Truist Financial Corporation (TFC)
NYSE:TFC
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Truist Financial
(NYSE:TFC)
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Rating:66Neutral
Price Target:
$51.00
▲(0.85% Upside)
Action:Downgraded
Date:05/16/26
The score is driven primarily by improving (but still uneven) fundamentals and solid earnings-call execution/capital return plans, balanced against weak technical momentum and cash-flow volatility. Valuation is a clear positive with a low P/E and high dividend yield, helping offset near-term NII/NIM headwinds.
Positive Factors
Diversified fee momentum
Sustained, broad-based fee growth reduces reliance on net interest income swings. Strong IB/trading and wealth trends (highest IB/T rev since 2021) provide recurring and higher‑margin revenue streams that bolster earnings resilience through rate cycles and support long-term margin stability.
Negative Factors
NII and margin pressure
Net interest income is the primary earnings driver; persistent NIM compression from day‑count effects, deposit mix, and a slower rate tailwind materially limits core revenue expansion. If NII growth remains muted, meeting ROTCE targets will depend increasingly on fee growth and expense discipline.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified fee momentum
Sustained, broad-based fee growth reduces reliance on net interest income swings. Strong IB/trading and wealth trends (highest IB/T rev since 2021) provide recurring and higher‑margin revenue streams that bolster earnings resilience through rate cycles and support long-term margin stability.
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
$59.80B
Dividend Yield4.12%
Average Volume (3M)8.00M
Price to Earnings (P/E)9.7
Beta (1Y)1.10
Revenue Growth26.77%
EPS Growth19.23%
CountryUS
Employees37,529
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)4.08
Shares Outstanding1,245,879,300
10 Day Avg. Volume7,015,845
30 Day Avg. Volume8,003,104
Financial Highlights & Ratios
PEG Ratio0.79
Price to Book (P/B)0.96
Price to Sales (P/S)2.05
P/FCF Ratio10.87
Enterprise Value/Market Cap2.08
Enterprise Value/Revenue4.09
Enterprise Value/Gross Profit6.50
Enterprise Value/Ebitda17.83
Forecast
1Y Price Target
$54.19Price Target Upside7.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)4.54
Revenue Forecast (FY)$21.25B
Truist Financial Business Overview & Revenue Model
Company Description
Truist 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, an...
How the Company Makes Money
Truist primarily earns revenue from (1) net interest income and (2) noninterest income. Net interest income is generated by collecting interest on earning assets—most notably consumer and commercial loans and certain investment securities—and payi...
Truist Financial Earnings Call Summary
Earnings Call Date:Apr 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call conveyed solid execution and momentum across fees, capital returns and profitability metrics (EPS +25% YoY, ROTCE improvement, strong investment banking/trading growth, increased share repurchases and a lower effective tax rate). Offsetting risks include pressure on net interest income and margin driven by day-count effects, deposit competition and revised Fed rate expectations, modest near-term expense increases, and small upticks in credit metrics tied partly to reporting changes. Management reaffirmed 2026–2027 ROTCE targets and set a long-term 16%–18% ROTCE ambition, emphasizing disciplined capital allocation and digital/AI productivity initiatives. Overall, positives (earnings, fee growth, buybacks, capital targets) materially outweigh the headwinds (NII pressure, deposit competition, modest credit and expense increases).Positive Updates
Strong Earnings and EPS Growth
GAAP net income available to common shareholders of $1.4 billion and diluted EPS of $1.09, up 25% year-over-year and up 9% versus the prior quarter.
Negative Updates
Net Interest Income and Margin Pressure
Taxable-equivalent net interest income declined 2.8% linked quarter (–$105 million) largely due to two fewer days and deposit mix seasonality; net interest margin fell 5 basis points QoQ to 3.02%; NII full-year growth outlook reduced to 2%–3% (from prior 3%–4%) due to revised Fed rate expectations.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings and EPS Growth
GAAP net income available to common shareholders of $1.4 billion and diluted EPS of $1.09, up 25% year-over-year and up 9% versus the prior quarter.
