Truist Financial (TFC) AI Stock Analysis

• Market Cap: $64.36B
• Dividend Yield: 4.12%
• Average Volume (3M): 8.05M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.08
• Revenue Growth: 22.02%
• EPS Growth: N/A
• Country: US
• Employees: 37,529
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.00
• Shares Outstanding: 1,279,246,300
• 10 Day Avg. Volume: 10,472,238
• 30 Day Avg. Volume: 8,053,880
• PEG Ratio: -0.03
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.38
• P/FCF Ratio: 26.68
• Enterprise Value/Market Cap: 1.54
• Enterprise Value/Revenue: 3.26
• Enterprise Value/Gross Profit: 5.43
• Enterprise Value/Ebitda: 13.76
• 1Y Price Target: $55.08
• Price Target Upside: 7.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 4.49
• Revenue Forecast (FY): $21.41B

• Rating: 72 Outperform
• Price Target: $56.00 ▲(9.12% Upside)

Score is driven by constructive earnings-call guidance (revenue/NII growth, operating leverage, and sizable buybacks) and a supportive technical setup (price above major moving averages with positive MACD). These positives are tempered by mixed financial performance—especially weak cash flow conversion and sharply negative free cash flow growth—despite a stable balance sheet and reasonable valuation with a strong dividend yield.

Positive Factors

Capital Return Program

A $10B repurchase authorization plus ~$4B targeted repurchases in 2026 materially boosts capital returns and demonstrates management confidence. Sustained buybacks can raise ROTCE, support per-share earnings growth, and signal disciplined capital allocation over multiple years.

Loan Growth and NII Momentum

Consistent loan growth—driven by consumer, card, and commercial lending—supports durable net interest income expansion. Coupled with mgmt guidance for higher average NIM, underlying loan growth provides a structural revenue base less reliant on volatile markets and supports medium-term NII stability.

Stable Capital Structure

A sub-1.0 debt-to-equity ratio and rising ROE indicate a resilient capital structure. This stability gives the bank flexibility for lending, liquidity management, and shareholder returns while reducing refinancing risk and supporting multi-quarter strategic investments and growth initiatives.

Negative Factors

Weak Cash Flow Conversion

Severely depressed free cash flow growth and low OCF-to-net-income suggest earnings are not converting efficiently to cash. Over months this constrains loan funding, investment capacity, and sustainable dividend or buyback funding unless cash conversion improves or capital actions are adjusted.

Revenue Decline

Negative TTM revenue growth indicates headwinds in fee and interest businesses that could persist absent structural fixes. Continued revenue pressure reduces ability to fund margins and investment, making achievement of 2026–27 ROTCE targets and long-term earnings growth more challenging.

GAAP Expense Volatility from Legal/Severance

One-off legal and severance accruals have raised GAAP noninterest expense and obscure trend-line operating performance. If such items recur or litigation risk persists, they can erode reported profitability, complicate expense discipline and distract management focus over the next several quarters.

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, 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 Money

Truist 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 Financial Statement Overview

Summary

Mixed fundamentals: improved EBIT/EBITDA margins and stable leverage (debt-to-equity 0.94) with higher ROE (7.84%), but revenue is shrinking (-2.18% TTM) and cash generation is pressured (free cash flow growth -75.16%, low operating cash flow to net income of 0.24).

Income Statement

Truist Financial's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 47.08%, but the net profit margin has decreased to 17.46% from 19.87% in the previous year. Revenue growth is negative at -2.18%, indicating a decline in sales. However, the EBIT and EBITDA margins have improved significantly from negative figures in 2024 to 16.01% and 18.51% respectively in the TTM, reflecting better operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.94, showing a slight improvement from 0.98 in 2024. Return on equity has increased to 7.84% in the TTM, indicating better profitability from shareholders' investments. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in free cash flow growth at -75.16% in the TTM. The operating cash flow to net income ratio is low at 0.24, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio remains stable at 1.0, indicating that the company is generating enough free cash flow to cover its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.43B	24.25B	29.95B	22.29B	23.06B	24.43B
Gross Profit	18.28B	11.41B	17.91B	19.20B	23.11B	20.37B
EBITDA	7.21B	378.00M	450.00M	8.39B	9.38B	7.08B
Net Income	5.23B	4.82B	-1.09B	6.26B	6.44B	4.48B
Balance Sheet
Total Assets	543.85B	531.18B	535.35B	555.25B	541.24B	509.23B
Cash, Cash Equivalents and Short-Term Investments	41.35B	44.32B	97.60B	93.22B	173.42B	139.66B
Total Debt	71.11B	62.27B	62.12B	65.07B	40.89B	45.30B
Total Liabilities	478.20B	467.50B	476.10B	494.72B	471.97B	438.32B
Stockholders Equity	65.65B	63.68B	59.10B	60.51B	69.27B	70.81B
Cash Flow
Free Cash Flow	3.93B	2.16B	8.63B	10.52B	7.45B	6.62B
Operating Cash Flow	3.93B	2.16B	8.63B	11.08B	7.89B	7.44B
Investing Cash Flow	-20.93B	18.60B	22.86B	-29.97B	-32.06B	-43.65B
Financing Cash Flow	14.21B	-11.64B	-22.27B	20.02B	25.59B	36.02B

Truist Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 51.32 is above the 20-day moving average (MA) of 50.22, above the 50-day MA of 48.87, and above the 200-day MA of 43.79, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 60.33 is Neutral, neither overbought nor oversold. The STOCH value of 88.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TFC.

Truist Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USB	78 Outperform	$86.64B	12.06	12.18%	3.77%	2.91%	33.77%
MTB	77 Outperform	$33.34B	12.76	9.78%	2.76%	-0.81%	20.34%
HBAN	75 Outperform	$26.87B	12.27	10.03%	3.50%	5.73%	38.39%
PNC	75 Outperform	$86.34B	13.34	11.99%	3.11%	1.79%	30.93%
FITB	74 Outperform	$32.85B	14.06	12.20%	3.14%	0.15%	11.62%
TFC	72 Outperform	$64.36B	13.17	8.24%	4.12%	22.02%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Truist Financial Corporate Events

Truist Financial raises $2.85 billion in new notes

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.

Truist Financial furnishes supplemental historical financial information

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.

Truist Financial Announces $10 Billion Share Buyback

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.

Truist Financial Director Steven Voorhees Announces Retirement

Steven C. Voorhees, a member of the Board of Directors at Truist Financial Corporation, has announced his retirement effective December 31, 2025, citing personal reasons. His departure is not due to any disagreements with the company, and Truist’s management has expressed gratitude for his significant contributions during his tenure.

The most recent analyst rating on (TFC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.

Truist Financial to Redeem Series P Preferred Stock

On October 28, 2025, Truist Financial Corporation announced its decision to redeem all outstanding depositary shares of its Series P Preferred Stock on November 13, 2025. This move is part of the company’s strategic financial management, potentially impacting its capital structure and shareholder value.

The most recent analyst rating on (TFC) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Truist Financial stock, see the TFC Stock Forecast page.