Washington Federal (WAFD)
NASDAQ:WAFD
Want to see WAFD full AI Analyst Report?
Top Page
Washington Federal
(NASDAQ:WAFD)
Select Model
Select Model
Rating:70Outperform
Price Target:
$39.00
â–²(10.67% Upside)
Action:Upgraded
Date:05/13/26
Overall score reflects stable financial fundamentals with strong cash flow and improving profitability, supported by favorable technical momentum and attractive valuation (low P/E, ~3% yield). The score is tempered by the sharp TTM revenue decline and funding/deposit-related risks highlighted on the earnings call.
Positive Factors
Strong cash generation
Consistent free cash flow generation and strong FCF growth provide durable internal funding for loan growth, technology investment, buybacks and capital cushions. High cash conversion reduces reliance on wholesale funding and supports capital returns and strategic optionality over the medium term.
Negative Factors
Sharp revenue decline
A pronounced TTM revenue contraction weakens the top-line base that funds margins and operating leverage. Persistent lower revenue limits the bank’s ability to expand EPS sustainably, raises sensitivity to expense inflation, and increases execution risk for medium-term growth targets unless reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent free cash flow generation and strong FCF growth provide durable internal funding for loan growth, technology investment, buybacks and capital cushions. High cash conversion reduces reliance on wholesale funding and supports capital returns and strategic optionality over the medium term.
Read all positive factors
Washington Federal (WAFD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.54B
Dividend Yield3.27%
Average Volume (3M)506.91K
Price to Earnings (P/E)9.0
Beta (1Y)0.66
Revenue Growth-8.79%
EPS Growth15.89%
CountryUS
Employees2,018
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.12
Shares Outstanding73,888,480
10 Day Avg. Volume540,448
30 Day Avg. Volume506,909
Financial Highlights & Ratios
PEG Ratio1.92
Price to Book (P/B)0.80
Price to Sales (P/S)1.72
P/FCF Ratio11.66
Enterprise Value/Market Cap1.99
Enterprise Value/Revenue3.64
Enterprise Value/Gross Profit6.70
Enterprise Value/Ebitda16.31
Forecast
1Y Price Target
$37.00Price Target Upside4.99% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)3.09
Revenue Forecast (FY)$765.88M
Washington Federal Business Overview & Revenue Model
Company Description
WaFd, Inc. engages in the provision of lending, depository, insurance, and other banking services to consumers. It also offers banking services to mid-sized to large businesses, and owners and developers of commercial real estate. The company was ...
How the Company Makes Money
Washington Federal primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is generated by taking in deposits and other funding (e.g., checking, savings, and time deposits) and investing those funds in...
Washington Federal Earnings Call Summary
Earnings Call Date:Apr 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
The call conveyed materially positive operational and financial progress: strong loan originations and active loan portfolio growth, notable EPS and NII improvement, improving credit metrics and strong liquidity and capital. Management also highlighted strategic initiatives (Build 2030), technology and wealth momentum, and opportunistic buybacks. Key risks discussed include quarter deposit outflows and competitive pressure for low-cost deposits, margin compression from MBS purchases funded by higher borrowings, elevated noninterest expenses, and one significant commercial delinquency. Overall, the positive execution on growth, credit trends and capital initiatives outweigh the headwinds discussed.Positive Updates
Strong Net Income and EPS Growth
Net income available to common shareholders of $61.9 million and EPS of $0.82 for the quarter ended March 31, 2026, up from $0.65 in Q2 FY2025 (+26% YoY) and up $0.03 from the prior quarter (linked-quarter EPS growth of ~4%).
Negative Updates
Quarterly Deposit Outflows
Total deposits decreased $292 million for the quarter. Noninterest-bearing deposits declined $115 million (‑4.3% quarter-over-quarter) and time deposits decreased $174 million (‑2%), reflecting seasonal outflows and competitive pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Net Income and EPS Growth
Net income available to common shareholders of $61.9 million and EPS of $0.82 for the quarter ended March 31, 2026, up from $0.65 in Q2 FY2025 (+26% YoY) and up $0.03 from the prior quarter (linked-quarter EPS growth of ~4%).
