HSBC Holdings plc (HSBC)
NYSE:HSBC
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HSBC Holdings
(NYSE:HSBC)
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Rating:71Outperform
Price Target:
$88.00
â–²(8.23% Upside)
Action:ReiteratedDate:03/01/26
Overall score reflects solid fundamentals and constructive earnings-call guidance (revenue growth, 17%+ RoTE targets, cost discipline), balanced by higher balance-sheet risk from the 2025 leverage jump and volatile cash flow. Technicals are supportive given the strong uptrend, while valuation is reasonable with a decent dividend but not clearly discounted.
Positive Factors
Global transaction & trade franchise
HSBC's scale and global network drive durable fee income from trade, payments and transaction banking. Access to most trade flows creates structural client stickiness, diversified non-interest revenue and cross-sell opportunities that support earnings through trade cycles and geographic shifts.
Negative Factors
Elevated leverage and balance-sheet risk
The sharp rise in leverage increases funding and solvency sensitivity to shocks. Higher debt levels reduce capital flexibility, constrain lending or buybacks under stress, and magnify P&L volatility from credit and market moves. This balance-sheet profile is a durable source of risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Global transaction & trade franchise
HSBC's scale and global network drive durable fee income from trade, payments and transaction banking. Access to most trade flows creates structural client stickiness, diversified non-interest revenue and cross-sell opportunities that support earnings through trade cycles and geographic shifts.
Read all positive factors
HSBC Holdings (HSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$292.03B
Dividend Yield4.14%
Average Volume (3M)2.29M
Price to Earnings (P/E)12.3
Beta (1Y)0.79
Revenue Growth-9.54%
EPS Growth-22.46%
CountryUS
Employees211,940
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.75
Shares Outstanding3,436,709,200
10 Day Avg. Volume2,063,463
30 Day Avg. Volume2,287,603
Financial Highlights & Ratios
PEG Ratio-3.84
Price to Book (P/B)1.54
Price to Sales (P/S)1.85
P/FCF Ratio29.20
Enterprise Value/Market Cap1.93
Enterprise Value/Revenue3.81
Enterprise Value/Gross Profit6.97
Enterprise Value/Ebitda19.40
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.2
Revenue Forecast (FY)$72.37B
HSBC Holdings Business Overview & Revenue Model
Company Description
HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banki...
How the Company Makes Money
HSBC primarily makes money through net interest income and fee-based income across its main banking franchises. Net interest income is earned from the spread between interest received on loans and other interest-earning assets (such as mortgages, ...
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 Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial performance (record profit, mid-teens RoTE, revenue and deposit growth), disciplined cost execution and strategic progress (simplification, AI investment, and the Hang Seng privatization with synergies). At the same time, the bank flagged near-term headwinds and risks — notably the CET1 hit from the Hang Seng deal, $600 million of restructuring costs, elevated ECL guidance (~40 bps), localized Hong Kong CRE pressures, and some temporary NII items and seasonality impacting Q1. On balance, the positive operational momentum, clear targets for 2026–2028, and material cost and revenue initiatives outweigh the negatives, though management remains conservative about rate and macro uncertainty.Positive Updates
Record Profit Before Tax and Strong RoTE
Profit before tax rose 7% year-on-year to a record $36.6 billion; return on tangible equity reached 17.2%, achieving the mid-teens target.
Negative Updates
Hang Seng Privatization Capital Impact and Buyback Suspension
Privatization consumes significant CET1 (~110 basis points post-close), equivalent to ~4% of group shares at announcement; bank expects to suspend buybacks for up to three quarters and will assess buybacks quarterly.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Profit Before Tax and Strong RoTE
Profit before tax rose 7% year-on-year to a record $36.6 billion; return on tangible equity reached 17.2%, achieving the mid-teens target.
