| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 12.5x | 17.8x | Top tier | |
Growth | 42 | 18.2% | 7.1% | Around median | |
Quality | 74 | — | — | Top tier | |
Safety | 14 | — | — | Bottom tier | |
Capital Return | 39 | 3.25% | 2.12% | Bottom tier | |
Momentum | 90 | 30.2% | 2.9% | Top tier | |
Sentiment | 75 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
U.S. Bancorp is a diversified banking group that generates income from net interest income and a broad range of fees, including payments, capital markets, credit and investment services, and consumer banking fees. The group serves about 13 million consumers through digital channels and branches, in addition to about 7 million customers through credit cards, co-branded programs, the Elan platform, and its partners. In fiscal Q2 2026, fees accounted for 44% of total revenue, payments represented about 23%, while capital markets contributed about 7%.
In fiscal Q2 2026, U.S. Bancorp reported record net revenue of $7.7 billion, up 10.1% year over year, and earnings per share of $1.35, an increase of about 22%. Taxable-equivalent net interest income rose 7.5% to $4.4 billion, and the net interest margin improved by two basis points sequentially to 2.79%, while fee income increased 13.2%, or 9.9% excluding BTIG. Return on tangible common equity was 18.7%, return on average assets was 1.26%, and the efficiency ratio improved to 57.1%, with positive operating leverage of 400 basis points.
The operating balance sheet showed broad-based growth in fiscal Q2 2026; average loans increased 7.1% year over year and 3.0% sequentially to $405 billion, while average deposits grew 2.4% year over year, alongside consumer deposits reaching a record level for the third consecutive quarter. Credit quality improved, with the ratio of nonperforming assets to loans and other real estate declining to 0.33%, and the net charge-off ratio falling to 0.53%, while the allowance for credit losses remained at $8 billion, or 1.94% of period-end loans. The common equity tier 1 capital ratio was 10.8% as of June 30, 2026, or 9.4% after accounting for accumulated other comprehensive income.
Analyst consensus rates USB shares a "Buy," with an average price target of $69.8 and a range of $66 to $75. The average target exceeds the 52-week range high of $66.08 by about 5.6%, while the lowest target nearly matches that level, reflecting limited upside expectations at the conservative end and greater upside in the optimistic scenario; the full 52-week range is between $45.02 and $66.08.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
The company generated record net revenue of $7.7 billion, up 10.1% year over year. Earnings per share reached $1.35, up about 22%, with positive operating leverage of 400 basis points. The net interest margin improved to 2.79% and the efficiency ratio to 57.1%, while return on tangible common equity reached 18.7%.
U.S. Bancorp completed the acquisition of BTIG, and the acquired company added about $98 million in capital markets revenue in June 2026. Management expects a contribution of approximately $200 million per quarter during the second half of fiscal 2026, with an assumed contribution margin of about 15%. The company aims to increase capital markets from about 7% to approximately 10% of revenue through cross-selling and organic growth, without assuming the need for another complementary acquisition to achieve that goal.
The Amazon Small Business portfolio is valued at about $1.6 billion, and management expected its purchase to close in mid-August 2026. When fully operational, the company expects quarterly revenue of $75–85 million, with about two-thirds coming from net interest income and one-third from fees. In return, U.S. Bancorp expects to build a credit allowance of about $160 million associated with the portfolio purchase and views it as a platform for expanding Business Essentials, card, and banking services for small businesses.
Automated analysis for informational purposes only — not investment advice.
Management raised its total net revenue growth outlook to 7%–9% compared with the prior fiscal year, or 5%–7% excluding BTIG, after the previous range was 4%–6%. It expects positive operating leverage of about 200 basis points and more than 300 basis points excluding BTIG. For fiscal Q3 2026, it expects net interest income growth of 4%–6%, fee income growth of 12%–14%, and noninterest expense growth of about 8%.
U.S. Bancorp serves about 13 million consumers, approximately 18% of whom live outside its traditional branch footprint, and also serves about 7 million customers through cards, co-branded programs, the Elan platform, and partners. Bank Smartly checking and savings balances exceeded $84 billion, and the proportion of multi-product consumer customers reached 42%. In fiscal Q2 2026, consumer deposits reached a record level for the third consecutive quarter, and the company plans to increase annual branch investment to $300 million.
Risks include continued weakness in merchant payment processing in Europe and the impact of losing nonstrategic distribution partners for about three quarters after fiscal Q2 2026. Competition for deposits and the funding of loan growth could also raise deposit costs and slow net interest margin expansion. The integration of BTIG adds about $60 million in expected integration costs in the second half of fiscal 2026, while the purchase of the Amazon Small Business portfolio is associated with building an allowance of about $160 million.
