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Truist Financial (TFC)
NYSE:TFC
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Truist Financial
(NYSE:TFC)
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Rating:62Neutral
Price Target:
$53.00
▲(6.73% Upside)
Action:DowngradedDate:02/25/26
The score is driven primarily by improving fundamentals and a constructive earnings-call outlook (revenue/NII growth guidance, margin improvement expectations, and sizable planned buybacks). These positives are tempered by weaker recent cash-flow trends and elevated leverage in the financial statements, plus soft near-term technical momentum, while valuation is supportive due to a moderate P/E and strong dividend yield.
Positive Factors
Capital Return Program
Truist’s $10B repurchase authorization and ~$4B 2026 repurchase target reflect sustained capital generation and a clear shareholder-return priority. Durable buyback capacity can materially boost per-share metrics and signal management confidence, provided capital ratios and earnings remain stable.
Net Interest Income & Margin Trend
Improving NII and a rising NIM—supported by loan growth and lower deposit beta—indicate structural improvement in core banking profitability. Sustained margin expansion underpins durable earnings power and cash generation across business cycles, strengthening long-term operating fundamentals.
Diversified Loan Growth
Broad-based loan growth across consumer, card and commercial portfolios demonstrates healthy franchise origination and client penetration. Diversified loan expansion supports stable interest income, reduces reliance on volatile fee lines, and improves resilience of core revenue over time.
Negative Factors
Elevated Leverage
Leverage has increased meaningfully, raising the bank’s sensitivity to market stress and limiting balance-sheet flexibility. Higher debt relative to equity constrains capital actions under adverse scenarios and increases the importance of maintaining strong credit metrics and regulatory buffers.
Weakened Cash Generation
Material weakening in operating and free cash flow reduces the sustainability of dividends, buybacks, and reinvestment. Even with improving earnings, poor cash conversion heightens execution risk on capital returns and leaves less cushion for loss provisioning or strategic investment.
GAAP Expense Volatility from Legal Charges
Significant legal accruals and severance drive GAAP expense volatility and can persist as recurring items. Such charges complicate true operating performance assessment, may erode capital over time if sustained, and increase uncertainty around durable expense control.
Truist Financial (TFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.53B
Dividend Yield4.12%
Average Volume (3M)9.97M
Price to Earnings (P/E)13.1
Beta (1Y)1.11
Revenue Growth22.02%
EPS GrowthN/A
CountryUS
Employees37,529
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.00
Shares Outstanding1,279,246,300
10 Day Avg. Volume7,946,324
30 Day Avg. Volume9,965,347
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)0.96
Price to Sales (P/S)2.05
P/FCF Ratio28.82
Enterprise Value/Market Cap1.54
Enterprise Value/Revenue3.22
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda13.91
Forecast
1Y Price Target
$56.80Price Target Upside14.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)4.49
Revenue Forecast (FY)$21.36B
Truist Financial Business Overview & Revenue Model
Company DescriptionTruist Financial Corporation, a holding company, provides banking and trust services in the Southeastern and Mid-Atlantic United States. The company operates through three segments: Consumer Banking and Wealth, Corporate and Commercial Banking, and Insurance Holdings. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides funding; asset management; automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, workers compensation and professional liability, surety coverage, title, and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services. In addition, it offers association, capital market, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, government finance, commercial middle market lending, small business and student lending, floor plan and commercial mortgage lending, mortgage warehouse lending, private equity investment, real estate lending, and supply chain financing services. Further, the company provides corporate and investment banking, retail and wholesale brokerage, securities underwriting, and investment advisory services. As of December 31, 2021, the company operated through 2,517 banking offices. The company was formerly known as BB&T Corporation and changed its name to Truist Financial Corporation in December 2019. Truist Financial Corporation was founded in 1872 and is headquartered in Charlotte, North Carolina.
How the Company Makes MoneyTruist Financial generates revenue primarily through interest income and non-interest income. Interest income is derived from loans, including personal, commercial, and mortgage loans, where the bank earns interest on the money it lends. Non-interest income comes from fees related to services such as account maintenance, asset management, investment banking, and insurance services. Additionally, Truist benefits from wealth management services, which involve advising and managing investments for clients, thus earning management fees. The company has strategic partnerships for certain financial products and technology solutions, enhancing its service offerings and increasing revenue potential. Factors contributing to earnings include market conditions, interest rate fluctuations, and the overall economic environment, which can impact loan demand and investment performance.
