Banco Santander (NYSE:SAN) Issues Earnings Results

04 Feb 2026, 16:46 by Michael Walen · The Markets Daily

Banco Santander (NYSE:SAN – Get Free Report) released its quarterly earnings results on Tuesday. The bank reported $0.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.25 by $0.03, FiscalAI reports. Banco Santander had a return on equity of 11.68% and a net margin of 17.90%.The company had revenue of $18.90 billion during the quarter, compared to analysts’ expectations of $15.89 billion.

Here are the key takeaways from Banco Santander’s conference call:

Company reported a record 2025 performance with €14.1 billion annual profit, +12% y/y (ex‑Argentina +15%), customer base up 8 million to 180 million, ROTE risen to 16.3% and CET1 at an all‑time high of 13.5%, with dividend per share up 14%.
Management credited One Transformation (product simplification, common operating model and tech platforms) for driving efficiency gains (c.265 bps from transformation) — expenses fell 1% in absolute terms and net operating income hit ~€37 billion.
Announced bolt‑on Webster acquisition for $12.2bn expected to deliver ~$800m pre‑tax cost synergies, raise Santander US ROTCE to ~18% by 2028 and produce 7–8% EPS accretion in 2028, though the deal will be funded 65% cash / 35% shares and reduce group CET1 by ~110–140 bps at closing.
Board reaffirmed shareholder returns and capital hierarchy, approving a €5 billion buyback to start immediately (part of at least €10bn buybacks for 2025–26) while maintaining a 50% ordinary payout policy.
Outlook and targets: 2026 is a transition year (ex‑M&A mid‑single digit revenue growth, costs lower, profit up), with guidance for double‑digit revenue and mid‑teens net profit in 2027 and a group ambition of ROTE in excess of 20% by 2028.

Banco Santander Stock Up 1.9%

Shares of SAN stock traded up $0.24 during trading hours on Wednesday, reaching $12.47. 30,074,586 shares of the stock traded hands, compared to its average volume of 7,306,874. The firm has a market capitalization of $185.55 billion, a PE ratio of 13.30, a PEG ratio of 0.78 and a beta of 0.72. Banco Santander has a 1-year low of $5.51 and a 1-year high of $13.11. The business has a fifty day moving average price of $11.80 and a 200 day moving average price of $10.50.

Key Stories Impacting Banco Santander

Here are the key news stories impacting Banco Santander this week:

Positive Sentiment: Santander posted quarterly results above estimates and announced a €5 billion share buyback, supporting EPS and capital-return expectations. WSJ: Buyback & earnings beat
Positive Sentiment: The agreed acquisition of Webster Financial for about $12.2–$12.3 billion materially expands Santander’s U.S. retail and commercial footprint (creates a top‑10 U.S. bank by combined metrics), a strategic growth rationale for long‑term investors. Reuters: Buy Webster Financial
Positive Sentiment: Management is publicly defending the Webster deal as strategically timely and accretive long‑term, helping reassure investors on integration intent. Bloomberg interview with Ana Botín
Positive Sentiment: Santander UK reported a 14% rise in annual pretax profit, reflecting higher NII and lower provisions — evidence of operating momentum in key markets. Reuters: Santander UK profit
Neutral Sentiment: Santander and NatWest are exploring sales of UK pension assets — could optimize balance‑sheet/capital usage but depends on deal terms and timing. Reuters: Pension transfers
Neutral Sentiment: Leadership moves in the UK (new Santander UK CEO) aim to smooth TSB integration — operationally relevant but not an immediate stock catalyst. Finextra: CEO appointment
Negative Sentiment: Shares initially dropped on the Webster announcement as analysts flagged short‑term execution risks and integration complexity, creating near‑term volatility risk. Reuters: Shares fall on Webster deal
Negative Sentiment: Brazil tax settlement agreements required recent payments of about 2.4 billion reais — a near‑term cash outflow and reminder of jurisdictional legal/tax risks. Reuters: Brazil tax settlements
Negative Sentiment: Some investors question the valuation and near‑term price multiple of the Webster deal, prompting selling among certain shareholders. MarketWatch: Valuation skepticism

Analysts Set New Price Targets

SAN has been the subject of a number of research analyst reports. Kepler Capital Markets raised shares of Banco Santander from a “hold” rating to a “buy” rating in a research note on Tuesday, January 13th. DZ Bank cut Banco Santander from a “strong-buy” rating to a “hold” rating in a research report on Thursday, December 18th. UBS Group lowered Banco Santander from a “strong-buy” rating to a “hold” rating in a report on Friday, January 16th. Zacks Research downgraded shares of Banco Santander from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 18th. Finally, Weiss Ratings reaffirmed a “buy (b+)” rating on shares of Banco Santander in a research note on Wednesday, January 21st. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold”.

Get Our Latest Research Report on SAN

Institutional Trading of Banco Santander

Large investors have recently added to or reduced their stakes in the company. Captrust Financial Advisors boosted its position in shares of Banco Santander by 4.2% in the third quarter. Captrust Financial Advisors now owns 341,749 shares of the bank’s stock worth $3,582,000 after buying an additional 13,926 shares during the period. Coldstream Capital Management Inc. lifted its stake in Banco Santander by 35.9% in the 3rd quarter. Coldstream Capital Management Inc. now owns 81,329 shares of the bank’s stock worth $852,000 after acquiring an additional 21,483 shares in the last quarter. Advisory Services Network LLC boosted its position in Banco Santander by 8.6% during the 3rd quarter. Advisory Services Network LLC now owns 26,236 shares of the bank’s stock worth $275,000 after acquiring an additional 2,074 shares during the period. Hancock Whitney Corp grew its stake in Banco Santander by 30.9% during the 3rd quarter. Hancock Whitney Corp now owns 19,918 shares of the bank’s stock valued at $209,000 after acquiring an additional 4,699 shares in the last quarter. Finally, NewEdge Advisors LLC increased its holdings in shares of Banco Santander by 5.6% in the 3rd quarter. NewEdge Advisors LLC now owns 132,219 shares of the bank’s stock valued at $1,386,000 after purchasing an additional 6,968 shares during the period. 9.19% of the stock is owned by institutional investors and hedge funds.

About Banco Santander

(Get Free Report)

Banco Santander, SA (NYSE: SAN) is a Spanish multinational banking group headquartered in Santander, Spain. Founded in 1857, the bank has grown from a regional institution into one of Europe’s largest banking groups, operating a diversified financial services platform that serves retail, small and medium-sized enterprises, and large corporate clients. Santander is publicly listed in Spain and maintains American Depositary Receipts on the New York Stock Exchange under the ticker SAN.