January 12, 2026
Finance

Bank of America Prepares to Announce Q4 Earnings Amidst Analyst Rating Adjustments

Wall Street analysts update forecasts ahead of Bank of America's Q4 earnings release, highlighting mixed sentiments on future performance

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Summary

Bank of America is set to report its fourth-quarter earnings on January 14 before the market opens, with Wall Street estimates anticipating a rise in earnings per share and revenues compared to the prior year. Recent modifications in analyst ratings reveal a range of perspectives on the bank's upcoming performance. This analysis explores the latest estimates, recent corporate actions, and investor sentiment as the bank approaches its earnings announcement.

Key Points

Bank of America is expected to report fourth-quarter earnings of 96 cents per share, higher than 82 cents in the prior year quarter.
Projected quarterly revenue stands at $27.62 billion, up from $25.35 billion reported last year.
The bank recently redeemed $3 billion of 5.080% senior notes due in January 2027, signaling active debt management.
Analysts have updated ratings and price targets, with some increasing their targets and others downgrading the stock, reflecting varied outlooks.

Bank of America Corp. (NYSE: BAC) is scheduled to announce its earnings for the fourth quarter ahead of the market open on Wednesday, January 14. Current analyst projections indicate that the bank is expected to report earnings per share (EPS) of 96 cents for the quarter, reflecting an improvement over the 82 cents reported in the same period last year. Consensus forecasts also anticipate the bank's quarterly revenue to reach approximately $27.62 billion, up from $25.35 billion reported in the previous year, according to data compiled by Benzinga Pro.


In a recent corporate development, Bank of America disclosed the redemption of $3 billion worth of 5.080% fixed/floating rate senior notes maturing in January 2027. This transaction, announced on the preceding Friday, indicates active debt management by the institution amid its capital and funding strategy.

Following these developments, the bank's stock price experienced pressure, closing 0.6% lower on Friday at $55.85. Investors continue to scrutinize the forthcoming earnings report alongside broader economic and sector-specific factors impacting financial institutions.


Wall Street analysts tracking Bank of America have adjusted their recommendations and price targets in recent days, signaling varied outlooks for the bank’s future performance. Key updates from analysts known for their forecasting accuracy include:

  • TD Cowen: Steven Alexopoulos, with a reported accuracy rate of 69%, reaffirmed his Buy rating on January 7, raising the price target from $64 to $66, indicating confidence in the stock's potential upside over the longer term.
  • Wolfe Research: Steven Chubak, who holds an accuracy rating of 71%, downgraded the stock from Outperform to Peer Perform on the same date, suggesting tempered expectations relative to sector peers.
  • Goldman Sachs: Analyst Richard Ramsden maintained a Buy rating on January 6 and elevated the price target from $58 to $64. His accuracy is noted at 73%, reflecting a generally optimistic stance toward Bank of America's prospects.
  • Truist Securities: On January 6, John McDonald upheld a Buy rating and increased the target price to $62 from $58, backed by an accuracy rate of 82%, the highest among the group, signifying strong conviction.
  • Barclays: Jason Goldberg affirmed an Overweight rating on January 5 and significantly raised the price target from $59 to $71, with an accuracy level of 63%, reflecting a bullish outlook on the bank’s potential for appreciation.

These recent analyst rating changes and price target revisions present a spectrum of investment views, ranging from cautious peer matching to robust buying recommendations accompanied by substantial price target hikes. This divergence captures the complexity of forecasting a major financial institution's trajectory amid fluctuating economic conditions.


Investors interested in acquiring or holding Bank of America shares may find it beneficial to review these updated professional insights and consider how the forthcoming earnings report might influence the bank’s stock performance. Additionally, Benzinga provides an Analyst Stock Ratings page that offers real-time updates on ratings and price targets for those seeking detailed stock evaluations.


Analyst Firm Analyst Name Rating Price Target Rating Date Accuracy Rate (%)
TD Cowen Steven Alexopoulos Buy $66 Jan 7, 2026 69
Wolfe Research Steven Chubak Peer Perform Not specified Jan 7, 2026 71
Goldman Sachs Richard Ramsden Buy $64 Jan 6, 2026 73
Truist Securities John McDonald Buy $62 Jan 6, 2026 82
Barclays Jason Goldberg Overweight $71 Jan 5, 2026 63

On the technical side, Bank of America’s stock closed at $55.85 on the previous Friday, edging down by 0.6%. Market participants await the detailed earnings report to gauge momentum and validate these revised analyst perspectives.


Overall, the combination of anticipated earnings growth, recent debt redemption activities, and mixed analyst opinions highlights the dynamic environment in which Bank of America is operating as it approaches its upcoming earnings disclosure. Stakeholders should monitor both fundamental results and evolving market reactions to make informed investment decisions.

Risks
  • The downgrade by Wolfe Research from Outperform to Peer Perform indicates some analysts perceive increased challenges or slower growth relative to peers.
  • Stock price declined by 0.6% recently, showing market uncertainty ahead of earnings release.
  • Variations in analyst ratings and price targets imply divergent expectations, leading to potential volatility.
  • Despite expected earnings growth, broader economic and sector conditions remain uncertain, affecting the bank’s performance.
Disclosure
Education only / not financial advice
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