ABN Amro Investment Solutions lessened its stake in shares of U.S. Bancorp (NYSE:USB – Free Report) by 32.3% in the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 171,205 shares of the financial services provider’s stock after selling 81,756 shares during the period. ABN Amro Investment Solutions’ holdings in U.S. Bancorp were worth $8,904,000 at the end of the most recent reporting period.
Other hedge funds have also added to or reduced their stakes in the company. Paulson Wealth Management Inc. raised its holdings in U.S. Bancorp by 2.0% in the fourth quarter. Paulson Wealth Management Inc. now owns 8,780 shares of the financial services provider’s stock worth $469,000 after buying an additional 173 shares during the last quarter. Flputnam Investment Management Co. grew its holdings in shares of U.S. Bancorp by 1.4% during the fourth quarter. Flputnam Investment Management Co. now owns 13,721 shares of the financial services provider’s stock valued at $732,000 after buying an additional 186 shares during the last quarter. Formidable Asset Management LLC grew its holdings in shares of U.S. Bancorp by 0.8% during the first quarter. Formidable Asset Management LLC now owns 23,373 shares of the financial services provider’s stock valued at $1,247,000 after buying an additional 186 shares during the last quarter. Balboa Wealth Partners increased its position in shares of U.S. Bancorp by 4.0% during the first quarter. Balboa Wealth Partners now owns 4,920 shares of the financial services provider’s stock valued at $256,000 after acquiring an additional 188 shares in the last quarter. Finally, Richmond Investment Services LLC increased its position in shares of U.S. Bancorp by 1.9% during the fourth quarter. Richmond Investment Services LLC now owns 10,107 shares of the financial services provider’s stock valued at $539,000 after acquiring an additional 192 shares in the last quarter. 77.60% of the stock is owned by institutional investors.
U.S. Bancorp Trading Up 1.2% NYSE:USB opened at $64.48 on Thursday. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 0.96. U.S. Bancorp has a 12 month low of $43.46 and a 12 month high of $64.84. The company has a market cap of $100.02 billion, a PE ratio of 12.87, a price-to-earnings-growth ratio of 1.04 and a beta of 0.96. The company has a 50 day simple moving average of $58.48 and a two-hundred day simple moving average of $56.30.
U.S. Bancorp (NYSE:USB – Get Free Report) last announced its earnings results on Thursday, July 16th. The financial services provider reported $1.35 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.07. The business had revenue of $7.71 billion during the quarter, compared to analyst estimates of $7.58 billion. U.S. Bancorp had a net margin of 18.49% and a return on equity of 13.69%. During the same period in the previous year, the business earned $1.11 EPS. Research analysts forecast that U.S. Bancorp will post 5.22 earnings per share for the current year.
U.S. Bancorp Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were given a dividend of $0.52 per share. This represents a $2.08 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date was Tuesday, June 30th. U.S. Bancorp’s dividend payout ratio is 41.52%.
Insiders Place Their Bets In other U.S. Bancorp news, EVP Venkatachari Dilip sold 34,522 shares of the firm’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $55.52, for a total value of $1,916,661.44. Following the transaction, the executive vice president directly owned 51,292 shares of the company’s stock, valued at approximately $2,847,731.84. This trade represents a 40.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.21% of the company’s stock.
Analyst Upgrades and Downgrades Several analysts have commented on USB shares. Raymond James Financial began coverage on U.S. Bancorp in a research note on Wednesday, July 8th. They set a “strong-buy” rating and a $72.00 target price on the stock. Stephens boosted their price target on U.S. Bancorp from $63.00 to $67.00 and gave the stock an “equal weight” rating in a research note on Friday, July 17th. Wells Fargo & Company increased their price objective on U.S. Bancorp from $66.00 to $69.00 and gave the company an “overweight” rating in a research report on Friday, July 17th. JPMorgan Chase & Co. upgraded U.S. Bancorp from an “underweight” rating to a “neutral” rating and lifted their price objective for the stock from $65.00 to $67.50 in a report on Monday. Finally, Evercore raised U.S. Bancorp from an “in-line” rating to an “outperform” rating and set a $72.00 target price for the company in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $67.00.
View Our Latest Analysis on U.S. Bancorp
U.S. Bancorp Profile (Free Report)
U.S. Bancorp (NYSE: USB) is a bank holding company and the parent of U.S. Bank, a national commercial bank that provides a wide range of banking, investment, mortgage, trust and payment services. The company operates through consumer and business banking, commercial banking, payment services, and wealth management segments. Its product set includes deposit accounts, consumer and commercial lending, mortgage origination and servicing, credit and debit card services, treasury and cash management, merchant processing, and institutional and trust services.
Headquartered in Minneapolis, Minnesota, U.S.
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Baader Bank Aktiengesellschaft bought a new position in shares of U.S. Bancorp (NYSE:USB – Free Report) in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 15,013 shares of the financial services provider’s stock, valued at approximately $781,000.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Vanguard Group Inc. lifted its position in U.S. Bancorp by 1.3% during the fourth quarter. Vanguard Group Inc. now owns 146,376,783 shares of the financial services provider’s stock worth $7,810,665,000 after buying an additional 1,828,404 shares in the last quarter. State Street Corp raised its holdings in shares of U.S. Bancorp by 0.8% during the 4th quarter. State Street Corp now owns 69,701,898 shares of the financial services provider’s stock worth $3,755,083,000 after acquiring an additional 522,368 shares during the period. Geode Capital Management LLC boosted its position in shares of U.S. Bancorp by 1.2% during the 4th quarter. Geode Capital Management LLC now owns 37,679,617 shares of the financial services provider’s stock valued at $2,002,518,000 after acquiring an additional 443,646 shares during the last quarter. Norges Bank purchased a new stake in shares of U.S. Bancorp in the fourth quarter valued at about $1,887,497,000. Finally, Auto Owners Insurance Co grew its holdings in shares of U.S. Bancorp by 5,236.0% in the fourth quarter. Auto Owners Insurance Co now owns 33,350,000 shares of the financial services provider’s stock valued at $1,779,556,000 after purchasing an additional 32,725,000 shares during the period. 77.60% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets A number of equities analysts have commented on the stock. Weiss Ratings raised shares of U.S. Bancorp from a “buy (b-)” rating to a “buy (b)” rating in a research note on Monday, May 4th. Keefe, Bruyette & Woods raised their price target on shares of U.S. Bancorp from $63.00 to $66.00 and gave the stock a “market perform” rating in a report on Friday, July 17th. Stephens lifted their price target on shares of U.S. Bancorp from $63.00 to $67.00 and gave the company an “equal weight” rating in a research report on Friday. DA Davidson upped their price objective on U.S. Bancorp from $72.00 to $74.00 and gave the company a “buy” rating in a report on Friday. Finally, Robert W. Baird raised their target price on U.S. Bancorp from $64.00 to $68.00 and gave the stock a “neutral” rating in a research note on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $67.00.
Read Our Latest Report on U.S. Bancorp
Insider Transactions at U.S. Bancorp In other U.S. Bancorp news, EVP Venkatachari Dilip sold 34,522 shares of the business’s stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $55.52, for a total transaction of $1,916,661.44. Following the sale, the executive vice president directly owned 51,292 shares in the company, valued at $2,847,731.84. This represents a 40.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.21% of the stock is owned by company insiders.
U.S. Bancorp Stock Up 0.9% Shares of NYSE USB opened at $63.69 on Wednesday. The company has a quick ratio of 0.82, a current ratio of 0.83 and a debt-to-equity ratio of 0.96. The business’s 50 day moving average is $58.24 and its two-hundred day moving average is $56.22. U.S. Bancorp has a 52-week low of $43.46 and a 52-week high of $64.84. The firm has a market cap of $98.78 billion, a price-to-earnings ratio of 12.71, a PEG ratio of 1.04 and a beta of 0.96.
U.S. Bancorp (NYSE:USB – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The financial services provider reported $1.35 earnings per share for the quarter, beating analysts’ consensus estimates of $1.28 by $0.07. The business had revenue of $7.71 billion during the quarter, compared to analysts’ expectations of $7.58 billion. U.S. Bancorp had a return on equity of 13.69% and a net margin of 18.49%.During the same period in the previous year, the firm posted $1.11 earnings per share. Research analysts predict that U.S. Bancorp will post 5.2 EPS for the current year.
U.S. Bancorp Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were given a $0.52 dividend. This represents a $2.08 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Tuesday, June 30th. U.S. Bancorp’s payout ratio is currently 41.52%.
More U.S. Bancorp News Here are the key news stories impacting U.S. Bancorp this week:
Positive Sentiment: Evercore ISI upgraded U.S. Bancorp (USB) from in-line to outperform and set a $72 price target, pointing to meaningful upside from current levels. The Fly article Positive Sentiment: JPMorgan raised U.S. Bancorp (USB) from underweight to neutral and increased its price target to $67.50, citing growth in fee revenue. Benzinga article Positive Sentiment: Recent commentary highlighted U.S. Bancorp as a strong dividend stock, which may be supporting investor interest in the name. Zacks article Neutral Sentiment: Several recent articles compared USB’s year-to-date performance with other financial stocks, suggesting the stock has been performing solidly relative to peers, but these pieces were mostly informational rather than clearly market-moving. MSN article About U.S. Bancorp (Free Report)
U.S. Bancorp (NYSE: USB) is a bank holding company and the parent of U.S. Bank, a national commercial bank that provides a wide range of banking, investment, mortgage, trust and payment services. The company operates through consumer and business banking, commercial banking, payment services, and wealth management segments. Its product set includes deposit accounts, consumer and commercial lending, mortgage origination and servicing, credit and debit card services, treasury and cash management, merchant processing, and institutional and trust services.
Headquartered in Minneapolis, Minnesota, U.S.
Featured Articles Five stocks we like better than U.S. Bancorp Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding USB? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for U.S. Bancorp (NYSE:USB – Free Report).
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Andra AP fonden lessened its holdings in shares of U.S. Bancorp (NYSE:USB – Free Report) by 8.1% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 310,400 shares of the financial services provider’s stock after selling 27,300 shares during the period. Andra AP fonden’s holdings in U.S. Bancorp were worth $16,144,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Clayton Financial Group LLC acquired a new stake in U.S. Bancorp in the fourth quarter valued at about $25,000. Financial Life Planners acquired a new stake in U.S. Bancorp during the 1st quarter worth approximately $27,000. Main Street Group LTD bought a new stake in U.S. Bancorp during the 1st quarter worth approximately $28,000. Rossby Financial LCC increased its position in U.S. Bancorp by 57.8% in the 4th quarter. Rossby Financial LCC now owns 579 shares of the financial services provider’s stock valued at $31,000 after acquiring an additional 212 shares during the period. Finally, NFSG Corp acquired a new position in U.S. Bancorp in the 1st quarter valued at approximately $31,000. Institutional investors and hedge funds own 77.60% of the company’s stock.
U.S. Bancorp Stock Performance Shares of USB opened at $63.69 on Wednesday. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 0.96. The firm’s fifty day simple moving average is $58.24 and its two-hundred day simple moving average is $56.22. U.S. Bancorp has a 12 month low of $43.46 and a 12 month high of $64.84. The stock has a market capitalization of $98.78 billion, a P/E ratio of 12.71, a price-to-earnings-growth ratio of 1.04 and a beta of 0.96.
U.S. Bancorp (NYSE:USB – Get Free Report) last posted its quarterly earnings data on Thursday, July 16th. The financial services provider reported $1.35 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.07. U.S. Bancorp had a return on equity of 13.69% and a net margin of 18.49%.The firm had revenue of $7.71 billion during the quarter, compared to analyst estimates of $7.58 billion. During the same period last year, the company posted $1.11 EPS. As a group, analysts predict that U.S. Bancorp will post 5.2 EPS for the current year.
