Financial services giant U.S. Bancorp (NYSE: USB) announced better-than-expected revenue in Q4 CY2025, with sales up 5.1% year on year to $7.37 billion. Its non-GAAP profit of $1.26 per share was 6% above analysts’ consensus estimates.
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U.S. Bancorp (USB) Q4 CY2025 Highlights:
- Net Interest Income: $4.31 billion vs analyst estimates of $4.28 billion (4% year-on-year growth, 0.7% beat)
- Net Interest Margin: 2.8% vs analyst estimates of 2.8% (in line)
- Revenue: $7.37 billion vs analyst estimates of $7.32 billion (5.1% year-on-year growth, 0.6% beat)
- Efficiency Ratio: 57.4% vs analyst estimates of 57.8% (37.3 basis point beat)
- Adjusted EPS: $1.26 vs analyst estimates of $1.19 (6% beat)
- Tangible Book Value per Share: $29.12 vs analyst estimates of $28.62 (22.6% year-on-year growth, 1.8% beat)
- Market Capitalization: $84.56 billion
Company Overview
With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Regrettably, U.S. Bancorp’s revenue grew at a sluggish 4.4% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. U.S. Bancorp’s recent performance shows its demand has slowed as its revenue was flat over the last two years. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, U.S. Bancorp reported year-on-year revenue growth of 5.1%, and its $7.37 billion of revenue exceeded Wall Street’s estimates by 0.6%.
Net interest income made up 58.6% of the company’s total revenue during the last five years, meaning U.S. Bancorp’s growth drivers strike a balance between lending and non-lending activities.
Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
U.S. Bancorp’s TBVPS grew at a tepid 3.7% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 16.7% annually over the last two years from $21.37 to $29.12 per share.
Over the next 12 months, Consensus estimates call for U.S. Bancorp’s TBVPS to grow by 8.7% to $31.67, paltry growth rate.
Key Takeaways from U.S. Bancorp’s Q4 Results
It was encouraging to see U.S. Bancorp beat analysts’ tangible book value per share expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $54.21 immediately after reporting.
So should you invest in U.S. Bancorp right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
