Bank of America – should investors buy after strong Q1 2026 results?

Bank of America delivered a strong Q1 2026 report, with earnings exceeding expectations. The Stochastic indicator emerging from oversold territory suggests a potential continuation of the share price uptrend.

For Q1 2026, Bank of America Corporation (NYSE: BAC) delivered a strong set of results, exceeding market expectations on earnings. Revenue increased to 30.3 billion USD, net income totalled 8.6 billion USD, and earnings per share reached 1.11 USD, above consensus estimates. The main driver once again was net interest income, which rose 9% to 15.7 billion USD.

Additional support came from trading operations, investment banking fees, and the wealth management business. At the same time, expenses grew at a noticeably slower pace than revenue, indicating effective cost control. Credit quality remained resilient, while lower provisions for credit losses provided a further positive signal.

This article provides a detailed review of Bank of America Corporation, presents a fundamental analysis of Bank of America’s quarterly results, and, based on the recent price performance of Bank of America shares, includes a technical analysis of BAC, forming the basis for the forecast for BAC shares in 2026.

About Bank of America Corporation

Bank of America Corporation is one of the world’s largest financial institutions, offering a broad range of banking and related services. Amadeo Giannini founded the bank in 1904 in San Francisco, US, under the name Bank of Italy, which was rebranded as Bank of America in 1930. The modern corporation emerged in 1998 following a merger with NationsBank.

Bank of America offers a broad range of services, including retail and corporate banking, investment and insurance products, asset management, and mortgage and lending services. Its headquarters are in Charlotte, North Carolina, US.

The bank’s IPO occurred in 1957 when its shares began trading on the New York Stock Exchange under the ticker BAC. Bank of America is among the largest banks in the US and worldwide, serving clients in more than 35 countries and managing assets exceeding 2.4 trillion USD.

Image of the Bank of America Corporation’s name

Bank of America Corporation’s main revenue streams

Bank of America’s key areas of financial interest, which generate revenue, span various business lines, including retail, corporate, and investment services. These are divided into the following categories:

Net interest income: generated from the difference between interest received on issued loans and interest paid to clients on deposits and other borrowed funds. Bank of America offers a broad range of financial products, including mortgages, commercial and auto loans, as well as credit cards.
Commission income: revenue from client transaction fees, including charges for account maintenance, payment and transfer processing, and asset management.
Investment banking income: fees for advisory services on mergers and acquisitions, revenue from equity and bond issuance, and earnings from trading financial instruments such as securities, currencies, and derivatives.
Asset management and insurance income: fees for asset management services, insurance premiums, and returns on investments in insurance-related products.
Trading and market operations: profits from transactions involving securities, currencies, and derivatives.
Other income sources: fees for safe deposit box rentals, returns on investments in sustainable development and infrastructure projects, and profits from holdings of government and corporate bonds.

These areas diversify the bank’s revenue streams, making them more resilient to economic crises, and enable Bank of America to compete effectively in the global market.

Bank of America Corporation’s strengths and weaknesses

Bank of America’s strengths include:

Diversified revenue streams: the bank offers a broad range of financial services, including retail banking, investment services, asset management, corporate banking, and insurance. This diversity strengthens Bank of America’s resilience to market fluctuations across multiple segments, allowing it to generate revenue from various sources.
Digital innovation: the bank is actively implementing digital technologies, including mobile apps and the virtual assistant Erica. These innovations enhance service quality, improve operational efficiency, and help attract new clients.
Strong position in investment banking and asset management: the bank’s competitive advantages in investment and private banking, combined with effective asset management, ensure its leadership in both the US and internationally. As a result, it can offer high-quality services to high-net-worth clients and large international corporations worldwide.
Wide network and global presence: with representative offices in more than 35 countries, the bank can serve clients regardless of location. The bank holds a leading position in both domestic and international markets.
Substantial capital and liquidity reserves: with extensive financial resources and highly liquid assets, the bank is well-equipped to manage risks and maintain stability during economic downturns effectively.