Read all positive updates
Company Guidance
HSBC's guidance for 2026–28 is to grow revenues year‑on‑year (rising to 5% by 2028, excluding notable items), target return on tangible equity of 17% or better in each year 2026–28 (ex‑notables), and maintain a 50% dividend payout ratio (ex‑material notables) — FY25 ordinary dividend was $0.75/share. For 2026 specifically the bank expects banking NII of at least $45.0bn (FY25 NII was $44.1bn), an ECL charge of around 40 basis points, and target‑basis cost growth constrained to ~1% (after delivering planned reorganization savings). Capital targets remain a CET1 operating range of 14.0–14.5% (Q4 CET1 was 14.9%); HSBC expects to deliver $1.5bn of annualized reorganization/ simplification savings (about $1.2bn realized to date, $0.6bn recognized in FY25) and to reallocate ~ $1.5bn (now circa $1.8bn including $0.3bn Hang Seng reported synergies) into growth, while the Hang Seng privatization is expected to unlock ~$0.9bn of revenue+cost benefits by end‑2028 (split $0.5bn reported synergies + $0.4bn potential upside) at an anticipated restructuring charge of ~$0.6bn (material notable).HSBC Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 147.86B | 143.29B | 129.51B | 76.17B | 73.95B |
| Gross Profit | 80.78B | 67.40B | 64.44B | 53.72B | 64.25B |
| EBITDA | 29.03B | 36.39B | 33.81B | 20.91B | 23.19B |
| Net Income | 22.34B | 23.98B | 23.53B | 15.56B | 13.92B |
Balance Sheet | |||||
| Total Assets | 3.23T | 3.02T | 3.04T | 2.97T | 2.96T |
| Cash, Cash Equivalents and Short-Term Investments | 653.08B | 284.51B | 299.57B | 350.05B | 422.44B |
| Total Debt | 495.79B | 242.35B | 426.69B | 204.24B | 395.44B |
| Total Liabilities | 3.05T | 2.82T | 2.85T | 2.77T | 2.75T |
| Stockholders Equity | 177.51B | 184.97B | 185.33B | 177.83B | 198.25B |
Cash Flow | |||||
| Free Cash Flow | 9.39B | 61.42B | 35.42B | 22.02B | 100.75B |
| Operating Cash Flow | 10.84B | 65.31B | 39.11B | 26.43B | 104.31B |
| Investing Cash Flow | -37.07B | -76.56B | -62.91B | -34.48B | 27.54B |
| Financing Cash Flow | -21.96B | -26.46B | -17.56B | -6.29B | -10.79B |
HSBC Holdings Technical Analysis
Positive
81.31
Price Trends
83.97
Positive
79.00
Positive
71.21
Positive
Market Momentum
0.23
Negative
57.36
Neutral
81.31
Negative
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 81.31 is above the 20-day moving average (MA) of 81.17, below the 50-day MA of 83.97, and above the 200-day MA of 71.21, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 81.31 is Negative, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $292.03B | 12.28 | 11.88% | 4.14% | -9.54% | -22.46% | |
69 Neutral | $198.53B | 13.57 | 9.31% | 2.48% | -1.09% | 8.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $802.10B | 15.75 | 15.95% | 1.79% | 1.89% | 12.32% | |
66 Neutral | $360.84B | 13.28 | 10.15% | 1.93% | 0.15% | 33.84% | |
61 Neutral | $252.25B | 13.89 | 11.78% | 1.80% | -4.37% | 26.41% | |
58 Neutral | $204.90B | 21.83 | 6.71% | 1.94% | -0.62% | 105.57% |
* Financial Sector Average
HSBC
HSBC Holdings
85.15
38.23
81.49%
BAC
Bank of America
50.28
13.95
38.39%
C
Citigroup
117.13
54.61
87.34%
JPM
JPMorgan Chase
297.40
67.53
29.38%
MUFG
Mitsubishi UFJ
17.64
5.80
48.99%
WFC
Wells Fargo
81.75
16.83
25.92%
HSBC Holdings Corporate Events
HSBC Files Six-Month Block Listing Return on Employee Share Schemes
Jan 5, 2026
On 5 January 2026, HSBC Holdings plc reported its six-monthly block listing return for the period from 1 July to 31 December 2025, covering various employee share and option schemes tied to its ordinary shares of US$0.50 each. During the period, n...
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.