I'll research HBAN (Huntington Bancshares) to build a well-informed earnings preview. Let me gather recent transcripts, filings, and news.Let me read the most recent earnings call (2026Q1), the latest release, and the year-ago Q2 call for context.Let me gather recent news, analyst sentiment, and stock price data to round out the preview.Let me check for analyst estimates/consensus and any recent news via web search.I have what I need. Here's the earnings preview.
Huntington heads into Q2 as a newly-scaled ~$285 billion super-regional in the middle of digesting two large partnerships (Veritex and Cadence). Management has told the Street the 2026 story is "on track," so this print is less about a headline beat/miss and more about proof of execution on integration, synergies, and the back-half margin ramp that underpins an ambitious 2027 target. Consensus is looking for adjusted EPS of ~$0.39 on revenue of ~$2.84B, versus $0.34 adjusted a year ago.
NIM was 3.24% in Q1, but management cut the full-year outlook to the high-3.20s (from mid-3.30s), attributing ~5bp to a deliberate ~$4B build of Fed cash (a liquidity hedge tied to Middle East risk, revenue-neutral) and ~2–3bp to slightly firmer deposit costs / asset optimization. They also flagged quarter-to-quarter NIM noise as they optimize the Cadence book, and reiterated NIM should rise in the back half. The question: does the Fed-cash drag and Cadence purchase-accounting create a soft Q2 print, and is management still pointing to a H2 inflection?
Fee income was the standout last quarter. Management raised full-year fee growth guidance to 31–33% on the back of a record capital markets quarter (organic revenue +~60% YoY), payments +21% and wealth +19%. That's a tough comp. Watch: - Whether capital markets can sustain the elevated run rate (loan syndications, advisory including the TM Capital/Janney additions, trading). - Early revenue synergies from cross-selling payments/capital markets/wealth into the Cadence and Veritex footprints (management framed $50–75M for the year).
Management is running a "value-creation flywheel" — 7 straight years of cutting >1% of the cost base while reinvesting. They tightened 2026 expense growth to the lower half of the 32.5–33.5% range and took ~$50M of incremental "tuning" actions, targeting a Q4 efficiency ratio in the mid-to-low 54% (improved from "<55%") and full-year operating leverage of 400–450bp. Q2 is a checkpoint — watch adjusted expense trajectory and any update to the AI/agentic-process efficiency program they're leaning into.
Credit remains benign but the acquired books added noise: - NCOs 26bp in Q1 (guide 25–35bp for the year); management flagged this as well below peers. - NPA ratio rose to 0.72% and NALs jumped ~43% QoQ, largely from acquired Cadence/Veritex loans — expect continued digestion here. - ACL at 1.78% of loans (reserve build driven by Cadence). - CRE/construction is the area management is deliberately shrinking as a % of the book over the next 2+ years. Watch criticized-asset and CRE trends for any drift.
Management is explicitly framing 2026 as the year the franchise approaches an inflection, with Q4 as the "clean" run-rate quarter that fully reflects both Veritex and Cadence cost synergies. The anchor is a 2027 EPS target of $1.90–$1.93 and ROTCE of 18–19% (raised from 16–17%). Everything on this call will be measured against credibility toward that bridge. On the M&A question, Steinour was clear the focus is organic — no large deals imminent.
Despite reiterated guidance, HBAN has notably lagged its regional-bank peers in 2026. The stock is roughly +4–5% YTD (from ~$17.48 to ~$18.29), versus the KRE regional-bank ETF up ~16% over the same span — a gap CFO Zach Wasserman openly called "frustrating" on the Q1 call, arguing the fundamentals aren't reflected in the valuation. Shares did recover from a March low near $15 and have firmed into the print (~$18.3). That underperformance sets up an asymmetric reaction: the market appears skeptical, so clean execution on synergies + a credible H2 margin ramp could be the catalyst to close the gap, while any wobble on the Cadence conversion, deposit costs, or credit in the acquired books would validate the discount.
| Metric | Q1 2026 actual | What to look for in Q2 |
|---|---|---|
| Adjusted EPS | $0.37 | Consensus ~$0.39; trajectory toward ~$1.62 FY |
| NIM | 3.24% | Hold high-3.20s; H2 rise reaffirmed? |
| Fee income | $682M (+38% YoY) | Capital markets sustainability; 31–33% FY guide intact |
| Adj. expenses | $1,511M | Progress toward mid/low-54% Q4 efficiency |
| NCOs / NPAs | 0.26% / 0.72% | Acquired-book digestion; CRE/construction |
| CET1 | 10.2% | Buyback pace; Basel III commentary |
| Loan/deposit growth | Loans +1.5%, core deposits +2.3% QoQ (ex-Cadence) | Organic momentum; deposit cost/betas |
Bottom line: This is a milestone-verification quarter. The bar on headline EPS is modest (~$0.39), but the report needs to reinforce three things to move a lagging stock — a clean Cadence conversion, sustained fee momentum, and a credible glide path to the Q4 efficiency and 2027 return targets. Confirmation on those, plus any lift to the buyback/Basel III capital-return narrative, is what bulls are counting on; the risk is that "on track but a touch softer" (NIM, deposit costs, rising acquired-book NPAs) keeps the valuation discount intact.
Note: Figures above are drawn from Huntington's Q1 2026 earnings release and call and third-party consensus estimates ahead of the report; actual Q2 results and any guidance revisions will be the real drivers.