Bank of America’s weaknesses include:

Dependence on interest rates: the bank’s primary revenue stream is derived from the spread between interest earned on loans and interest paid on deposits. This makes it sensitive to changes in financial regulators’ monetary policy and fluctuations in interest rates. During periods of low rates, profitability typically declines.
High operating costs: despite the scale of the corporation and its elevated level of digitalisation, the bank incurs more substantial costs compared to its competitors, including JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC). These costs affect the overall profitability of the transactions.
Weakness in certain retail banking segments: although the bank holds a significant market share in the US, it lags behind competitors such as JPMorgan Chase and Wells Fargo in the retail banking and credit card segments. These banks have a larger client base and more developed service networks.

Overall, Bank of America is a strong player in the financial market thanks to its diversification and innovation. However, it faces challenges, including sensitivity to macroeconomic factors and elevated operating expenses.

Bank of America Corporation Q3 2024 financial results

In October, Bank of America published its Q3 2024 financial results for the quarter ended 30 September. The key data from the report is outlined below:

Revenue: 25.30 billion USD (+1%)
Net income: 6.90 billion USD (–12%)
Earnings per share: 0.81 USD (–10%)
Net Interest income: 14.0 billion USD (–3%)

Revenue by segment:

Consumer Banking: 10.40 billion USD (–1%)
Global Wealth and Investment Management: 5.80 billion USD (+8%)
Global Banking: 5.83 billion USD (–6%)
Global Markets: 5.60 billion USD (+14%)

Net income by segment:

Consumer Banking: 2.70 billion USD (–6%)
Global Wealth and Investment Management: 1.10 billion USD (+1%)
Global Banking: 1.90 billion USD (–27%)
Global Markets: 1.50 billion USD (+25%)

Shareholders received nearly 5.60 billion USD, including 2.00 billion in dividends and 3.50 billion through share buybacks.

Despite a 1% increase in total revenue, the bank’s net income declined by 12%, with profits from banking operations in both the global and US consumer markets falling. However, as in the previous quarter, the investment segment continued to show positive momentum, helping to offset the negative impact of the banking services sector.

Bank of America Corporation Q4 2024 financial results

Bank of America Corporation released its Q4 2024 financial results on 16 January 2025. The key report highlights, compared to the corresponding period of 2023, are outlined below:

Revenue: 25.3 billion USD (+15%)
Net income: 6.7 billion USD (+112%)
Earnings per share: 0.82 USD (+134%)
Net interest income: 14.4 billion USD (+3%)

Revenue by segment:

Consumer Banking: 10.6 billion USD (+3%)
Global Wealth and Investment Management: 6.0 billion USD (+15%)
Global Banking: 6.1 billion USD (+3%)
Global Markets: 4.8 billion USD (+20%)

Net income by segment:

Consumer Banking: 2.8 billion USD (+2%)
Global Wealth and Investment Management: 1.2 billion USD (+14%)
Global Banking: 2.1 billion USD (–13%)
Global Markets: 941 million USD (+27%)

In the Q4 2025 earnings report, Bank of America’s management expressed optimism about the company’s performance and outlook. It was noted that each business line contributed more to revenue, and there was a noticeable increase in deposits and loans granted, surpassing the industry average. Net interest income was projected to range between 14.5 and 14.6 billion USD in Q1 2025, with steady growth expected to bring it to approximately 15.5-15.7 billion USD by Q4 2025. The second half of 2025 was expected to show stronger growth than the first, ensuring an operational advantage throughout 2025.

