HSBC Holdings (NYSE: HSBC) reported third-quarter 2026 earnings per share (EPS) of 2.05 on Oct. 27, 2026, below the analyst estimate of 2.2, a gap of -$0.15 or -6.8%. Revenue was $18.68B against an estimate of $18.98B, short by $303.9M or 1.6%. The results follow a quarter in which net income rose 67.2% from a year earlier and two quarters of sharply higher margins.
Key facts
- Q3 EPS (reported Oct. 27, 2026): 2.05 vs. an analyst estimate of 2.2, a difference of -$0.15 (-6.8%).
- Q3 revenue (reported Oct. 27, 2026): $18.68B vs. an analyst estimate of $18.98B, a difference of -$303.9M (-1.6%).
- Last filed quarter, Q2 (ended June 30, 2026): net income was $7.91B, up 67.2% from the second quarter of 2025. Revenue was $34.16B, up 1.3%.
- Share price (Oct. 26, 2026): 91.17 USD, up 0.54% on the day. This quote predates the results report. The 52-week range is 66.58 to 107.92 USD.
- Next earnings date: Feb. 23, 2027, with an EPS estimate of 1.65 and a revenue estimate of $18.59B.
What happened
HSBC, which has a market cap of $312.44B, reported results for the third quarter ended Sept. 30, 2026. Earnings per share (profit divided by shares outstanding) came in at 2.05, below the 2.2 analysts expected. Revenue of $18.68B was also below the $18.98B estimate.
CNBC and Reuters, both on Oct. 27, 2026, described pretax profit as in line with estimates, and Reuters headlined a jump in HSBC's third-quarter profit. The Wall Street Journal, also on Oct. 27, reported that HSBC plans a new share buyback, where a company repurchases its own stock. Pretax profit (before taxes) and per-share earnings are different measures, so a bank can match on one and miss on the other.
The reported Q3 revenue figure of $18.68B is on a different basis from the filed quarterly revenue, such as $34.16B in Q2, so the two are not comparable. For a year-over-year view, the most recent filed quarter is the better guide. In the second quarter ended June 30, 2026, HSBC earned $7.91B in net income, 67.2% more than in the same quarter of 2025. Revenue rose just 1.3% over the same span, so most of the profit gain came from better margins, not from more sales.
Why it matters for investors
The four-quarter trend shows a clear step up in profitability. Operating margin is the share of revenue left after operating costs. It was 21.8% in the quarter ended Sept. 30, 2025, and 20.6% in the quarter ended Dec. 31, 2025. It then rose to 27.7% in the quarter ended March 31, 2026, and 29.7% in the quarter ended June 30, 2026. Gross margin moved from 53.5% to 53.7%, then to 56.5% and 55.7% over the same four quarters. Net income followed the same path: $5.28B, $4.94B, $7.34B and $7.91B. Revenue stayed in a narrow range, from $33.03B to $34.16B. In short, HSBC has been earning more from roughly the same sales.
Against that backdrop, Q3 came in -6.8% on EPS and -1.6% on revenue versus estimates. Whether the earlier margin gains hold is the real question. The sources here do not say whether the drivers are interest income, lower costs or one-off items.
Cash flow data is missing. Our data source shows $0.00 for operating cash flow, capital spending, buybacks and dividends in all five quarters. That is almost certainly a reporting limitation for banks, not a real zero. We therefore make no cash-flow claims. Banks are usually judged on profit, capital levels and dividends instead.
Valuation is in line with U.S. peers and above European peers. HSBC's trailing price-to-earnings (P/E, the share price divided by the past year's earnings per share) is 12.00. Its dividend yield is 4.4%, and its net margin is 18.9%.
| Company | Market cap | P/E | Net margin | |---|---|---|---| | HSBC | $312.44B | 12.00 | 18.9% | | Bank of America (BAC) | $349.73B | 11.86 | 16.5% | | Citigroup (C) | $203.04B | 11.65 | 12.5% | | Barclays (BCS) | $74.36B | 8.28 | 26.0% | | Deutsche Bank (DB) | $60.00B | 7.51 | 12.7% |
HSBC's P/E is close to Bank of America's and Citigroup's, and slightly above both. Its net margin is higher than both, and lower than Barclays'. The European banks, Barclays and Deutsche Bank, trade at lower P/Es.
Analysts are cautious. Of 21 ratings, 8 are buy, 11 are hold and 2 are sell, for a consensus of "Hold." The consensus price target in our data is 52.00 USD, with the same figure for the average, median, high and low. That sits well below the current share price of 91.17 USD. It appears to come from a single source, so treat it with caution. The FMP discounted cash flow model, which estimates what future cash flows are worth today, gives 143.99 USD per share. Models like that depend heavily on their assumptions. The two figures are far apart, which tells you that estimates of HSBC's value vary widely.
Stock Expert AI's MoonshotScore V2 is 45.3 (Fair). Its pillars, scored relative to the sector, are:
- Valuation: 84. This is the strongest area, as scored by the MoonshotScore methodology relative to the sector.
- Quality: 60. This is the second-highest pillar.
- Growth: 55. This is middling.
- Safety: 40. This is weak.
- Momentum: 37. This is the weakest, which may reflect a share price well below its 52-week high of 107.92 USD.
What could go wrong
- Earnings pressure. Q3 missed on both EPS and revenue, and the next quarter's consensus is lower than the quarter just reported. For the period ending Dec. 30, 2026, the one analyst in our data expects EPS of 1.63 and revenue of $18.59B.
- Margins may not hold. The jump to the 27.7% and 29.7% operating margins happened within two quarters. If they ease, profit could slip even with steady sales.
- Thin coverage. Forward estimates come from only one analyst per period, so they are weak guides.
- Market mood. Reuters ran the headline "Europe shares fall as HSBC weighs, France protests keep investors wary" on Oct. 27. The headline concerns European shares rather than the NYSE-listed ADR, and it does not tie the move to the results. The share price shown in this article is from Oct. 26 and predates that report.
- Insiders are quiet. Among the 12 most recent insider filings, none in the last 90 days were open-market purchases or sales.
What to watch next
- Feb. 23, 2027: the next earnings report. The EPS estimate is 1.65 and the revenue estimate is $18.59B.
- Margins: whether operating margin stays near the recent high or falls back toward the levels of a year earlier.
- The buyback: how quickly HSBC carries it out, and the capital and dividend plans in its full release.
- Estimates: whether more analysts update their forecasts after the miss.
Frequently asked questions
Q: Did HSBC beat or miss earnings for the third quarter of 2026?
It missed. Earnings per share were 2.05 against an analyst estimate of 2.2, and revenue was $18.68B against an estimate of $18.98B. CNBC and Reuters reported that pretax profit was in line with estimates.Q: How does HSBC's profit compare with a year ago?
The reported Q3 revenue figure is on a different basis from filed quarterly revenue, so we do not make a year-ago comparison for it. In the quarter ended June 30, 2026, net income was $7.91B, which is 67.2% higher than the same quarter of 2025, while revenue rose 1.3%.Q: Is HSBC stock cheap compared with other big banks?
By trailing P/E, HSBC at 12.00 is similar to Bank of America at 11.86 and Citigroup at 11.65. It is higher than Barclays at 8.28 and Deutsche Bank at 7.51. Its dividend yield is 4.4%. Analysts' consensus rating is "Hold," and our MoonshotScore of 45.3 rates it Fair, with a strong valuation pillar of 84 and a weak momentum pillar of 37.This is educational content, not investment advice. Past performance does not guarantee future results.