Canada's TD Bank Q3 revenue beats estimates on strength in Canadian, wholesale banking

The Toronto-Dominion Bank

27/08/2026 11:42

Overview
Canada banking group's Q3 revenue rose yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company attributed results to record earnings in Canadian and Wholesale Banking, and U.S. momentum

Outlook
TD expects fiscal 2026 U.S. BSA/AML remediation costs to be about US$550 mln pre-tax, up from US$500 mln
Company says global economic outlook for late 2026 remains shaped by oil price shock and inflation
TD Economics forecasts U.S. real GDP to expand by 2.2% in calendar 2026

Result Drivers
CANADIAN BANKING GROWTH - Record revenue and earnings in Canadian Personal and Commercial Banking, driven by deposit and loan volume growth and higher margins
U.S. BANKING MOMENTUM - U.S. Banking net income rose, supported by growth in middle market commercial lending and credit card balances
WHOLESALE BANKING PERFORMANCE - Record revenue and earnings in Wholesale Banking, reflecting higher revenues and lower credit loss provisions

Company press release: ID:nCNWLlLLDa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$16.89 bln
C$15.28 bln (5 Analysts)
Q3 Adjusted Revenue
 
C$16.93 bln
 
Q3 Adjusted EPS
Beat
C$2.77
C$2.47 (12 Analysts)
Q3 EPS
 
C$2.74
 
Q3 Adjusted Net Income
 
C$4.67 bln
 
Q3 Net Income
 
C$4.62 bln
 
Q3 Net Interest Income
 
C$9.30 bln
 
Q3 CET1 Capital Ratio
 
14.30%
 
Q3 Credit Loss Provision
 
C$917 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Toronto-dominion Bank is C$180.00, about 8.5% above its August 26 closing price of C$165.87
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads
Aug 25 - Canadian lenders BMO, Scotiabank beat profit estimates, brush aside tariff worries
Aug 27 - Canada's CIBC quarterly profit rises on strength in capital markets unit
Aug 27 - Royal Bank of Canada quarterly profit rises on trading boost

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)