technology, agentic process transformation, customer-facing use cases, colleague productivity and training, and data and platforms. They see AI as an increasingly important ena
Demand
Bookings & conversion
Capital markets delivered record revenue quarter. Management expressed strong confidence in the franchise's performance and future targets, while acknowledging some caution in the macro environment.
Capex
Investment and capacity
Management is re-phasing select investments and accelerating targeted efficiency initiatives, which is part of calibrating expense growth with the revenue environment. They did not provide specific capex figures but indicated they are managing investments to support future revenue growth initiatives.
Tone · Confident
Management expressed strong confidence in the franchise's performance and future targets, while acknowledging some caution in the macro environment.
… provides us the confidence and flexibility to perform well in an uncertain future. We have very strong liquidity as well as good capital and reserves and remain vigilant in our outlook. Consistent with this, we made the decision to temporarily build additional liquidity, improving our already peer leading liquidity position. Fourth, our partner integrations are on track to deliver expected cost and revenue synergies from Veritex and Cadence, and we remain excited about the extraordinary growth opportunities we continue to see in our core and across Texas and the South. We also successfully integrated the J&E and TM capital acquisition, which became accretive within three months and contributed to a record quarter for our capital markets businesses, reflecting strong execution by the team. And fifth, our earnings power generates significant capital, grows tangible book value, and supports consistent shareholder returns. That strength enables us to reinvest in the franchise while returning excess capital in a value-creating way. We bought back shares in Q1 and continued buying quarter to date. Turning to slide four, on an adjusted basis, we generated 9% earnings per share growth, …
VBTX
Private company
Partners
Veritex integration is complete; cost and revenue synergies are being realized.
“Veritex conversion was completed in the first quarter and we're on track for the Cadence conversion in June.”
… this integration. Dedicated integration teams are operating with clarity and discipline across three priorities. First, welcoming new colleagues and customers into the franchise. This includes aligning regional leadership, expanding specialty banking and targeted fee capabilities, and successfully onboarding over 6,000 new colleagues and 1.5 million new customers. Second, executing the operational and systems integration is advancing on schedule. The Veritex conversion was completed in the first quarter and we're on track for the Cadence conversion in June. And third and most exciting, we are delivering the expenses and revenue synergies we've committed to. Cost initiatives are tracking on schedule and we're already seeing revenue benefits as customers adopt more of the Huntington platform. particularly through deeper engagement across capital markets and payments, increased card usage, and new consumer account openings. Because of this focus on realizing the synergies combined with the continued outstanding performance of our historical core, we are approaching an inflection point where execution will compound earnings power and higher returns, engaging our flywheel that …
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