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StocksMedium•26 August 2026•
2 min read

BMO Beats Q3 Earnings Estimates as Scotiabank Raises Price Target

Key Facts

1BMO reported adjusted EPS of $2.86, surpassing the analyst consensus of $2.71.
2Scotiabank raised its price target for BMO to C$270 from C$268 while maintaining an 'Outperform' rating.
3Revenue grew 9.26% year-over-year to $7.15 billion, with an adjusted Return on Equity (ROE) of 14%.

In a move reflecting the resilience of the Canadian banking sector, Bank of Montreal (BMO) announced strong third-quarter results that surpassed analyst estimates. According to reports, the bank delivered adjusted earnings per share of $2.86, beating the consensus of $2.71, driven by a 9.26% year-over-year increase in revenue to $7.15 billion. This performance was fueled by robust activity in US retail banking and capital markets divisions, resulting in an adjusted Return on Equity (ROE) of 14%.

Following the earnings beat, Scotiabank raised its price target for BMO to C$270 from C$268 while maintaining an 'Outperform' rating. This positive outlook is supported by the bank's announcement of a share buyback program, signaling management's confidence in its future valuation. Per market data and analyst insights, BMO’s 21.7% year-over-year EPS growth highlights its competitive standing against peers like the Bank of Nova Scotia, as the bank targets a long-term ROE of 15% by 2027.

BMO shares stood at $172.9 at the close of August 26, 2026, within a daily range of $171.89 to $174.27. Looking ahead, investors are monitoring broader Canadian economic indicators such as the New Housing Price Index, which showed a -0.1% monthly change as of August 20, potentially impacting the mortgage lending environment. Traders will be watching for price stability around recent support levels established during this earnings reaction phase.

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