BAC · Q2 FY2026
BANK OF AMERICA CORP /DE/ Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $31.56B | $27.44B (yr ago) | Beat |
| EPS | $1.21 | $0.90 (yr ago) | Beat |
| Free Cash Flow | N/M for a bank | N/M for a bank | Miss |
| Gross Margin | N/M for a bank | N/M for a bank | Miss |
| Operating Margin | 36.6% pre-tax margin | 31.6% pre-tax margin (yr ago) | Beat |
What changed
Revenue increased 15.0% year over year to $31.56 billion, while diluted EPS rose 34.4% to $1.21 and pre-tax margin expanded 5.0 percentage points to 36.6%. Net interest income, wealth fees, investment banking and trading all contributed, while the provision for credit losses declined and asset-quality indicators improved.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise. We establish fair value at $58.74 per share, based on 2.0 times Q2 tangible book value of $29.37; the stronger earnings and credit trends support that multiple, but the current price already exceeds base-case value.