Bank of America Corporation (BAC) AI Stock Analysis

Bank of America Corporation provides banking and financial services to consumers, small to middle-market businesses, institutional investors, corporations, and governments. Its Consumer Banking segment offers checking, savings, credit cards, mortgages, and personal loans. The Global Wealth & Investment Management segment provides investment management, brokerage, banking, trust, and retirement products to affluent individuals, high-net-worth clients, and institutions. Its Global Banking segment delivers lending products, including commercial loans and leases, treasury and merchant solutions, and advisory services such as debt and equity underwriting and merger advice.

Annual revenue increased from $89.11B in FY2021 to $113.10B in FY2025, representing a 5-year revenue CAGR of 8.8%. Operating margin was 38.1% in FY2021, fell to 28.7% in FY2023 and FY2024, and recovered to 33.3% in FY2025. Net income was $30.51B in FY2025 with an EPS of $3.83, compared to $27.13B and EPS of $3.23 in FY2024. Over the trailing twelve months, revenue totaled $114.87B with a profit margin of 28.1% and EPS of $4.19. In the latest quarter ended September 30, 2026, quarterly revenue grew 7.1% year-over-year, while quarterly earnings declined 14.3%.

As of September 30, 2026, Bank of America held $26.91B in cash and short-term investments against total debt of $380.92B, resulting in net debt of $354.01B. Shareholders' equity stood at $296.75B on total assets of $3.43T, with a debt-to-equity ratio of 1.28 and a current ratio of 0.43. In FY2025, operating cash flow and free cash flow were $12.61B. Capital returns in FY2025 included $24.10B in share buybacks and $9.56B in dividends paid, contributing to an 11.9% reduction in share count over 5 years.

BAC trades at a trailing P/E of 12.2x and a forward P/E of 10.8x, both below the median of its S&P 500 Financial Services peers at 14.2x and 12.6x, respectively. Its price-to-sales multiple of 3.1x matches the peer median of 3.1x, while its PEG ratio stands at 0.85 and price-to-book is 1.4x. Over the past year, BAC returned 3.7%, trailing the S&P 500 (SPY) return of 16.8%. Over 5 years, the stock gained 24.9% compared to 83.0% for SPY.

Bank of America pays a quarterly dividend with an annual forward amount of $1.28, representing a dividend yield of 2.50%. The dividend payout ratio is 21.3%. The company has paid consecutive dividends for 41 years, with a 5-year annualized dividend growth rate of 8.4%. The last ex-dividend date was September 4, 2026.

Wall Street analysts hold 16 Strong Buy, 6 Buy, and 3 Hold ratings on BAC, with no Sell or Strong Sell recommendations. The mean price target is $63.45, which is 23.9% above the last close of $51.23. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $122.83B and EPS of $4.44, representing 16.5% EPS growth. Over the last 4 quarters, the bank exceeded EPS expectations 3 times.

This page is an AI-written research summary of Bank of America Corporation (BAC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: BAC income statement, BAC balance sheet, BAC key metrics, BAC analyst forecast, BAC chart. See the BAC stock overview for the latest quote and news.