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 Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The call conveyed clear momentum across core businesses: profitable Q4 and full‑year results, broad‑based loan growth, improving net interest margin and deposit costs, strong digital and Premier outcomes, stable asset quality, and an aggressive capital return plan (including a $10B repurchase authorization and ~$4B repurchase target for 2026). Near‑term headwinds include a Q4 legal accrual and severance that raised GAAP expenses, a modest YoY decline in noninterest income, and a small linked‑quarter uptick in net charge‑offs. Management provided constructive 2026 guidance (revenue +4%–5%, NII +3%–4%, modest expense growth) and a clear path to a 15% ROTCE in 2027. Overall, the positives (improving revenue drivers, capital returns, margin momentum, and stable credit) materially outweigh the limited near‑term negatives.Q4-2025 Updates
Positive Updates
Solid Quarterly and Full-Year Earnings
Reported Q4 2025 net income available to common shareholders of $1.3 billion ($1.00 per diluted share) and full‑year 2025 net income of $5.0 billion ($3.82 per diluted share). Results reflect continued profitability and momentum into 2026.
Loan Growth and Composition
Average loans held for investment increased $4.3 billion (1.3% linked quarter) to $325 billion. Full‑year average loans rose 3.6% to $316 billion, driven by 5.4% growth in consumer and card loans and 2.4% growth in commercial loans. Wholesale average loans grew 3% for 2025 with Q4 average wholesale loans up 8% vs. Q4 2024.
Net Interest Income and Margin Improvement
Taxable-equivalent net interest income increased 1.9% linked quarter ($69 million). Net interest margin rose 6 basis points linked quarter to 3.07%. Management expects NII growth of 3%–4% in 2026 and an average 2026 net interest margin above the 2025 average of 3.03%, with expectation to exit 2026 in the low-3.1x range.
Deposit Cost and Beta Improvements
Average interest-bearing deposit cost declined 27 basis points to 2.23% and total cost of deposits declined 20 basis points to 1.64%. Cumulative interest-bearing deposit beta improved from 38% to 45% and total deposit beta improved from 24% to 30% linked quarter, reflecting better deposit mix and lower funding costs.
Strong Capital Return Actions
Returned $5.2 billion of capital to shareholders in 2025 (dividends and $2.5 billion repurchases). Repurchased $750 million in Q4 and announced a new repurchase authorization up to $10 billion with no expiration. Management is targeting approximately $4 billion of share repurchases in 2026.
Positive Operating Leverage and Expense Discipline
Management reported 100 basis points of positive adjusted operating leverage for 2025 and guides GAAP noninterest expense growth of 1.25%–2.25% in 2026, implying approximately 275 basis points of positive operating leverage on GAAP basis (or ~165 bps excluding the Q4 legal accrual).
Digital, Premier and Product Momentum
Added 77,000 digital new-to-bank clients (up 10% year over year for the quarter) and digital production up 9% for 2025. Premier Banking production increased (deposits +22%, lending +32%, financial plans +12%). Truist Assist enhancements drove a 97% increase in digital chat engagement in 2025.
Asset Quality Remains Stable
Nonperforming loans held for investment remained stable at 48 bps of total loans. Allowance for loan and lease losses declined one basis point to 1.53% of total loans. Full‑year net charge-offs declined 5 bps to 54 bps for 2025; management expects net charge-offs of roughly 55 bps in 2026.
Clear 2027 ROTCE Target and Growth Outlook
Management reaffirmed a target of 15% return on tangible common equity (ROTCE) in 2027 (14% target for 2026), with an explicit strategy to double 2025 revenue growth rate in 2026, deepen client relationships, and accelerate capital returns.
Negative Updates
Legal Accrual and Severance Charges Impacting Results
Q4 results included a $130 million after‑tax incremental accrual related to a settlement (Bickerstaff v. SunTrust) equal to $0.08 per share, plus roughly $0.04 per share of severance-related charges. These items increased GAAP noninterest expense and reduced adjusted metrics for the quarter.