U.S. Bancorp Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were paid a $0.52 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $2.08 annualized dividend and a yield of 3.3%. U.S. Bancorp’s payout ratio is 41.52%.
Key Headlines Impacting U.S. Bancorp Here are the key news stories impacting U.S. Bancorp this week:
Positive Sentiment: Evercore ISI upgraded U.S. Bancorp (USB) from in-line to outperform and set a $72 price target, pointing to meaningful upside from current levels. The Fly article Positive Sentiment: JPMorgan raised U.S. Bancorp (USB) from underweight to neutral and increased its price target to $67.50, citing growth in fee revenue. Benzinga article Positive Sentiment: Recent commentary highlighted U.S. Bancorp as a strong dividend stock, which may be supporting investor interest in the name. Zacks article Neutral Sentiment: Several recent articles compared USB’s year-to-date performance with other financial stocks, suggesting the stock has been performing solidly relative to peers, but these pieces were mostly informational rather than clearly market-moving. MSN article Wall Street Analyst Weigh In A number of equities analysts have recently commented on the stock. Raymond James Financial started coverage on shares of U.S. Bancorp in a report on Wednesday, July 8th. They set a “strong-buy” rating and a $72.00 price target on the stock. Royal Bank Of Canada increased their price objective on U.S. Bancorp from $61.00 to $68.00 and gave the company an “outperform” rating in a report on Friday, July 17th. Citigroup reaffirmed a “buy” rating on shares of U.S. Bancorp in a research report on Tuesday. CLSA set a $67.50 price target on U.S. Bancorp in a research report on Monday. Finally, Wall Street Zen raised U.S. Bancorp from a “sell” rating to a “hold” rating in a research note on Monday, July 6th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $67.00.
Read Our Latest Stock Report on U.S. Bancorp
Insider Activity In other news, EVP Venkatachari Dilip sold 34,522 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $55.52, for a total transaction of $1,916,661.44. Following the completion of the sale, the executive vice president owned 51,292 shares of the company’s stock, valued at $2,847,731.84. This trade represents a 40.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.21% of the company’s stock.
U.S. Bancorp Company Profile (Free Report)
U.S. Bancorp (NYSE: USB) is a bank holding company and the parent of U.S. Bank, a national commercial bank that provides a wide range of banking, investment, mortgage, trust and payment services. The company operates through consumer and business banking, commercial banking, payment services, and wealth management segments. Its product set includes deposit accounts, consumer and commercial lending, mortgage origination and servicing, credit and debit card services, treasury and cash management, merchant processing, and institutional and trust services.
Headquartered in Minneapolis, Minnesota, U.S.
See Also Five stocks we like better than U.S. Bancorp Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Minneapolis, U.S. Bancorp (USB - Free Report) is a Finance stock that has seen a price change of 18.33% so far this year. The company is currently shelling out a dividend of $0.52 per share, with a dividend yield of 3.29%. This compares to the Banks - Major Regional industry's yield of 2.74% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, U.S. Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. U.S. Bancorp's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.
USB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.18 per share, which represents a year-over-year growth rate of 12.12%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that USB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is U.S. Bancorp (USB - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
U.S. Bancorp is a member of our Finance group, which includes 880 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. U.S. Bancorp is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for USB's full-year earnings has moved 1.9% higher within the past quarter. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, USB has gained about 18.3% so far this year. Meanwhile, stocks in the Finance group have gained about 6.1% on average. This means that U.S. Bancorp is performing better than its sector in terms of year-to-date returns.
Another stock in the Finance sector, Bay Commercial Bank (BCML - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 15.5%.
In Bay Commercial Bank's case, the consensus EPS estimate for the current year increased 3.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, U.S. Bancorp belongs to the Banks - Major Regional industry, a group that includes 9 individual stocks and currently sits at #20 in the Zacks Industry Rank. On average, stocks in this group have gained 22.5% this year, meaning that USB is slightly underperforming its industry in terms of year-to-date returns.
In contrast, Bay Commercial Bank falls under the Banks - West industry. Currently, this industry has 26 stocks and is ranked #44. Since the beginning of the year, the industry has moved +14.1%.
Investors interested in the Finance sector may want to keep a close eye on U.S. Bancorp and Bay Commercial Bank as they attempt to continue their solid performance.
U.S. Bancorp (NYSE:USB) reported upbeat second-quarter 2026 results and raised its full-year revenue outlook on Thursday.
Adjusted earnings came in at $1.35 per share, topping the analyst consensus estimate of $1.28. Revenue rose to $7.69 billion, ahead of the $7.58 billion consensus estimate.
U.S. Bancorp raised its fiscal 2026 revenue guidance to $30.71 billion-$31.28 billion from $29.85 billion-$30.42 billion. The updated range compares with the $30.56 billion analyst estimate.
Management maintained medium-term targets for mid-single-digit fee revenue growth, an efficiency ratio in the mid-to-high 50% range, and return on average assets of 1.15% to 1.35%.
U.S. Bancorp shares gained 0.3% to $64.20 in pre-market trading.
These analysts made changes to their price targets on U.S. Bancorp following earnings announcement.
Baird analyst David George maintained U.S. Bancorp with a Neutral and raised the price target from $64 to $68. Barclays analyst Jason Goldberg maintained the stock with an Overweight rating and raised the price target from $67 to $75. RBC Capital analyst Gerard Cassidy maintained the stock with an Outperform rating and raised the price target from $61 to $68. Considering buying USB stock? Here’s what analysts think:
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U.S. Bancorp (USB) Q2 2026 Earnings Call July 16, 2026 8:00 AM EDT
Company Participants
Brian Mauney - Head of Investor Relations
Gunjan Kedia - President, CEO & Chairman
John Stern - Vice Chair & Chief Financial Officer
Conference Call Participants
L. Erika Penala - UBS Investment Bank, Research Division
John Pancari - Evercore ISI Institutional Equities, Research Division
John McDonald - Truist Securities, Inc., Research Division
Ebrahim Poonawala - BofA Securities, Research Division
Michael Mayo - Wells Fargo Securities, LLC, Research Division
Kenneth Usdin - Bernstein Autonomous LLP
Gerard Cassidy - RBC Capital Markets, Research Division
Manan Gosalia - Morgan Stanley, Research Division
Christopher McGratty - Keefe, Bruyette, & Woods, Inc., Research Division
Saul Martinez - HSBC Global Investment Research
David Chiaverini - Jefferies LLC, Research Division
Vivek Juneja - JPMorgan Chase & Co, Research Division
Matthew O'Connor - Deutsche Bank AG, Research Division
Presentation
Operator
Welcome to the U.S. Bancorp Second Quarter 2026 Earnings Conference Call. [Operator Instructions] This call will be recorded and available for replay beginning today at approximately 10:00 a.m. Central Time.
I will now turn the conference over to Brian Mauney, Director of Investor Relations for U.S. Bancorp.
Brian Mauney
Head of Investor Relations
Thank you, Krista, and good morning, everyone. Today, I'm joined by our Chairman and Chief Executive Officer, Gunjan Kedia; and Vice Chair and Chief Financial Officer, John Stern. In a moment, Gunjan and John will be referencing a slide presentation together with their prepared remarks. A copy of the presentation, our press release and supplemental analyst schedules can be found on our website at ir.usbank.com.
Please note that any forward-looking statements made during today's call are subject to risk and uncertainty. Factors that could materially change our current forward-looking assumptions are described on Page 2 of today's earnings presentation, our press release and reports on file with the SEC. Following our prepared remarks, Gunjan and John
For the quarter ended June 2026, U.S. Bancorp (USB - Free Report) reported revenue of $7.71 billion, up 10.1% over the same period last year. EPS came in at $1.35, compared to $1.11 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $7.62 billion, representing a surprise of +1.26%. The company delivered an EPS surprise of +5.47%, with the consensus EPS estimate being $1.28.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how U.S. Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest margin (taxable-equivalent basis): 2.8% versus the four-analyst average estimate of 2.8%.Total nonperforming assets: $1.35 billion versus the four-analyst average estimate of $1.63 billion.Total nonperforming loans: $1.3 billion compared to the $1.57 billion average estimate based on four analysts.Net charge-off ratio: 0.5% versus 0.6% estimated by four analysts on average.Average Balances - Earning assets: $629 billion compared to the $633.73 billion average estimate based on four analysts.Book value per common share: $38.91 versus $38.68 estimated by four analysts on average.Efficiency Ratio: 57.1% compared to the 57.2% average estimate based on three analysts.Tier 1 Capital Ratio: 12.2% versus 12.3% estimated by two analysts on average.Leverage ratio: 8.9% compared to the 8.9% average estimate based on two analysts.Total Noninterest Income: $3.33 billion compared to the $3.28 billion average estimate based on four analysts.Net interest income (taxable-equivalent basis): $4.39 billion versus the four-analyst average estimate of $4.36 billion.Mortgage banking revenue: $169 million versus $163 million estimated by three analysts on average.View all Key Company Metrics for U.S. Bancorp here>>>
Shares of U.S. Bancorp have returned +8.8% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Key Takeaways U.S. Bancorp beat Q2 earnings and revenue estimates on higher NII and broad-based fee income growth.USB's BTIG acquisition lifted capital markets revenues and expanded institutional capabilities.USB plans a 4% dividend increase after stress-test clearance and continued share repurchases. U.S. Bancorp (USB - Free Report) has reported second-quarter 2026 earnings per share of $1.35, topping the Zacks Consensus Estimate by 5.5%. The bottom line increased 21.6% from $1.11 in the year-ago quarter.
Results were supported by higher net interest income (NII), broad-based fee revenue growth and strong loan growth, while the company posted positive operating leverage of 400 basis points. The BTIG acquisition (completed in June 2026) also contributed to capital markets revenue growth and expanded the company’s institutional capabilities. However, a rise in provision was concerning.
Net income attributable to U.S. Bancorp was $2.18 billion, up 19.9% from the prior-year quarter.
USB Revenue Mix Improves on Higher NII & Fee GrowthNet revenues reached a record level of $7.71 billion in the second quarter, rising 10.1% year over year and surpassing the consensus estimate by 1.3%.
Tax-equivalent NII was $4.39 billion, up 7.5% from the prior-year period. Management attributed the improvement to loan growth, a better earning-asset mix and fixed-asset repricing benefits. The net interest margin expanded 13 basis points year over year to 2.79%.
Non-interest income totaled $3.33 billion, rising 13.7% from the year-ago quarter. Growth was driven by higher revenues across all fee categories, including card revenues, corporate payment and treasury management revenues, trust and investment management fees, lending and deposit-related fees, and capital markets revenues. Capital markets revenues benefited from the BTIG acquisition, increased client-related derivative activity, higher corporate bond underwriting fees and favorable market conditions.
U.S. Bancorp Expenses Rise, Efficiency StrengthensNon-interest expenses were $4.43 billion, up 5.9% from the year-ago quarter. The impacts of the BTIG acquisition, higher compensation and employee benefits expenses, technology and communications expenses, marketing and business development initiatives, and other expenses led to the rise.
The company’s efficiency ratio declined to 57.1% from 59.2% a year ago, indicating improvement in profitability.
USB Balance Sheet Expands With Loan & Deposit GrowthAverage total loans increased 3% sequentially to $405.48 billion and advanced 7.1% year over year, reflecting broad-based growth in key categories.
Average total deposits were $515.08 billion, essentially flat with the prior quarter and up 2.4% year over year.
