BAC US S&P 500Russell 1000 Earnings call

Bank of America (BAC) · Q2 2026 results and valuation

Share price: $50.67 · 2026-11-11

Bank of America is a financial holding company that provides banking, investing, asset management, and risk management products and services. It serves individual consumers, small- and middle-market businesses, institutional investors, large corporations, and governments in the United States and international markets. Source: 10-K annual report (2026-02-25)

Results Q2 2026 vs Q1 2026 · previous quarter · published 14 Jul 2026 and 15 Apr 2026

Net income up 5.7% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.

1 · Numbers

+5.7%

Net income vs Q1 2026

Outlook given

Net income 9.07B vs 8.58B

Revenue +4.2%

2 · How management spoke

Very upbeat

More upbeat than 96% of company calls

Answers to analysts: upbeat, but clearly less so than the script.

Last call it was different: script and answers matched.

3 · What stood out

Bank of America expects full year 2026 NII growth to be at the upper end of the 6%-8% range due to loan and deposit growth, asset repricing, and balance sheet optimization.

Valuation

Is Bank of America undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 6.0% growth a year (3-year revenue growth), the model's fair value is $73.31 a share — the stock trades 31% below it. Today's price assumes 0.9% growth a year.

Current price

$50.67

close of 2026-11-11

Market implies growth of i

+0.9% for 10 yrs

Fair value / share

$73.31

Buy below

$54.98

Price vs fair value

Undervalued 31%

Price vs buy-below price

Undervalued 8%

Management expects

Growth +7% · from the Q2 2026 report: “BAC expects full year 2026 NII growth to be at the upper end of the 6%-8% range due to loan and deposit growth, asset repricing, and balance sheet optimization.”

A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Figure

Net income increased 42% year-over-year to $1.4 billion and revenue grew 16% to a record $6.9 billion due to higher asset management fees, stronger flows, higher market valuations, and higher NII.

Source quote
“Net income for the segment increased 42% year-over-year to $1.4 billion, while revenue grew 16% to a record $6.9 billion, driven by higher asset management fees, strong flows, higher market valuations, and higher NII.”
Figure

BAC reported double-digit revenue growth, more than $9 billion of net income, 34% EPS growth, and a return on tangible common equity of 17% for the quarter.

Source quote
“We produced double-digit revenue growth and more than $9 billion of net income, with EPS growth of 34% and return on tangible common equity of 17%.”
Figure

Average deposits rose to $2.02 trillion, an increase of $49 billion or 2.5% from a year ago, which included $19 billion in non-interest-bearing growth.

Source quote
“Average deposits were $2.02 trillion, up $49 billion or 2.5% from a year ago, and importantly, included non-interest-bearing growth of $19 billion, up 4%.”
Guidance

BAC expects full year 2026 NII growth to be at the upper end of the 6%-8% range due to loan and deposit growth, asset repricing, and balance sheet optimization.
Figure

Operating leverage for the first half of 2026 has now exceeded 450 basis points.

3 more

Figure

The company reported $800 billion of excess between its cash and securities over its loans for the quarter.

Source quote
“We've got $800 billion of excess between our cash and securities over our loans.”
Figure

The company aims to increase net interest income by moving from 190s in NIM up to the 230s to improve the bottom line.

Source quote
“The key for everyone to understand is it's all going to come to the bottom line, and that's our goal is to make sure all the NII lift as we march from 190s in NIM up to the 230s, which we said we could do.”
Figure

The company returned $8 billion to shareholders through dividends and share repurchases this quarter.

Source quote
“We've returned $8 billion to you through dividends and share repurchases this quarter.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Very upbeat (was typical)

Answers to analysts Upbeat (was restrained)

Management sounded noticeably less positive answering analysts than in its prepared script — one of the biggest drops of any company call. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Turning to slide 14, GWIM delivered another outstanding quarter, highlighted by record revenue and pre-tax income, expanded profit margins, and continued client growth.”

“Consumer Banking delivered another strong quarter, combining solid financial performance with continued investment in growth, innovation, and client engagement.”

