US Bancorp (USB) AI Stock Analysis

• Market Cap: $83.86B
• Dividend Yield: 3.77%
• Average Volume (3M): 9.02M
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.08
• Revenue Growth: 2.91%
• EPS Growth: 33.77%
• Country: US
• Employees: 70,000
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.22
• Shares Outstanding: 1,554,434,100
• 10 Day Avg. Volume: 11,459,407
• 30 Day Avg. Volume: 9,019,806
• PEG Ratio: 0.74
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 6.62
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.21
• Enterprise Value/Gross Profit: 3.61
• Enterprise Value/Ebitda: 9.41
• 1Y Price Target: $61.04
• Price Target Upside: 12.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.95
• Revenue Forecast (FY): $30.01B

• Rating: 77 Outperform
• Price Target: $62.00 ▲(13.97% Upside)

USB scores well on financial performance and recent earnings-call strength (record revenue, EPS growth, positive operating leverage), supported by attractive valuation (P/E 12.64 and ~3.75% yield). Technicals are moderately positive with the stock above key longer-term moving averages. The main offsets are declining TTM revenue, elevated leverage, and localized credit/segment headwinds (commercial NPL increase and corporate payments pressure).

Positive Factors

Fee revenue diversification

Sustained fee growth across payments, institutional and consumer lines reduces reliance on net interest income and rate cycles. Diversified fee streams support more stable revenue, higher margin mix, and organic resilience, aiding long-term earnings stability and capital allocation.

Strong cash generation

Robust free cash flow (TTM FCF growth ~53.7% and FCF/net income ~1.0) underpins durable capital flexibility. Strong cash conversion supports dividends, targeted acquisitions, and reinvestment in technology and branches without materially weakening liquidity or operational footing over the medium term.

BTIG acquisition expands capabilities

Acquiring BTIG adds institutional equity sales/trading, ECM, research and prime brokerage, filling product gaps in capital markets. Retaining BTIG leadership preserves client relationships and positions the bank to diversify revenue, accelerate capital markets growth, and deepen corporate client coverage long-term.

Negative Factors

High leverage

Relatively elevated leverage raises sensitivity to credit stress and rate shifts and constrains capital flexibility for buybacks or higher dividends. It increases regulatory and funding risk, making the bank more dependent on stable earnings and capital generation to preserve buffers over the medium term.

Declining TTM revenue

A trailing-twelve-month revenue decline signals pressure on organic growth that fee gains and cost cuts must offset. Prolonged revenue contraction can erode operating leverage benefits, limit reinvestment capacity, and force reliance on acquisitions or margin compression to sustain earnings growth over time.

Credit and payments headwinds

Rising commercial NPLs and weakness in corporate payments reflect structural exposures that can elevate loan-loss provisions and depress fee volumes. If persistent, these trends stress asset quality and capital, reducing return stability and increasing cyclicality in earnings for several quarters.

US Bancorp Business Overview & Revenue Model

Company Description

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities and other financial institutions in the United States. It operates in Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support segments. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; lending services, such as traditional credit products; and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. In addition, the company offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. Further, it provides corporate and purchasing card, and corporate trust services; and merchant processing services, as well as investment management, ATM processing, mortgage banking, insurance, and brokerage and leasing services. As of December 31, 2021, the company provided its products and services through a network of 2,230 banking offices principally operating in the Midwest and West regions of the United States, as well as through on-line services, over mobile devices, and other distribution channels; and operated a network of 4,059 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

US Bancorp generates revenue through multiple key streams, primarily from net interest income and non-interest income. Net interest income is derived from the difference between the interest earned on loans and the interest paid on deposits. The bank offers a variety of loan products, including commercial loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees associated with services such as payment processing, wealth management, investment banking, and card services. Additionally, USB benefits from fees generated through asset management and trust services. Strategic partnerships, particularly in payment processing and technology solutions, enhance its revenue potential. Macroeconomic factors, interest rate fluctuations, and loan demand also significantly influence the bank's earnings.

US Bancorp Financial Statement Overview

Summary

US Bancorp exhibits strong profitability and cash flow generation, with healthy margins and effective equity utilization. However, concerns exist regarding declining revenue growth and relatively high leverage.

Income Statement

US Bancorp's income statement shows a strong gross profit margin of 62.91% and a net profit margin of 17.38% for TTM (Trailing-Twelve-Months), indicating solid profitability. However, the revenue growth rate has declined by 2.31% in the TTM, which is a concern. The EBIT and EBITDA margins are healthy at 21.99% and 23.91%, respectively, reflecting efficient operations.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.23, which is relatively high, indicating significant leverage. However, the return on equity (ROE) is strong at 11.81%, showing effective use of equity. The equity ratio stands at 9.11%, suggesting a moderate level of equity financing.

