U.S. Bancorp Shatters Records with 22% EPS Growth and Record Net Revenue
U.S. Bancorp has made headlines with its impressive second-quarter 2026 earnings, delivering a stunning 22% year-over-year growth in earnings per share (EPS) to $1.35.
The company's record net revenue of $7.7 billion highlights the strength of its diversified business mix and improved execution, reflecting strong progress against its three strategic priorities.
Revenue growth accelerated to a remarkable 10.1% year-over-year, with expense discipline remaining a hallmark for U.S. Bancorp, as it achieved 400 basis points of positive operating leverage in the quarter.
The payments transformation is driving innovative client value propositions, especially for Gen Z and younger generations, differentiating U.S. Bancorp from its competitors.
Gunjan Kedia, Chairman and Chief Executive Officer, noted during the conference call that the company's fee mix has improved significantly, with fees rising to 44% of total revenue this quarter. This is a key priority for U.S. Bancorp, as it drives higher returns, stable earnings, and enduring relationships.
The successful completion of the BTIG acquisition marks a significant milestone in U.S. Bancorp's strategic build-out of capital markets, with the combined entity generating approximately $98 million of revenue in its first month – a record-breaking performance that outpaced earlier expectations.
U.S. Bancorp's payments franchise remains an important source of diversification and client engagement across the company, with total payment services revenue increasing 5.7% year-over-year compared to 4.7% growth in the prior year quarter.
The consumer franchise is a significant strength for U.S. Bancorp, serving nearly 13 million consumers through digital and physical distribution channels. With approximately 18% residing outside of the traditional branch footprint today, the company is seeing strong momentum from differentiated offerings like Bank Smartly, which was introduced in 2024, with balances across Smartly checking and savings now exceeding $84 billion.
John Stern, Vice Chair and Chief Financial Officer, provided more details on U.S. Bancorp's financial performance during the conference call, highlighting the company's ability to maintain strong returns, credit performance, and capital levels while delivering these impressive results.
