Fulton Financial Surges on Earnings Beat and $150M Buyback
Bank shares climb over 4% after it beats profit estimates, boosts its dividend, and signals confidence with a new share repurchase authorization.
Shares of Fulton Financial Corporation (NASDAQ: FULT) surged in trading on Wednesday, climbing more than 4% after the Lancaster-based bank announced strong fourth-quarter results that surpassed analyst expectations and unveiled significant new capital return plans for shareholders.
The bank’s stock price rose 4.27% to close at $20.51, touching its 52-week high, as investors embraced the combination of robust profitability and shareholder-friendly actions. The rally was ignited by a fourth-quarter report that highlighted the bank's resilient performance in a complex economic environment.
Fulton posted operating earnings of $0.55 per share, decisively beating Wall Street's consensus estimate of $0.502 by 9.6%. The bank also reported quarterly revenue of $336.0 million, a 1.2% beat over expectations. On a GAAP basis, the company reported earnings of $0.53 per diluted share.
"The strength of our strategy and the dedication of our team combined to generate a 17% increase in our operating diluted earnings per share," said Curtis J. Myers, Chairman and CEO of Fulton Financial, in the company's earnings announcement. "In 2025, we delivered value to customers, expanded our team and customer base, and generated solid financial performance."
Bolstering investor confidence, Fulton's board announced a new share repurchase program, authorizing the buyback of up to $150 million of the company's stock through 2026. This move follows the $59 million in shares the company repurchased in 2025 and signals management's belief that its stock remains a valuable investment. In addition, the board approved a quarterly cash dividend increase to $0.19 per share, up from its previous payout of $0.18, further enhancing shareholder returns.
The bank's asset quality showed signs of stability, a key metric for financial institutions. The provision for credit losses—the amount set aside to cover potential loan defaults—decreased to just $2.9 million for the quarter, reflecting a healthy loan portfolio.
The positive results come as regional banks navigate a shifting interest rate landscape. Fulton’s ability to grow its earnings and maintain a stable credit outlook was rewarded by the market. The company, with a market capitalization of approximately $3.61 billion, is watched closely for indications of the health of the broader regional banking sector.
Analysts have a generally positive outlook on the stock. Ahead of the report, analysts at Keefe, Bruyette & Woods had raised their price target on Fulton to $22, while maintaining a "Market Perform" rating. The current consensus analyst price target sits at $21.10. The strong quarterly performance and robust capital return plans could lead to further positive revisions from analysts in the coming days.