Huntington beats Q1 estimates on fee strength; raises fee-growth outlook, trims NIM view

Transcript intelligence

What changed

Huntington reported Q1 2026 adjusted EPS of $0.25, a 9.6% beat versus the $0.2282 consensus, on revenue of $2.592B that edged expectations by roughly 1%. Management trimmed the NIM outlook to the high 3.20% range but raised fee-income growth guidance to 31-33%, and expanded the buyback to a $3 billion evergreen authorization while upgrading the ROTCE target to 18-19%.

Guidance delta

Guidance broadly maintained but with a mixed change: the NIM outlook was revised down to the high 3.20% range while fee-income growth guidance was raised to 31-33%, funded partly by a roughly 80 bps CET1 benefit modeled under Basel III Endgame.

Key takeaways

• Q1 delivered 9% adjusted EPS growth and 36% adjusted PPNR growth, powered by strong fee income and loan/deposit momentum.
• Integration of Cadence, Veritex, Janney and TM Capital is on schedule, with cost and revenue synergies expected to be fully realized by Q4.
• NIM outlook was revised down to the high 3.20% range, while fee-income growth guidance was lifted to 31-33%.
• Balance sheet remains strong: liquidity 173% of uninsured deposits, LCR 118%, CET1 in the 9-10% range.
• The board expanded the share-repurchase program to a $3 billion evergreen authorization, with $550 million planned for 2026.

Management priorities

• Complete Cadence systems conversion by June and achieve full run-rate synergies by Q4.
• Continue branch expansion in the Carolinas and digital rollout in Texas and the South.
• Invest in an enterprise-wide AI program to enhance productivity and customer-facing capabilities.
• Reinvest synergy proceeds into talent, digital platforms, payments and wealth-management capabilities.
• Maintain an aggressive share-repurchase program under the new $3 billion authorization.