Read all positive updates
Company Guidance
Truist updated 2026 guidance with taxable-equivalent net interest income now expected to grow 2%–3% (vs. prior 3%–4%), average loan growth of ~3%–4% and average deposit growth in the low single digits; noninterest income is now expected to grow high single digits (vs. mid–high single digits prior), GAAP noninterest expense to rise about 1.75% for the year, and revenue to land at the low end of the prior 4%–5% range while overall EPS/earnings expectations remain unchanged. They expect net charge-offs of about 55 bps in 2026, an effective tax rate of roughly 14.5% GAAP (≈16.5% TE), a full-year $5.0 billion share repurchase program (Q1 repurchases $1.1B; targeting ~$1.2B in Q2), and a CET1 ratio of 10.8% (stable Q/Q); under the proposed Basel III rules they estimate RWAs could decline ~9% (standardized) or ~11% (ERBA). For Q2 they expect revenue roughly flat vs. Q1’s $5.2B, NII to rise ~1% Q/Q (one extra day, higher client deposits), noninterest income to decline ~1% Q/Q (lower Investment Banking & Trading), and noninterest expense to increase ~3%–4% Q/Q (Q1 expense ~$3.0B); NIM was 3.02% in Q1 (down 5 bps Q/Q) and management expects 2026 average NIM to exceed 2025’s 3.03% but not reach the “3‑teens” exit this year, and they retain targets of ~14% ROTCE in 2026, 15% in 2027 and 16%–18% over 3–5 years.Truist Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 30.47B | 30.44B | 24.25B | 29.95B | 22.29B | 23.06B |
| Gross Profit | 19.17B | 18.94B | 11.41B | 17.91B | 19.20B | 23.11B |
| EBITDA | 6.99B | 7.05B | 378.00M | 450.00M | 8.39B | 9.38B |
| Net Income | 5.53B | 5.31B | 4.82B | -1.09B | 6.26B | 6.44B |
Balance Sheet | ||||||
| Total Assets | 548.98B | 547.54B | 531.18B | 535.35B | 555.25B | 541.24B |
| Cash, Cash Equivalents and Short-Term Investments | 4.29B | 45.37B | 44.32B | 97.60B | 93.22B | 173.42B |
| Total Debt | 69.06B | 69.80B | 62.27B | 62.12B | 65.07B | 40.89B |
| Total Liabilities | 484.76B | 482.35B | 467.50B | 476.10B | 494.72B | 471.97B |
| Stockholders Equity | 64.21B | 65.19B | 63.68B | 59.10B | 60.51B | 69.27B |
Cash Flow | ||||||
| Free Cash Flow | 5.67B | 5.74B | 2.16B | 8.63B | 10.52B | 7.45B |
| Operating Cash Flow | 5.67B | 5.74B | 2.16B | 8.63B | 11.08B | 7.89B |
| Investing Cash Flow | -18.07B | -17.76B | 18.60B | 22.86B | -29.97B | -32.06B |
| Financing Cash Flow | 6.42B | 8.63B | -11.64B | -22.27B | 20.02B | 25.59B |
Truist Financial Technical Analysis
Positive
50.57
Price Trends
47.51
Positive
48.75
Negative
46.51
Positive
Market Momentum
-0.43
Positive
47.82
Neutral
26.83
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 50.57 is above the 20-day moving average (MA) of 48.95, above the 50-day MA of 47.51, and above the 200-day MA of 46.51, indicating a neutral trend. The MACD of -0.43 indicates Positive momentum. The RSI at 47.82 is Neutral, neither overbought nor oversold. The STOCH value of 26.83 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $30.81B | 12.71 | 10.25% | 2.76% | -0.49% | 19.72% | |
72 Outperform | $32.07B | 13.98 | 8.82% | 3.50% | 9.10% | 0.60% | |
71 Outperform | $87.07B | 12.15 | 11.98% | 3.11% | 3.47% | 21.52% | |
71 Outperform | $84.60B | 10.39 | 12.22% | 3.77% | 2.43% | 18.20% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $59.80B | 9.69 | 8.51% | 4.12% | 26.77% | 19.23% | |
66 Neutral | $44.28B | 58.08 | 8.86% | 3.14% | 7.12% | -5.41% |
* Financial Sector Average
TFC
Truist Financial
48.00
10.58
28.26%
FITB
Fifth Third Bancorp
48.86
12.57
34.65%
HBAN
Huntington Bancshares
15.82
1.07
7.24%
MTB
M&T Bank
210.42
35.74
20.46%
PNC
PNC Financial
216.83
50.17
30.10%
USB
US Bancorp
54.50
13.36
32.46%
Truist Financial Corporate Events
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...
Private Placements and FinancingRegulatory Filings and Compliance
Truist Issues $2 Billion in Senior Medium-Term Notes
Positive
Apr 23, 2026
On April 23, 2026, Truist Financial Corporation issued and sold $1 billion of 4.680% fixed-to-floating rate senior medium-term notes due April 23, 2032, and $1 billion of 5.281% fixed-to-floating rate senior medium-term notes due April 23, 2037. T...
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.