Axos Financial (NYSE:AX) Releases Earnings Results, Beats Estimates By $0.08 EPS

Axos Financial (NYSE:AX) released its quarterly earnings results on Thursday. The company reported $2.34 EPS for the quarter, beating analysts’ consensus estimates of $2.26 by $0.08, FiscalAI reports. The business had revenue of $395.07 million during the quarter, compared to analyst estimates of $386.30 million. Axos Financial had a return on equity of 16.96% and a net margin of 22.39%. Axos Financial’s quarterly revenue was up 22.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.94 EPS.

Here are the key takeaways from Axos Financial’s conference call:

• Strong quarterly performance: Net income rose 15.4% year over year to $129.6 million, diluted EPS increased 16% to $2.25, and net interest margin expanded 10 basis points sequentially to 4.64%.
• Management reiterated its target for low- to mid-teens organic loan growth in fiscal 2027, supported by a $2.8 billion pipeline and broad demand across commercial real estate, equipment finance, auto, jumbo mortgages, and commercial lending.
• Deposits increased 14% year over year to $25.4 billion, while the Capital One acquisition added approximately $1.8 billion of IRA savings and CD deposits; Axos expects to deploy most of the resulting excess liquidity by the end of calendar 2026.
• Net charge-offs increased to 109 basis points from 25 basis points in the prior quarter due to two previously reserved C&I credits, and management disclosed additional non-accrual exposure with potential loss content in another operating-business loan.
• Management expects net interest margin to remain broadly flat in coming quarters as the benefit from asset sensitivity and loan repricing is offset by lower-yielding excess liquidity from the Capital One deposits and eventual deposit repricing; unusually high prepayment-fee income of $6.8 million is also expected to decline.

Axos Financial Trading Down 1.8%

AX stock traded down $1.65 during mid-day trading on Friday, hitting $90.91. 185,773 shares of the company were exchanged, compared to its average volume of 382,595. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.35. The firm has a market capitalization of $5.17 billion, a P/E ratio of 10.73 and a beta of 1.28. Axos Financial has a 12-month low of $74.89 and a 12-month high of $105.74. The business has a fifty day simple moving average of $91.76 and a 200-day simple moving average of $92.42.

Analysts Set New Price Targets

A number of equities analysts have commented on the stock. Keefe, Bruyette & Woods boosted their price target on shares of Axos Financial from $105.00 to $110.00 and gave the stock a “market perform” rating in a research note on Friday, July 31st. Needham & Company LLC reissued a “buy” rating and issued a $128.00 price target on shares of Axos Financial in a research report on Monday, October 5th. Benchmark upped their price target on shares of Axos Financial from $115.00 to $120.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. DA Davidson set a $121.00 price target on Axos Financial in a research note on Friday, July 31st. Finally, Weiss Ratings raised Axos Financial from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Axos Financial has a consensus rating of “Moderate Buy” and a consensus target price of $115.67.

Insider Buying and Selling at Axos Financial

In other Axos Financial news, Director Roque Santi sold 500 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $105.30, for a total value of $52,650.00. Following the sale, the director owned 7,146 shares of the company’s stock, valued at $752,473.80. This trade represents a 6.54% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 4.30% of the company’s stock.

Key Axos Financial News

Here are the key news stories impacting Axos Financial this week:

• Positive Sentiment: Axos reported fiscal Q1 2027 earnings of $2.34 per share, above the $2.25–$2.26 analyst consensus. Revenue reached $395.1 million, exceeding estimates of $386.3 million and increasing 22.2% year over year. Net margin was 22.39% and return on equity was 16.96%. Axos Financial Reports First-Quarter Earnings
• Positive Sentiment: Management outlined expected fiscal 2027 loan growth in the low- to mid-teens, signaling continued balance-sheet expansion and a supportive outlook for future revenue. Axos Outlines Fiscal 2027 Loan Growth
• Neutral Sentiment: The earnings call and company release provide additional detail on the quarter and fiscal 2027 outlook, with investors focused on the sustainability of growth following the earnings beat. Axos Financial Q1 2027 Earnings Call Transcript
• Negative Sentiment: Management is targeting a flat net interest margin in fiscal 2027. That suggests loan growth may increase volume, but margin expansion is not currently expected to provide an additional earnings tailwind. Axos Net Interest Margin Outlook

About Axos Financial

Axos Financial, Inc is a financial holding company that operates primarily through Axos Bank, a nationwide digital bank. The company provides personal and business banking products, including checking and savings accounts, certificates of deposit, mortgage and home-equity loans, commercial lending, and other deposit and credit services. Its digital-first model allows customers to access accounts and financial services online and through mobile platforms.

Through its institutional businesses, Axos also provides securities clearing, custody, and related brokerage services to registered investment advisers, broker-dealers, and other financial institutions.