U.S. Bancorp (USB) Q1 2026 earnings summary

Executive summary

• Q1 2026 EPS was $1.18, up 15% year-over-year, with net income of $1,945 million and net revenue of $7.3 billion, driven by growth across all major business lines and robust loan and fee income.

• Net interest income rose 4.1% year-over-year, supported by strong core loan growth in commercial and credit cards, and record consumer deposits.

• Fee income increased 6.9% year-over-year, led by capital markets, payments, and investment services.

• Positive operating leverage of 440 basis points and efficiency ratio improved by 260 basis points year-over-year to 58.2%.

• Strategic partnerships announced with Amazon and the NFL to expand business offerings and national brand presence.

Financial highlights

• Net interest income (taxable-equivalent basis) rose 4.1% year-over-year to $4,291 million; noninterest income up 5.7% to $2,997 million.

• Net income to common shareholders increased 13.8% year-over-year to $1,945 million; diluted EPS was $1.18, up 15%.

• Efficiency ratio improved to 58.2%, up 260 bps year-over-year.

• Average total loans grew 3.8% year-over-year, led by commercial and credit card categories.

• Noninterest expense was $4,265 million, up 0.8% year-over-year, mainly due to higher marketing and technology costs.

Outlook and guidance

• Q2 2026: Net interest income and fee revenue expected to grow 6%-7% year-over-year; noninterest expense to rise 3%-4%.

• Full year 2026: Net revenue growth expected at 4%-6% year-over-year; positive operating leverage of 200+ basis points.

• Guidance excludes BTIG acquisition, which is expected to add ~$200 million fee revenue per quarter post-close.

• Amazon Small Business Card and NFL partnership impacts are included in guidance.

• Medium-term targets include ROA of 1.15–1.35%, ROTCE in the high teens, mid-single-digit fee revenue growth, and efficiency ratio in the mid-to-high 50s.