U.S. Bancorp Credit Trends: Mixed BagProvision for credit losses was $538 million, up 7.4% from the year-ago quarter, primarily reflecting loan portfolio growth. Total net charge-offs were $536 million, down from $554 million a year earlier, and the net charge-off ratio was 0.53% versus 0.59% in the prior-year quarter.
The allowance for credit losses increased to $7.98 billion as of June 30, 2026, from $7.86 billion a year earlier. Non-performing assets were $1.35 billion, down from $1.68 billion as of June 30, 2025.
U.S. Bancorp Capital Levels SolidCapital levels remained solid. The Basel III standardized CET1 capital ratio was 10.8% at the quarter end, up from 10.7% in the year-ago period.
The tier 1 capital ratio was 12.2%, down from 12.3% in the prior year. The leverage ratio was 8.9%, up from 8.5% in the year-ago quarter.
The tangible common equity to tangible assets ratio was 6.6%, up from the prior-year quarter’s 6.1%.
During the quarter, U.S. Bancorp repurchased 3 million shares and continued repurchases under its $5-billion common stock repurchase authorization. Post clearing the 2026 stress test, the company also plans to increase its quarterly common stock dividend 4% to 54 cents per share in the third quarter of 2026, subject to board approval.
Our Take on USBU.S. Bancorp’s diversified revenue streams, solid loan growth and improving credit quality continue to support its strong financial performance. Growth in NII and non-interest income, coupled with improved efficiency, bodes well for future profitability. The completion of the BTIG acquisition expanded USB’s capital markets capabilities and provided opportunities to deepen relationships with corporate and institutional clients. Although provisions rose in the second quarter of 2026, U.S. Bancorp remains focused on delivering sustainable growth, attractive returns and long-term shareholder value.
Currently, U.S. Bancorp carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other StocksRegions Financial (RF - Free Report) is scheduled to release second-quarter 2026 earnings on July 17.
The consensus estimate for RF’s quarterly earnings has been unchanged at 64 cents per share over the past seven days. This indicates a 6.7% increase from the year-ago reported level.
Truist Financial (TFC - Free Report) is slated to report second-quarter 2026 results on July 17.
Over the past seven days, the Zacks Consensus Estimate for TFC’s quarterly earnings has been unchanged at $1.08 per share. This indicates an 18.7% increase from the year-ago reported level.
On July 16, 2026, U.S. Bancorp (USB) released its 8-K filing, showcasing a solid fiscal performance in the second quarter of 2026. The bank reported net income
U.S. Bancorp (USB - Free Report) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.47%. A quarter ago, it was expected that this company would post earnings of $1.14 per share when it actually produced earnings of $1.18, delivering a surprise of +3.51%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
U.S. Bancorp, which belongs to the Zacks Banks - Major Regional industry, posted revenues of $7.71 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.26%. This compares to year-ago revenues of $7 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
U.S. Bancorp shares have added about 18.1% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for U.S. Bancorp?While U.S. Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for U.S. Bancorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.31 on $7.85 billion in revenues for the coming quarter and $5.11 on $30.65 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Major Regional is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Fifth Third Bancorp (FITB - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 17.
This company is expected to post quarterly earnings of $0.98 per share in its upcoming report, which represents a year-over-year change of +8.9%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Fifth Third Bancorp's revenues are expected to be $3.25 billion, up 44.8% from the year-ago quarter.
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bancorp reported its second quarter 2026 results today. The earnings release, earnings supplement and slide presentation can be accessed online at ir.usbank.com/investor-relations/financial-information.
At 7 a.m. Central Time, Chief Executive Officer Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern will host a conference call to review the financial results. The conference call will be available online or by telephone. To access the webcast and presentation, visit U.S. Bancorp’s website at usbank.com and click on “About Us,” “Investor Relations” and choose “Webcasts & Presentations” from the “News & events” dropdown menu To access the conference call from locations within the United States and Canada, please dial 888-210-4659. Participants calling from outside the United States and Canada, please dial 646-960-0383. The access code for all participants is 7269933.
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association the fifth-largest commercial bank in the United States. The company’s three major business lines serve 15 million clients globally, and its team of nearly 70,000 people invest their hearts and minds to power human potential every day. Ranked 110th in the Fortune 500, U.S. Bancorp is deeply respected for its culture and long-term stewardship and admired for its diversified business mix and product capabilities.
Choosing between the iShares U.S. Regional Banks ETF (IAT +0.08%) and the iShares U.S. Financials ETF (IYF +0.26%) comes down to a simple trade-off -- concentrated exposure to regional banking versus broad diversification across the entire financial sector.
IAT focuses strictly on regional banking institutions, while IYF casts a wider net that includes mega-cap banks, insurers, and investment firms. Both funds are managed by iShares and have identical management fees, so the decision really hinges on how much sector-specific risk an investor is willing to take on.
Snapshot (cost & size)MetricIATIYFExpense ratio0.38%0.38%1-year return (as of July 13, 2026)24.89%11.61%Dividend yield2.60%1.50%Beta1.230.82AUM$656.0 million$3.9 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Both funds charge an identical 0.38% expense ratio, so cost isn't a differentiator here. When it comes to income, however, there’s a clear winner: IAT pays a 2.6% dividend yield, well above the 1.4% offered by IYF.
Performance & risk comparisonMetricIATIYFMax drawdown (5 yr)(55.53%)(25.05%)Growth of $1,000 over 5 years (total return)$1,298$1,766IAT's concentration in regional banks has historically made it far more volatile than IYF, including a maximum drawdown of more than 55% during past banking-sector stress. IYF's broader mix of banks, insurers, and asset managers has helped cushion it from the kind of sharp swings that hit regional lenders hardest, resulting in comparatively lower volatility and shallower drawdowns over time.
What's insideLaunched in 2000, IYF tracks a broad basket of financial services companies, spread across 142 holdings. Its top positions include Berkshire Hathaway (BRKB +0.59%) at 11.7%, JPMorgan Chase (JPM 0.58%) at 11.0%, and Bank of America (BAC 0.32%) at 4.6%.
IAT, by contrast, is a pure-play bet on regional banking with just 31 holdings. Its top positions -- PNC Financial Services Group (PNC +0.37%) at 15.0%, U.S. Bancorp (USB 0.11%) at 14.2%, and Truist Financial Corp (TFC +0.50%) at 9.4% -- make up a much larger share of the fund than IYF's top holdings do. IAT was launched in 2006.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investorsThis comparison is really a question of how much conviction an investor has in regional banks. Regional lenders tend to be more sensitive to local economic conditions, interest-rate swings, and credit-quality concerns than the diversified giants that dominate IYF -- think Berkshire Hathaway and JPMorgan Chase, companies with multiple business lines that can offset weakness in any one area. That's a big part of why IAT has historically seen much deeper drawdowns than IYF.
That doesn’t make IAT a bad choice -- higher risk often comes with higher potential reward, and you get a higher dividend yield with IAT as well. But investors who want financial-sector exposure without betting heavily on the health of regional lenders may prefer IYF's broader mix of banks, insurers, and asset managers.
This comparison is also a useful reminder that not all financial sector ETFs are created equal. A fund's concentration -- not just its sector classification -- often tells you more about what kind of ride you're signing up for. Investors who are seeking income and comfortable with volatility may lean toward IAT, while those prioritizing stability might find IYF the more comfortable fit.
Bank of America is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Andy Gould has positions in Berkshire Hathaway, Truist Financial, and U.S. Bancorp. The Motley Fool has positions in and recommends Berkshire Hathaway, JPMorgan Chase, Truist Financial, and U.S. Bancorp. The Motley Fool has a disclosure policy.
Analysts on Wall Street project that U.S. Bancorp (USB - Free Report) will announce quarterly earnings of $1.28 per share in its forthcoming report, representing an increase of 15.3% year over year. Revenues are projected to reach $7.62 billion, increasing 8.7% from the same quarter last year.
Over the last 30 days, there has been an upward revision of 0.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific U.S. Bancorp metrics that are commonly monitored and projected by Wall Street analysts.
Based on the collective assessment of analysts, 'Total nonperforming assets' should arrive at $1.63 billion. Compared to the current estimate, the company reported $1.68 billion in the same quarter of the previous year.
The consensus among analysts is that 'Total nonperforming loans' will reach $1.57 billion. The estimate is in contrast to the year-ago figure of $1.64 billion.
The collective assessment of analysts points to an estimated 'Average Balances - Earning assets' of $633.73 billion. The estimate is in contrast to the year-ago figure of $613.34 billion.
The average prediction of analysts places 'Book value per common share' at $38.68 . The estimate is in contrast to the year-ago figure of $35.06 .
Analysts forecast 'Efficiency Ratio' to reach 57.2%. The estimate compares to the year-ago value of 59.2%.
The consensus estimate for 'Tier 1 Capital Ratio' stands at 12.3%. Compared to the present estimate, the company reported 12.3% in the same quarter last year.
The combined assessment of analysts suggests that 'Leverage ratio' will likely reach 8.9%. The estimate compares to the year-ago value of 8.5%.
It is projected by analysts that the 'Total Noninterest Income' will reach $3.28 billion. The estimate compares to the year-ago value of $2.92 billion.
Analysts' assessment points toward 'Net interest income (taxable-equivalent basis)' reaching $4.36 billion. The estimate compares to the year-ago value of $4.08 billion.
According to the collective judgment of analysts, 'Mortgage banking revenue' should come in at $163.00 million. The estimate compares to the year-ago value of $162.00 million.
Analysts expect 'Other- noninterest income' to come in at $128.08 million. The estimate is in contrast to the year-ago figure of $192.00 million.
Analysts predict that the 'Net Interest Income' will reach $4.34 billion. The estimate compares to the year-ago value of $4.05 billion.
View all Key Company Metrics for U.S. Bancorp here>>>
Over the past month, shares of U.S. Bancorp have returned +5.9% versus the Zacks S&P 500 composite's +4.3% change. Currently, USB carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at U.S. Bancorp (USB - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. U.S. Bancorp currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for USB that show why this company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For USB, shares are up 1.35% over the past week while the Zacks Banks - Major Regional industry is up 1.35% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.41% compares favorably with the industry's 5.84% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of U.S. Bancorp have increased 11.57% over the past quarter, and have gained 30.12% in the last year. On the other hand, the S&P 500 has only moved 10.84% and 21.72%, respectively.
Investors should also take note of USB's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now USB is averaging 8,819,863 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with USB.
Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost USB's consensus estimate, increasing from $5.09 to $5.11 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that USB is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep U.S. Bancorp on your short list.
Investors interested in stocks from the Banks - Major Regional sector have probably already heard of U.S. Bancorp (USB) and BNY (BNY). But which of these two stocks offers value investors a better bang for their buck right now?
The market expects U.S. Bancorp (USB - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 16. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $1.28 per share in its upcoming report, which represents a year-over-year change of +15.3%.
Revenues are expected to be $7.62 billion, up 8.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.5% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for U.S. Bancorp?For U.S. Bancorp, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.36%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that U.S. Bancorp will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that U.S. Bancorp would post earnings of $1.14 per share when it actually produced earnings of $1.18, delivering a surprise of +3.51%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
U.S. Bancorp appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAnother stock from the Zacks Banks - Major Regional industry, M&T Bank Corporation (MTB - Free Report) , is soon expected to post earnings of $4.66 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +8.9%. Revenues for the quarter are expected to be $2.48 billion, up 3.5% from the year-ago quarter.
The consensus EPS estimate for M&T Bank has been revised 0.9% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.13%.
