Bank Of Montreal (NYSE:BMO) Issues Earnings Results

26 Feb 2026, 20:32 by Sarita Garza · The Markets Daily

Bank Of Montreal (NYSE:BMO – Get Free Report) (TSE:BMO) released its quarterly earnings results on Wednesday. The bank reported $2.51 earnings per share for the quarter, topping the consensus estimate of $2.35 by $0.16, Zacks reports. Bank Of Montreal had a net margin of 11.13% and a return on equity of 11.76%. The business had revenue of $7.21 billion for the quarter, compared to the consensus estimate of $6.73 billion. During the same period last year, the firm earned $3.04 earnings per share. The company’s quarterly revenue was up 6.0% on a year-over-year basis.

Here are the key takeaways from Bank Of Montreal’s conference call:

Strong quarter with Adjusted EPS of CAD 3.48 (+15% YoY), record pre-provision, pre-tax earnings of CAD 4.1 billion and underlying ROE of 13.1% (up 180 bps), with management reaffirming a path to 15% ROE by exit-2027.
Margin and revenue upside from deposit-mix improvements and ladder reinvestments lifted NII ex-markets and NIM (233 bps, +20 bps YoY), but management expects NIM to be relatively stable near term as competitive dynamics and loan growth evolve.
U.S. optimization is ~90% complete after roughly CAD 6 billion of loan reductions; management reports improving pipelines, better deposit mix and expects mid-single-digit loan growth in the back half of the year.
Credit was largely in line with expectations—total PCLs declined to CAD 746 million and the performing allowance is CAD 4.6 billion (69 bps)—but pockets of consumer stress (higher delinquencies in parts of the GTA and elevated card losses in lower-income segments) warrant monitoring.

Bank Of Montreal Price Performance

BMO stock traded up $0.27 during midday trading on Thursday, hitting $148.40. The company’s stock had a trading volume of 444,729 shares, compared to its average volume of 842,930. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.11. Bank Of Montreal has a 12 month low of $85.40 and a 12 month high of $149.01. The company has a 50 day moving average of $136.78 and a two-hundred day moving average of $128.88. The firm has a market capitalization of $104.81 billion, a price-to-earnings ratio of 18.18, a price-to-earnings-growth ratio of 0.99 and a beta of 0.94.

Bank Of Montreal Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Wednesday, April 29th will be paid a $1.67 dividend. This represents a $6.68 annualized dividend and a yield of 4.5%. The ex-dividend date is Wednesday, April 29th. Bank Of Montreal’s dividend payout ratio is presently 59.68%.

Bank Of Montreal News Roundup

Here are the key news stories impacting Bank Of Montreal this week:

Positive Sentiment: Q1 beat and record revenue: BMO reported stronger-than-expected quarterly results, with management highlighting record revenue, double-digit earnings growth and broad fee growth across business lines — a core reason investors pushed shares earlier. Bank of Montreal (BMO) Q1 2026 Earnings Call Highlights: Record Earnings and Strategic Optimizations
Positive Sentiment: Credit-quality tailwind and lower provisions: Provision for credit losses fell meaningfully year-over-year, and company commentary pointed to improving pockets (including commercial/truck credit), supporting near-term earnings quality. BMO’s quarterly earnings suggest truck credit might be improving
Positive Sentiment: Short interest plunged: Short interest dropped ~63% in February, trimming a potential source of downside pressure and reducing the pool of bearish speculative positions. (No external link)
Neutral Sentiment: Dividend maintained: BMO declared a quarterly dividend of $1.67/share (unchanged), keeping the ~4.5% yield intact and supporting income-focused investors but not expansionary for yield expectations. BMO Financial Group Declares Dividends
Neutral Sentiment: Capital-return narrative under review: Analysts and coverage pieces are parsing whether the quarter changes BMO’s capital-return profile (dividends vs buybacks), which could re-shape investor expectations but hasn’t produced a clear direction yet. Did BMO’s Q1 Profit Beat and Capital Returns Just Shift Bank of Montreal’s (TSX:BMO) Investment Narrative?
Neutral Sentiment: Valuation check: Coverage notes that the earnings beat pushes valuation metrics higher versus peers and historical averages — a mixed signal that depends on whether investors see the quarter as a sustainable re-rating catalyst. Bank of Montreal (TSX:BMO) Valuation Check After Record Revenue And Profit Beat
Negative Sentiment: Slightly lower CET1 ratio: Capital metrics showed a modest decline in the Common Equity Tier 1 ratio versus the prior year, which some investors view as a small negative for balance-sheet resilience and future capital-return flexibility. BMO Financial Group Reports First Quarter 2026 Results

Analyst Ratings Changes

A number of equities analysts recently commented on BMO shares. Raymond James Financial raised Bank Of Montreal from a “market perform” rating to an “outperform” rating in a report on Friday, February 13th. Zacks Research raised Bank Of Montreal from a “hold” rating to a “strong-buy” rating in a research note on Thursday, February 19th. Scotiabank reaffirmed a “sector perform” rating on shares of Bank Of Montreal in a research report on Friday, January 9th. National Bank Financial reiterated a “sector perform” rating on shares of Bank Of Montreal in a research note on Wednesday. Finally, Jefferies Financial Group restated a “hold” rating on shares of Bank Of Montreal in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $163.00.

Read Our Latest Report on Bank Of Montreal

Institutional Investors Weigh In On Bank Of Montreal

A number of hedge funds have recently made changes to their positions in the company. Morgan Stanley grew its holdings in Bank Of Montreal by 74.4% during the 4th quarter. Morgan Stanley now owns 3,817,406 shares of the bank’s stock valued at $495,461,000 after buying an additional 1,628,318 shares in the last quarter. UBS Group AG boosted its position in shares of Bank Of Montreal by 155.3% during the 3rd quarter. UBS Group AG now owns 2,127,377 shares of the bank’s stock valued at $277,091,000 after acquiring an additional 1,294,169 shares during the last quarter. FIL Ltd grew its holdings in shares of Bank Of Montreal by 15.2% in the fourth quarter. FIL Ltd now owns 9,445,162 shares of the bank’s stock valued at $1,226,622,000 after purchasing an additional 1,245,500 shares in the last quarter. BCV Asset Management Inc. bought a new stake in Bank Of Montreal in the fourth quarter worth $84,978,000. Finally, Invesco Ltd. raised its stake in Bank Of Montreal by 51.3% during the third quarter. Invesco Ltd. now owns 1,606,369 shares of the bank’s stock valued at $209,230,000 after purchasing an additional 544,999 shares in the last quarter. 45.82% of the stock is currently owned by hedge funds and other institutional investors.

Bank Of Montreal Company Profile

(Get Free Report)

Bank of Montreal (NYSE:BMO), commonly known as BMO Financial Group, is one of Canada’s largest and longest-established banks. Founded in Montreal and headquartered in Montreal, Quebec, the bank provides a broad range of financial services to retail, commercial, corporate and institutional clients. BMO is publicly listed in both Canada and the United States and operates under a consolidated financial services model that integrates banking, capital markets, wealth management and asset management activities.

BMO’s core businesses include personal and commercial banking—offering checking and savings accounts, lending, mortgages, and small-business services—alongside wealth management and private banking through its asset and investment management divisions.