Bank of America Rises After Q4 Profit and Revenue Top Forecasts
Lender posts a 10% rise in net interest income, and its CEO voices a bullish outlook on the U.S. economy, fueling investor optimism for 2026.
Bank of America (NYSE: BAC) shares gained in Wednesday trading after the financial giant reported fourth-quarter earnings and revenue that surpassed analyst expectations, driven by strong growth in its lending business.
The Charlotte-based lender announced a profit of $0.98 per share, clearing the consensus estimate of $0.95. Revenue for the quarter landed at $28.4 billion, beating Wall Street’s forecast of $27.5 billion. The positive results provided an early boost to the financial sector as earnings season gets underway.
The performance was anchored by a significant uptick in the bank’s net interest income (NII), which swelled by 10% year-over-year to $15.8 billion. This figure, which represents the difference between what the bank earns on loans and pays for deposits, benefited from a higher interest rate environment and steady loan growth throughout the year.
In a statement that captured the market's attention, Chief Executive Officer Brian Moynihan expressed strong confidence for the year ahead. "We are bullish on the U.S. economy in 2026," Moynihan stated, signaling that the bank’s leadership sees a resilient consumer and a healthy business environment on the horizon. His comments come at a time when investors are looking to the nation's largest banks for cues on the broader economic trajectory.
The market reacted positively to the combination of a solid earnings beat and forward-looking optimism. Shares in Bank of America, which has a market capitalization of approximately $425 billion, traded higher following the announcement, building on a strong prior year. The bank's stock is trading near the upper end of its 52-week range of $32.53 to $57.55.
Investors had been keenly watching BofA's results, with analysts at CNBC noting that the bank was a key beneficiary of recent industry tailwinds heading into the report. The beat on both the top and bottom lines suggests the bank successfully navigated mixed economic signals at the close of the year.
Adding to investor confidence, Bank of America demonstrated a continued commitment to shareholder returns, distributing $8.4 billion through dividends and share repurchases during the quarter. This capital return underscores the management's confidence in the bank's robust balance sheet and earnings power.
Full details of the financial results were made available on the company’s investor relations website. While the strong NII was a highlight, the report will be further scrutinized for details on consumer credit trends, loan loss provisions, and the performance of its wealth management and investment banking divisions as a barometer for the health of both Main Street and Wall Street.