Bank of America (BAC) AI Stock Analysis

• Market Cap: $363.58B
• Dividend Yield: 1.93%
• Average Volume (3M): 39.02M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.19
• Revenue Growth: 0.15%
• EPS Growth: 33.84%
• Country: US
• Employees: 213,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 0.98
• Shares Outstanding: 7,212,464,400
• 10 Day Avg. Volume: 38,683,425
• 30 Day Avg. Volume: 39,024,183
• PEG Ratio: 0.68
• Price to Book (P/B): 1.34
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 32.12
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 2.71
• Enterprise Value/Gross Profit: 4.89
• Enterprise Value/Ebitda: 13.97
• 1Y Price Target: $61.81
• Price Target Upside: 18.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 4.33
• Revenue Forecast (FY): $119.84B

• Rating: 66 Neutral
• Price Target: $56.00 ▲(7.07% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid underlying profitability, improving leverage, and positive forward guidance (NII growth and operating leverage), supported by reasonable valuation. These strengths are tempered by weak near-term technicals and the key fundamental risk of inconsistent cash-flow generation, alongside rate-sensitivity and deposit mix headwinds discussed on the call.

Positive Factors

Diversified franchises & revenue mix

Bank of America’s revenue is generated across consumer banking, wealth, markets and corporate businesses, producing both stable fee income and large net interest income. This diversification reduces single-cycle reliance, supports cross-selling, and helps sustain earnings across varying economic environments over the medium term.

Improved capital and capital returns

The bank delivered meaningful capital generation and returned over $30bn in FY25 while tangible book value rose ~9% y/y. A CET1 near 11.4% alongside large buybacks and dividends signals balanced capital allocation and financial flexibility, supporting durability of shareholder returns and buffer for regulatory requirements.

Operating leverage and productivity gains

Management delivered substantial operating leverage through revenue growth and disciplined expense control, demonstrating the firm’s ability to convert revenue gains into margin improvement. Coupled with ongoing digital/AI productivity initiatives, this supports sustainable efficiency and higher long-term returns on operating capital.

Negative Factors

Volatile cash generation

Operating cash flow has shown multi-year volatility with large negative swings in several years and weaker free cash flow in 2025 versus prior peaks. This inconsistent internal cash generation raises uncertainty about the quality of earnings and increases reliance on capital markets for funding and shareholder returns over time.

Deposit mix and rate sensitivity

Modest deposit growth and migration to off-balance-sheet cash alternatives weaken sticky funding and increase reliance on pricier deposits. Combined with disclosure that a 100bp instantaneous rate cut would trim 12‑month NII growth by about $2bn, this creates meaningful downside risk to durable net interest earnings and margins.

Regulatory and accounting headwinds

A retrospective accounting change reduced retained earnings and shaved roughly 13 basis points off CET1, highlighting how accounting and regulatory treatment can materially affect capital metrics. Coupled with pending regulatory rule details, this elevates uncertainty around capital pacing and constrains long-term strategic flexibility.

Bank of America Business Overview & Revenue Model

Company Description

Bank of America Corporation, through its subsidiaries, provides banking and financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. Its Consumer Banking segment offers traditional and money market savings accounts, certificates of deposit and IRAs, noninterest-and interest-bearing checking accounts, and investment accounts and products; and credit and debit cards, residential mortgages, and home equity loans, as well as direct and indirect loans, such as automotive, recreational vehicle, and consumer personal loans. The company's Global Wealth & Investment Management segment offers investment management, brokerage, banking, and trust and retirement products and services; and wealth management solutions, as well as customized solutions, including specialty asset management services. Its Global Banking segment provides lending products and services, including commercial loans, leases, commitment facilities, trade finance, and commercial real estate and asset-based lending; treasury solutions, such as treasury management, foreign exchange, and short-term investing options and merchant services; working capital management solutions; and debt and equity underwriting and distribution, and merger-related and other advisory services. The company's Global Markets segment offers market-making, financing, securities clearing, settlement, and custody services, as well as risk management products using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed-income, and mortgage-related products. As of December 31, 2021, it served approximately 67 million consumer and small business clients with approximately 4,200 retail financial centers; approximately 16,000 ATMs; and digital banking platforms with approximately 41 million active users. The company was founded in 1784 and is based in Charlotte, North Carolina.

