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Truist Financial
(NYSE:TFC)
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Rating:72Outperform
Price Target:
$58.00
â–²(12.06% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by improving financial performance (recovered profitability and strong cash flow) and supportive valuation (low P/E and strong dividend yield). Earnings-call tone is favorable with strong ROTCE and planned buybacks, partially offset by near-term net interest income/margin and deposit-mix pressures. Technicals are positive but limited by missing momentum indicators, and corporate events are net positive with some leadership transition risk.
Positive Factors
Strong cash generation
Truist converts earnings into cash efficiently: FCF roughly equals net income and TTM free cash flow grew ~19%. Durable cash generation supports dividends, buybacks, capital adds, and loss absorption through cycles, reducing reliance on volatile market funding over the next several quarters.
Negative Factors
Elevated leverage
Leverage materially above earlier-cycle levels increases sensitivity to funding stress and credit shocks. With debt slightly above equity, capital ratios and earnings volatility can be pressured by adverse credit or funding-cost moves, reducing margin for error during macro deterioration over months ahead.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Truist converts earnings into cash efficiently: FCF roughly equals net income and TTM free cash flow grew ~19%. Durable cash generation supports dividends, buybacks, capital adds, and loss absorption through cycles, reducing reliance on volatile market funding over the next several quarters.
Read all positive factors
Truist Financial Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks down revenue into different streams, highlighting the diversity and stability of income sources, and indicating which areas drive growth or face challenges.
Breaks down revenue into different streams, highlighting the diversity and stability of income sources, and indicating which areas drive growth or face challenges.
Data provided by:
The Fly
The FlyTruist Financial (TFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.90B
Dividend Yield3.95%
Average Volume (3M)9.80M
Price to Earnings (P/E)11.9
Beta (1Y)1.05
Revenue Growth0.36%
EPS Growth18.53%
CountryUS
Employees37,849
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.41
Shares Outstanding1,221,626,200
10 Day Avg. Volume8,505,761
30 Day Avg. Volume9,797,536
Financial Highlights & Ratios
PEG Ratio0.86
Price to Book (P/B)0.96
Price to Sales (P/S)2.05
P/FCF Ratio10.87
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 Target
$55.43Price Target Upside7.09% Upside
Rating ConsensusHold
Number of Analyst Covering15
EPS Forecast (FY)4.63
Revenue Forecast (FY)$21.21B
Truist Financial Business Overview & Revenue Model
Company Description
Truist Financial Corporation operates as a diversified financial holding company, providing an extensive array of banking and trust services throughout the Southeastern and Mid-Atlantic regions of the United States. Its business activities are str...
How the Company Makes Money
Truist primarily earns revenue from (1) net interest income and (2) noninterest income.
1) Net interest income (core banking spread): Truist collects interest and fees on interest-earning assets—most notably consumer and commercial loans (e.g., m...
Truist Financial Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong underlying profitability, capital strength, and fee-based revenue momentum (notably large YoY EPS, ROTCE and non-interest income gains) alongside intentional, strategic portfolio actions that reduce certain loan production and pressure net interest income and margin in the near term. Management emphasized disciplined optimization to improve long-term returns, reiterated a $5B buyback plan, and affirmed confidence in delivering ROTCE above 14% for 2026. While there are clear near-term headwinds to NII and deposit-mix pressures, the breadth of operational and capital achievements and improved efficiency indicate a favorable overall trajectory.Positive Updates
Strong Quarterly Earnings and EPS Growth
GAAP net income available to common shareholders of $1.5 billion and diluted EPS of $1.23, up 37% year-over-year and 13% quarter-over-quarter.
Negative Updates
Reduced Net Interest Income and Margin Pressure
Net interest margin fell 4 basis points linked-quarter to 2.98%; taxable-equivalent net interest income guidance reduced to +1%–1.5% for 2026 (previously 2%–3%) and full-year revenue outlook trimmed to +3.5%–4% from 4%.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Earnings and EPS Growth
GAAP net income available to common shareholders of $1.5 billion and diluted EPS of $1.23, up 37% year-over-year and 13% quarter-over-quarter.