Bank of America Corporation Q1 2025 financial results

On 15 April, Bank of America released its Q1 2025 financial results for the quarter ended 31 March. Its key highlights are provided below:

Revenue: 27.37 billion USD (+6%)
Net income: 7.40 billion USD (+11%)
Earnings per share: 0.90 USD (+18%)
Net interest income: 14.44 billion USD (+3%)

Revenue by segment:

Consumer Banking: 10.49 billion USD (+3%)
Global Wealth and Investment Management: 6.02 billion USD (+7%)
Global Banking: 5.97 billion USD (0%)
Global Markets: 6.58 billion USD (+12%)

Net income by segment:

Consumer Banking: 2.53 billion USD (–4%)
Global Wealth and Investment Management: 1.00 billion USD (0%)
Global Banking: 1.91 billion USD (–3%)
Global Markets: 1.94 billion USD (+13%)

Bank of America’s Q1 2025 report showed strong results, exceeding Wall Street expectations and instilling cautious optimism in investors. Income growth was primarily driven by trading revenues, especially in the stock sector, which saw a 17% increase amid a general surge in market activity across leading US banks.

Despite the positive results, Bank of America remains cautious about the economic situation. CEO Brian Moynihan noted potential risks associated with new tariffs and global uncertainty. However, he did not expect a recession in the US economy in 2025, with CFO Alastair Borthwick describing the economy as one that is slowly growing.

In Q1 2025, Bank of America increased provisions for possible loan losses from 1.3 to 1.5 billion USD, indicating the bank’s cautious approach to credit risks amid economic uncertainty.

For income-focused investors, the bank maintained its quarterly dividend at 0.26 USD per share, confirming its commitment to returning capital to its shareholders.

For Q2 2025, Bank of America’s management did not issue a specific forecast. However, the bank expects net interest income to grow by 6–7% in 2025 and to reach between 15.5 and 15.7 billion USD by Q4 2025, reiterating the guidance provided in the commentary to the Q4 2024 report. The primary driver of interest income was the consumer services sector.

Bank of America Corporation Q2 2025 financial results

On 16 July, Bank of America released its Q2 2025 financial results for the quarter ended 30 June. The key results are outlined below, compared with the same quarter a year earlier:

Revenue: 27.51 billion USD (+4%)
Net income: 7.11 billion USD (+3%)
Earnings per share: 0.89 USD (+7%)
Net Interest income: 14.67 billion USD (+7%)

Revenue by segment:

Consumer Banking: 10.81 billion USD (+6%)
Global Wealth and Investment Management: 5.93 billion USD (+7%)
Global Banking: 5.69 billion USD (–7%)
Global Markets: 6.01 billion USD (+10%)

Net income by segment:

Consumer Banking: 2.97 billion USD (+14%)
Global Wealth and Investment Management: 0.99 billion USD (–3%)
Global Banking: 1.70 billion USD (–19%)
Global Markets: 1.56 billion USD (+10%)

Bank of America delivered solid quarterly results, with net income in Q2 2025 rising to 7.1 billion USD (89 cents per share), beating analyst expectations and marking a 3% year-on-year increase, even though total revenue came in slightly below forecasts. The main growth drivers were the record net interest income of 14.7 billion USD (+7%) and a sharp rise in trading revenue to 5.3 billion USD (+14%), amid heightened market volatility and geopolitical uncertainty.

Management struck a confident tone. CEO Brian Moynihan noted stable consumer spending, high credit quality, and organic growth in both loans and deposits. The bank has now reported growth in current account numbers for 26 consecutive quarters, while total loan volume rose by 6-8%. The CFO emphasised that net interest income is expected to continue rising and could reach 15.5-15.7 billion USD by Q4, with loan growth projected in the mid-single digits (approximately 4-6%) and operating expenses expected to remain stable or even decline by year-end. Trading income is also expected to grow in the mid-single digits, extending the current 13-quarter streak of positive performance.

The investment banking division remains the main weak point, with fee income down approximately 9% year-on-year, although management expects deal activity to recover towards the end of the year.

In addition, the bank reaffirmed its strategy in the stablecoin segment, outlining plans either to develop its own platform or form a partnership to create institutional-grade digital payments infrastructure.

