Huntington Bancshares Stock Falls After Lowering 2027 Earnings Guidance

Huntington Bancshares (NASDAQ:HBAN) shares fell 3% on Monday after the company lowered its fiscal 2027 earnings guidance and revised its 2026 outlook, signaling that higher interest rates and intense competition are pressuring its profitability.

Revised Financial Outlook

Speaking at the Barclays Global Financial Conference, Huntington executives announced a new earnings per share (EPS) forecast for fiscal 2027 of $1.75 to $1.83. This represents a notable reduction from the bank's previous guidance of $1.90 to $1.93, which was issued in April. The company cited moderating net interest margin (NIM) expansion as a key factor.

For the more immediate fiscal 2026, the bank also adjusted several key projections:

• Net Interest Income (NII) Growth: The forecast was lowered to approximately 35%, down from a prior range of 39% to 43%.
• Implied Revenue Growth: The outlook was trimmed to about 34% year-over-year from approximately 37%.
• Fee Income Growth: In a positive revision, the forecast was raised to about 32%, up from a previous range of 26.5% to 29.5%.

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Projections for average loan growth were maintained at about 36%, while the forecast for average deposit growth was slightly narrowed to approximately 33%.

Management Commentary and Strategy

The bank's CEO stated at the conference that the revised outlook was driven by recalibrated loan growth expectations and lower NIM projections due to higher short-term rates and elevated pricing competition for both loans and deposits. Despite the lowered guidance, the CEO noted that the company still expects to achieve a return on equity of over 17% next year.

To enhance shareholder returns, Huntington also announced plans to increase its share repurchase authorization. According to the CEO's remarks, the bank intends to buy back $1.3 billion to $1.4 billion of its stock, signaling confidence in its long-term strategy despite the near-term headwinds.