U.S. Bancorp (USB) Stock Forecast & Price Target

U.S. Bancorp is attractive because it is pairing strong core growth with disciplined profitability, as 3Q26 EPS of $1.34 outpaced expectations while ROTCE remained a robust 18.6%, CET1 held at 10.8%, and net charge-offs improved to 0.51%. The bank’s outlook is further supported by 10.9% revenue growth excluding securities losses, raised FY total revenue guidance of 8% to 9%, and positive operating leverage of about 300 bps, reflecting broad-based strength in net interest income, fees, and capital markets. Its franchise also benefits from improving asset mix, fixed asset repricing, resilient credit quality, and the Amazon small-business credit card portfolio, all of which should help sustain earnings momentum and support buybacks.

U.S. Bancorp is facing a negative fundamental backdrop because net income fell 31% year over year as higher provision for credit losses and rising noninterest expense more than offset solid total revenue, while noninterest income slipped 6.7% on weaker mortgage banking. Although fee income rose 13.1% year over year to $3.480 billion and credit metrics remained manageable, the quarter still showed margin pressure from a $65 million securities loss, a $654 million provision expense, and $523 million of net charge-offs. The outlook remains cautious because recession risk, persistent inflation, and policy uncertainty could further weaken loan growth, lift credit losses, and strain profitability despite the bank’s broad franchise and disciplined credit culture.