U.S. Bancorp (NYSE: USB) delivered better-than-expected first-quarter 2025 results on Wednesday, exceeding analyst expectations on both earnings and revenue. However, shares slipped over 2% intraday as investors reacted cautiously to the report.
The bank posted adjusted earnings per share of $1.03, topping the consensus estimate of $0.98. Revenue reached $6.96 billion, slightly ahead of forecasts for $6.91 billion.
Adjusted net interest income rose 2.7% year-over-year to $4.09 billion, supported by a modest improvement in net interest margin, which came in at 2.72%—up 2 basis points from a year ago and 1 basis point higher than the prior quarter. Noninterest income climbed 5% year-over-year to $2.84 billion, reflecting continued strength across fee-generating business lines.
The bank’s diversified model across consumer banking, business services, and wealth management continues to provide resilience in a challenging macroeconomic environment. U.S. Bancorp’s (NYSE: USB) broad range of financial offerings appears to be helping maintain earnings stability despite sector-wide pressures.
As of December 31, 2024, the bank reported total assets of $678 billion and continues to expand its reach through a focus on digital innovation and enhanced customer experience.
Despite the solid quarterly performance, the stock’s pullback may reflect investor caution around the broader banking outlook. Still, analyst sentiment remains positive, with a consensus rating of Overweight and an average price target of $52.52, implying more than 38% upside from current levels.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
