Axos Financial Inc (NYSE:AX) has reported financial results for its second fiscal quarter of 2026, delivering a performance that surpassed analyst expectations on both the top and bottom lines. The digital banking and financial services company’s latest earnings release has been met with positive momentum in the market, indicating investor approval of the quarterly beat and the underlying business trends.
Earnings and Revenue Performance Versus Estimates
The company’s results for the quarter ended December 31, 2025, came in ahead of Wall Street forecasts. The key figures highlight a period of robust growth and operational strength.
- Revenue: Reported total revenue of $385.1 million, a significant 25.1% increase compared to the same quarter last year. This figure exceeded the analyst consensus estimate of approximately $356.2 million.
- Earnings Per Share (Non-GAAP): Adjusted earnings per share came in at $2.25, surpassing the estimated $2.15 per share. On a GAAP basis, diluted EPS was $2.22, up 23.3% from $1.80 in the prior-year period.
This double beat on revenue and profit estimates underscores the company's ability to grow its core operations while maintaining profitability. The market's immediate reaction reflected this positive surprise.
Market Reaction to the Earnings Release
Following the earnings announcement, Axos Financial's stock saw a notable uptick in after-hours trading, rising approximately 4.1%. This positive price action suggests investors were encouraged by the stronger-than-anticipated results. Over the past month, leading into the earnings report, the stock had already appreciated about 9.1%, indicating building optimism or anticipation of solid results.
Key Highlights from the Quarterly Report
Beyond the headline numbers, the earnings press release detailed several important drivers of the company's performance and its current financial health.
Strong Core Banking Growth: President and CEO Greg Garrabrants attributed the results to "strong net interest income growth and a solid net interest margin." Net interest income increased 18.4% year-over-year to $331.7 million, fueled by robust organic loan growth across several business lines, including commercial real estate and equipment leasing. The company's net loan portfolio grew by $1.6 billion during the quarter to $24.3 billion.
Impact of the Verdant Acquisition: The acquisition of Verdant Commercial Capital, LLC, completed in the prior quarter, played a significant role. It contributed substantially to the 92% year-over-year surge in non-interest income, which reached $53.4 million. This was primarily due to operating lease rental income from Verdant's business. The acquisition also added to non-interest expenses through depreciation and amortization.
Credit Quality and Balance Sheet Strength: The company reported improving credit metrics. Net charge-offs as a percentage of average loans decreased, and non-performing assets declined. Deposit growth remained strong, with total deposits increasing by over $2.4 billion from June 30, 2025. Book value per share rose 17% year-over-year to $51.70.
Looking Ahead: Analyst Estimates for Future Quarters
While the press release did not provide specific forward-looking financial guidance, it did express confidence in the company's operational momentum. Investors often look to Wall Street consensus to gauge future expectations. For the upcoming third fiscal quarter of 2026, analysts are currently estimating revenue of approximately $355.9 million and non-GAAP earnings per share of around $2.12.
For a detailed view of historical earnings, future estimates, and analyst projections, you can review the comprehensive data on the Axos Financial earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
