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HSBC Holdings
(NYSE:HSBC)
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Rating:72Outperform
Price Target:
$120.00
â–²(16.05% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid financial performance (strong revenues and profitability) but tempered by the 2025 leverage jump and cash-flow volatility. The latest earnings call adds support via upgraded NII guidance, strong returns and capital position, and renewed shareholder returns (dividend framework and buybacks). Technically, the uptrend is positive, though momentum indicators suggest the stock may be stretched near term. Valuation is reasonable with a supportive dividend yield but not notably cheap on earnings.
Positive Factors
Wealth management growth & net new money
Large, growing wealth balances and strong net new money create a durable, fee‑based revenue stream less tied to interest rates. Higher AUM and rising wealth fees improve revenue diversification, support cross‑sell opportunities in Asia, and strengthen recurring income and client stickiness over the medium term.
Negative Factors
Sharp leverage increase in 2025
A material jump in leverage reduces financial flexibility and raises sensitivity to rate or funding stress. Higher debt levels can increase funding costs, constrain strategic optionality, and amplify downside risk if revenue or asset quality weakens, making capital management more challenging through the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Wealth management growth & net new money
Large, growing wealth balances and strong net new money create a durable, fee‑based revenue stream less tied to interest rates. Higher AUM and rising wealth fees improve revenue diversification, support cross‑sell opportunities in Asia, and strengthen recurring income and client stickiness over the medium term.
Read all positive factors
HSBC Holdings Key Performance Indicators (KPIs)
Any
Operating Profit by Segment
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there may be challenges or opportunities for growth.
Reveals the profitability of each business segment, highlighting which areas are driving earnings and where there may be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyHSBC Holdings (HSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$351.93B
Dividend Yield3.6%
Average Volume (3M)1.28M
Price to Earnings (P/E)14.7
Beta (1Y)0.79
Revenue Growth-5.19%
EPS Growth39.48%
CountryUS
Employees209,000
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)7.00
Shares Outstanding3,434,287,400
10 Day Avg. Volume1,400,110
30 Day Avg. Volume1,278,432
Financial Highlights & Ratios
PEG Ratio-5.37
Price to Book (P/B)1.38
Price to Sales (P/S)2.04
P/FCF Ratio10.92
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)8.5
Revenue Forecast (FY)$74.77B
HSBC Holdings Business Overview & Revenue Model
Company Description
HSBC Holdings plc functions as a prominent global entity, delivering a full spectrum of banking and financial services around the world. Its operations are structured into three key divisions: Wealth and Personal Banking, Commercial Banking, and G...
How the Company Makes Money
HSBC primarily earns revenue from a mix of net interest income and fee- and market-based income across its main business lines.
1) Net interest income (lending and deposits): A large portion of HSBC’s earnings comes from the spread between intere...
HSBC Holdings Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call presented broad-based operational momentum: double-digit profit growth, high quarterly and half-year returns on tangible equity, strong deposit and loan inflows, notable Wealth net new money and an upgraded NII outlook. Management reinforced cost discipline while increasing simplification savings and re‑allocating resources into core, high-return franchises; they reinstated a modest buyback and maintained a 50% dividend payout target. Headwinds include a meaningful quarterly ECL charge (including Hong Kong CRE Stage 3 items), small pockets of mid‑market credit stress, transient large wholesale deposit inflows, and exposure to HIBOR/FX volatility which underpins a cautious NII guidance. Overall, positives (growth, returns, capital strength, wealth and trade momentum, cost saves) materially outweigh the manageable credit and market risks highlighted.Positive Updates
Revenue and Profit Growth
Group revenue grew 7% year-on-year to USD 19.0bn in Q2; profit before tax rose 13% YoY to USD 10.3bn. First half group revenues and profits before tax each increased 6% YoY. Annualised return on tangible equity was 19.5% for the quarter and 19.1% for the first half.
Negative Updates
Credit Charges and Stage 3 Impairments
Second-quarter ECL charge was USD 1.1bn (annualised ~41bps of loans); full-year credit guidance reiterated at around 45bps. Q2 included additional Stage 3 charges (~USD 0.2bn) related to Hong Kong commercial real estate and a quarter top-up to ECL of ~USD 0.15bn.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Profit Growth
Group revenue grew 7% year-on-year to USD 19.0bn in Q2; profit before tax rose 13% YoY to USD 10.3bn. First half group revenues and profits before tax each increased 6% YoY. Annualised return on tangible equity was 19.5% for the quarter and 19.1% for the first half.
