TFC · Q2 2026 Earnings

Cautious

Truist Financial

Reported July 17, 2026

30-second summary

Q2 revenue of $5.265B (+2.2% QoQ, +5.6% YoY) beat the ~$5.2B prior-quarter next-quarter guide by $65M; diluted EPS printed $1.23 (basic $1.24) and net income $1.553B. NIM-TE compressed 4bps QoQ to 2.98% — now 5bps below the "exceed 3.03%" FY floor established in prior guidance — while noninterest income re-accelerated to $1.644B (+5.9% QoQ, +17.4% YoY), led by investment banking and trading income of $352M (+71.7% YoY). ROTCE recaptured the 14% anchor at 15.4%, credit metrics improved (Q2 NCO 0.50% vs Q1's 0.61%, NPL 0.51%), and CET1 held at 10.9%. The fee re-acceleration is the standout positive; the "three-teens" NIM exit narrative looks increasingly reliant on H2 2026 mechanics that Q2 did not deliver.

Headline numbers

EPS

Q2 FY2026

$1.23

+13.9% vs est.

Revenue

Q2 FY2026

$5.26B

+5.6% YoY

+0.5% vs est.

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$5.26B	—	+5.6%	$5.15B	+2.2%
EPS	$1.23	$0.91	+35.2%	$1.09	+12.8%

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	$5.2 billion	$5.265 billion	+$0.065 billion above guide	Beat
EPS (GAAP)	Q2 FY2026	—	$1.23	+$0.15 above consensus estimate	Beat
Net Interest Income Growth	Q2 FY2026	approximately 1%	—	—	Met
Non-interest Income Growth	Q2 FY2026	decline approximately 1%	—	—	Met

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Net Interest Income Growth (FY2026)	FY 2026	3% to 4%	2% to 3%	-100 to -200 basis points	Lowered
Non-interest Income Growth (FY2026)	FY 2026	mid to high single-digit growth	high single-digit growth	narrowed from mid-to-high to high only	Lowered
Non-interest Expense Growth (FY2026)	FY 2026	1.25% to 2.25%	approximately 1.75%	narrowed midpoint to +1.75% vs. prior 1.75% midpoint (reaffirmed); but upper bound lowered from 2.25%	Raised
Effective Tax Rate (GAAP) (FY2026)	FY 2026	16.5%	14.5%	-200 basis points	Lowered
Effective Tax Rate (Taxable Equivalent Basis) (FY2026)	FY 2026	18.5%	16.5%	-200 basis points	Lowered
Share Repurchases (FY2026)	FY 2026	$4 billion	$5 billion	—	Raised

Reaffirmed unchanged this quarter: Average Loan Growth (FY2026) (3% to 4%), Net Charge-offs (FY2026) (approximately 55 basis points)

Capital & returns

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Return on Average Tangible Common Equity (ROTCE)	15.4%	—	—
Common Equity Tier 1 Ratio	10.9%	11.0%	—
Tier 1 Capital Ratio	12.2%	12.3%	—
Total Capital Ratio	14.0%	14.3%	—
Total Deposits	$409.4 billion	—	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Net Interest Margin - TE	2.98%	—	—
Nonperforming Loans and Leases Ratio	0.51%	—	—
Efficiency Ratio	58.0%	—	—

Management tone

No prepared remarks or Q&A transcript is available for this quarter; tone analysis deferred to next quarter's brief.

Answers to last quarter's watch list

Q2 NIM-TE — "relatively stable" with H2 expansion required. NIM-TE printed 2.98%, -4bps QoQ from 3.02% — worse than the guided "relatively stable." Now 5bps below the FY-above-3.03% floor that was established in prior guidance. Status: Resolved negatively

Q2 revenue at ~$5.2B (relatively stable QoQ). Revenue printed $5.265B, +2.2% QoQ vs the "relatively stable" guide — a $65M beat and the strongest QoQ growth print in several quarters. Status: Resolved positively

ROTCE printing at or above 14% in Q2. ROTCE printed 15.4%, +160bps QoQ from 13.8% — decisively above the prior-set 14% FY anchor for the first time this fiscal year. Status: Resolved positively

Non-interest income re-acceleration and IB&T specifically. Q2 noninterest income $1.644B, +5.9% QoQ (vs prior guide of ~-1% QoQ) and +17.4% YoY. IB&T income $352M, +71.7% YoY vs Q2'25's $205M — a decisive answer to the McGuire "high teens, maybe 20%" trajectory question. Status: Resolved positively

CET1 trajectory at 10.8% against 10% operating target. CET1 came in at 10.9%, +10bps QoQ — the opposite of compression, despite end-of-period shares falling 1.9% QoQ. Suggests stronger organic capital generation than the buyback pace alone implied. Status: Resolved positively

NCO trajectory after the 4bps QoQ uptick to 61bps. Q2 NCO printed 0.50%, -11bps QoQ from Q1's 0.61%. Q1's uptick looks transient; provision expense also stepped down ($395M vs $479M). Status: Resolved positively

NPL trajectory after the 2bps QoQ uptick to 0.50%. NPL printed 0.51%, +1bp QoQ — continued mild uptick, three consecutive quarters of small increases. Not yet alarming, but the direction is consistent. Status: Continue monitoring

What to watch into next quarter

Q3 NIM-TE — needs a clean re-expansion (at least +5bps QoQ) to salvage the prior-set FY-above-3.03% floor; two consecutive quarters of compression puts the FY framework at risk of a formal reset.

Whether management, when it next issues forward commentary, continues to reference the FY-above-3.03% NIM floor or quietly drops it.

ROTCE cadence — Q2's 15.4% needs to hold in Q3 to validate the 14% target with cushion; a drop back below 14% would suggest Q2 was buyback-mechanics-driven rather than operational.

IB&T durability — Q2's $352M was down $20M QoQ from Q1's $372M despite the YoY strength. Watch whether the +17% YoY fee trajectory holds sequentially in Q3.

NCO continuation — Q2's 0.50% needs to hold or improve to validate that Q1's 0.61% was transient.

NPL trajectory — a fourth consecutive small uptick in Q3 would move this from "mild migration" to a trend worth acting on.

Q3 forward guidance — a full transcript with prepared remarks and Q&A is expected next quarter and will be the first opportunity in two quarters to test whether the FY2026 framework (NII +2–3%, high single-digit fee growth, ~1.75% expense growth, ~$5B buybacks, 14% ROTCE, >3.03% NIM) is reaffirmed, refined, or reset.

Sources

Truist Financial Q2 2026 Press Release (Exhibit 99.2), filed with the SEC: https://www.sec.gov/Archives/edgar/data/92230/000009223026000096/ex992-qpsx2q26.htm
Truist Financial Q1 2026 brief (prior watch list and guidance baseline).
Truist Financial Q4 2025 brief (FY2026 framework baseline).
Truist Financial Q3 2025 brief (multi-quarter narrative arc context).

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