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

Executive summary

• Net income attributable to common shareholders rose 14.8% year-over-year to $1.945 billion for Q1 2026, with diluted EPS up 15% to $1.18 per share and net revenue of $7.3 billion, up 4.7% year-over-year, driven by robust loan growth, consumer deposit momentum, and sustained fee-based revenue increases.

• Positive operating leverage of 440 basis points and efficiency ratio improved by 260 basis points year-over-year to 58.2%, marking seven consecutive quarters of positive operating leverage.

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

• Profitability remained strong, with return on tangible common equity at 17% for Q1 2026.

• Announced pending acquisition of BTIG for up to $1 billion, expected to close in Q2 2026, to add equity and investment banking capabilities.

Financial highlights

• Net interest income (taxable-equivalent basis) rose 4.1% year-over-year to $4.291 billion, with noninterest income up 5.7% to $2.997 billion, led by capital markets, payments, and investment services.

• Average total assets rose 0.7% sequentially to $688 billion; ending assets at $701 billion.

• Average total loans grew 3.8% year-over-year, led by commercial and credit card categories; average total deposits increased 1.7% year-over-year.

• Noninterest expense was $4.27 billion, up 0.8% year-over-year, mainly due to higher technology and marketing costs.

• Net interest margin was 2.77%, up 5 bps year-over-year and flat sequentially.

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.

• 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.

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