Washington Federal, Inc. (WAFD) AI Stock Analysis

Washington Federal, Inc. operates as a bank holding company overseeing Washington Federal Bank, which provides comprehensive banking services across the United States. Founded in 1917 and headquartered in Seattle, Washington, the institution offers lending, depository, insurance, and fiduciary services. Its deposit offerings include checking accounts, certificates of deposit, money market accounts, and passbook savings accounts. The company's lending activities span single-family residential mortgages, commercial real estate loans, construction financing, consumer lot loans, and home equity lines of credit. It also provides insurance brokerage, real estate investment and management, mobile and online banking, and card issuance. As of September 30, 2021, it maintained 219 branches across eight western states.

Between FY2021 and FY2026, Washington Federal achieved a 5-year revenue compound annual growth rate of 16.8%. Annual revenue expanded from $733.4M in FY2022 to $1.43B in FY2024 before stabilizing at $1.41B in FY2025 and $1.42B in FY2026. Gross margin stood at 54.7% in FY2026, up from 50.9% in FY2025 but down from 100.0% in FY2023. Operating margin was 23.1% in FY2026, compared to 20.5% in FY2025 and 40.9% in FY2022. Net income rose from $226.1M in FY2025 to $255.9M in FY2026, yielding diluted EPS of $3.23. For the latest quarter ended September 30, 2026, quarterly revenue grew 8.2% year-over-year, while quarterly earnings grew 5.3%.

As of September 30, 2026, Washington Federal held $749.7M in cash and short-term investments and $27.23B in total assets. Total debt stood at $2.55B, resulting in net debt of $1.80B against shareholders' equity of $3.00B, reflecting a debt-to-equity ratio of 0.85 and a current ratio of 0.04. In FY2025, capital expenditures were $28.7M, while operating cash flow totaled $237.0M and free cash flow reached $208.2M. Cash returns to shareholders in FY2025 included $101.9M in share buybacks and $99.3M in dividends paid.

At a closing price of $29.15 on October 16, 2026, Washington Federal had a market capitalization of $2.16B and an enterprise value of $4.25B. The stock trades at a trailing price-to-earnings multiple of 9.2x, below the median of its US-listed Financial Services peers of 12.1x, while its forward P/E of 13.6x sits above the peer median of 10.8x. Its price-to-book ratio is 0.8x and its price-to-sales ratio is 2.8x compared to the peer median of 3.2x. Over the past year, WAFD produced a return of 8.1%, trailing the S&P 500 (SPY) return of 16.8%. Over five years, the stock returned -4.9% compared to 83.0% for the index.

Washington Federal pays a quarterly dividend with an annual forward payout of $1.08 per share, translating to a dividend yield of 3.71%. The company maintains a payout ratio of 27.3% and has paid dividends for 40 consecutive years. Its 5-year annualized dividend growth rate is 4.2%, and the last ex-dividend date was August 21, 2026.

Wall Street coverage consists of 4 Hold ratings, with 0 Buy, 0 Strong Buy, 0 Sell, and 0 Strong Sell ratings. The mean price target is $34.25, representing 17.5% upside compared to the last close of $29.15. For the current fiscal year ending September 30, 2027, consensus estimates project EPS of $3.55 on revenue of $1.83B. For the subsequent fiscal year, 2 analysts project EPS of $4.03 and revenue of $2.25B. Over the last four quarters, the bank has recorded 2 EPS beats.

This page is an AI-written research summary of Washington Federal, Inc. (WAFD). 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: WAFD income statement, WAFD balance sheet, WAFD key metrics, WAFD analyst forecast, WAFD chart. See the WAFD stock overview for the latest quote and news.