Quarterly Expense Spike on GAAP Basis
GAAP noninterest expense increased 5.2% linked quarter primarily due to the legal accrual and higher personnel expenses (incentives and severance). Even though ex-items expense was roughly flat (-0.3% linked quarter), the GAAP increase is a near-term headwind.
Modest Decline in Noninterest Income
Noninterest income decreased $12 million (0.8%) versus 2025, reflecting modest declines across several fee categories despite strength in investment banking and trading (Q4 trading/investment banking up 3.7% linked quarter to $335 million).
Short-Term Credit Metric Movement
Net charge-offs increased 9 basis points linked quarter to 57 bps (seasonal consumer and C&I effects), even though full-year net charge-offs improved; management expects net charge-offs roughly stable at ~55 bps in 2026.
CET1 Ratio Linked-Quarter Change
Reported CET1 capital ratio declined 20 basis points to 10.8% linked quarter (management continues to target operating capital levels near a 10% CET1 operating target while funding buybacks).
Full-Year Investment Banking / Trading Pressure
Investment banking and trading revenue declined 6% for full-year 2025 vs. 2024 due to first-half market volatility, though activity rebounded in H2 with Q4 revenues up 28% versus 2024.
Company Guidance
Truist guided 2026 revenue to grow 4–5% vs. 2025 revenue of $20.5B—driven by net interest income growth of 3–4% (backed by 3–4% average loan growth and low‑single‑digit end‑period deposit growth) and mid‑to‑high single‑digit noninterest income growth—while GAAP noninterest expense is expected to rise 1.25–2.25% (2025 noninterest expense $12.1B), implying roughly 275 basis points of positive operating leverage (≈165 bps excluding the Q4’25 legal accrual); management expects net charge‑offs around 55 bps (vs. 54 bps in 2025), an effective tax rate near 16.5% (≈18.5% taxable‑equivalent), full‑year average NIM above 2025’s 3.03% despite modest Q1 compression, and plans about $4.0B of share repurchases for 2026 (≈$1.0B targeted in Q1), all built on a ~10% CET1 framework and a path to 15% ROTCE in 2027.Truist Financial Financial Statement Overview
Summary
Earnings rebounded strongly in 2025 after a weak 2023–2024 period, but leverage remains elevated and operating/free cash flow has stepped down materially in 2024–2025, making cash-flow durability and balance-sheet flexibility key risks despite improving profitability.Income Statement
Profitability rebounded strongly in 2025 (annual) with solid operating earnings and a healthy net margin after a weaker 2023–2024 period that included operating losses (negative EBIT in both years) and a net loss in 2023. Revenue growth has been volatile—down sharply in 2024, then modestly positive in 2025—suggesting an improving trajectory but not yet consistent top-line stability.66
Positive
Balance Sheet
Leverage is elevated and has drifted higher versus earlier years, with debt running around equity (debt-to-equity near ~1.0 in 2022–2025 versus ~0.6 in 2020–2021). Returns on equity recovered to a positive, mid-single to high-single digit level in 2024–2025 after turning negative in 2023, indicating improving profitability but still below the stronger 2022 level.62
Positive
Cash Flow
Cash generation weakened materially: operating cash flow fell from 2022–2023 levels to a much lower run-rate in 2024–2025, and free cash flow growth in 2025 (annual) was sharply negative. While free cash flow matches net income in the latest periods (supportive quality-of-earnings signal in isolation), the overall level and trend of cash flow are the key concern.44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 30.44B | 24.25B | 29.95B | 22.29B | 23.06B |
| Gross Profit | 18.94B | 11.41B | 17.91B | 19.20B | 23.11B |
| EBITDA | 7.05B | 378.00M | 450.00M | 8.39B | 9.38B |
| Net Income | 5.31B | 4.82B | -1.09B | 6.26B | 6.44B |
Balance Sheet | |||||
| Total Assets | 547.54B | 531.18B | 535.35B | 555.25B | 541.24B |
| Cash, Cash Equivalents and Short-Term Investments | 45.37B | 44.32B | 97.60B | 93.22B | 173.42B |
| Total Debt | 69.80B | 62.27B | 62.12B | 65.07B | 40.89B |
| Total Liabilities | 482.35B | 467.50B | 476.10B | 494.72B | 471.97B |
| Stockholders Equity | 65.19B | 63.68B | 59.10B | 60.51B | 69.27B |
Cash Flow | |||||
| Free Cash Flow | 2.16B | 2.16B | 8.63B | 10.52B | 7.45B |
| Operating Cash Flow | 2.16B | 2.16B | 8.63B | 11.08B | 7.89B |
| Investing Cash Flow | 18.60B | 18.60B | 22.86B | -29.97B | -32.06B |
| Financing Cash Flow | -11.64B | -11.64B | -22.27B | 20.02B | 25.59B |
Truist Financial Technical Analysis
Neutral
49.66
Price Trends
50.69
Negative
47.43
Positive
44.78
Positive
Market Momentum
0.20
Positive
40.73
Neutral
14.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TFC, the sentiment is Neutral. The current price of 49.66 is below the 20-day moving average (MA) of 52.32, below the 50-day MA of 50.69, and above the 200-day MA of 44.78, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TFC.
