WASHINGTON TRUST BANCORP (NASDAQ:WASH) delivered a robust conclusion to its fiscal year, reporting fourth-quarter and full-year 2025 results that significantly surpassed analyst expectations. The regional bank’s performance indicates a strong recovery and operational momentum, which was met with a measured but positive initial market response.
Earnings and Revenue Highlights
The core of the earnings story lies in the substantial beats on both top and bottom lines for the fourth quarter. The reported figures handily exceeded the consensus estimates compiled by analysts.
- Revenue: The company reported Q4 revenue of $59.25 million. This represents a substantial 20.4% increase year-over-year and, more notably, came in 47.7% above the analyst estimate of approximately $40.1 million.
- Earnings Per Share (EPS): On a non-GAAP basis, diluted EPS was $0.83 for the quarter. This outperformed the analyst consensus estimate of $0.764 by 8.6%.
For the full year 2025, the results underscore a dramatic turnaround. Washington Trust reported net income of $52.2 million, or $2.71 per diluted share, a stark reversal from a net loss of $28.1 million in 2024. Even when adjusting for infrequent transactions in both years, the company's adjusted net income rose from $40.9 million in 2024 to $51.8 million in 2025, demonstrating sustained core profitability.
Market Reaction and Price Action
Following the earnings release, the market's reaction has been cautiously optimistic. In after-hours trading, the stock price showed no significant movement, holding steady. However, a look at the recent performance suggests the news may have solidified or slightly improved sentiment following a period of weakness.
- The stock's performance over the last week was negative, down approximately 3.95%.
- Over the past two weeks and one month, the performance has turned slightly positive, up 2.13% and 0.5%, respectively.
This pattern suggests that while the strong earnings may have provided a floor and a catalyst for recent stability, the stock had been under some pressure prior to the announcement. The lack of a dramatic after-hours surge could indicate the results were largely anticipated by some investors or that the market is weighing the strong past performance against future expectations.
Looking Ahead: Analyst Estimates for 2026
The press release detailed the company's strong finish to 2025 but did not provide a formal financial outlook for the coming year. Consequently, investor attention now turns to Wall Street's projections for 2026, which will serve as the new benchmark for performance.
Analyst estimates for Washington Trust in 2026 present a more normalized growth picture following the exceptional 2025 rebound. For the full year 2026, the current consensus points towards sales of approximately $167.3 million and an EPS of $3.25. For the upcoming first quarter of 2026, analysts are forecasting revenue of about $40.4 million and EPS of $0.738.
These forward-looking numbers will be critical for investors to monitor, as they set the stage for whether the company can maintain its improved profitability and translate its recent revenue strength into sustained growth.
Summary of Key Takeaways
Washington Trust's earnings report conveyed several critical points for investors. The most immediate is the unequivocal strength of the Q4 beat, particularly on revenue, which suggests underlying business activity is healthier than anticipated. Secondly, the full-year results confirm a successful recovery from the challenges of 2024, moving decisively back to profitability. Finally, the company's performance across its core Commercial Banking and Wealth Management segments appears to be on solid footing, providing a stable foundation for the year ahead.
For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the dedicated WASH Earnings & Estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The information presented is based on data believed to be reliable but is not guaranteed for accuracy or completeness. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
