Analyst Consensus ?
ConsensusHold18 ratings
Bullish844.5%
Neutral844.4%
Bearish211.1%
Bank of Montreal · BMO · FY2026 Q3 · Calendar Q3 2026
BMO reports strong Q3 as ROE advances toward 15% target
The current analysis supports a constructive but conditional view: strong segment earnings, improving ROE, resilient credit metrics, and AI-enabled productivity support BMO’s progress toward its fiscal 2027 ROE target. The case depends on sustaining fee and deposit growth while managing tariff exposure, net interest margin pressure, credit risk, and the returns from capital allocation.
Reported Before market openNYSEFinancial Services
$122.22B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$2.84
Consensus $2.71
EPS surprise
+4.8%
Reported versus consensus
Reported revenue
$7.10B
Consensus $6.94B
Revenue surprise
+2.4%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
+0.6%
Event window
SPY move
+0.3%
Same window
Abnormal move
+0.3%
Stock minus SPY
Volume
1.5×
Versus trailing sessions
Subsequent drift
+0.6%
Up to 20 sessions
BMOSPY benchmark
Ask FN2 about BMO FY2026 Q3
Transcript, numbers and history already loaded
Why did BMO rise 0.6% after beating EPS estimates in FY2026 Q3?What changed in BMO's guidance and outlook in FY2026 Q3?Give me the bull and bear case for BMO after FY2026 Q3 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Relative to the prior-quarter analysis, ROE improved from 13.5% to 14%, EPS growth remained strong, and management highlighted strategic divestitures expected to add 50 basis points to CET1. The current analysis also identifies the Euroz Hartleys acquisition, SmartDecision’s underwriting platform, and a proposed normal-course issuer bid as new developments.
Guidance delta
Maintained; management reaffirmed its guidance and remained focused on the 15% ROE target for fiscal 2027.
Key takeaways
- Current analysis says EPS rose 22% year over year and ROE improved to 14%.
- All business segments delivered record pre-provision pretax earnings, led by wealth management, capital markets, and commercial banking.
- Strategic divestitures are expected to add 50 basis points to CET1 and refocus capital on higher-return businesses.
- Credit quality improved and net interest margin remained resilient, while tariff and trade-policy risks persist.
Management priorities
- Advance the One Client strategy and deepen client relationships.
- Scale SmartDecision and Lumi to support productivity and client experience.
- Grow fee income, deposits, and loans in Canada and the United States.
- Pursue organic growth while evaluating selective U.S. M&A opportunities.
- Execute the proposed share-buyback program subject to regulatory approval.
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Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$174.49Previous close
$50Low
$150.1Average
$580High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Sep 21, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| RBC Capital | Sector Perform | Sector Perform | Maintain | May 28, 2026 |
| Scotiabank | Sector Perform | Sector Outperform | Downgrade | Aug 28, 2024 |
| Barclays | Overweight | Overweight | Maintain | Aug 28, 2024 |
| B of A Securities | Neutral | Buy | Downgrade | Aug 28, 2024 |
| Keefe, Bruyette & Woods | Market Perform | Outperform | Downgrade | Jun 3, 2024 |
| Credit Suisse | Outperform | Neutral | Upgrade | Feb 24, 2021 |
| Canaccord Genuity | Buy | Buy | Maintain | Feb 24, 2021 |
| Bank of America | Underperform | Neutral | Downgrade | Jan 28, 2019 |
| Macquarie | Outperform | Neutral | Upgrade | Feb 15, 2018 |
| Citigroup | Buy | Neutral | Upgrade | May 18, 2017 |
| Dundee | Neutral | Neutral | Maintain | Sep 21, 2016 |
| Rafferty Capital | Buy | Hold | Upgrade | Jun 9, 2016 |
| Rafferty | Buy | Hold | Upgrade | Jun 9, 2016 |
| TD Securities | Hold | Buy | Downgrade | May 26, 2016 |
| BMO Capital | Market Perform | Market Perform | Maintain | Aug 28, 2013 |
| Morgan Stanley | Underweight | Equal Weight | Downgrade | May 14, 2013 |
| Desjardins | Buy | Hold | Upgrade | Aug 29, 2012 |
