RF US S&P 500Russell 1000 Earnings call
Regions Financial Corporation (RF) · Q2 2026 results and valuation
Share price: $28.64 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 17 Jul 2026 and 17 Apr 2026
Net income up 2.0% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+2.0%
Net income vs Q1 2026
Outlook given
Net income 570.0M vs 559.0M
Revenue +1.8%
2 · How management spoke
Upbeat
More upbeat than 65% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
Wealth management saw growth in client assets because of momentum from advisors hired over the past three years.
Valuation
Is Regions Financial Corporation 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 10.0% growth a year (3-year revenue growth), the model's fair value is $55.06 a share — the stock trades 48% below it. Today's price assumes 0.5% growth a year.
Current price
$28.64
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+0.5% for 10 yrs
Fair value / share
$55.06
Buy below
$41.29
Price vs fair value
Undervalued 48%
Price vs buy-below price
Undervalued 31%
Management expects
Growth +3.25% · from the Q2 2026 report: “Net interest income is now guided toward the low end of its 2.5%-4% growth range.”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
The company reported it remains encouraged by the overall operating environment and solid economic activity after performing well in the second quarter due to disciplined execution and investment.
Source quote
“As we look across our footprint, we remain encouraged by the overall operating environment. Overall, we're pleased with our performance for the second quarter, reflecting disciplined execution across the franchise and the benefits of investments we've made to position the company to deliver sound and profitable growth. Economic activity is solid.”
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Guidance
Deposit costs are expected to stay largely stable through year-end, provided the Fed funds rate does not change.
Source quote
“We anticipate a largely stable deposit cost over the second half of the year, assuming a constant Fed funds rate.”
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Guidance
Net interest income is now guided toward the low end of its 2.5%-4% growth range.
Source quote
“For net interest income, we expect to grow that at 2.5%-4%, non-interest revenue 3%-5%, and we're pointing to the low end of the range.”
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Fading
While the macroeconomic outlook remains volatile, Regions Financial experienced strong loan growth in the latter half of the quarter.
Source quote
“While the macroeconomic outlook remains volatile, we experienced strong loan growth in the latter half of the quarter. Almost 2/3 of the growth was investment-grade credits with the majority of the remaining growth near investment grade for very high quality. As John noted earlier, client sentiment remains broadly positive..”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“As in prior quarters, favorable repricing dynamics and disciplined deposit cost management continued to provide a strong foundation for growth, with loan balance expansion further contributing to second quarter momentum.”
“Earlier this week, the board of directors approved an increase in our quarterly common stock dividend to $0.30 per share, representing a 13% increase from the prior quarter and continuing...”
“Average deposits grew modestly, including over 1% growth in non-interest-bearing deposits, supported by household and operating account growth.”
Full figures
USD · ROIC.AI fundamentals (NYSE:RF, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.91B | 1.87B | +1.8% | 1.91B | +0.1% |
| Net income | 570.0M | 559.0M | +2.0% | 563.0M | +1.2% |
| EPS | 0.64 | 0.62 | +2.9% | 0.59 | +8.1% |
| P/E today 11.0 | 12.3 | 10.8 | +1.5 | 11.0 | +1.3 |
Topics
Most discussed now
- Market value adjustments on employee benefit assets increased $29 million during the quarter.
- New Over the past 12 to 18 months, Regions Financial has consistently seen competitors issue promotional pricing in markets where they're…
- Regions Financial delivered adjusted pre-tax, pre-provision income of $831 million and generated an adjusted return on tangible common…
- Customers maintain solid account balances and liquidity buffers relative to their spending levels, with overall financial conditions…
- This is supporting continued momentum in Regions Financial's core businesses.
Faded since Q1 2026
- Fading An area that has not been a meaningful growth driver over the past year is NDFI-related lending.
- Fading Loan pipelines and commitments remain strong, and overall lending activity remains at a good pace.
- Fading Treasury management wealth just continue to be good growth stories for it.
- Fading One is with let's talk about the proposed capital changes first.
Latest announcements
Official filings, newest first.
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Articles or bylaws amended · SEC 8-K