When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that M&T Bank will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Investors looking for stocks in the Banks - Major Regional sector might want to consider either U.S. Bancorp (USB - Free Report) or BNY (BNY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both U.S. Bancorp and BNY are holding a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
USB currently has a forward P/E ratio of 12.32, while BNY has a forward P/E of 17.16. We also note that USB has a PEG ratio of 1.08. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. BNY currently has a PEG ratio of 1.10.
Another notable valuation metric for USB is its P/B ratio of 1.64. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, BNY has a P/B of 2.63.
These are just a few of the metrics contributing to USB's Value grade of B and BNY's Value grade of F.
Both USB and BNY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that USB is the superior value option right now.
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank today announced the launch of Enhanced Payments, a new bundled solution that helps small business owners move money quickly and more affordably – directly within U.S. Bank online banking and the bank's mobile app. Enhanced Payments brings advanced money movement capabilities into the existing digital banking experience, helping businesses save time and reduce costs. Businesses can complete international wires digitally rather than at a branch and move mon.
U.S. Bank has introduced a tool to help small businesses move money faster.
Enhanced Payments, announced Wednesday (July 8), is offered through the bank’s mobile app and online banking platform and designed to help businesses save time and lower costs.
“Businesses can complete international wires digitally rather than at a branch and move money quickly with convenient options such as same-day ACH and instant payments,” U.S. Bank said in a news release provided to PYMNTS.
“With lower per-transaction fees, secure anytime/anywhere access, and multiple payment options – including ACH, wires, and instant payments – the bundled solution gives business owners more control and clarity over their cash flow.”
The release adds that the launch is part of a larger strategy by the bank to provide improved solutions for business owners, letting them monitor their accounts, move money, and conduct other activities from a single digital interface.
In addition to Enhanced Payments, U.S. Bank is debuting features for all online banking business users. These updates include transaction limits designed for growing small businesses and tools to help owners pick the money movement option that best works for them.
“By integrating advanced money movement capabilities directly into online banking, we’re helping clients move money quickly and conveniently,” said Shruti Patel, chief product officer for business banking at U.S. Bank.
“This solution not only saves time and reduces costs, but it also gives business owners the flexibility and clarity they need to manage payments with confidence as they grow.”
The launch comes as American small and medium-sized businesses (SMBs) are facing some of the same responsibilities as their larger counterparts, as PYMNTS wrote last week.
“As international sourcing becomes routine rather than exceptional, America’s small businesses are inheriting enterprise finance responsibilities ranging from foreign exchange management to supplier liquidity and cross-border cash flow,” that report said.
Research from the PYMNTS Intelligence/Mastercard collaboration “The Cross-Border Opportunity: What Global Sourcing by US SMBs Means for Payment Providers” showed 57% of SMBs now buying goods or production inputs from overseas suppliers.
In addition, close to three-quarters of firms that generate between $1 million and $10 million in annual revenue source internationally. Even among businesses taking in less than $150,000 per year, more than 40% now buy from foreign suppliers.
“The shift is redefining what modern SMB finance teams are expected to do,” PYMNTS added.
On July 07, 2026, we present a detailed DCF analysis for U.S. Bancorp (USB), a financial institution that has shown notable price performance recently:
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Minneapolis, U.S. Bancorp (USB - Free Report) is a Finance stock that has seen a price change of 15.69% so far this year. The company is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.37% compared to the Banks - Major Regional industry's yield of 2.68% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, U.S. Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. U.S. Bancorp's current payout ratio is 44%, meaning it paid out 44% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for USB for this fiscal year. The Zacks Consensus Estimate for 2026 is $5.09 per share, which represents a year-over-year growth rate of 10.17%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that USB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider U.S. Bancorp (USB - Free Report) . This company, which is in the Zacks Banks - Major Regional industry, shows potential for another earnings beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.70%.
For the last reported quarter, U.S. Bancorp came out with earnings of $1.18 per share versus the Zacks Consensus Estimate of $1.14 per share, representing a surprise of 3.51%. For the previous quarter, the company was expected to post earnings of $1.19 per share and it actually produced earnings of $1.26 per share, delivering a surprise of 5.88%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for U.S. Bancorp lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
U.S. Bancorp currently has an Earnings ESP of +0.81%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 16, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
New research reveals generational shift toward open financial conversations, highlights importance of family banking tools
MINNEAPOLIS--(BUSINESS WIRE)--A new study from U.S. Bank, conducted in partnership with Morning Consult, shows a major generational shift in how families approach conversations about money, reshaping financial education at home. While many Americans grew up in households where money was rarely discussed, today’s parents are rewriting the playbook, starting earlier and talking more openly with their children.
“Today’s parents are the first generation where a majority are choosing to have open conversations with their kids about money – and at an early age."
Share The survey of more than 3,000 U.S. adults found that about half said money was rarely or never discussed growing up. Older generations were less likely to have had those conversations. However, today’s parents report more comfort talking about money with their kids and a growing focus on helping them build financial skills early.
“Today’s parents are the first generation where a majority are choosing to have open conversations with their kids about money – and at an early age,” said Arijit Roy, head of consumer and business banking products at U.S. Bank. “These findings underscore our continued focus on empowering families with tools to start money conversations and offer real-world experience with money, so the next generation can make smarter financial decisions sooner.”
Key findings:
Less than half (49%) of Baby Boomers said money was discussed growing up, compared with 62% of Gen Z who report having those conversations. Nearly 9 in 10 parents said they feel comfortable talking to their children about money, signaling a significant shift toward transparency and early financial education. About two-thirds of parents said they have already started, or plan to start, teaching basic money management concepts before their children turn 12. More than 9 in 10 said it’s important that children learn how to save, budget and set financial goals. Nearly 9 in 10 said how they model spending and saving habits is one of the most influential factors shaping their children’s financial understanding — ranking higher than schools, peers, or social media. At the same time, the research shows a gap between intent and action. While parents increasingly recognize the importance of early financial education, only about half have opened a youth bank account for their child. Among parents who haven’t opened an account, the biggest barrier isn’t cost or complexity – it’s uncertainty. Almost a quarter of parents said their child isn’t ready yet, while more than 1 in 10 said they don’t know where to start or which option to choose.
U.S. Bank + Greenlight: Turning Talk into Action
To help address the gap, U.S. Bank partners with family tech company Greenlight to provide tools that support hands-on financial learning for families.
The Greenlight app and debit card help kids and teens learn concepts like saving, spending, and budgeting in a structured, real-world way, while giving parents visibility and control. U.S. Bank clients with eligible checking accounts receive complimentary access through the U.S. Bank Mobile App, a $69 annual value.
Visit usbank.com/greenlight for more information on how to get started.
About the Survey
This survey was conducted online by Morning Consult from April 21-23, 2026, among a nationally representative sample of 3,004 U.S. adults, including 763 parents or guardians of children under 18 living in their household. Results were weighted to reflect the U.S. population.
About U.S. Bank
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients globally, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 110th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
About Greenlight
Greenlight Financial Technology is a fintech company on a mission to help families navigate money and life together. Best known for its debit card and money app for kids and teens, Greenlight has grown into an all-in-one family finance and safety platform designed for every stage of life. Its award-winning app brings together spending, saving, investing, financial education, and flexible controls in one place, while also helping protect older family members from financial and digital risks. With real-time alerts, location sharing, emergency services, driving reports††, and integration with its GPS-enabled safety devices, Greenlight delivers a connected solution for the entire household.
Greenlight partners with more than 200 leading banks, credit unions, and employers to bring its family finance solution to more families through the Greenlight for Banks, Greenlight for Credit Unions, and Greenlight for Work programs.
Disclosures:
The Greenlight Debit Card is issued by Community Federal Savings Bank, member FDIC, pursuant to license by Mastercard International. Greenlight Investment Advisors, LLC, an SEC Registered Investment Advisor, provides investment advisory services to its clients. Investing involves risk and may include the loss of principal. Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Greenlight's bank partners. For more information, please visit: greenlight.com.
††Requires mobile data or a WiFi connection, and access to sensory and motion data from cell phone to utilize safety features including family location sharing and driving alerts and reports. Messaging and data rates and other terms may apply.
U.S. Bank customers are eligible to receive the Greenlight Select plan complimentary when an eligible U.S. Bank checking account (excludes Safe Debit and Electronic Transfer accounts) is added as a funding source. You are required to be an authorized transactor on the U.S. Bank account, be at least 18 years of age, and be enrolled in online banking. Your U.S. Bank checking account(s) must be the preferred funding source for your Greenlight account for the entirety of the partnership. If your U.S. Bank checking account(s) cease to be the preferred funding source for your Greenlight account or you add a funding source that is not an eligible U.S. Bank checking account, you may be charged a monthly fee by Greenlight. In-app upgrades will result in additional fees. Subject to Greenlight identity verification. See terms at greenlight.com/terms for additional information. Offer subject to change. Greenlight is a financial technology company, not a bank. The Greenlight app facilitates banking services through Community Federal Savings Bank (CFSB), Member FDIC. The Greenlight Mastercard is issued by Community Federal Savings Bank, Member FDIC, pursuant to license by Mastercard International.
MINNEAPOLIS--(BUSINESS WIRE)--The latest quarterly U.S. Bank Freight Payment Index – Rates Edition showed truck freight rates rising considerably in April and May. Produced in collaboration with DAT Freight & Analytics, the data revealed that spot rates were up 31.29% in May compared with a year earlier, reflecting a significant acceleration over the past several months. Contract rates increased 9% year over year. Spot rates increased from $1.89 per mile in March to $1.95 in April and climb.
NYSE issues a pre-market daily advisory direct from the trading floor. NEW YORK, June 26, 2026 /PRNewswire/ -- The New York Stock Exchange (NYSE) provides a daily pre-market update directly from the NYSE Trading Floor.
USB.PR.H, a fixed-then-floating preferred from U.S. Bancorp, stands out amid stagflationary risks and rising rates. The floating rate structure of USB.PR.H offers increasing payouts as SOFR rises, directly benefiting from higher interest rates. USB.PR.H trades at a nearly 25% discount to par, with minimal call risk and a strong payment record.
Key Takeaways USB passed the Fed's 2026 stress test, while its SCB will remain unchanged at 2.6% until Oct. 1, 2027.U.S. Bancorp intends to raise its quarterly dividend by 3.8% to 54 cents per share.USB's CET1 ratio of 10.8% exceeded the 7.1% minimum, supporting capital returns and growth. Following the release of the Federal Reserve's 2026 stress test, U.S. Bancorp (USB - Free Report) outlined its planned capital actions and reaffirmed its strong capital position. According to the Fed’s stress test results released yesterday, USB is among the 32 U.S. banks that successfully passed the test.
Based on the 2026 stress test results, USB's stress capital buffer (SCB) would have been subject to the regulatory floor of 2.5%. However, as announced by the Fed in February 2026, stress test-related capital buffer requirements will remain unchanged through 2027 while the agency reviews public feedback on its supervisory models. As such, the company's SCB will remain unchanged at 2.6% until Oct. 1, 2027.
Including the Basel III minimum common equity Tier 1 (CET1) capital requirement of 4.5%, USB is also required to maintain a CET1 ratio of at least 7.1%. As of March 31, 2026, the company's CET1 ratio was 10.8%, significantly above the required minimum level. This underlines the capital strength of USB and enables the bank to undertake organic growth initiatives and continue capital payouts.
As part of its planned capital actions, U.S. Bancorp intends to raise its quarterly common stock dividend by 3.8% to 54 cents per share from 52 cents, subject to board approval. The higher dividend is expected to become effective in the third quarter of 2026.