“Moving to our commercial and corporate client-facing businesses in Global Banking on slide 15, where Global Banking delivered strong results in the second quarter, reflecting healthy client activity, near-record investment...”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	31.56B	30.27B	+4.2%	27.44B	+15.0%
Operating income	11.56B	10.40B	+11.2%	8.67B	+33.4%
Net income	9.07B	8.58B	+5.7%	7.17B	+26.6%
EPS	1.21	1.11	+9.0%	0.90	+34.4%
P/E today 11.8	13.2	12.1	+1.1	14.0	−0.8

Topics

Most discussed now

With those investments, Bank of America generated 660 basis points of operating leverage and improved its efficiency ratio to 59%…
Growth was primarily driven by Global Banking, where deposits increased 8% year-over-year, reflecting continued client engagement and…
Supplementary leverage remains strong and well above Bank of America's minimums.
Bank of America maintained strong liquidity and funding while it optimized its balance sheet, and it supported all that with diversified…
Whether that increases expenditures of technology development dramatically or not, it really has to do with a couple of things.

Faded since Q1 2026

Fading There's a core deposit account is a core investment account.
Fading This performance was driven by balanced results across Bank of America's businesses, continued operating leverage, solid client activity…
Fading As proposed, Basel III would result in modestly higher capital requirements.
Fading However, the proposed changes to the G-SIB surcharge are expected to more than offset the Basel III end game impact...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-23 Change to shareholder rights; Articles or bylaws amended; Other events · SEC 8-K
2026-10-21 Director or officer change · SEC 8-K
2026-10-14 Results of operations; Regulation FD disclosure · SEC 8-K
2026-07-24 Other events · SEC 8-K
Bank of America Corporation declared a quarterly cash dividend of $0.32 per share, which is an increase of $0.04 per share or 14% from the prior quarter.
2026-07-14 Results of operations; Regulation FD disclosure · SEC 8-K
2026-05-06 Shareholder vote results · SEC 8-K · routine
2026-04-15 Results of operations; Regulation FD disclosure · SEC 8-K
Bank of America reported total revenue of $30.272 billion for the first quarter of 2026, up from $28.247 billion in the first quarter of 2025.
2026-02-13 Other events · SEC 8-K
Bank of America Corporation filed a Form 8-K on February 13, 2026, regarding various equity and debt securities including Series E and Series GG Preferred Stock.

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-18.

Cash & runway

Cash & equivalents

$28.10B

2026-06-30

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -5.7% YoY, -1.4% QoQ.

Quarter	Shares
Q3 2024	7.82B
Q1 2025	7.68B
Q2 2025	7.58B
Q3 2025	7.47B
Q1 2026	7.26B
Q2 2026	7.15B

Shares outstanding: 6.99B (2026-07-30)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 125 filings; 50 filings parsed.

Sold by insiders

156.2K shares

$7.0M · 48 transactions

Bought by insiders

29.4K shares

$315.0K · 33 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

over the next 12-month period

increase in NII from a 100 basis points parallel shift

Source quote
“Bank of America's banking book remains asset sensitive, on a dynamic deposit basis, a 100 basis points parallel shift above the forward curve is expected to increase NII by $1 billion over the next 12-month period.”
full year 2026

NII growth at the upper end of the 6%-8% range

Source quote
“We now expect full year 2026 NII growth to be at the upper end of that 6%-8% range, supported by anticipated loan and deposit growth, fixed rate asset repricing, and balance sheet optimization.”
second half of the year

modest loan and deposit growth

Source quote
“This assumes modest loan and deposit growth in the second half of the year, and it's based on the current forward curve, which has one 25 basis points rate hike in September.”
full-year

operating leverage of more than 200 basis points

Source quote
“On our first quarter earnings call in April, we told you we expected full-year operating leverage of more than 200 basis points.”
first half of 2026

operating leverage exceeding 450 basis points

Source quote
“Operating leverage for the first half of 2026 has now exceeded 450 basis points.”