Truist Financial (TFC) Q3 2026 Earnings
Excludes $1.4 billion pre-tax ($0.90 per share) loss on AFS securities sales, $581 million pre-tax ($0.36 per share) loan loss reserve recapture from RAC loan sale, and $106 million pre-tax ($0.06 per share) of RAC loan sale impacts
How Did TFC Stock React to Q3 2026 Earnings?
Did TFC Beat Earnings? Q3 2026 Results
Yes. Truist Financial reported Q3 2026 earnings of $1.16 a share on Oct 16, 2026, beating the $1.05 consensus estimate by 10.7%. Revenue was $3.7B against a $5.4B estimate.
Truist Financial delivered a headline earnings beat in the third quarter of 2026, posting adjusted diluted EPS of $1.16 against a consensus estimate of $1.05, a 10.73% beat, yet reported revenue of $3.75 billion fell sharply below the $5.36 billion consensus and tumbled 52.2% year-over-year as two sweeping strategic actions reshaped the quarter's financials. The central driver was a dual portfolio overhaul: Truist sold its $5.50 billion Regional Acceptance Corporation auto loan book and repositioned $8.60 billion of lower-yielding AFS securities, transactions that depressed reported revenue but lifted net interest margin two basis points to 3.00% and improved asset quality, with nonperforming loans falling to 0.40% of total loans. Wealth management income climbed 8.8% year-over-year to a record $407 million, offering a bright spot in underlying business performance. Looking ahead, management guided fourth-quarter revenue-TE to approximately $5.35 billion and expects the pending sale of LightStream to Carlyle Group to generate roughly $850 million of additional CET1 capital upon closing, reinforcing the company's ongoing effort to concentrate resources on core growth businesses.
- Completion of RAC auto loan portfolio sale created 23 bps of CET1 capital and improved credit profile
- AFS securities repositioning replaced low-yielding securities with higher-yielding investments at 5.60% blended rate
- Record quarterly wealth management income driven by favorable market performance
- Net interest income-TE increased 1.1% linked quarter driven by fixed asset and liability repricing
- Average client deposits increased 1.4% linked quarter and 3.6% year-over-year
- Nonperforming loans to total loans HFI improved 11 basis points to 0.40%
- Adjusted noninterest expense well controlled with only 0.3% linked quarter increase
“Since joining Truist, I've become even more confident in the strength of our franchise and the significant opportunities ahead. We delivered a solid quarter while also taking decisive actions to better position Truist for the future. These actions strengthen our risk, liquidity, and funding profile and create greater capacity to invest in our best businesses. We're simplifying the company and focusing our resources, capital, and expenses on the businesses and capabilities that will help us become the most important financial partner to our clients. Looking ahead, we remain confident in our ability to deliver against our near- and long-term ROTCE targets and will work to build a more focused company positioned to deliver sustainable growth and stronger returns for shareholders.”
Truist Financial CEO, on the earnings call
What Is Truist Financial's Outlook?
For Q4 2026, Truist expects: Revenue-TE of approximately $5.35 billion (reflecting $125 million reduction from the RAC loan sale and $40 million increase from AFS securities repositioning); noninterest expense up 2.5%; net charge-off ratio of approximately 0.45%; effective tax rate of approximately 13.5% (FTE approximately 15.5%); and share repurchases of approximately $1 billion. Outlook excludes the impact of potential additional strategic actions. The LightStream loan sale to Carlyle Group is expected to close in Q4 2026, generating approximately $7.2 billion of net proceeds and creating approximately $850 million or 20 bps of CET1 capital. Truist will evaluate a potential AFS securities repositioning to offset capital created from the LightStream sale. The broader strategic review of loan portfolios remains ongoing. Management remains confident in its ability to deliver against near- and long-term ROTCE targets.
TFC YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.7B | $7.8B | −52.2% |
| Net Income | $799.0M | $1.5B | −45.0% |
| Operating Income | $895.0M | $1.7B | −48.5% |
TFC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.