Wall Street giant Citigroup (C) is set to report its Q4 earnings report this week. Should investors join the queue ahead of the announcement or is it time to check out?
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What Wall Street Expects
Wall Street expects Citigroup to post fourth-quarter revenues of $20.94 billion, indicating a 6.9% year-over-year increase. The consensus estimate for earnings comes in at $1.65, which would be a 23.1% rise on the results last time. Can Citigroup beat these estimates?
As can be seen below, it has a strong recent track record of doing just that.
Key Issues Ahead of Q4 Earnings
In its Q3, Citigroup reported strong financial results, including a net income of $3.8 billion and earnings per share (EPS) of $1.86. Revenue increased by 9%, with each business segment achieving record third-quarter figures. As an example, wealth revenue increased by 8%, with a record net new investment assets of $18.6 billion and client investment assets up 14%.
These trends are likely to continue in Q4 with its investment banking arm being helped by a revival in deal-making activity. Its Net Interest Income is expected to rise 5.5% on a year-over-year basis, supported by recent Federal Reserve rate cuts. Demand for commercial, industrial and consumer loans is also expected to have been strong.
TD Cowen recently raised its price target on Citi to $130 from $110 and kept a Hold rating on the shares. The firm adjusted bank targets as part of a Q4 earnings preview for the sector. It expects “solid” Q4 reports for the banks with continued balance sheet growth, repricing tailwinds, and a “likely more dovish” Federal Reserve chair in 2026. These “durable tailwinds” should lift bank stocks in 2026.
But it’s not all good news. Citigroup could cut about 1,000 jobs this week as part of Chief Executive Jane Fraser’s plan to lower costs and improve the bank’s performance. People familiar with the matter told Bloomberg that the layoffs are part of a larger plan announced two years ago to eliminate 20,000 jobs by the end of 2026. Citigroup had 227,000 employees at the end of September.
Is C a Good Stock to Buy Now?
On TipRanks, C has a Strong Buy consensus based on 13 Buy and 3 Hold ratings. Its highest price target is $146. C stock’s consensus price target is $125.50, implying a 6.63% upside.