| Stifel Nicolaus | Hold | Hold | Maintain | Aug 28, 2012 |
Named analyst price targets
Upside is calculated against the persisted previous close $174.49. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| BMO Capital | Daniel Jester | $90 | $172.72 | -48.4% | Sep 9, 2026 |
| Capital One Financial | Analyst unavailable | $80 | $175.05 | -54.2% | Sep 8, 2026 |
| Morgan Stanley | Analyst unavailable | $580 | $172.87 | +232.4% | Aug 26, 2026 |
| BMO Capital | Michael Zaremski | $203 | $172.35 | +16.3% | Aug 25, 2026 |
| Capital One Financial | Analyst unavailable | $74 | $173.51 | -57.6% | Aug 24, 2026 |
| BMO Capital | Daniel Jester | $103 | $173.49 | -41.0% | Aug 24, 2026 |
| BMO Capital | Fadi Chamoun | $140 | $163.13 | -19.8% | May 28, 2026 |
| BMO Capital | Daniel Jester | $92 | $138.11 | -47.3% | Mar 13, 2026 |
| BMO Capital | Brennan Hawken | $78 | $139.17 | -55.3% | Feb 5, 2026 |
| BMO Capital | Daniel Jester | $125 | $126.69 | -28.4% | Dec 5, 2025 |
| BMO Capital | John McNulty | $50 | $124.18 | -71.3% | Nov 3, 2025 |
| BMO Capital | John McNulty | $380 | $126.64 | +117.8% | Oct 28, 2025 |
| BMO Capital | Bhavesh Lodaya | $109 | $127.27 | -37.5% | Oct 28, 2025 |
| BMO Capital | John McNulty | $70 | $125.8 | -59.9% | Oct 21, 2025 |
| Loop Capital Markets | Analyst unavailable | $50 | $96.91 | -71.3% | Mar 12, 2025 |
| Bank of America Securities | Ebrahim Poonawala | $120.95 | $102 | -30.7% | Aug 25, 2021 |
Track every rating change on BMO the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationBank of Montreal engages in the provision of diversified financial services primarily in North America. The company operates through Canadian P&C, U.S P&C, BMO Wealth Management, and BMO Capital Markets segments. It’s personal banking products and services include deposits, home lending, consumer credit, small business lending, credit cards, cash management, financial and investment advice, and other banking services; and commercial banking products and services comprise various of financing options and treasury and payment solutions, as well as risk management products. It also offers investing, banking, and wealth management advisory; digital investing services; financial solutions for individuals, families, and businesses; offers investment management services to institutional, retail, and high net worth investors; and diversified insurance, and wealth and pension de-risking solutions.…
Financial Services peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| PUK Prudential plc | FY2026 Q2 · Calendar Q3 2026 | -40.9% | -0.5% | Prudential sustains growth and capital returns focus in H1 2026 |
| CM Canadian Imperial Bank of Commerce | FY2026 Q3 · Calendar Q3 2026 | +8.9% | -2.8% | CIBC Q3: Broad growth, resilient credit and expanded AI rollout |
| TD The Toronto-Dominion Bank | FY2026 Q3 · Calendar Q3 2026 | +13.8% | +1.4% | TD emphasizes growth investments alongside disciplined capital management |
| RY Royal Bank of Canada | FY2026 Q3 · Calendar Q3 2026 | +6.2% | -1.3% | RBC reports record Q3 earnings while investing for growth |
| AFRM Affirm Holdings, Inc. | FY2026 Q4 · Calendar Q3 2026 | +1230.3% | +0.3% | Affirm's most profitable quarter shifts focus to product execution |
Latest beats and misses
Who reports nextBeat on EPS
- FPSFY2026 Q4 · September 15, 2026+4.3% EPS+9.5% move
- TCOMFY2026 Q2 · September 15, 2026+22.3% EPS+3.0% move
- KRFY2026 Q2 · September 11, 2026+2.8% EPS+2.7% move
- ADBEFY2026 Q3 · September 10, 2026+0.8% EPS+1.4% move
- ORCLFY2027 Q1 · September 10, 2026+10.3% EPS-1.7% move
- CASYFY2027 Q1 · September 8, 2026+8.7% EPS-14.2% move
Get the BMO recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-08-25T22:15:07.651531+00:00
- FN2 earnings calendar · 2026-09-21T01:23:13.071796+00:00
- Polygon adjusted daily market bars · 2026-09-21T08:50:49.830147+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-21T08:50:49.827514+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated . For educational purposes only; not investment advice.