Read all positive updates
Company Guidance
The company’s forward-looking guidance focused on margin, loan and deposit growth, capital actions and technology: March quarter NIM was 2.81% with management expecting the margin to be roughly flat near-term absent rate moves and targeting ~3.0% over the next two years (which would lift ROTCE from 10.8% to an estimated 12.5%), active loan portfolios are guided to grow 8–12% (active originations were $1.5B this quarter, active loans rose 12% linked quarter and gross active loans outstanding up ~20% including unfunded commitments, loans receivable rose $119M and active loan types +$359M), the lending pipeline stood at $3.2B (down from $3.6B) while the deposit pipeline increased 66% to $439M, deposits fell $292M this quarter (core deposits 80.4%, noninterest-bearing 12.2%, loan-to-deposit 94.5%), liquidity/on‑balance sheet cash was $4.2B, CET1 was ~11.4% and total risk‑based capital ~14.4%, management repurchased 2.7M shares at $31.85 (1.05x tangible book, 3.6% of shares outstanding) with 8M shares remaining authorized, they expect accretion of $167M deferred income being recognized at ~$6M per quarter (MBS purchases add ~$1.5M NII/quarter, MBS effective yield ~4.8%), AUM was just under $450M with a $1B AUM target in two years, and a proposed regulatory rule could increase capital by ~$400M if approved.Washington Federal Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
60
Neutral
Cash Flow
71
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.41B | 1.43B | 1.10B | 733.38M | 652.60M |
| Gross Profit | 751.24M | 717.73M | 704.33M | 701.11M | 658.61M | 565.60M |
| EBITDA | 308.73M | 299.36M | 390.16M | 348.05M | 364.09M | 267.05M |
| Net Income | 252.29M | 226.07M | 200.04M | 257.43M | 236.33M | 183.62M |
Balance Sheet | ||||||
| Total Assets | 27.57B | 26.70B | 28.06B | 22.47B | 20.77B | 19.65B |
| Cash, Cash Equivalents and Short-Term Investments | 669.80M | 3.27B | 4.95B | 2.98B | 2.74B | 4.23B |
| Total Debt | 3.11B | 1.82B | 3.32B | 3.65B | 2.13B | 1.72B |
| Total Liabilities | 24.59B | 23.66B | 25.06B | 20.05B | 18.50B | 17.52B |
| Stockholders Equity | 2.98B | 3.04B | 3.00B | 2.43B | 2.27B | 2.13B |
Cash Flow | ||||||
| Free Cash Flow | 216.69M | 208.25M | 414.55M | 198.89M | 256.68M | 284.98M |
| Operating Cash Flow | 255.25M | 236.95M | 439.23M | 213.96M | 268.46M | 314.45M |
| Investing Cash Flow | -492.61M | -318.41M | 3.29B | -1.38B | -2.49B | -579.75M |
| Financing Cash Flow | -324.30M | -1.64B | -2.33B | 1.46B | 817.86M | 653.12M |
Washington Federal Technical Analysis
Positive
35.24
Price Trends
32.02
Positive
32.18
Positive
30.93
Positive
Market Momentum
0.50
Negative
75.91
Negative
73.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAFD, the sentiment is Positive. The current price of 35.24 is above the 20-day moving average (MA) of 32.13, above the 50-day MA of 32.02, and above the 200-day MA of 30.93, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 75.91 is Negative, neither overbought nor oversold. The STOCH value of 73.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAFD.
Washington Federal Risk Analysis
Washington Federal disclosed 2 risk factors in its most recent earnings report. Washington Federal reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Washington Federal Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.13B | 9.44 | 10.66% | 2.97% | 3.87% | 16.71% | |
81 Outperform | $3.11B | 9.71 | 10.23% | 3.79% | 8.30% | 17.76% | |
72 Outperform | $2.53B | 11.05 | 10.75% | 2.38% | 19.81% | 3091.83% | |
71 Outperform | $2.80B | 8.69 | 10.98% | 4.69% | 8.48% | 111.63% | |
70 Outperform | $2.54B | 9.04 | 8.36% | 3.27% | -8.79% | 15.89% | |
69 Neutral | $2.46B | 20.98 | 8.03% | 3.72% | 0.97% | -4.32% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
WAFD
Washington Federal
34.32
5.65
19.69%
BANR
Banner
62.58
-0.14
-0.22%
FFBC
First Financial Bancorp
29.66
5.56
23.06%
FRME
First Merchants
39.10
1.18
3.11%
PFS
Provident Financial Services
21.46
4.91
29.63%
TRMK
Trustmark
43.10
8.01
22.82%
Washington Federal Corporate Events
Dividends
WaFd Declares Quarterly Cash Dividend on Series A Preferred
Positive
May 12, 2026
On May 12, 2026, the Board of Directors of WaFd, Inc. declared a cash dividend of $12.1875 per share on its 4.875% Fixed Rate Series A Non-Cumulative Perpetual Preferred Stock. This dividend, equal to $0.30468750 per WAFDP depositary share represe...
Regulatory Filings and Compliance
WaFd Provides Investor Presentation Under Regulation FD Disclosure
Neutral
May 5, 2026
WaFd, Inc. has furnished a slide presentation that its executive management plans to use in meetings with institutional investors and industry analysts, making the materials available through the bank’s investor relations website. The compan...
Financial Disclosures
WaFd Schedules Release of Fiscal Q2 2026 Results
Neutral
Apr 2, 2026
On April 2, 2026, WaFd Inc. announced it will release its financial results for the quarter ended March 31, 2026, after the close of business on Thursday, April 16, 2026. The bank will host a conference call for investors and analysts at 7:00 a.m....
Business Operations and StrategyExecutive/Board Changes
Washington Federal Adds Erin Hill to Board
Positive
Mar 2, 2026
On February 27, 2026, WaFd, Inc.’s board appointed veteran financial executive Erin Hill to its board of directors, effective March 2, 2026, filling the vacancy left by David K. Grant after his term expired at the 2026 annual meeting. Hill, ...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Washington Federal Highlights Strategic Shift and Credit Strength
Positive
Feb 23, 2026
On Dec. 31, 2025, WaFd, Inc. furnished an investor slide deck used by executives in meetings with institutional investors and analysts, detailing the bank’s franchise profile, strategy and performance metrics. The materials emphasize WaFd...
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.