Based on yesterday's closing price of $60.10, its current dividend yield stands at 3.5% compared with the industry's 2.7%. Over the past five years, the company has increased its dividend five times.
Dividend Yield
Image Source: Zacks Investment Research
Apart from dividends, USB continues to return capital through share repurchases. In September 2024, the board authorized a share repurchase program of up to $5 billion of common stock. As of March 31, 2026, nearly $4.1 billion remained available under the authorization.
U.S. Bancorp also maintains a decent liquidity position. As of March 31, 2026, cash and due from banks were $48.4 billion, while short-term borrowings and long-term debt totaled $17.9 billion and $61.4 billion, respectively.
Driven by strong capital levels, earnings strength and solid liquidity, USB is expected to sustain its capital distribution activities and continue enhancing shareholder value. The planned dividend increase and significant remaining share repurchase capacity reflect management's confidence in the company's financial position and long-term growth prospects.
Other Firms Set to Raise Dividends After 2026 Stress TestSome other participants from the stress test that are enhancing capital distribution plans following the results are Wells Fargo (WFC - Free Report) and Goldman Sachs (GS - Free Report) .
Wells Fargo intends to raise its third-quarter 2026 common stock dividend by 11% to 50 cents per share from 45 cents, subject to board approval. Goldman Sachs plans to increase its quarterly common dividend by 11% to $5 per share from $4.50 beginning July 1, 2026, subject to approval at its scheduled third-quarter board meeting.
USB’s Price Performance and Zacks RankOver the past six months, shares of US Bancorp have rallied 9.3% compared with the industry’s growth of 12.5%.
Price Performance
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
1. Micron Pops on Data Center Demand Micron (MU 1.32%) rose around 17% ahead of the market open as quarterly results showed exceptional demand, with core data center business sales climbing more than sevenfold versus last year, as the memory supply crunch remains a focal point.
"Our customers are recognizing that supply shortages in memory and storage will take considerable time to improve": CEO Sanjay Mehrotra now expects industry supply to improve only in 2028, with data center operators and other clients now signing three- to five-year deals with Micron to secure capacity. Gross margin came in ahead of expectations at 84.56%: Micron's profit margin indicates the unprecedented pricing power it currently has due to the global shortage of memory chips, along with the operational leverage from production. A year ago, the gross margin stood at 39%. 2. Global Chip Stocks Lift Market Sentiment Nasdaq futures jumped about 2%, with AI chip stocks benefiting from Micron's tailwind and a rebound in positive sentiment from Asia. Korean chip giant SK Hynix rose 13% as plans to raise funds from a U.S. stock listing gained momentum.
SK Hynix listing could be a double-edged sword for Micron: Given the cheaper relative valuation of SK Hynix, a U.S. listing could see capital flow from Micron into the stock. However, it could boost overall exposure for the sector, a net benefit for Micron stock. "I'm struck by the idea that they are claiming a historically cyclical hardware market is not anymore": In May, Fool contributing analyst Toby Bordelon mused about a UBS (UBS 1.85%) report on chip stocks, noting the theme that "this time, it's different," but ultimately warned "I am concerned about the valuation of Micron itself."
3. Wall Street Passes Fed Stress Test
Major U.S. banks including JPMorgan (JPM 0.21%), Goldman Sachs (GS 1.72%), and Hidden Gems rec U.S. Bancorp (USB +0.10%) passed the Federal Reserve's annual stress test, with enough capital requirements to deal with a weak economy, boosting confidence in the sector.
Results "underscore the strength of the banking system": Michelle Bowman, the Fed vice chair for supervision, praised the results. It modeled scenarios including a 10% unemployment rate, a double-digit real estate price fall, and plunging stocks. Host of major banks lift dividends and buybacks after announcement: U.S. Bancorp confirmed plans to raise its quarterly dividend by 3.8% to $0.54 per share. The stock is outperforming the S&P 500 by almost 18% since the July 2023 Hidden Gems rec. Typically, banks make payout changes following the results as management teams have better visibility on excess cash after regulators dictate how much capital they need to set aside first. 4. Next Up: Earnings and Inflation in Focus McCormick (MKC +0.15%) rose around 2.5% before the market opened as Q2 results built on last quarter, with net sales up by 16.7% and management reaffirming the full-year earnings per share outlook.The stock is currently on hold in Stock Advisor by Team Rule Breakers. The May reading of the Fed's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) price index, is projected to climb to 3.4% year over year, up from 3.3% in April. The headline figure is expected to hit 4.1%, the highest level since April 2023. 5. Today's Take: Separating AI Doers From Talkers
Before determining if a company is genuinely using a technology, I check where we are in the Gartner hype cycle. Anywhere before the trough of disillusionment means a fair amount of skepticism is warranted.-- Alicia Alfiere Team Rule Breakers
6. Your Take What's one investment thesis you're questioning after this month's events?
Debate with friends and family, or become a member to hear what your fellow Fools are saying!
This image and article was created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. JPMorgan Chase is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Goldman Sachs Group, JPMorgan Chase, Micron Technology, and U.S. Bancorp. The Motley Fool recommends McCormick. The Motley Fool has a disclosure policy.
U.S. Bancorp (NYSE: USB) commented on the results of the Federal Reserve's Dodd-Frank Act Stress Test (DFAST) conducted in accordance with the Dodd-Frank Wall
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bancorp (NYSE: USB) commented on the results of the Federal Reserve’s Dodd-Frank Act Stress Test (DFAST) conducted in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.
If the results of the current exercise were used to calculate a stress capital buffer (SCB) under the Federal Reserve's rules, U.S. Bancorp would be bound by the 2.5% floor under those rules; however, as announced in a press release on February 4, 2026, the Federal Reserve Board voted to maintain its current stress test-related capital buffer requirements until 2027 so that public feedback can be considered for the supervisory models. As such, the SCB for U.S. Bancorp will remain unchanged at 2.6 percent until October 1, 2027. The SCB, when added to the Basel III Common Equity Tier 1 (CET1) capital to risk-weighted assets ratio minimum of 4.5 percent, requires the company to maintain a CET1 ratio at or above 7.1 percent throughout this period.
All U.S. Bancorp regulatory capital ratios continue to reflect strong capital levels and exceed “well-capitalized” requirements. U.S. Bancorp’s CET1 capital to risk-weighted assets ratio using the Basel III standardized approach was 10.8 percent as of March 31, 2026.
U.S. Bancorp’s planned capital actions include a 3.8 percent increase in its quarterly common stock dividend from $0.52 to $0.54 per share, subject to approval by U.S. Bancorp's Board of Directors, effective in the third quarter of 2026. Additionally, as of March 31, 2026, U.S. Bancorp had $4.1 billion of remaining capacity under its existing $5 billion share repurchase program.
U.S. Bancorp has published its company-run DFAST results, which are available on the company’s website at www.usbank.com under “About Us,” “Investor Relations,” “Financials,” “Supporting documents” and “Dodd-Frank Act Stress test results.”
“In banking, trust is everything—and it’s tested most in times of uncertainty,” said Gunjan Kedia, Chairman and CEO of U.S. Bancorp. "Our role is to provide strength and stability for our clients, no matter the environment. That requires a long-term focus, disciplined risk management, and a commitment to doing the right things consistently. Our recent stress test results show that we are built for that responsibility. They underscore the strength of our balance sheet, the resilience of our business model, and our ability to continue serving clients through a wide range of economic scenarios.”
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients throughout the U.S., Canada and Europe, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 110th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
Forward-Looking Statements
This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, U.S. Bancorp’s SCB requirement and capital action plans. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those set forth in forward-looking statements, including changes to statutes, regulations, or regulatory policies or practices and the risks and uncertainties more fully discussed in the section entitled “Risk Factors” of U.S. Bancorp’s Form 10-K for the year ended December 31, 2025, and subsequent filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date hereof, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.
Investors interested in Banks - Major Regional stocks are likely familiar with U.S. Bancorp (USB) and Northern Trust Corporation (NTRS). But which of these two stocks presents investors with the better value opportunity right now?
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Minneapolis, U.S. Bancorp (USB - Free Report) is a Finance stock that has seen a price change of 10.36% so far this year. The company is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.53% compared to the Banks - Major Regional industry's yield of 2.7% and the S&P 500's yield of 1.4%.
Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, U.S. Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. U.S. Bancorp's current payout ratio is 44%, meaning it paid out 44% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, USB expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $5.07 per share, which represents a year-over-year growth rate of 9.74%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, USB presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Built with strategic technology partners to help businesses move faster in-store, on mobile and online
ATLANTA--(BUSINESS WIRE)--Elavon, a wholly owned subsidiary of U.S. Bank (NYSE: USB) and a global payments provider, announced the expansion of its All-In-One payments platform across North America to help businesses deliver more seamless commerce experiences in-store, on mobile and online.
The expanded platform combines Elavon’s payments infrastructure with a growing ecosystem of technology partners, giving merchants a more unified way to manage payments and operations while improving customer and guest experiences.
“As commerce evolves, businesses need more than a payment processor. They need a connected solution that brings everything together,” said Pari Sawant, chief product officer at Elavon. “Elavon’s All-In-One platform unifies payments, software and operations, helping customers reduce complexity and focus on growth.”
Built for modern service environments, the solution integrates with various industry point-of-sale providers, including hospitality, healthcare and retail among others. By combining the flexibility of mobility with the reliability and performance businesses expect from a core payments platform, it helps improve speed, accuracy and engagement. And, unlike bundled POS solutions that tie pricing and processing together, this approach offers greater flexibility, which can help lower total costs over time and support increased sales.
At the core of the platform is Elavon’s collaboration with Castles Technology, which enables Android-based devices that combine point-of-sale software and payment acceptance in a single mobile solution, empowering faster mobile solutions and elevated guest experiences, whether tableside, poolside, or on the move.
Examples of these integrations include:
Agilysys — The mobile IG Fly solution integrates real-time order entry and secure payments on Elavon-powered all-in-one devices, enabling hospitality operators to serve guests anywhere. Oracle — Elavon’s Simplify solution works with Oracle’s Simphony Payments Interface to connect Castles Android devices with Simphony mobile POS, helping hospitality businesses streamline in-venue service and improve the guest experience. Shiji — Infrasys integrates POS and payment functionality on Elavon-powered Castles Android devices, helping improve staff productivity and guest experience. xnPOS — xnPOS MobilePay integrates on Elavon-powered Castles Android devices, supporting faster, more flexible service in the field. By combining payments, partner integrations and digital commerce capabilities, the expanded platform helps businesses:
Run operations more efficiently through a unified system Deliver consistent customer experiences across channels Equip employees with mobile-first tools and real-time insights Scale with flexible, partner-driven integrations The All-In-One platform helps businesses launch quickly, accept payments and scale. From a single platform, businesses can manage online storefronts, process transactions and use tools designed to capture more sales and streamline operations.
“Businesses need more than payment acceptance, they need a platform that helps them adapt, compete and grow with confidence,” Sawant said. “All-In-One reflects Elavon’s commitment to delivering connected, future-ready commerce experiences that simplify complexity and help our partners succeed in every channel.”
About Elavon
Elavon, a wholly owned subsidiary of U.S. Bank, provides end-to-end payment processing solutions and services to more than 1.3 million customers across the United States, Europe and Canada.
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients globally, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 110th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
Investors looking for stocks in the Banks - Major Regional sector might want to consider either U.S. Bancorp (USB - Free Report) or Northern Trust Corporation (NTRS - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both U.S. Bancorp and Northern Trust Corporation have a Zacks Rank of #2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
USB currently has a forward P/E ratio of 11.39, while NTRS has a forward P/E of 16.38. We also note that USB has a PEG ratio of 1.04. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NTRS currently has a PEG ratio of 1.25.
