Bank of America (NYSE:BAC) Reports Q4 CY2025 Revenue Surpassing Expectations

Bank of America Surpasses Q4 2025 Revenue Forecasts

Bank of America (NYSE:BAC), a major player in the financial sector, delivered fourth-quarter 2025 results that outperformed Wall Street’s revenue projections. The company posted a 6.5% year-over-year increase in sales, reaching $28.37 billion. Additionally, its GAAP earnings per share came in at $0.98, topping analyst expectations by 2.2%.

Highlights from Q4 2025

• Net Interest Income: $15.75 billion, slightly above the $15.68 billion consensus, representing a 9.7% annual increase
• Net Interest Margin: 2.1%, surpassing the 2% estimate by 4.1 basis points
• Total Revenue: $28.37 billion, beating expectations of $27.59 billion and growing 6.5% year over year
• Efficiency Ratio: 61.5%, outperforming the anticipated 62.7% by 127.7 basis points
• GAAP EPS: $0.98, ahead of the $0.96 forecast by 2.2%
• Tangible Book Value per Share: $28.73, in line with the $28.66 estimate and up 7.5% year over year
• Market Cap: $398.3 billion

About Bank of America

Founded in 1784, Bank of America has grown into a global financial powerhouse, serving around 67 million individuals and small businesses. The company offers a broad suite of services, including banking, investment management, asset management, and risk solutions for consumers, businesses, and government clients.

Revenue Trends

Banks typically generate income from two main sources: net interest income—earned by lending at higher rates than they pay on deposits—and various fee-based services such as wealth management, credit, and trading. Over the past five years, Bank of America’s revenue has grown at a modest 5.7% compound annual rate, falling short of industry benchmarks and presenting a challenge for future growth analysis.

Bank of America Quarterly Revenue

While long-term growth is a key focus, it’s important to consider recent shifts in interest rates and market dynamics. The company’s annualized revenue growth rate of 6% over the last two years is consistent with its five-year trend, indicating steady but subdued demand.

Bank of America Year-On-Year Revenue Growth

In the latest quarter, Bank of America achieved a 6.5% year-over-year revenue increase, with its $28.37 billion in revenue exceeding analyst expectations by 2.8%.

Over the past five years, net interest income has accounted for 53% of total revenue, reflecting a balanced approach between lending and non-lending business segments.

Bank of America Quarterly Net Interest Income as % of Revenue

Our research indicates that investors place the greatest value on growth in net interest income, as non-interest income is often viewed as less stable and less predictable.

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Tangible Book Value Per Share (TBVPS)

Banks operate by managing the flow of funds between depositors and borrowers, making their balance sheet strength a critical measure of performance. Investors closely watch tangible book value per share (TBVPS), which reflects the bank’s real net worth per share, excluding intangible assets that may not hold value in a liquidation scenario. Unlike earnings per share, which can be affected by mergers, acquisitions, or accounting adjustments, TBVPS offers a clearer picture of a bank’s financial health.

Bank of America has increased its TBVPS by an average of 6.7% annually over the past five years, with growth accelerating to 8.1% per year over the last two years, rising from $24.60 to $28.73 per share.

Bank of America Quarterly Tangible Book Value per Share

Looking ahead, analysts expect TBVPS to climb by 6.3% to $30.55 over the next year, a relatively modest pace.

Summary of Q4 Performance

Bank of America’s fourth-quarter results were strong, with revenue, net interest margin, and efficiency ratio all surpassing expectations. The company’s earnings per share also beat forecasts. Following the report, shares rose 1.3% to $55.06.

Is Bank of America a compelling buy at its current valuation? While quarterly results are important, long-term fundamentals and valuation play a larger role in investment decisions.