Truist Financial Risk Analysis
Truist Financial disclosed 11 risk factors in its most recent earnings report. Truist Financial reported the most risks in the "Macro & Political" 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $85.50B | 12.09 | 12.16% | 3.77% | 2.91% | 33.77% | |
74 Outperform | $32.56B | 13.07 | 9.77% | 2.76% | -0.81% | 20.34% | |
72 Outperform | $87.90B | 13.29 | 11.99% | 3.11% | 1.79% | 30.93% | |
70 Outperform | $45.75B | 14.35 | 12.20% | 3.14% | 0.15% | 11.62% | |
69 Neutral | $34.55B | 12.32 | 10.03% | 3.50% | 5.73% | 38.39% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $63.53B | 13.11 | 8.24% | 4.12% | 22.02% | ― |
* Financial Sector Average
TFC
Truist Financial
49.66
6.40
14.80%
FITB
Fifth Third Bancorp
50.20
8.53
20.46%
HBAN
Huntington Bancshares
17.02
1.56
10.10%
MTB
M&T Bank
218.52
34.40
18.69%
PNC
PNC Financial
217.91
37.46
20.76%
USB
US Bancorp
55.03
10.79
24.39%
Truist Financial Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Truist Financial raises $2.85 billion in new notes
Positive
Jan 27, 2026
On January 27, 2026, Truist Financial Corporation issued and sold $1.25 billion of 4.597% Fixed-to-Floating Rate Medium-Term Notes, Series I (Senior), due January 27, 2032, under an existing shelf registration with U.S. securities regulators. On the same date, its banking subsidiary, Truist Bank, concurrently raised additional funding by issuing and selling $1.25 billion of 4.144% Fixed-to-Floating Rate Senior Bank Notes, Series I, due January 27, 2029, and $350 million of Floating Rate Senior Bank Notes, Series I, also due January 27, 2029, bolstering the group’s long-term and medium-term funding profile and supporting its balance-sheet and liquidity management strategy.
The most recent analyst rating on (TFC) stock is a Sell with a $56.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Truist Financial furnishes supplemental historical financial information
Neutral
Jan 12, 2026
Effective December 31, 2025, Truist Financial Corporation implemented changes and reclassifications to the presentation of its consolidated statements of income to better align its external financial reporting with how management oversees the business. On January 12, 2026, the bank furnished unaudited supplemental historical financial information applying the new presentation retrospectively to prior periods, emphasizing that these figures are illustrative only and do not revise or restate its previously reported consolidated financial results, and that the furnished information is not deemed filed for Securities Exchange Act purposes.
The most recent analyst rating on (TFC) stock is a Sell with a $56.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.
Stock Buyback
Truist Financial Announces $10 Billion Share Buyback
Positive
Dec 16, 2025
On December 16, 2025, Truist Financial Corporation announced that its Board of Directors authorized a new share-repurchase program of up to $10 billion of its outstanding common stock, effective immediately and with no expiration date. This new program replaces the previous share-repurchase program announced on June 28, 2024, which was terminated on the same date.
The most recent analyst rating on (TFC) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.
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.