Cash Flow

Cash flow analysis highlights a robust free cash flow growth rate of 53.74% in the TTM, demonstrating strong cash generation. The operating cash flow to net income ratio is low at 1.38%, but the free cash flow to net income ratio is excellent at 1.0, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.55B	42.71B	40.62B	27.40B	23.71B	25.24B
Gross Profit	26.01B	25.10B	25.74B	22.21B	23.89B	19.42B
EBITDA	9.98B	8.85B	7.88B	7.86B	10.66B	6.58B
Net Income	7.19B	6.30B	5.43B	5.83B	7.96B	4.96B
Balance Sheet
Total Assets	695.36B	678.32B	663.49B	674.80B	573.28B	553.90B
Cash, Cash Equivalents and Short-Term Investments	66.64B	142.87B	130.56B	125.59B	161.31B	199.02B
Total Debt	77.98B	73.52B	66.76B	71.05B	43.92B	53.06B
Total Liabilities	631.56B	619.28B	607.72B	623.57B	517.90B	500.18B
Stockholders Equity	63.34B	58.58B	55.31B	50.77B	54.92B	53.09B
Cash Flow
Free Cash Flow	9.90B	11.27B	8.45B	21.12B	9.87B	3.72B
Operating Cash Flow	9.90B	11.27B	8.45B	21.12B	9.87B	3.72B
Investing Cash Flow	-16.56B	-24.53B	18.93B	7.50B	-57.49B	-15.44B
Financing Cash Flow	-262.00M	8.57B	-19.72B	-3.98B	13.94B	51.90B

US Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 54.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For USB, the sentiment is Positive. The current price of 54.4 is below the 20-day moving average (MA) of 54.54, above the 50-day MA of 51.47, and above the 200-day MA of 46.28, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 55.52 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for USB.

US Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RF	80 Outperform	$25.01B	12.40	11.68%	3.74%	4.00%	28.54%
USB	77 Outperform	$83.86B	12.35	11.69%	3.77%	2.91%	33.77%
MTB	77 Outperform	$32.67B	12.50	9.78%	2.76%	-0.81%	20.34%
PNC	74 Outperform	$84.33B	12.96	11.99%	3.11%	1.79%	30.93%
FITB	72 Outperform	$32.40B	14.66	11.52%	3.14%	0.15%	11.62%
TFC	70 Outperform	$64.32B	13.48	7.98%	4.12%	22.02%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

US Bancorp Corporate Events

U.S. Bancorp to Acquire BTIG in $1 Billion Deal

On January 12, 2026, U.S. Bancorp signed a definitive agreement to acquire BTIG Parent and its subsidiaries, including BTIG, LLC, in a transaction that values the business at up to $1 billion and is expected to close in the second quarter of 2026, subject to regulatory and other customary conditions. The deal includes an initial consideration of $362.5 million in cash and 6,600,594 U.S. Bancorp common shares, plus up to $275 million in contingent cash payments over three years tied to revenue performance, and is projected to have a negligible impact on 2026 earnings per share while trimming the bank’s CET1 ratio by about 12 basis points at closing without altering near‑term capital return plans. By adding BTIG’s institutional equity sales and trading, equity capital markets, electronic trading, research, prime brokerage and M&A advisory capabilities to its existing fixed income and derivatives strengths, U.S. Bancorp aims to close key product gaps for corporate and institutional clients, deepen long-standing referral-based ties with BTIG, and accelerate capital markets revenue growth, while BTIG’s leadership team remains in place under U.S. Bancorp ownership.

The most recent analyst rating on (USB) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on US Bancorp stock, see the USB Stock Forecast page.

U.S. Bancorp Executives to Present at Boston Conference

On November 7, 2025, key executives from U.S. Bancorp, including John Stern, Mark Runkel, and Courtney Kelso, are scheduled to present at the BancAnalysts Association of Boston Conference. The presentation will cover U.S. Bancorp’s strategic priorities and financial performance, highlighting its focus on payments transformation and organic growth. The company aims to deepen relationships and expand its reach, leveraging its strong financial foundation to achieve positive operating leverage and meet its financial targets.

The most recent analyst rating on (USB) stock is a Buy with a $53.00 price target. To see the full list of analyst forecasts on US Bancorp stock, see the USB Stock Forecast page.

US Bancorp Reports Strong Q3 2025 Financial Results

U.S. Bancorp reported strong financial results for the third quarter of 2025, with record net revenue of $7.3 billion and a 16.7% increase in net income year-over-year. The company achieved a return on tangible common equity of 18.6% and improved its CET1 capital ratio to 10.9%. Additionally, U.S. Bancorp has been selected to provide custody services for Anchorage Digital Bank’s stablecoin reserves, highlighting its growing involvement in digital finance. Moody’s has revised the company’s outlook from negative to stable, reflecting confidence in its financial strategy and performance.

The most recent analyst rating on (USB) stock is a Buy with a $50.00 price target. To see the full list of analyst forecasts on US Bancorp stock, see the USB Stock Forecast page.