Truist's Q4 Earnings Report Leads to 5% Share Decline Despite Buyback Announcement and Future Goals

Truist Financial Corporation (TFC) has released its fourth-quarter 2025 earnings, reporting diluted earnings per share of $1.00. This figure fell short of analyst expectations of $1.09. Despite this earnings miss, the bank announced an impressive $10 billion share buyback plan and is targeting a 15% return on tangible common equity (ROTCE) by 2027.

Key Takeaways

Truist reported Q4 2025 earnings of $1.00 per share, missing the projected $1.09.
Total revenue for the quarter was $5.25 billion, below the anticipated $5.31 billion.
The bank faced higher expenses due to legal charges and severance, impacting earnings.
Truist is enacting a $10 billion share buyback with no expiration.
Aiming for a 15% ROTCE by 2027, the bank will focus on client relationships and operational efficiency.

Truist Q4 earnings miss as $10b buyback plan announced.

Overview of Q4 Earnings

Truist Financial Corporation experienced a decline in its stock value by 5% as it announced its earnings for the fourth quarter of 2025. The bank, based in Charlotte, North Carolina, reported a diluted EPS of $1.00, which was lower than the anticipated $1.09, according to their earnings report.

The total revenue for the quarter stood at $5.25 billion, missing the forecasted $5.31 billion. This shortfall was primarily due to increased legal accruals and severance charges, which reduced earnings per share by $0.12.

In addition to its traditional banking operations, Truist Ventures has broadened its horizon by investing in fintech companies, such as Spectral, that engage with digital assets. The bank is also involved in discussions about the role of enterprise blockchain technology in finance. Their strategy revolves around what is termed "embedded banking," which includes the use of APIs and real-time payment systems like One View and One View Connect.

Earnings Highlights

The report noted that net interest income rose by 1.9% from the prior quarter due to growth in loans and deposits. However, noninterest income remained stable compared to the previous quarter, with some categories seeing decreases, which were counterbalanced by increases in investment banking and trading income.

On the expense side, Truist noted a rise of 5.2% in noninterest expenses primarily driven by higher personnel costs and legal accruals.

Truist also declared a share repurchase program authorizing up to $10 billion without a set expiration date, part of its ongoing capital distribution strategy. The bank's Common Equity Tier 1 ratio was recorded at 10.8%, which is a slight decline from the previous quarter.

The bank has laid out its strategic guidance focusing on improving client relationships, enhancing operational efficiency, and increasing capital returns. Additionally, Truist aims to reach a 15% return on tangible common equity by the year 2027, planning to invest in both talent and technology while emphasizing robust risk management and governance practices.