Huntington Bancshares announced revised financial guidance at the Barclays Global Financial Conference, prompting a 3% decline in its stock price. The regional bank reduced its fiscal 2027 earnings per share forecast to a range of $1.75 to $1.83, down from its previous projection of $1.90 to $1.93 issued in April. The company attributed the reduction primarily to expectations for more moderate expansion of its net interest margin, the spread between interest earned on loans and interest paid on deposits.
Higher short-term interest rates and intensifying competition for loans and deposits are expected to pressure the bank’s net interest margin expansion. For fiscal 2026, Huntington lowered its annual net interest income growth forecast to approximately 35%, down from its prior range of 39% to 43%. The bank also reduced its implied year-on-year revenue growth projection to around 34%, compared with its earlier estimate of approximately 37%.
The company revised several other metrics for 2026. Average loan growth expectations were adjusted to approximately 36%, compared with the previous range of 36% to 37%, while average deposit growth was lowered to around 33% from its earlier forecast range of 33% to 34%. However, Huntington increased its fee income growth projection for 2026 to approximately 32%, up from its previous forecast of 26.5% to 29.5%, which partially offsets declines in other revenue areas.
Despite the reduced earnings outlook, management indicated plans to increase share repurchases to between $1.3 billion and $1.4 billion while maintaining investments intended to support business growth. The company’s chief executive stated that Huntington continues to expect a return on equity of more than 17% in 2027 under its revised outlook. The updated guidance remains subject to changes in interest rates, competitive conditions, and lending activity.
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