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USB
FY2026 Q1
Improving
U.S. Bancorp earnings call
Buzzberg read
Full-year revenue growth bias to high end of 4-6% range
USB reported a strong Q1 2026 with EPS up 15% YoY, driven by solid loan growth in commercial and credit cards, record consumer deposits, and strong fee momentum in capital markets and payments. Management reiterated full-year guidance, expecting positive operating leverage and revenue growth of 4-6%, with notable revenue boosts from the Amazon partnership and BTIG acquisition in the back half of the year. Q1 2026 EPS of $1.18, up ~15% YoY; revenue $7.3B, up 4.7% YoY.
Buzzberg read Full-year revenue growth bias to high end of 4-6% range USB reported a strong Q1 2026 with EPS up 15% YoY, driven by solid loan growth in commercial and credit cards, record consumer deposits, and strong fee momentum in capital markets and payments. Management reiterated full-year guidance, expecting positive operating leverage and revenue growth of 4-6%, with notable revenue boosts from the Amazon partnership and BTIG acquisition in the back half of the year. Q1 2026 EPS of $1.18, up ~15% YoY; revenue $7.3B, up 4.7% YoY. Read full analysisCollapse analysis
USB reported a strong Q1 2026 with EPS up 15% YoY, driven by solid loan growth in commercial and credit cards, record consumer deposits, and strong fee momentum in capital markets and payments. Management reiterated full-year guidance, expecting positive operating leverage and revenue growth of 4-6%, with notable revenue boosts from the Amazon partnership and BTIG acquisition in the back half of the year. Q1 2026 EPS of $1.18, up ~15% YoY; revenue $7.3B, up 4.7% YoY.
- Net interest margin stable at 2.77%; NII grew 4.1% YoY on robust loan growth.
- Fee income grew 6.9% YoY, with capital markets up nearly 30%.
- Q2 guidance: NII and fee revenue growth of 6-7% YoY each; full-year revenue growth of 4-6%.
Revenue$10.835B-1% QoQ
EPS$1.18-6% QoQ
Gross margin61.69%Reported
Operating margin24.83%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Partnerships
Amazon partnership to contribute $75-85 million per quarter starting Q3
Demand
Loan growth expected above 3-4%, likely mid-single digits
Show 3 more callouts
Margins
Path to 3% net interest margin by 2027 remains
Capital Allocation
Capital buybacks to step up to $200 million quarterly
Regulation
Regulatory changes expected to provide RWA relief
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $10.835B | -1% QoQ |
| EPS | $1.18 | -6% QoQ |
| Gross margin | 61.69% | Reported |
| Operating margin | 24.83% | Reported |
| Free cash flow | $1.34B | -53% QoQ |
| Capex | $0B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Operating margin | FY2026 | 200%In line with consensus | 200% | Maintained |
| Revenue | FY2026 | 4%–6%In line with consensus | 5% | Maintained |
| Revenue | FY2026 Q2 | 6%–7%In line with consensus | 6.5% | Maintained |
| RevenueFEES | FY2026 Q2 | 6%–7%In line with consensus | 6.5% | Maintained |
AI, capex & demand read
Management read
Confident
Management highlighted strong momentum across business lines, raised revenue growth expectations, and expressed confidence in achieving positive operating leverage and high-teens ROTCE.
Management AI read
Management emphasized using AI/automation tools to improve efficiency and simplify operations, viewing AI as an opportunity to go on offense, especially in complex businesses like fund services and corporate trusts.
Investment and capacity
Expense guidance for Q2 2026 implies spending growth of 3-4% year-over-year, funding investments in technology, marketing, and branch network, with flexibility to pull back if revenues disappoint.
all 1 named companies below
Companiesreturns since call
Partners
Partners
Gunjan Kedia
Amazon partnership expands USB's small business card reach; expected to add $75-85M revenue per quarter starting in Q3 2026.
Evidence
“Our recently announced partnership with Amazon is significant in size and will meaningfully expand our small business reach.”
External signals
Supply-chain alpha · 3returns since call
USB's card acquisition growth of double-digit will translate into stronger revenue in 4-6 quarters, indicating future payments acceleration.
Evidence
“Faster acquisitions are actually negative revenue on the core revenue pipeline. So you see this measured balance between acquiring new clients and it showing up in revenue.”
Loan growth is exceeding expectations, but new loans are at tighter spreads and mortgage prepayments are at elevated levels, pressuring NIM in the short term.
Evidence
“some of the loans we brought on were at tighter spreads... as well as the impact of some refinancings on the mortgage side as rates, you know, we had more refinance activity of nearly 15 to 20% more than we did prior years.”
USB expects the Amazon card to add ~$75-85M revenue/quarter starting Q3 2026, a significant acceleration driver for card revenue.
Evidence
“It's probably going to add in the neighborhood of 75 to 85 million per quarter.”
Methodology & coverage
Management-only analysis. All 1 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.