Truist Financial (TFC)
NYSE:TFC
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Truist Financial
(NYSE:TFC)
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Rating:62Neutral
Price Target:
$47.00
▼(-1.74% Downside)
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
Aggressive capital returns
A large, explicit buyback program and meaningful 2025 returns signal disciplined capital allocation and management confidence. Over the medium term, sustained repurchases can lift ROE/ROTCE, concentrate equity and support per-share earnings growth if earnings and capital targets remain intact.
Negative Factors
Elevated leverage
A sustained increase in leverage reduces financial flexibility and raises sensitivity to credit and funding shocks. Higher debt-to-equity constrains cushion for losses, limits strategic optionality, and increases the importance of consistent earnings and capital generation to preserve capital ratios over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Aggressive capital returns
A large, explicit buyback program and meaningful 2025 returns signal disciplined capital allocation and management confidence. Over the medium term, sustained repurchases can lift ROE/ROTCE, concentrate equity and support per-share earnings growth if earnings and capital targets remain intact.
Read all positive factors
Truist Financial (TFC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.75B
Dividend Yield4.12%
Average Volume (3M)9.39M
Price to Earnings (P/E)11.8
Beta (1Y)1.13
Revenue Growth22.02%
EPS GrowthN/A
CountryUS
Employees37,529
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.00
Shares Outstanding1,249,168,300
10 Day Avg. Volume8,419,731
30 Day Avg. Volume9,391,612
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 Cap1.59
Enterprise Value/Revenue3.12
Enterprise Value/Gross Profit5.02
Enterprise Value/Ebitda13.47
Forecast
1Y Price Target
$54.53Price Target Upside14.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)4.47
Revenue Forecast (FY)$21.34B
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 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.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.
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.
Read all updates
Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
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 | 5.74B | 2.16B | 8.63B | 10.52B | 7.45B |
| Operating Cash Flow | 5.74B | 2.16B | 8.63B | 11.08B | 7.89B |
| Investing Cash Flow | -17.76B | 18.60B | 22.86B | -29.97B | -32.06B |
| Financing Cash Flow | 8.63B | -11.64B | -22.27B | 20.02B | 25.59B |
Truist Financial Technical Analysis
Positive
47.83
Price Trends
48.87
Negative
48.40
Negative
45.91
Positive
Market Momentum
-0.36
Negative
57.77
Neutral
95.84
Negative
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 47.83 is above the 20-day moving average (MA) of 45.33, below the 50-day MA of 48.87, and above the 200-day MA of 45.91, indicating a neutral trend. The MACD of -0.36 indicates Negative momentum. The RSI at 57.77 is Neutral, neither overbought nor oversold. The STOCH value of 95.84 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $86.32B | 10.18 | 11.88% | 3.11% | 1.79% | 30.93% | |
69 Neutral | $32.23B | 11.61 | 10.06% | 3.50% | 5.73% | 38.39% | |
69 Neutral | $31.60B | 10.84 | 9.88% | 2.76% | -0.81% | 20.34% | |
68 Neutral | $43.10B | 12.33 | 11.96% | 3.14% | 0.15% | 11.62% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $83.43B | 10.95 | 12.12% | 3.77% | 2.91% | 33.77% | |
62 Neutral | $59.75B | 11.75 | 8.15% | 4.12% | 22.02% | ― |
* Financial Sector Average
TFC
Truist Financial
47.83
11.59
31.96%
FITB
Fifth Third Bancorp
47.79
13.21
38.21%
HBAN
Huntington Bancshares
15.88
2.68
20.28%
MTB
M&T Bank
212.11
48.98
30.02%
PNC
PNC Financial
213.92
59.32
38.37%
USB
US Bancorp
53.70
16.00
42.44%
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 t...
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 busi...
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.