How the Company Makes Money

Bank of America generates revenue through several key streams. The primary source is net interest income, which comes from the difference between interest earned on loans and interest paid on deposits. Additionally, the bank earns significant income from non-interest sources, including fees for account services, asset management, investment banking, and trading activities. The bank also generates revenue through its wealth management division, which offers investment advice and financial planning services. Partnerships with financial technology firms enhance its digital offerings, while collaborations with other financial institutions and corporate clients contribute to its investment banking revenues. Overall, the diverse range of services provided allows Bank of America to capitalize on multiple revenue opportunities across different market segments.

Bank of America Financial Statement Overview

Summary

Profitability and revenue trends are solid overall and leverage improved in 2025, but cash-flow quality is a key drag due to multi-year volatility (including several periods of negative operating cash flow) and weaker free cash flow versus prior peaks.

Income Statement

Revenue expanded sharply from 2020–2024 (despite a modest decline in 2025), while profitability remains solid with net margin improving versus 2023–2024. Operating profitability (EBIT and EBITDA margins) is healthy but has trended down from the exceptionally strong 2021–2022 levels, indicating some normalization/pressure on spreads and costs. Overall, earnings power looks durable, but the recent revenue pullback and lower margin trajectory temper the score.

Balance Sheet

The balance sheet shows strong equity support for a large bank (stockholders’ equity rising over time) and a consistent return on equity around ~9–10% in recent years. Leverage improved meaningfully in 2025 as debt-to-equity fell versus 2023–2024, which reduces balance-sheet risk. That said, absolute debt remains large and leverage is still elevated (as is typical for diversified banks), keeping the profile solid but not top-tier.

Cash Flow

Cash generation is the weakest area due to high volatility: operating cash flow swung from strong positives (2020, 2023) to large negatives (2021, 2022, 2024), then recovered to a modest positive in 2025. Free cash flow followed the same pattern and declined sharply in 2025 versus 2023, signaling less consistent internal cash generation. The variability increases uncertainty around the quality and stability of cash earnings even though the business remains profitable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	188.75B	192.43B	171.91B	115.05B	93.85B
Gross Profit	104.61B	96.07B	94.19B	92.41B	93.71B
EBITDA	36.61B	31.44B	30.40B	32.95B	35.87B
Net Income	30.63B	27.13B	26.52B	27.53B	31.98B
Balance Sheet
Total Assets	3.41T	3.26T	3.18T	3.05T	3.17T
Cash, Cash Equivalents and Short-Term Investments	963.73B	642.92B	608.07B	458.25B	654.54B
Total Debt	365.90B	658.43B	618.19B	498.55B	496.20B
Total Liabilities	3.11T	2.97T	2.89T	2.78T	2.90T
Stockholders Equity	303.24B	295.56B	291.65B	273.20B	270.07B
Cash Flow
Free Cash Flow	12.61B	-8.80B	44.98B	-6.33B	-7.19B
Operating Cash Flow	12.61B	-8.80B	44.98B	-6.33B	-7.19B
Investing Cash Flow	-145.16B	-90.69B	-35.39B	-2.53B	-313.29B
Financing Cash Flow	69.95B	60.37B	93.34B	-106.04B	291.65B

Bank of America Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAC, the sentiment is Negative. The current price of 52.3 is below the 20-day moving average (MA) of 53.46, below the 50-day MA of 54.13, and above the 200-day MA of 49.98, indicating a neutral trend. The MACD of -0.63 indicates Positive momentum. The RSI at 42.27 is Neutral, neither overbought nor oversold. The STOCH value of 22.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAC.

