C · Q2 FY2026
CITIGROUP INC Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $24.77B | $21.67B (yr ago) | Beat |
| EPS | $3.15 | $1.96 (yr ago) | Beat |
| Free Cash Flow | Not meaningful for a bank | Not meaningful for a bank | Miss |
| Gross Margin | Not meaningful for a bank | Not meaningful for a bank | Miss |
| Operating Margin | 32.4% pre-tax | 24.1% pre-tax (yr ago) | Beat |
What changed
Revenue increased 14.3% year over year to $24.77 billion, while pre-tax income rose 53.8% to $8.03 billion as revenue growth and a lower credit provision outweighed 4.7% expense growth. Diluted EPS increased 60.7% to $3.15, helped by higher net income and a lower share count, while RoTCE reached 13.0% and tangible book value per share increased 7.1% to $100.89.
Impact on the investment thesis
With no prior SageNoodle fair value, we initiate a $145 base-case value rather than record a change. The quarter supports a premium to tangible book value, but the current $138.50 price already reflects much of the improvement in revenue, efficiency and returns.