Bank of America Corporation Q3 2025 financial results

On 15 October, Bank of America released its Q3 2025 financial results for the quarter ended 30 September. The key figures compared with those from the same period a year earlier are as follows:

Revenue: 28.08 billion USD (+11%)
Net income: 8.46 billion USD (+23%)
Earnings per share (EPS): 1.06 USD (+31%)
Net interest income: 15.23 billion USD (+9%)

Revenue by segment:

Consumer Banking: 11.16 billion USD (+7%)
Global Wealth and Investment Management: 6.31 billion USD (+10%)
Global Banking: 6.26 billion USD (+7%)
Global Markets: 6.22 billion USD (+10%)

Net income by segment:

Consumer Banking: 3.44 billion USD (+28%)
Global Wealth and Investment Management: 1.27 billion USD (+20%)
Global Banking: 2.13 billion USD (+11%)
Global Markets: 1.65 billion USD (+4%)

For Q3 2025, Bank of America reported results ahead of expectations. Revenue totalled 28.1 billion USD, net income 8.5 billion USD, and earnings per share 1.06 USD. Return on equity reached 15.4%, exceeding analyst forecasts. The main drivers were the record growth in net interest income and a notable rebound in investment banking fees.

Compared with Q2 2025, the bank’s performance improved. Provisions for potential credit losses fell to 1.3 billion USD (from 1.6 billion USD previously), while loan charge-offs declined by around 10%, indicating stabilisation in the quality of the loan portfolio.

Year-on-year results also showed solid improvement: revenue rose 11%, and earnings per share increased from 0.81 USD to 1.06 USD. Net interest income reached 15.2 billion USD (+9%), supported by higher loan and deposit volumes. Investment banking fees grew 43% to 2.0 billion USD, while trading income rose 9%. Card spending by clients increased 6%, reflecting healthy consumer activity.

Expenses rose moderately – by about 5% – while profit grew at a faster pace. Capital remained strong, with the CET1 ratio at 11.6%. During the quarter, shareholders received a total of 7.4 billion USD: 2.1 billion USD through dividends and 5.3 billion USD via share repurchases.

Management forecasted Q4 2025 net interest income to reach 15.6–15.7 billion USD, up 8% year-on-year. The bank planned to keep expenses under control and continue shareholder distributions while maintaining strong capitalisation.

Bank of America Corporation Q4 2025 financial results

On 14 January 2026, Bank of America released its Q4 2025 financial results for the quarter ended 31 December. Below are the key figures compared with the same period last year:

Revenue: 28.39 billion USD (+7%)
Net income: 7.60 billion USD (+12%)
Earnings per share: 0.98 USD (+18%)
Net interest income: 15.89 billion USD (+9%)

Revenue by segment:

Consumer Banking: 12.53 billion USD (+7%)
Global Wealth and Investment Management: 6.73 billion USD (+9%)
Global Banking: 6.18 billion USD (+7%)
Global Markets: 5.64 billion USD (+8%)

Net income by segment:

Consumer Banking: 3.24 billion USD (+14%)
Global Wealth and Investment Management: 1.49 billion USD (+20%)
Global Banking: 2.00 billion USD (+5%)
Global Markets: 1.33 billion USD (+9%)

For Q4 2025, Bank of America demonstrated strong results, surpassing market expectations for both revenue and profit. Revenue amounted to 28.4 billion USD, slightly above analysts’ consensus forecast (27.5–27.8 billion USD), and net income reached 7.6 billion USD, reflecting a 12% year-on-year increase. Earnings per share were 0.98 USD, also exceeding expectations (0.96 USD). The main driver of growth was strong net interest income, which increased by 10% to 15.8 billion USD, highlighting the bank’s ability to generate profits in a high-interest-rate environment.

Markets and trading operations also became important sources of profit. The investment banking and trading businesses delivered solid growth: securities and FX trading recorded a strong increase in profitability, while higher fee income and asset management revenues added further resilience to overall performance. However, despite the strong contribution from non-interest income, the banking margin narrowed slightly, reflecting higher servicing costs associated with increased lending volumes.