Read all positive updates
Company Guidance
HSBC reiterated its medium‑term targets and updated near‑term guidance: Banking NII is upgraded to at least USD 46.0bn for 2026; group revenue is targeted to rise to +5% y/y by 2028 (excluding notable items); return on tangible equity is targeted at ≥17% each year (2026–28, ex‑notable items); 2026 dividend payout ratio guidance remains 50% of EPS (ex‑material items) and the board restarted buybacks of up to USD 1.0bn. Cost and capital guidance: organizational simplification savings are increased to USD 2.0bn to be actioned this year (USD 1.7bn of action saves achieved, using USD 1.8bn of restructuring costs), with USD 0.3bn of cost reallocation planned in 2026; run‑the‑bank cost growth guidance is around +1% in 2026 (Q2 cost growth +1% y/y) with only a modest potential rise for variable pay; credit guidance remains ~45bps ECL for the year (Q2 annualised charge 41bps; Q2 ECL charge USD 1.1bn, including ~USD 0.2bn HK CRE Stage‑3); capital/CET1 ended Q2 at 14.1% after c.100bps generated from regulatory profits (30bps consumed by balance‑sheet growth, 50bps accrued for dividends) — supporting the buyback. Management reiterated confidence in meeting these targets while deploying capital first to dividend accrual and organic growth (H1 net new money USD 64bn, wealth balances USD 1.1tn; H1 revenue and PBT +6% y/y; Q2 revenue USD 19bn, PBT USD 10.3bn; H1 annualised RoTE 19.1%).HSBC Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 134.51B | 134.10B | 143.29B | 129.51B | 76.17B | 73.95B |
| Gross Profit | 73.79B | 71.02B | 67.40B | 64.44B | 53.72B | 64.25B |
| EBITDA | 39.72B | 34.82B | 36.39B | 33.81B | 20.91B | 23.19B |
| Net Income | 25.49B | 22.29B | 23.98B | 23.53B | 15.56B | 13.92B |
Balance Sheet | ||||||
| Total Assets | 3.44T | 3.23T | 3.02T | 3.04T | 2.97T | 2.96T |
| Cash, Cash Equivalents and Short-Term Investments | 632.76B | 635.32B | 284.51B | 299.57B | 350.05B | 422.44B |
| Total Debt | 132.90B | 256.14B | 242.35B | 426.69B | 204.24B | 395.44B |
| Total Liabilities | 3.24T | 3.03T | 2.82T | 2.85T | 2.77T | 2.75T |
| Stockholders Equity | 196.68B | 198.22B | 184.97B | 185.33B | 177.83B | 198.25B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 25.11B | 61.42B | 35.42B | 22.02B | 100.75B |
| Operating Cash Flow | 0.00 | 29.77B | 65.31B | 39.11B | 26.43B | 104.31B |
| Investing Cash Flow | 0.00 | -37.07B | -76.56B | -62.91B | -34.48B | 27.54B |
| Financing Cash Flow | 0.00 | -21.96B | -26.46B | -17.56B | -6.29B | -10.79B |
HSBC Holdings Technical Analysis
Positive
103.40
Price Trends
99.50
Positive
94.53
Positive
85.98
Positive
Market Momentum
0.96
Positive
57.84
Neutral
33.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HSBC, the sentiment is Positive. The current price of 103.4 is below the 20-day moving average (MA) of 103.70, above the 50-day MA of 99.50, and above the 200-day MA of 85.98, indicating a bullish trend. The MACD of 0.96 indicates Positive momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 33.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HSBC.
HSBC Holdings Risk Analysis
HSBC Holdings disclosed 36 risk factors in its most recent earnings report. HSBC Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
HSBC Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $934.49B | 15.12 | 17.81% | 1.70% | 8.20% | 19.76% | |
76 Outperform | $432.57B | 13.99 | 11.13% | 1.80% | -1.71% | 27.92% | |
72 Outperform | $351.93B | 14.69 | 12.98% | 3.62% | -5.19% | 39.48% | |
70 Outperform | $253.11B | 11.96 | 12.57% | 2.09% | 4.24% | 18.04% | |
68 Neutral | $243.60B | 14.77 | 11.49% | 2.65% | 7.56% | 43.28% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $217.51B | 13.96 | 8.39% | 1.82% | 3.91% | 37.25% |
* Financial Sector Average
HSBC
HSBC Holdings
104.15
41.35
65.85%
BAC
Bank of America
61.69
13.27
27.39%
C
Citigroup
131.65
38.36
41.13%
JPM
JPMorgan Chase
351.58
60.90
20.95%
MUFG
Mitsubishi UFJ
22.04
6.44
41.28%
WFC
Wells Fargo
83.84
6.43
8.31%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.