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what it is
Bank of America takes deposits, makes loans, runs cards, manages wealth, and trades for clients.
how it gets paid
Last year Bank Of America made $113.1B in revenue. Consumer banking was the main engine at $42.3B, or 37% of sales.
why it's growing
Revenue grew 6.8% last year. Revenue rose to $28.4B, up 7%, and EPS landed at $0.98 versus $0.82 a year ago.
what just happened
BAC missed by 2% as Q4 EPS came in at $0.98 versus $1.00.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
70/100 earnings predictability — reasonably predictable
14.8x trailing p/e — the market's not buying it — or you found a deal
2.3% dividend yield — cash in your pocket every quarter
xvary composite: 75/100 — average
What they do
Bank of America takes deposits, makes loans, runs cards, manages wealth, and trades for clients.
3,630 offices and 14,910 ATMs keep BAC inside your daily routine. Switching costs (leaving is painful) matter because your paycheck, card, and bills already sit in its system. That is how $113.1B of annual revenue hangs on to customers who like convenience more than switching banks.
How they make money
$113.1B
annual revenue · their business grew +6.8% last year
Consumer banking
$42.3B
+4.1%
Global wealth and investment management
$21.0B
+8.5%
Global banking
$19.0B
+5.0%
Global markets
$25.1B
+9.2%
All other
$5.7B
flat
The products that matter
retail deposits and lending
Consumer Banking
$56.6B · 50% of revenue
it generated roughly half of the bank's $113.1B annual revenue, which tells you the core engine is still everyday banking at scale.
core engine
advisory and asset fees
Global Wealth & Investment Management
$22.6B · 20% of revenue
this $22.6B segment grew 6.2%, faster than consumer banking, which gives you fee income that is less tied to plain lending spreads.
fee ballast
corporate banking and trading
Global Banking & Markets
$33.9B · 30% of revenue
it contributes 30% of revenue, which means BAC is large enough to earn from market activity as well as Main Street deposits.
institutional arm
Key numbers
$50
18-mo target
That is 11% below $56.41, so the market is already paying for more than this target gives credit for.
$4.90
FY27 EPS
Earnings per share, or EPS, rises from $3.81 to $4.90, a 28.6% lift that is real unless credit costs eat it.
2.3%
Dividend yield
You get 2.3% cash back while waiting, which beats a lot of checking accounts and most bank excuses.
44%
Debt to capital
Long-term debt is 44% of capital, so balance-sheet discipline still matters.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 2 — safer than 80% of stocks
- price stability 70 / 100
- long-term debt $317.8B (44% of capital)
- return on equity 10% — $0.10 profit for every $1 investors have put in
A+ — balance sheet grade looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in BAC 3 years ago → it's now worth $17,080.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
BAC missed by 2% as Q4 EPS came in at $0.98 versus $1.00.
Revenue rose to $28.4B, up 7%, and EPS landed at $0.98 versus $0.82 a year ago. The miss was small, but the from a year ago trend still moved the right way.
$28.4B
revenue
$0.98
eps
n/a
n/a
the number that mattered
The $0.98 per share mattered most because it missed $1.00, even after beating last year's $0.82.
-
bank of america concluded 2025 with respectable results.
-
the national bank posted fourth-quarter revenues of $28.4 billion, representing a 7% advance.the improvement reflects strength across the bank’s four main operating segments (consumer banking, global wealth and investment management, global banking, and global markets).
-
profits rose to $0.98 per share for the quarter, versus $0.82 per share a year ago.
-
looking to 2026, we think earnings will reach $4.35 per share, representing a 14% annual improvement.
-
for 2027, we have introduced a forecast of $4.90 per share.
source: company earnings report, 2026
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What could go wrong
the main risk is 2026 net interest income growth landing below the bank's own 5–7% target.
med
Net interest income misses the 2026 setup
The bullish case on this page leans on 5–7% net interest income growth in 2026. If deposit costs stay sticky or loan growth disappoints, that engine underdelivers.
The stock already ran 24.1% in 2025. If the core revenue line misses, the multiple does not have much room to hide you.
med
Expense growth outruns revenue growth
Wolfe Research downgraded BAC on Jan. 7, 2026 because consensus was not fully accounting for 2026 expense growth.
If costs rise faster than the business grows, the current 27% net margin gets squeezed and the earnings story softens fast.
med
Epstein-related inquiry adds more noise and cost
Congressional and regulatory scrutiny tied to Leon Black remains open. The page does not have a final dollar figure because there is not one yet.
That means you are watching for added compliance costs, reputational drag, or another fine layered on top of the normal banking rulebook.
med
The $580M stock-lending settlement is paid, but it is still a reminder
Final approval for the $580M cash settlement came on Sept. 4, 2024. That specific case is closed.
The cash is gone already. The bigger takeaway for you is that very large banks keep carrying legal and regulatory baggage even in strong years.
one issue already cost $580M in cash. The bigger risk from here is simpler: if expenses rise faster than the bank's 5–7% net interest income goal, the rerating loses its fuel.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q1 2026 earnings release
April 14, 2026. This is the next hard read on whether Q4 strength carried into the new year.
metric
5–7% net interest income target
That guide is the whole near-term thesis. If management backs away from it, the tone changes fast.
trend
Expense growth versus revenue growth
The market can forgive one soft quarter. It is less forgiving if operating costs keep rising faster than the top line.
risk
Epstein-related inquiry status
No clean end date is posted here. That is the point — unresolved investigations stay in the background until they do not.
Analyst rankings
earnings predictability
70 / 100
in human-speak, this is a fairly readable bank, but rates, credit, and legal costs can still move the quarter.
risk rank
2
that puts BAC in the safer tier of stocks. Safer does not mean simple — it means the balance sheet is built for stress.
balance sheet grade
A+
top-tier balance sheet grade matters more in banking than almost anywhere else because the product is leverage with rules.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 1,570 buyers vs. 1,392 sellers in 3q2025. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$33
$67
$56
current price
$50
target midpoint · 11% from current
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The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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