Credit quality remained stable despite the backdrop of economic slowdown and elevated rates. Despite higher rates and concerns about potential deterioration in asset quality, the bank was able to reduce provisions for credit losses, which represents a positive signal for its financial resilience. Average loan growth stood at 8%, indicating continued demand for credit from both retail clients and businesses.

Management raised its net interest income guidance for 2026, expecting growth of 5–7%. Elevated interest rates are expected to continue supporting performance in this category. However, given the risk of an economic slowdown and rising expenses, the bank may face longer-term profitability constraints. The outlook for the coming quarters remains moderately positive, with management planning to maintain cost discipline while continuing to return capital to shareholders, including dividends and share buybacks.

Bank of America Corporation Q1 2026 financial results

On 15 April 2026, Bank of America Corporation released its Q1 2026 financial results for the quarter ended 31 March. The key figures compared with the same period last year are as follows:

Revenue: 30.27 billion USD (+7%)
Net income: 8.58 billion USD (+17%)
Earnings per share: 1.11 USD (+25%)
Net interest income: 15.75 billion USD (+9%)

Revenue by segment:

Consumer Banking: 11.05 billion USD (+5%)
Global Wealth and Investment Management: 6.71 billion USD (+12%)
Global Banking: 6.29 billion USD (+5%)
Global Markets: 7.11 billion USD (+8%)

Net income by segment:

Consumer Banking: 3.06 billion USD (+21%)
Global Wealth and Investment Management: 1.33 billion USD (+32%)
Global Banking: 2.09 billion USD (+8%)
Global Markets: 2.01 billion USD (+3%)

For Q1 2026, Bank of America delivered a strong set of results that exceeded market expectations on earnings. Revenue increased to 30.3 billion USD, net income reached 8.6 billion USD, and earnings per share came in at 1.11 USD, compared with 0.89 USD a year earlier.

A key strength of the quarter was the broad-based nature of the growth, rather than reliance on a single segment. Trading revenue rose 13%, with equities revenue surging 30%, while investment banking fees increased 21%. The wealth management segment also contributed positively, with revenue up 12%, supported by higher asset management fees. Against this backdrop, expenses increased by only 4%, and the efficiency ratio improved to 61% from 63% a year earlier, indicating solid cost discipline.

Credit quality remained stable. Provisions for credit losses declined to 1.3 billion USD from 1.5 billion USD a year earlier, while net charge-offs also edged lower year-on-year. However, they increased sequentially due to seasonal effects in credit cards. At the same time, average loans and leases grew 9% to 1.19 trillion USD, average deposits rose 3% to 2.02 trillion USD, and total card spending increased 7% to 245 billion USD. This suggests that demand for banking products and overall consumer activity remains relatively healthy.

Bank of America did not provide formal guidance for Q2 2026 in its published materials. However, management had previously expected at least 7% growth in net interest income for Q1 2026 and had guided for 5–7% growth for the full year 2026. The actual Q1 result exceeded those expectations.

Analysis of key valuation multiples for Bank of America Corporation

Below are the key valuation multiples for Bank of America Corporation based on Q1 2026 results, calculated at a share price of 53 USD.

Multiple	What it indicates	Value	Comment
P/E (TTM)	Price-to-earnings (P/E) ratio (trailing 12 months)	13.15	⬤ On current earnings, the valuation appears reasonable.
P/B	Price-to-book (P/B) ratio	1.37	⬤ The valuation relative to book value looks moderate.
P/TBV	Market valuation of tangible equity (price-to-tangible book value)	1.84	⬤ There is a slight premium to tangible book value.
Forward P/E	Forward price-to-earnings (forward P/E) ratio	12.16	⬤ Based on expected earnings, the stock appears attractively valued.
ROE	Return on equity (ROE)	12%	⬤ Return on equity is solid, though not exceptional.
ROTCE	Return on tangible common equity	16%	⬤ Business quality and capital efficiency remain very strong.
CET1 ratio	CET1 capital ratio (risk-weighted basis)	11%	⬤ The capital buffer is comfortable, though not excessive.
Tier 1 Capital Ratio	Tier 1 capital ratio	13%	⬤ The balance sheet is resilient, although capital strength is not among the strongest in the sector.
NIM / Net yield excluding Markets	Yield on core interest-earning assets (excluding market operations)	2%	⬤ Net interest margin is stable, but lacks clear upward momentum.
Efficiency Ratio / Overhead Ratio	Cost-to-income ratio (efficiency ratio)	61%	⬤ Expenses remain relatively high compared with revenue.
NPL Ratio	Non-performing loans (NPL) ratio	0.49%	⬤ Credit quality remains sound.
Coverage Ratio	Loan loss reserve coverage ratio	225%	⬤ Coverage of non-performing loans appears comfortable.
Payout Ratio	Dividend payout ratio	28%	⬤ Shareholder distributions do not create pressure on capital.

