10-Q · May 1, 2026
Bank of America reported strong Q1 2026 results, with net income increasing to $8.6 billion and diluted EPS of $1.11. Total revenue improved to $30.3 billion, driven by increases in both net interest income and…
Earnings analysis · 10-Q
BAC earnings analysis
Filed October 30, 2026 · Our reading of the company's report
The latest report
Bank of America delivered 3.2% year-over-year revenue growth to $29.958 billion, supported by higher net interest income and growth in Consumer Banking and Global Wealth & Investment Management. However, diluted EPS…
Read full summary
Bank of America delivered 3.2% year-over-year revenue growth to $29.958 billion, supported by higher net interest income and growth in Consumer Banking and Global Wealth & Investment Management. However, diluted EPS fell 12.5% to $0.91 and net income declined to $6.933 billion, primarily reflecting a $1.2 billion regulatory penalty charge and materially higher litigation and regulatory expenses. Liquidity, deposits, loans and operating cash flow improved, while credit metrics generally strengthened, although management continues to use a downside-weighted economic outlook and reported $243 million of defaults on recently modified commercial loans.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.91
- Operating margin
- 29.93%
What stood out
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Revenue grew 3.2% year over year
Third-quarter revenue increased to $29.958 billion from $29.040 billion, up 3.2% year over year. Net interest income rose to $16.449 billion from $15.233 billion, while noninterest income declined to $13.509 billion from $13.807 billion.
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EPS and operating margin contracted
Diluted EPS declined to $0.91 from $1.04, down 12.5% year over year, and net income fell to $6.933 billion from $8.332 billion. The filing defines operating margin as pretax income divided by revenue; that margin was approximately 29.9% versus 36.0% last year.
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Consumer and wealth segments expanded
Consumer Banking and Global Wealth & Investment Management led segment growth, with revenue up to $11.572 billion from $11.166 billion and $7.118 billion from $6.312 billion, respectively. Global Wealth net income increased to $1.540 billion from $1.265 billion.
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Operating cash generation improved
Operating cash flow for the first nine months was $64.314 billion versus $35.558 billion in the prior-year period. Investing cash flow was $(35.559) billion, and the filing does not separately disclose capital expenditures, so free cash flow cannot be calculated reliably.
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Liquidity and loan balances increased
Cash and cash equivalents increased to $249.643 billion from $231.845 billion at December 31, 2025. Loans and leases grew to $1.251 trillion from $1.186 trillion, while total deposits increased to $2.039 trillion from $2.019 trillion.
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Credit metrics showed improvement
The allowance for credit losses declined by $196 million to $14.2 billion, while commercial reservable criticized exposure decreased to $19.9 billion from $24.7 billion, or 2.49% versus 3.37% of commercial reservable utilized exposure.
What to watch
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Regulatory and litigation costs surged
The Corporation recorded a $1.2 billion non-tax-deductible third-quarter charge for civil money penalties related to regulatory resolutions involving Bank Secrecy Act, anti-money-laundering and economic-sanctions compliance. Total litigation and regulatory investigation expense was $1.3 billion in the quarter versus $59 million last year.
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Downside-weighted macroeconomic outlook
Management said the weighted economic outlook remained downside-weighted and moderately weaker than the consensus baseline. The outlook assumes U.S. unemployment of approximately 5% in Q4 2027 through Q4 2028 and GDP growth of 1.7% in Q4 2027 and 1.9% in Q4 2028.
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Modified commercial loan defaults increased
Commercial loan defaults among loans modified within the prior 12 months were $243 million, compared with an amount that was not significant in the prior-year period. Commercial loans modified during the nine months totaled $3.287 billion, including $1.316 billion of commercial real estate loans.
Management's outlook
No explicit company revenue or EPS guidance was provided in the 10-Q. Management disclosed a downside-weighted credit outlook assuming U.S. unemployment of approximately 5% in Q4 2027 through Q4 2028 and real GDP growth of 1.7% in Q4 2027 and 1.9% in Q4 2028.
Earlier filings 3
10-K · February 25, 2026
Bank of America reports a solid Q4/FY2025 finish with a Q4 net revenue (net of interest expense) of $28,532,000,000 (vs. consensus $27,641,358,760) and diluted EPS of $0.98 (vs. est. $0.96). Capital ratios and…
10-Q · October 31, 2025
Bank of America reported net income of $8.47 billion and diluted EPS of $1.06 for Q3 2025, up from $6.90 billion and $0.81 in Q3 2024, driven by higher net interest income and noninterest income. Total revenue (net of…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.