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

Axos Financial (NYSE:AX) posted its earnings results on Thursday. The company reported $2.34 earnings per share for the quarter, topping analysts’ consensus estimates of $2.26 by $0.08, FiscalAI reports. The firm had revenue of $395.07 million for the quarter, compared to analyst estimates of $386.30 million. Axos Financial had a net margin of 22.33% and a return on equity of 17.07%. The company’s revenue for the quarter was up 22.2% compared to the same quarter last year. During the same period in the previous 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 2.1%

Shares of NYSE:AX traded down $1.94 during trading on Friday, reaching $90.61. 459,504 shares of the company traded hands, compared to its average volume of 335,404. Axos Financial has a 52-week low of $74.89 and a 52-week high of $105.74. The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.35. The business’s fifty day moving average is $91.66 and its 200-day moving average is $92.42. The firm has a market capitalization of $5.15 billion, a price-to-earnings ratio of 10.32 and a beta of 1.28.

Key Stories Impacting Axos Financial

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

• Positive Sentiment: Fiscal Q1 EPS was $2.34, exceeding analyst estimates of approximately $2.25–$2.26. Revenue reached $395.1 million, ahead of the $386.3 million consensus estimate and up 22.2% year over year. Net margin was 22.39% and return on equity was 16.96%. Axos Financial Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Management outlined a target for low- to mid-teens loan growth in fiscal 2027, supporting expectations for continued balance-sheet expansion and earnings growth. Axos Outlines Loan Growth Outlook
• Neutral Sentiment: The earnings call and presentation emphasized continued growth across Axos’ banking operations, while investors sought additional detail on loan demand, funding costs and credit quality. Axos Financial Q1 2027 Earnings Call Transcript
• Negative Sentiment: Management expects net interest margin to remain approximately flat in fiscal 2027. That outlook limits the potential for margin-driven earnings upside and may be weighing on the shares despite the quarterly beat, particularly with the stock trading below its recent highs. Axos Net Interest Margin Outlook

Insider Buying and Selling at Axos Financial

In other Axos Financial news, Director Roque Santi sold 500 shares of Axos Financial stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $105.30, for a total transaction of $52,650.00. Following the sale, the director directly owned 7,146 shares of the company’s stock, valued at approximately $752,473.80. The trade was a 6.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 4.30% of the company’s stock.

Analyst Upgrades and Downgrades

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

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.