Following Q1 2026, Bank of America appears to be a high-quality bank with a moderate valuation. Its key advantage is that the stock does not look overheated on valuation multiples, while profitability and operational efficiency are not yet strong enough to justify a significant premium. As a result, the investment case is better viewed as a gradual improvement story, with the potential for steady share price appreciation rather than a sharp valuation re-rating.

Expert forecasts for Bank of America Corp stock in 2026

Barchart: 16 out of 27 analysts rated Bank of America shares as Strong Buy, 5 as Moderate Buy, and 6 as Hold. The upper price target is 71 USD, and the lower bound is 47 USD.
MarketBeat: 22 out of 27 analysts assigned a Buy rating, and 5 recommended Hold. The upper price target is 71 USD, and the lower bound is 54 USD.
TipRanks: 13 out of 18 analysts rated the shares as Buy, and 1 as Hold. The upper price target is 71 USD, and the lower bound is 55 USD.
Stock Analysis: 8 out of 21 experts rated the shares as Strong Buy, 9 as Buy, and 4 as Hold. The upper price target is 71 USD, and the lower bound is 47 USD.

Expert forecasts for Bank of America Corporation stock for 2026

Bank of America Corporation stock price forecast for 2026

On the weekly chart, Bank of America shares continue to trade within an ascending channel and have reached the upper boundary, which is acting as resistance. At the same time, the Stochastic indicator is emerging from oversold territory, suggesting that the recent correction may be complete and that the upward move could resume, with the potential for a breakout above the channel. Based on the current price dynamics of BAC shares, the potential scenarios for 2026 are as follows:

The primary forecast for BAC shares assumes a break above the historical high at 57 USD, which could act as a catalyst for further upside, with the price advancing by the width of the ascending channel towards 73 USD.

The alternative forecast for BAC stock assumes a rejection from the upper channel boundary. In this case, BAC could retest support at 46 USD. A rebound from this level would signal a resumption of the uptrend, with the upside target again at 73 USD.

Bank of America Corporation stock analysis and forecast for 2026

Risks of investing in Bank of America Corporation

stock

Risks of investing in Bank of America Corporation shares include several factors:

Interest rate sensitivity: Bank of America’s profitability is closely tied to interest rates. Rate hikes boost asset returns but also increase the cost of raised deposits, potentially reducing net interest income. If the Federal Reserve begins to lower rates, as some analysts predict, this could negatively impact interest income and BAC stock valuation.
Economic and political uncertainty: a return to the tariff policy under the Trump administration caused market volatility, temporarily increasing trading revenues but also raising uncertainty. Issues in international relations, particularly with China, may affect global markets and reduce BAC’s revenues from international operations.
Lower investment banking revenues: amid uncertainty, market activity in the mergers and acquisitions sector and IPOs has slowed, leading to lower fee income.
Credit risks: increased loan loss provisions suggest the bank expects a possible rise in defaults, particularly on commercial loans. The share of overdue loans is increasing, which could result in write-offs and lower fee income.

Although the Bank of America shows resilience across several areas, investors should consider the above risks as they may exert pressure on the company’s future financial performance.

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