Read all positive updates
Company Guidance
Truist guided Q3 revenue to rise about 1% versus Q2’s $5.3B, with net interest income up ~1.5% (and non‑interest income roughly flat), Q3 non‑interest expense expected to rise ~2% from the Q2 level of $3.1B; for full‑year 2026 they now expect revenue up 3.5%–4%, net interest income up ~1%–1.5% (down from prior 2%–3%), non‑interest income growth of ~10% (raised from high single‑digits), GAAP non‑interest expense growth ~1.75%, net charge‑offs ~55 bps, an effective tax rate of 14.5%, ~$5B of share buybacks, and ROTCE above 14%; balance‑sheet assumptions include loan growth still expected ~3%–4% (consumer ~0–1%, C&I driving growth), deposit growth in low single digits (~3%) but a less favorable deposit mix, a ~40% reduction in 2026 production in certain consumer portfolios (removing roughly $7B–$8B of annual production versus 2025), and an expectation of modest NIM improvement later in the year.Truist Financial Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
61
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.52B | 30.44B | 24.25B | 29.95B | 22.29B | 23.06B |
| Gross Profit | 19.54B | 18.94B | 11.41B | 17.91B | 19.20B | 23.11B |
| EBITDA | 7.27B | 7.05B | 378.00M | 450.00M | 8.39B | 9.38B |
| Net Income | 5.84B | 5.31B | 4.82B | -1.09B | 6.26B | 6.44B |
Balance Sheet | ||||||
| Total Assets | 556.02B | 547.54B | 531.18B | 535.35B | 555.25B | 541.24B |
| Cash, Cash Equivalents and Short-Term Investments | 4.71B | 45.37B | 44.32B | 97.60B | 93.22B | 173.42B |
| Total Debt | 69.86B | 69.80B | 62.27B | 62.12B | 65.07B | 40.89B |
| Total Liabilities | 491.93B | 482.35B | 467.50B | 476.10B | 494.72B | 471.97B |
| Stockholders Equity | 64.09B | 65.19B | 63.68B | 59.10B | 60.51B | 69.27B |
Cash Flow | ||||||
| Free Cash Flow | 5.80B | 5.74B | 2.16B | 8.63B | 10.52B | 7.45B |
| Operating Cash Flow | 5.80B | 5.74B | 2.16B | 8.63B | 11.08B | 7.89B |
| Investing Cash Flow | -13.24B | -17.76B | 18.60B | 22.86B | -29.97B | -32.06B |
| Financing Cash Flow | 5.28B | 8.63B | -11.64B | -22.27B | 20.02B | 25.59B |
Truist Financial Technical Analysis
Positive
51.76
Price Trends
50.91
Positive
49.50
Positive
48.55
Positive
Market Momentum
0.41
Positive
56.66
Neutral
47.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFC, the sentiment is Positive. The current price of 51.76 is below the 20-day moving average (MA) of 52.16, above the 50-day MA of 50.91, and above the 200-day MA of 48.55, indicating a bullish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 47.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TFC.
Truist Financial Risk Analysis
Truist Financial disclosed 44 risk factors in its most recent earnings report. Truist Financial 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
Truist Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $36.42B | 13.65 | 10.66% | 2.40% | 0.31% | 22.76% | |
76 Outperform | $100.17B | 12.98 | 12.49% | 3.25% | 2.39% | 19.99% | |
76 Outperform | $101.42B | 14.04 | 12.34% | 2.83% | 5.73% | 24.15% | |
74 Outperform | $52.24B | 19.60 | 8.43% | 2.79% | 17.05% | -8.65% | |
74 Outperform | $35.90B | 13.13 | 8.58% | 3.57% | 18.13% | -3.57% | |
72 Outperform | $63.90B | 11.94 | 9.01% | 4.02% | 0.36% | 18.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
TFC
Truist Financial
52.67
9.27
21.37%
FITB
Fifth Third Bancorp
58.01
16.44
39.55%
HBAN
Huntington Bancshares
17.86
1.75
10.83%
MTB
M&T Bank
253.55
65.92
35.13%
PNC
PNC Financial
255.46
68.22
36.44%
USB
US Bancorp
65.02
20.20
45.06%
Truist Financial Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Truist Financial Updates Bylaws and Governance Framework
Neutral
Jul 29, 2026
On July 28, 2026, the Board of Directors of Truist Financial Corporation approved amendments to its Amended and Restated Bylaws, effective the same date. The changes designate the federal district courts of the United States as the exclusive forum...
Private Placements and FinancingRegulatory Filings and Compliance
Truist Financial Issues $1.25 Billion Medium-Term Notes
Neutral
Jul 23, 2026
On July 23, 2026, Truist Financial Corporation issued and sold $1.25 billion of 4.957% Fixed-to-Floating Rate Medium-Term Notes, Series I (Senior), due July 23, 2030. The notes were registered under the Securities Act of 1933 through an existing s...
Business Operations and StrategyExecutive/Board Changes
Truist Financial announces CEO succession and leadership transition
Positive
Jun 15, 2026
Truist Financial announced on June 15, 2026 that long-time chief executive Bill Rogers will step down as CEO and president of both the corporation and Truist Bank effective Sept. 1, 2026, transitioning to executive chair until his retirement at th...
Executive/Board Changes
Truist Financial Adds Veteran Leader to Board
Positive
Jun 8, 2026
On June 5, 2026, Truist Financial’s board of directors appointed veteran banker and nonprofit leader Catherine P. Bessant as a director of both Truist Financial Corporation and its subsidiary Truist Bank, with immediate effect. She will serv...
Private Placements and FinancingRegulatory Filings and Compliance
Truist Financial Issues New Series S Preferred Stock
Positive
May 15, 2026
On May 13, 2026, Truist Financial amended its Articles of Incorporation to establish the designations, preferences, limitations and rights of a new 6.250% Series S Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, paving the way for a str...
Business Operations and StrategyShareholder Meetings
Truist Shareholders Back Incentive Plan and Governance Slate
Positive
May 1, 2026
At its April 28, 2026 annual meeting, Truist Financial shareholders approved an amendment and restatement of the company’s 2022 Incentive Plan, reinforcing the board’s authority to use equity and incentive compensation to attract and r...
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.