Another notable valuation metric for USB is its P/B ratio of 1.51. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, NTRS has a P/B of 2.67.
These are just a few of the metrics contributing to USB's Value grade of B and NTRS's Value grade of D.
Both USB and NTRS are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that USB is the superior value option right now.
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank released its fourth annual Small Business Perspective survey report today, highlighting how small business owners are navigating a more constrained environment, and how a new generation is building businesses differently. The nationwide survey of 1,000 small business owners, including an oversample of 200 Gen Z owners, shows that while many small businesses are still expanding, fewer are growing than a year ago amid ongoing economic pressures and rising costs.
“Growth may not be as widespread as it was a year ago, but small business owners are not pulling back,” said Shruti Patel, Chief Product Officer for Business Banking at U.S. Bank.
Share “Growth may not be as widespread as it was a year ago, but small business owners are not pulling back. In fact, 91% of owners are planning at least one move to grow their business over the next year,” said Shruti Patel, Chief Product Officer for Business Banking, U.S. Bank. “That speaks to the resilience of this community and their determination to keep building for the future. In particular, Gen Z owners stand out as showing a greater willingness to invest in growth, even amid economic uncertainty.”
Gen Z Owners Take a More Ambitious Approach to Growth
With more than half of U.S. business owners over the age of 55, Gen Z owners are becoming an increasingly important part of the next generation of business ownership. In a more challenging economic environment, they are also approaching growth differently than past generations.
Compared to older generations, Gen Z owners are more willing to pursue calculated, bold opportunities to accelerate expansion (24% vs. 21% of Millennial owners and 13% of Gen X and Baby Boomer owners). Those efforts appear to be paying off, with nearly three-quarters (74%) reporting business growth over the past year, and almost half (47%) reporting significant growth, higher than all other generations.
That different approach to growth also shows up in how Gen Z owners are building their businesses. They are more likely to start businesses through passion projects (63%) or side hustles (49%), rather than acquiring existing companies.
However, this path often comes with tradeoffs. Gen Z owners are more likely to delay major life milestones, such as buying a home (30%), having children (25%) or getting married (21%), to focus on building their business.
It also comes with financial pressure. Roughly four in ten (38%) report annual revenue under $100K, and 87% say a three-month decline in revenue would impact their personal finances. This reflects both the opportunity and the pressure that come with building a business from the ground up.
Growth Continues, But Feels Harder Won
Small business owners are operating in a more challenging environment, as macroeconomic pressures, rising costs and shifting demand continue to impact day-to-day operations. Owners across generations report ongoing strain from the economic environment (90%), inflation and rising costs (88%), competition (82%), and access to capital (71%).
Despite these stressors, most owners still rate their businesses as successful, though success and growth have softened from last year:
87% of owners say their business is successful, down from 96% in 2025 68% report business growth, down from 88% last year 83% feel optimistic about the next 12 months, down from 93% Even with this shift, most owners are not pulling back. Instead, they are continuing to invest in their businesses:
91% plan at least one growth-oriented action 60% plan to hire additional employees 56% plan to invest more capital 46% plan to launch new products or services And few owners are stepping away from their businesses, with only 3% saying they plan to sell in the next year.
At the same time, this environment is not affecting all businesses equally. Businesses experiencing growth are less likely to report pressure related to the economic environment (88% vs. 94% among non-growing businesses), consumer spending (75% vs. 85%) and access to capital (67% vs. 80%), and are more likely to adopt generative AI (81% vs. 64% among non-growing businesses).
AI Adoption Continues to Rise
Generative AI adoption continues to grow, with 75% of owners now using it in their business. Owners most often apply AI to marketing and sales (56%), data analysis (51%), content creation (51%) and automation (44%).
For many, these tools are delivering real value:
98% say AI has had a positive impact 89% say it delivers measurable value 84% say it saves money However, adoption is not universal, and experiences remain mixed. One in four owners (25%) are not using AI at all, citing lack of relevance, unclear return on investment and trust concerns. Even among users, 53% say AI has also had negative impacts, including added complexity and overstated benefits.
Owners Prioritize Predictability, Value and Simplicity
Beyond AI, small business owners are modernizing their operations with a focus on efficiency and reduction of day-to-day friction. Adoption of key tools is rising, including payment processing (60%), digital payments (53%) and accounts payable/receivable solutions (53%).
As they choose which tools to use, cost predictability plays a key role in decision-making:
92% prefer tools with consistent, predictable fees 78% say fees influence how they pay bills 65% say fees are a major frustration Still, 83% say they are willing to pay fees in exchange for convenience and value.
Owners are also clear about what they expect from financial partners, prioritizing human support (91%), mobile access (90%), and fraud protection (88%) as essential rather than optional.
Looking ahead, many owners are also preparing for emerging forms of digital currency. Of those who do not currently accept digital currency, over half (53%) say they are likely to accept digital currency (e.g. cryptocurrency, stablecoins, tokenized deposits) in the next five years, though only 28% currently accept it as a form of online payment.
For more insights and data from U.S. small business owners, read the full 2026 U.S. Bank Small Business Perspective report.
Methodology
20-minute survey among 1,000 U.S. small business Owners and an oversample of 200 Gen Z small business Owners, with an annual revenue of $25 Million or less and between two and ninety-nine employees.
Fielding for this study was conducted from February 27, 2026 – March 17, 2026, and the margin of error is ±3.1% for the U.S. SBOs.
2026 data were weighted to match the 2025 sample distribution for year-over-year comparisons. Results for the Gen Z oversample are shown unweighted.
About U.S. Bank
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients globally, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 110th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
Veteran payments leader connects treasury, merchant and payments capabilities for healthcare clients
MINNEAPOLIS--(BUSINESS WIRE)--Eric Levine has joined U.S. Bank to lead the bank’s strategy to deliver more connected treasury, payments and merchant solutions to healthcare organizations.
As head of healthcare for Payments: Merchant and Institutional (PMI) Sales Distribution, Levine will advance the company’s focus on aligning cross-bank teams to deliver tailored solutions to the healthcare industry, including hospital systems, payers, medical device manufacturers and life sciences companies.
Levine will report to Peter Geronimo, executive vice president and head of PMI Sales Distribution. Geronimo joined U.S. Bank in February from Citi to build the new PMI Sales Distribution team.
“Healthcare is a priority area for U.S. Bank, with significant opportunity to help clients simplify complex payments, improve working capital and create better experiences for the people and organizations they serve,” said Geronimo. “Eric brings deep sector expertise, a strong treasury and payments background and a client-first mindset that will help us accelerate growth and deliver more value to healthcare clients.”
Levine has more than 20 years of experience in global payments, treasury solutions and the healthcare and pharmaceutical sectors. He joins U.S. Bank from Bank of America, where he helped deliver global payment solutions to large pharmaceutical and medical device companies. Previously, he served in payments leadership roles at Citi and JPMorgan. He is based in Chicago.
“Healthcare finance leaders are under increasing pressure to improve margins, strengthen cash flow visibility and simplify an increasingly complex payments landscape,” Levine said. “I’m excited to join U.S. Bank to help clients modernize their revenue cycle, streamline payments and unlock working capital. By bringing together treasury, merchant and payment capabilities, we can deliver practical, integrated solutions that improve financial performance while supporting a better experience for patients and providers alike.”
U.S. Bank continues to invest in its payments capabilities and leadership team as part of a broader Payments Transformation, one of the top three enterprise priorities at U.S. Bank. The company’s PMI organization brings together merchant acquiring, treasury management and corporate payments capabilities to help large institutional clients move money with greater speed, visibility and control.
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients globally, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 110th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
On June 16, 2026, we present a DCF analysis for U.S. Bancorp USB , a financial institution that has shown notable price performance over the past year. The stock has appreciated significantly, with a 1-year increase of 40.1%, reflecting positive market sentiment. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $49.97 vs current price of $57.79 (margin of safety: -5.0%) DCF FCF-based intrinsic value of $78.62 vs current price (second opinion suggests modest undervaluation) GF Score™ of 76/100 indicates a reliable DCF input assessment What Is USB Worth? DCF Earnings-Based Model The DCF earnings-based model for U.S. Bancorp estimates the intrinsic value based on projected earnings growth. The model assumes a current EPS of $4.77 and a growth rate of 3.5% over the next ten years. The discount rate is set at 11%, which incorporates the risk-free rate and equity risk premium. Following this growth phase, a terminal growth rate of 4% is applied for the subsequent ten years.
Parameter Value Current EPS (TTM, excl. non-recurring) $4.77 10-Year Growth Rate 3.5% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The two-stage DCF model consists of a growth phase followed by a terminal phase. The growth stage reflects the projected earnings growth over the first ten years, while the terminal stage accounts for the value beyond that period.
Stage Description Value Growth Stage (Years 1-10) EPS growing at 3.5%, discounted at 11% $33.12 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $16.85 Intrinsic Value Growth + Terminal $49.97 With the current price at $57.79 and the intrinsic value calculated at $49.97, the stock appears to be fairly valued with a margin of safety of -5.0%. It is important to note that GuruFocus uses EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the USB DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also evaluated U.S. Bancorp using a free cash flow (FCF) DCF model. This alternative approach yields an intrinsic value of $78.62. When comparing the FCF-based intrinsic value with the earnings-based valuation, the two models suggest differing perspectives on the stock's valuation. The FCF model indicates that USB is modestly undervalued with a margin of safety of 26.5%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for U.S. Bancorp stands at $47.39, providing a third perspective on the stock's valuation. GF Value™ is GuruFocus' proprietary measure, calculated based on historical trading multiples, past business growth, and future performance estimates. When we analyze the three models together, we observe that the DCF earnings-based model suggests fair valuation, while the FCF model indicates modest undervaluation, and GF Value™ suggests that the stock is overvalued. For more details, visit the GF Value™ page.
What Does USB's GF Score™ Tell Us? The GF Score™ ranks stocks on a scale from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated superior long-term returns (backtested from 2006-2021).
Metric Rating GF Score™ 76/100 Financial Strength 3/10 Profitability 6/10 Growth 7/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 1/5 stars, it is essential to note that higher predictability ratings generally indicate that the DCF model is more reliable for this stock. For more insights, visit the USB stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as U.S. Bancorp's 1/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, we find a mixed consensus on U.S. Bancorp's valuation. While the earnings-based model suggests the stock is fairly valued, the FCF model indicates it is modestly undervalued, and GF Value™ suggests it is overvalued. Overall, the stock appears to be in a fair valuation range. For the full DCF analysis, visit the USB DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is USB's intrinsic value based on DCF?
earnings-based $55.05, FCF-based $78.62
Is USB overvalued or undervalued?
Based on the DCF earnings model, USB is fairly valued, while the FCF model suggests it is modestly undervalued. GF Value™ indicates it is overvalued.
How reliable is the DCF model for USB?
The DCF model's reliability is limited due to USB's predictability rank of 1/5 stars, suggesting lower confidence in the projections.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank announced today that Daniel Farley, CFA, is its new chief investment officer (CIO) for the Wealth Management Asset Management Group.
Farley will oversee the Asset Management Group, leading its investment strategy, guiding portfolio construction, asset allocation and investment decisions for more than 480,000 wealth management clients. He will play a central role in shaping the firm’s investment perspective on key issues including inflation, interest rates and global diversification, and in supporting portfolio strategies designed to help clients navigate changing market conditions with confidence. He is based in Minneapolis.
