Bank of America (NYSE: BAC) Q3 Earnings Preview: What to Watch

• Earnings Expectations: Wall Street anticipates earnings per share of $1.10 and revenue of $30.54 billion for the third quarter.
• Investment Banking & Trading Outlook: CEO Brian Moynihan projects a potential 10% decline in investment banking fees, with trading revenue expected to remain flat.
• Stock Performance & Valuation: The stock has recently dropped 16% from its August peak, and it currently trades at a price-to-earnings ratio of 12.3 with a 2.35% dividend yield.

Bank of America (NYSE: BAC) is set to report its third-quarter earnings before the market opens on Wednesday, October 14, 2026. As the second-largest U.S. bank by assets, Bank of America generates significant revenue from consumer and business banking, lending, trading, and investment banking, competing with major financial institutions such as JPMorgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC).

For the upcoming Q3 earnings report, Wall Street analysts expect earnings of $1.10 per share, an increase from $1.06 reported a year earlier. Analysts also anticipate revenue of $30.54 billion, up from $28.09 billion last year. These earnings per share (EPS) figures are crucial indicators of the bank's profitability for each share of its stock.

Investors will closely monitor the bank's trading and investment banking results. CEO Brian Moynihan has indicated that investment banking fees could see a 10% fall from the previous year, while trading revenue is expected to remain flat. Furthermore, higher bond yields could potentially raise the bank’s funding costs and make it more challenging for some borrowers to repay loans, impacting overall financial performance.

The BAC stock price has experienced a notable decline, falling from an August peak of $65.07 to $54.58, representing a drop of about 16%. This movement reflects broader pressure on U.S. bank stocks. Ahead of the earnings announcement, options trading suggests a possible move toward $57, as highlighted by Invezz. It's important to remember that options prices reflect market expectations, not a guaranteed stock price.

TD Cowen analyst R. Scott Siefers currently holds a Hold rating on Bank of America with a $60 price target. The bank offers a $0.32 quarterly dividend, which equates to $1.28 a year per share and a stated dividend yield of 2.35%. Its price-to-earnings (P/E) ratio is 12.3, indicating that shares are trading at 12.3 times the bank’s profit over the past year, a key valuation metric for investors.