U.S. Bancorp lifts outlook after record Q2

U.S. Bancorp (USB) delivered record net revenue of $7.7 billion in the second quarter of 2026, representing 10.1% growth from the same period a year earlier. Earnings per share came in at $1.35, an increase of approximately 22% year-over-year. The results reflected a combination of solid lending activity, higher net interest income and expanding fee-based revenue.

Net interest income on a fully taxable equivalent basis totaled $4.4 billion, up 7.5% from the prior-year quarter. The bank’s net interest margin rose two basis points sequentially to 2.79%, indicating modest improvement in the profitability of its interest-earning assets. These trends helped underpin the overall revenue performance in the quarter.

Average loans reached $405 billion in the quarter, an increase of 7.1% compared with a year earlier and 3.0% on a sequential basis. The growth in average loans was a key driver of higher net interest income, as a larger loan book generated additional interest revenue. This lending expansion contributed meaningfully to the bank’s record revenue level.

Management emphasized that the combination of loan growth and improved margin dynamics supported the year-over-year increase in net interest income. Together, these factors positioned the bank to raise its full-year revenue outlook while continuing to invest in strategic initiatives.

Total fee income increased 13.2% year-over-year in the second quarter. Excluding the impact of the recently acquired BTIG, fee revenue grew 9.9%, indicating underlying strength across the bank’s fee-generating businesses. The acquisition of BTIG added a new source of capital markets and advisory revenue to the franchise.

BTIG generated approximately $98 million of revenue in its first month within U.S. Bancorp (USB). Management expects BTIG to contribute about $200 million of revenue per quarter in the second half of 2026. The bank is assuming a 15% contribution margin for BTIG and anticipates about $60 million of merger-related costs in 2026, with a potential tail into early 2027.

On the back of the strong second-quarter performance, management raised full-year 2026 net revenue growth guidance to a range of 7% to 9%. Excluding BTIG, the net revenue growth outlook is 5% to 7%. The bank now expects total fee revenue growth of about 12% to 14% including BTIG, and projects roughly 8% non-interest expense growth, with core expense growth around 3.5% excluding BTIG.

U.S. Bancorp (USB) also continued returning capital to shareholders, repurchasing $200 million of stock during the quarter. Management indicated an intention to increase share buybacks as the firm approaches an adjusted common equity tier 1 capital level of about 10%. These actions reflect a balance between funding growth initiatives such as BTIG and maintaining ongoing capital returns.