“Dan is a proven, visionary leader with deep investment expertise and an unwavering commitment to our clients,” said Scott Ford, president of Wealth Management at U.S. Bank. “Over the past few years, he has delivered extraordinary results leading the Midwest region for U.S. Bank Private Wealth Management and played a key role in advancing initiatives that strengthen how we serve clients. His leadership and perspective will be instrumental as we continue to elevate our investment capabilities and help clients achieve their long-term goals.”
Farley has worked for U.S. Bank since 2010, most recently as Private Wealth Management Midwest region executive, where he led a multi-disciplinary team of more than 300 professionals, delivering comprehensive wealth management services including private banking, financial and estate planning, investment management and trust administration. Farley has also held several other roles at the bank, including regional investment director and senior portfolio manager.
Prior to working at U.S. Bank, Farley was a commercial real estate professional at Dougherty Financial Group and chief financial officer with Master Development Services. Farley began his career as a combat engineer officer in the U.S. Army.
Farley has a bachelor’s degree in civil engineering, graduating summa cum laude from the University of Notre Dame, and an MBA in finance and marketing from the Wharton School at the University of Pennsylvania, where he graduated with honors. He also holds the Chartered Financial Analyst® (CFA®) designation.
U.S. Bank Wealth Management has earned a number of industry accolades for the quality of its client experience and advisory capabilities, including ranking No. 1 for Investments on TIME’s “America’s Best Financial Services of 2026” list and earning the top spot in overall client satisfaction in the J.D. Power 2024 U.S. Full-Service Investor Satisfaction Study. In addition, U.S. Bank Wealth Management executives have been named among top influencers in wealth management, underscoring U.S. Bank’s continued role in shaping the future of advice and client service.
About U.S. Bank Wealth Management
U.S. Bank Wealth Management offers comprehensive wealth management services, including wealth planning, investment management, trust and estate services and wealth management banking through U.S. Bank, and financial planning, investment, insurance and brokerage services through its affiliates, U.S. Bancorp Investments and U.S. Bancorp Advisors.
Both U.S. Bancorp Investments (USBI) and U.S. Bancorp Advisors (USBA) offer retail brokerage, investment advisory and insurance services. USBA became part of U.S. Bancorp in December 2022, when U.S. Bancorp completed its acquisition of MUFG Union Bank.
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients throughout the U.S., Canada and Europe, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 105th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
Investment and insurance products and services including annuities are:
NOT A DEPOSIT ● NOT FDIC INSURED ● MAY LOSE VALUE ● NOT BANK GUARANTEED ● NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
U.S. Wealth Management – U.S. Bank | U.S. Bancorp is the marketing logo for U.S. Bank and its affiliates U.S. Bancorp Advisors and U.S. Bancorp Investments.
U.S. Bank, U.S. Bancorp Advisors and U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Each client’s tax and financial situation is unique. Clients should consult their tax and/or legal advisor for advice and information concerning their particular situation.
For U.S. Bank:
Deposit products offered by U.S. Bank National Association. Member FDIC. Credit products offered by U.S. Bank National Association and subject to normal credit approval.
U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Advisors and U.S. Bancorp Investments.
U.S. Bank does not offer insurance products. Insurance products are available through our affiliates USBA Insurance Services and U.S. Bancorp Investments.
U.S. Bancorp has now reached the low end of management's medium-term profitability target, and that's helped drive a circa 40% return since my opening piece last year. USB's revenue growth remains GDP-like, but disciplined cost control is leveraging that into much healthier growth in pre-provision income, while credit quality also remains stable. An improved capital ratio has supported a step up in buyback spending, which should provide a bit more juice to share-level earnings growth.
On May 08, 2026, we delve into the DCF analysis for U.S. Bancorp USB , a company that has shown a price performance of +36.8% over the past year, despite a slight decline of -1.8% in the last week. The current price stands at $55.31, with a market capitalization of $85.86 billion.
DCF Earnings-based intrinsic value: $49.97 vs price $55.31 (margin of safety: -0.5%) DCF FCF-based intrinsic value: $65.14 vs price $55.31 (second opinion: modestly undervalued) GF Score™: 80/100, indicating a reliable DCF input What Is USB Worth? DCF Earnings-Based Model The DCF earnings-based model for U.S. Bancorp incorporates a two-stage growth approach. In the first stage, we project earnings growth over the next 10 years at a rate of 3.5%. This growth is then discounted at a rate of 11%, which reflects the risk-free rate and equity risk premium. In the second stage, we apply a terminal growth rate of 4% for years 11-20, also discounted at 11%. This structured approach allows us to estimate the intrinsic value of the stock based on its expected future earnings.
Parameter Value Current EPS (TTM, excl. non-recurring) $4.77 10-Year Growth Rate 3.5% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, the growth phase (Years 1-10) results in a value of $33.12 per share, while the terminal phase (Years 11-20) yields a value of $16.85 per share. The combined intrinsic value from both stages amounts to:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 3.5%, discounted at 11% $33.12 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $16.85 Intrinsic Value Growth + Terminal $49.97 With the current price at $55.31, the intrinsic value of $49.97 indicates that U.S. Bancorp is fairly valued, with a margin of safety of -0.5%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the USB DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for U.S. Bancorp is calculated at $65.14. When compared with the earnings-based intrinsic value of $49.97, the FCF model suggests that the stock is modestly undervalued, presenting a margin of safety of 15.1%. This divergence between the two models highlights the importance of considering multiple valuation perspectives when assessing a stock's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for U.S. Bancorp is calculated at $46.59, indicating that the stock is 18.7% overvalued according to this proprietary measure. GF Value™ is derived from historical trading multiples, past business growth, and future performance estimates. When analyzing all three valuation models, we see a consensus that suggests a fair valuation based on the DCF earnings model, modest undervaluation according to the FCF model, and overvaluation from the GF Value™ perspective. For more insights, visit the GF Value™ page.
What Does USB's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. A higher GF Score™ indicates a greater likelihood of generating higher long-term returns, as evidenced by backtesting from 2006 to 2021.
Metric Rating GF Score™ 80/100 Financial Strength 4/10 Profitability 6/10 Growth 7/10 Valuation 6/10 Momentum 10/10 With a predictability rank of 1/5 stars, it is essential to note that higher predictability ratings enhance the reliability of the DCF model for this stock. For more information, visit the USB stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as U.S. Bancorp's 1/5 stars, tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture the company's long-term growth potential.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that U.S. Bancorp is fairly valued according to the DCF earnings model, modestly undervalued based on the FCF model, and overvalued according to the GF Value™ perspective. This mixed consensus suggests a cautious approach for investors. For the full DCF analysis, visit the USB DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is USB's intrinsic value based on DCF?
earnings-based $55.05, FCF-based $65.14
Is USB overvalued or undervalued?
Based on the DCF earnings model, USB is fairly valued, while the FCF model indicates modest undervaluation. The GF Value™ suggests it is overvalued.
How reliable is the DCF model for USB?
With a predictability rank of 1/5, the DCF model is less reliable for USB compared to stocks with higher predictability ratings.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: U.S. Bancorp (USB - Free Report) Headquartered in Minneapolis, MN, U.S. Bancorp was formed in February 2001 with the merger of the former U.S. Bancorp and Firstar Corporation. It provides banking and investment services mainly operating in the Midwest and West regions of the United States. U.S. Bancorp is the parent company of U.S. Bank. The company operates through five segments. The Corporate and Commercial Banking segment extends traditional banking services, such as lending, equipment finance and small-ticket leasing, depository services, treasury management, capital markets services, international trade services and other financial services to middle market, large corporate, commercial real estate, financial institution, non-profit and public sector clients.
USB is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.87; value investors should take notice.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.06 to $5.09 per share. USB also boasts an average earnings surprise of +5.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, USB should be on investors' short list.
Expanded offering latest step in bank’s initiative to serve healthcare practices nationwide
MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bank is expanding its healthcare business banking offerings with a new startup loan product for dentists and veterinarians, giving clinicians a new option to build independent practices and serve patients in their communities.
“We are excited to bring this new opportunity to dentists and veterinarians who want to pursue their dream of building and operating their own practices,” said Joe Persichetti, head of healthcare business banking at U.S. Bank.
Share The bank has previously offered loans for the acquisition of existing practices or for startup practices launched by existing owners. The new product extends that support to dentists and veterinarians launching first-time practices, broadening the choices available to healthcare professionals at a critical stage of their careers.
“We are excited to bring this new opportunity to dentists and veterinarians who want to pursue their dream of building and operating their own practices,” said Joe Persichetti, head of healthcare business banking at U.S. Bank. “Our bankers live and work in the same communities as the dentists and veterinarians they serve, and they are there for them every step of the way as they build and grow their practices.”
The new loan product, which launched early this year, will provide conventional lending opportunities to dental and veterinarian healthcare startups that meet industry experience, production capability, and credit parameters.
The bank launched its healthcare business banking group in 2023, offering a holistic suite of banking, payments and wealth management solutions to dental, veterinary and medical practices with up to $50 million in annual revenue. The bank has hired more than 100 bankers and staff members who provide personalized service in all 50 states.
“Our goal is to be the destination for doctors,” Persichetti said. “We want to make banking easy for them so they can focus on what’s most important – their patients.”
U.S. Bank has served the healthcare industry for most of its more than 160-year history. The bank provides a broad range of banking and payment services to healthcare organizations, including hospital systems, insurers, medical equipment manufacturers and medical, dental, and veterinary practices. In 2024, U.S. Bank acquired Salucro Healthcare Solutions LLC, which developed the technology powering the bank’s MedEpay platform for healthcare payments.
Disclosure: Credit products offered by U.S. Bank National Association and are subject to normal credit approval and program guidelines. Some restrictions and fees may apply.
About U.S. Bancorp
Headquartered in Minneapolis, U.S. Bancorp is the parent company of U.S. Bank National Association, the fifth-largest commercial bank in the United States. Our three major business lines serve 15 million clients throughout the U.S., Canada and Europe, and our team of nearly 70,000 people invest our hearts and minds to power human potential every day. Ranked 105th on the Fortune 500, we are deeply respected for our culture and long-term stewardship and admired for our diversified business mix and product capabilities.
On May 12, 2026, we delve into the DCF analysis for U.S. Bancorp USB , a company that has shown a year-to-date price increase of 5.1% and a remarkable 37.4% rise over the past year. With a current price of $54.49, USB's market cap stands at $84,585 million. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $49.97 vs price of $54.49 (margin of safety: 1.0%) DCF FCF-based intrinsic value of $78.62 vs price (second opinion: significantly undervalued with 30.7% margin of safety) GF Score™ of 80/100 indicates a high reliability of the DCF inputs What Is USB Worth? DCF Earnings-Based Model In our DCF earnings-based model, we apply a two-stage valuation approach. The first stage involves estimating the earnings growth over the next 10 years, while the second stage accounts for a terminal growth rate thereafter. Below is a summary of the assumptions used in our model:
Parameter Value Current EPS (TTM, excl. non-recurring) $4.77 10-Year Growth Rate 3.5% 10-Year Treasury Rate 4.33% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% During the growth phase (Years 1-10), we project that EPS will grow at a rate of 3.5% per year, which is then discounted at a rate of 11%. The value derived from this growth stage is $33.12 per share. In the terminal phase (Years 11-20), we assume a 4% terminal growth rate, also discounted at 11%, yielding a terminal stage value of $16.85 per share. The calculation summary is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 3.5%, discounted at 11% $33.12 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $16.85 Intrinsic Value Growth + Terminal $49.97 Comparing the current price of $54.49 with our intrinsic value of $55.05, we find that USB is fairly valued with a margin of safety of 1.0%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than free cash flow. For further details, you can visit the USB DCF Calculator.