Bank of America Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	78 Outperform	$301.01B	18.55	8.66%	4.14%	-9.54%	-22.46%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JPM	67 Neutral	$801.83B	14.85	16.06%	1.79%	1.89%	12.32%
BAC	66 Neutral	$363.58B	13.23	10.23%	1.93%	0.15%	33.84%
GS	66 Neutral	$270.62B	17.58	13.91%	1.55%	2.31%	44.49%
WFC	59 Neutral	$261.54B	13.52	11.85%	1.80%	-4.37%	26.41%
C	58 Neutral	$191.66B	15.67	6.72%	1.94%	-0.62%	105.57%

Bank of America Corporate Events

Bank of America Raises CEO Moynihan’s 2025 Compensation

Bank of America’s board approved a 2025 total compensation package of $41 million for chair and CEO Brian Moynihan, up from $35 million in 2024, citing his leadership in delivering stronger financial and market performance in 2025. The bank reported 13% net income growth to $30.5 billion, 7% revenue growth to $113.1 billion, improved efficiency, higher returns on assets and equity, and a 25% rise in its stock price, while maintaining robust capital and liquidity.

Directors also highlighted lower credit losses, loan and deposit growth, and continued investment in technology, people, and branch and digital networks, including raising the U.S. minimum wage to $25 per hour and broad-based employee awards. Moynihan’s pay remains entirely in salary and equity incentives, with no cash bonus, and the performance stock units must be re-earned based on tougher 2026-2028 targets that tie potential payouts to elevated return on assets and tangible book value growth, further linking executive compensation to long-term shareholder returns and responsible growth.

The most recent analyst rating on (BAC) stock is a Buy with a $61.50 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

Bank of America posts strong Q4 2025 earnings growth

On January 14, 2026, Bank of America reported that its fourth-quarter 2025 net income rose to $7.6 billion, with earnings per share up 18% year-on-year to $0.98, on revenue of $28.4 billion driven by higher net interest income, asset management fees and sales and trading revenue. Full-year 2025 net income reached $30.5 billion, with EPS up 19% from 2024, supported by 10 consecutive quarters of deposit growth to an average $2.01 trillion, 8% loan growth across all business segments, and improved efficiency, while the bank returned $8.4 billion to shareholders in the quarter and maintained a CET1 capital ratio of 11.4%, underscoring strong balance sheet resilience and sustained operating momentum across consumer, wealth, corporate banking and markets franchises.

The most recent analyst rating on (BAC) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

Bank of America Updates Accounting for Tax Equity Investments

Bank of America has retrospectively changed its accounting methods for tax-related equity investments in affordable housing and wind and solar renewable energy, moving affordable housing and eligible wind investments from the equity method to the proportional amortization method and spreading solar investment tax credits and related costs over the productive life of the facilities rather than recognizing them upfront. The revisions primarily reclassify amounts between noninterest income and income tax expense with an insignificant impact on annual net income, but they reduced retained earnings by $1.7 billion and would have lowered common equity tier 1 capital by an estimated $2.1 billion, equating to a 13-basis-point hit to the CET1 ratio as of September 30, 2025, and raised the third-quarter 2025 effective tax rate to about 20%, offering investors a presentation that better aligns reported results with the economic profile of these investments without requiring restatement of regulatory capital ratios.

The most recent analyst rating on (BAC) stock is a Buy with a $64.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.

Bank of America Appoints New Executive Officers

On November 20, 2025, Bank of America Corporation’s Board of Directors designated certain management members as executive officers, including Brian T. Moynihan as Chair and CEO. The appointments of Dean C. Athanasia and James P. DeMare as Co-Presidents were announced on September 12, 2025, with their roles effective December 31, 2025. Consequently, several members will no longer be executive officers, impacting the corporation’s management structure.

The most recent analyst rating on (BAC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Bank of America stock, see the BAC Stock Forecast page.