What Does the Free Cash Flow DCF Say? When we analyze USB using the Free Cash Flow (FCF) DCF model, we arrive at an intrinsic value of $78.62. This valuation significantly contrasts with our earnings-based model, suggesting that USB may be undervalued with a substantial margin of safety of 30.7%. This divergence highlights the importance of considering multiple valuation methods to gain a comprehensive understanding of a company's worth.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for U.S. Bancorp stands at $46.63, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure, calculated based on historical trading multiples, past business growth, and future performance estimates. When we compare all three models, we see that the DCF earnings-based model indicates fair valuation, the FCF model suggests significant undervaluation, and the GF Value™ indicates that the stock is overvalued. For more insights, visit the GF Value™ page.
What Does USB's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). Below is a summary of USB's GF Score™ metrics:
Metric Rating GF Score™ 80/100 Financial Strength 4/10 Profitability 6/10 Growth 7/10 Valuation 6/10 Momentum 10/10 With a predictability rank of 1 out of 5 stars, it is important to note that higher predictability ratings generally lead to more reliable DCF estimates for stocks. For additional information, you can check the USB stock page.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as USB's 1/5 stars, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future conditions.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a mixed picture. The DCF earnings model suggests USB is fairly valued, while the DCF FCF model indicates significant undervaluation. Conversely, the GF Value™ suggests overvaluation. Overall, investors should consider these varying perspectives when evaluating USB's current market position.
For the full DCF analysis, visit the USB DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is USB's intrinsic value based on DCF?
[Answer: earnings-based $55.05, FCF-based $78.62]
Is USB overvalued or undervalued?
[Answer using DCF + GF Value™ consensus]
How reliable is the DCF model for USB?
[Answer using predictability rank 1/5]
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On May 13, 2026, U.S. Bancorp USB shares fell 3.2% to a current price of $52.74. The stock has experienced a decline of 6.1% over the past week and 6.7% over the past month. Over the last year, however, USB shares have appreciated by 23.9%, reflecting a more positive long-term trend amid the current volatility. The stock's 52-week range has been between $42.21 and $61.19.
GF Value™ verdict: Current price of $52.74 compared to GF Value™ of $47.08 indicates the stock is 12.0% overvalued.GF Score™ of 81/100 signifies a strong ranking, suggesting potential for higher long-term returns.Most notable signal: Insider activity shows that insiders sold $4.2M in shares over the last three months, with no buying activity reported. Is USB Overvalued or Undervalued? The current price of U.S. Bancorp USB at $52.74 is above the GF Value™ estimate of $47.08, indicating that the stock is overvalued by approximately 12.0%. This suggests that purchasing shares at the current price may not offer a sufficient margin of safety for potential investors. The GF Valuation designation classifies the stock as modestly overvalued, which indicates that while the company maintains certain strengths, the current price does not reflect an attractive entry point based on intrinsic value. Investors should be aware of the risks associated with buying overvalued stocks, as it may lead to losses if the price corrects closer to its intrinsic value.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does USB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 11.1x 11.6x (5-Year Median) Forward P/E 10.3x - The current P/E (TTM) of 11.1x is 4% below its 5-year median P/E of 11.6x, suggesting that the stock is trading slightly below its historical valuation levels. However, when considering the forward P/E of 10.3x, it indicates a more attractive valuation compared to the trailing earnings. This P/E analysis somewhat aligns with the GF Value™ verdict, as it shows that while the stock is slightly undervalued based on historical metrics, the overall assessment still reflects a modest overvaluation when compared to the calculated intrinsic value.
What Does USB's GF Score™ Tell Us? Metric Rating GF Score™ 81/100 Financial Strength 4/10 Profitability 6/10 Growth 7/10 Valuation 6/10 Momentum 10/10 The GF Score™ of 81/100 indicates a strong stock ranking, suggesting that U.S. Bancorp shows potential for generating higher long-term returns. The strongest area revealed in the score is the momentum rank of 10/10, indicating robust recent performance. However, the financial strength score of 4/10 highlights a weaker area, suggesting that while the stock has shown growth and profitability, its financial health may not be as robust as some investors would prefer. Balancing these scores provides a comprehensive view of USB's overall performance and potential.
What Are Insiders Doing with USB Stock? Recent insider activity at U.S. Bancorp shows that insiders have sold $4.2 million in shares over the last three months, with no reported buying activity. This trend of selling could suggest a lack of confidence or a strategic decision to capitalize on the stock's recent appreciation. Insider selling can sometimes be viewed as a negative signal, particularly when it is not accompanied by buying, which may raise concerns among potential investors regarding future performance.
What This Means for Investors Based on the GF Value™ assessment, U.S. Bancorp USB is currently considered overvalued. With a current price of $52.74 compared to a GF Value™ estimate of $47.08, potential investors may want to approach the stock with caution, as it does not present an attractive margin of safety at this time.
For the complete analysis, visit the U.S. Bancorp USB stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is USB's GF Score™?
USB's GF Score™ is 81/100, indicating a strong ranking that suggests potential for higher long-term returns based on various key aspects of the company's performance.
Is USB overvalued or undervalued?
USB is currently overvalued, with a GF Value™ of $47.08 compared to its current price of $52.74, reflecting a 12.0% overvaluation.
What is USB's P/E ratio?
The P/E ratio (TTM) for USB is 11.1x, which is 4% below its 5-year median of 11.6x, indicating that the stock is trading slightly below its historical valuation metrics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
U.S. Bancorp (USB - Free Report) is headquartered in Minneapolis, and is in the Finance sector. The stock has seen a price change of 0.11% since the start of the year. Currently paying a dividend of $0.52 per share, the company has a dividend yield of 3.89%. In comparison, the Banks - Major Regional industry's yield is 2.83%, while the S&P 500's yield is 1.43%.
Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, U.S. Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 4.01%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. U.S. Bancorp's current payout ratio is 44%, meaning it paid out 44% of its trailing 12-month EPS as dividend.
USB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $5.09 per share, representing a year-over-year earnings growth rate of 10.17%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, USB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
, /PRNewswire/ -- VIA Labs, Inc. (VLI), a leading supplier of USB4, DisplayPort, SuperSpeed USB, and USB Power Delivery Controllers, today announced the launch of its first MST Hub VL610 at Computex 2026. Following the market success of the VL605 USB-C to HDMI 2.1 signal converter, VL610 is a new-generation chipset designed to address the growing demand for multi-display expansion. Supporting up to three high-resolution displays simultaneously, it sets a new benchmark for USB-C docking solutions. Attendees can learn more about VLI's products during Computex 2026 at Booth N0614 in Hall 1, Taipei Nangang Exhibition Center.
The VIA Labs VL610 is a highly integrated DP 2.1 HBR3 Multi-Stream Transport (MST) hub designed for USB-C docking stations and high-end video adapter applications. Compared to its predecessor VL605, which supports a single HDMI 2.1 output, VL610 significantly enhances display performance. VL610 series includes two SKUs: VL610 supports three video outputs, while VL610D supports two video outputs, addressing different docking design needs. Its flexible architecture includes one fixed HDMI 2.1 FRL transmitter, one configurable port supporting DP++ or HDMI 2.1 FRL, and a third configurable port supporting DP++ or HDMI TMDS (VL610 only).
VL610 supports a single display up to 8K60Hz or 4K240Hz, and up to three displays at 4K60Hz or QHD144Hz. It also enables up to six independent audio and video streams, with a single DP output supporting up to four MST streams. Full support for color formats and audio ensures a high-quality multimedia experience.
In terms of advanced display technologies, VL610 integrates a DSC 1.2a decoder, supporting decompression to HDMI output or direct pass-through to compatible displays. It also supports cross-platform Variable Refresh Rate (VRR), delivering smooth visuals for high-end gaming and professional imaging applications. VL610 also integrates ECDSA-256 asymmetric authentication, enabling secure firmware updates and protection against malicious firmware attacks.
VL610 also features a unique Logo Bitmap display capability with event-triggered graphics. It can display brand logos, warning messages, or guidance screens in scenarios such as host disconnection, USB-C port anomalies, or link errors, helping users quickly identify and resolve issues. This feature enables brands to proactively communicate with users during idle or fault conditions, enhancing both brand visibility and user experience.
"VL610 represents a key milestone in VLI's multi-display signal conversion technology. Evolving from the single HDMI 2.1 output of VL605 to the triple-stream architecture of VL610, we have translated customer needs into product innovation. VL610 is positioned to become the core chipset for next-generation high-end USB-C docking stations, further strengthening VLI's leadership in USB-C display interface solutions.", said Wayne Chang, Director of PM at VIA Labs.
On May 27, 2026, we conducted a DCF analysis for U.S. Bancorp USB to assess its intrinsic value in light of recent price performance. Over the past year, USB has experienced a remarkable increase of 34.0%, although it has seen a slight decline of 0.7% in the last month. Currently, USB is trading at $55.22.
DCF Earnings-based intrinsic value: $49.97 vs price $55.22 (margin of safety: -0.3%) DCF FCF-based intrinsic value: $78.62 (modestly undervalued) GF Score™ of 77/100 indicates a strong reliability of the DCF inputs What Is USB Worth? DCF Earnings-Based Model The DCF earnings-based model for U.S. Bancorp employs a two-stage approach. In the first stage, we project earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are as follows:
Parameter Value Current EPS (TTM, excl. non-recurring) $4.77 10-Year Growth Rate 3.5% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the growth phase (Years 1-10), we expect EPS to grow at 3.5% per year, discounted at a rate of 11%. The value derived from this growth stage is $33.12 per share. In the terminal phase (Years 11-20), we apply a terminal growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $16.85 per share. The summary of our calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 3.5%, discounted at 11% $33.12 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $16.85 Intrinsic Value Growth + Terminal $49.97 Comparing the current price of $55.22 to our intrinsic value of $49.97 indicates that USB is fairly valued, with a margin of safety of -0.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, you can visit the USB DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based model, we also evaluated U.S. Bancorp using a free cash flow (FCF) DCF model. The intrinsic value derived from this model is $78.62. This value suggests a modestly undervalued status for USB, with a margin of safety of 29.8%. When comparing the FCF-based intrinsic value to the earnings-based value, we see a significant divergence, indicating that while the earnings model suggests fair valuation, the FCF model indicates potential undervaluation.
How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for U.S. Bancorp is $47.20, indicating that the stock is 17.0% overvalued based on this proprietary measure. GF Value™ is calculated from historical trading multiples, past business growth, and future performance estimates. The divergence among the three valuation models—DCF earnings, DCF FCF, and GF Value™—suggests a complex valuation landscape for USB, with differing perspectives on its current worth. For more insights, visit the GF Value™ page.
What Does USB's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). Below is the GF Score™ breakdown for U.S. Bancorp:
Metric Rating GF Score™ 77/100 Financial Strength 3/10 Profitability 6/10 Growth 7/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 1/5 stars, it indicates that the DCF model may be less reliable for this stock. For more information, visit the USB stock page.
Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as U.S. Bancorp, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find that U.S. Bancorp is currently fairly valued according to the DCF earnings model, while the DCF FCF model suggests it is modestly undervalued. The GF Value™ indicates that the stock is overvalued based on historical metrics. Overall, investors should approach USB with caution, considering the mixed signals from these valuation perspectives. For the full DCF analysis, visit the USB DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is USB's intrinsic value based on DCF?
[Answer: earnings-based $55.05, FCF-based $78.62]
Is USB overvalued or undervalued?
[Answer using DCF + GF Value™ consensus]
How reliable is the DCF model for USB?
[Answer using predictability rank 1/5]
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
