Axos Financial (NYSE:AX) Posts Earnings Results, Misses Expectations By $0.23 EPS

Axos Financial (NYSE:AX) released its quarterly earnings results on Thursday. The company reported $1.90 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.13 by ($0.23), FiscalAI reports. Axos Financial had a net margin of 22.53% and a return on equity of 16.87%. The firm had revenue of $392.25 million for the quarter, compared to analyst estimates of $372.51 million. During the same quarter in the prior year, the firm earned $1.81 EPS.

Here are the key takeaways from Axos Financial’s conference call:

• Axos reported broad double‑digit year‑over‑year growth across core metrics — diluted EPS +18.7%, double‑digit growth in net interest income, ending loans and deposits, and >16% return on average common equity.
• Strong loan and funding momentum: ending loan balances grew ~$800M linked quarter (ex. SFR warehouse) with a target of low‑to‑mid‑teens annual organic loan growth, and management is adding liquidity via the $2.3B Jenius deposit acquisition (closing) and a announced $3.2B Capital One IRA/CD deposit purchase.
• Net interest margin declined to 4.57% from 4.94% primarily due to FDIC‑purchased loan prepayments and two fewer days in the quarter, but management expects reported NIM to be roughly flat on an organic basis (excluding an estimated ~5 bps deposit purchase premium).
• Credit stress picked up: net charge‑offs rose to 31 bps (driven by a $14M charge‑off on a C&I loan and a newly delinquent syndicated C&I exposure), provision expense increased to $41M including a ~$20M specific reserve, though allowance coverage remains high (ACL to non‑accrual loans ~192.2%).
• Non‑interest income jumped to $86M helped by Verdant fees, mortgage servicing valuation gains, rental income and a one‑time $22M legal settlement, while AI and operational initiatives are starting to show modest efficiency benefits amid slightly higher non‑interest expense (~$186M).

Axos Financial Stock Down 9.4%

Axos Financial stock traded down $9.06 during trading hours on Friday, hitting $87.38. The company had a trading volume of 1,647,354 shares, compared to its average volume of 358,244. The firm has a market capitalization of $4.95 billion, a P/E ratio of 11.08 and a beta of 1.30. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.08 and a quick ratio of 1.08. The firm’s fifty day moving average is $89.89 and its 200-day moving average is $88.01. Axos Financial has a fifty-two week low of $65.80 and a fifty-two week high of $101.92.

Insiders Place Their Bets

In other Axos Financial news, Director James John Court sold 11,163 shares of the company’s stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $101.01, for a total value of $1,127,574.63. Following the transaction, the director directly owned 32,169 shares of the company’s stock, valued at $3,249,390.69. This represents a 25.76% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Gregory Garrabrants sold 43,294 shares of the company’s stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $99.10, for a total value of $4,290,435.40. Following the completion of the transaction, the chief executive officer directly owned 1,418,751 shares in the company, valued at approximately $140,598,224.10. The trade was a 2.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 59,303 shares of company stock valued at $5,908,474 in the last three months. Insiders own 4.85% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Franklin Resources Inc. increased its holdings in shares of Axos Financial by 198.0% during the 3rd quarter. Franklin Resources Inc. now owns 414,178 shares of the company’s stock valued at $35,060,000 after acquiring an additional 275,191 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Axos Financial by 56.2% during the 4th quarter. Goldman Sachs Group Inc. now owns 371,086 shares of the company’s stock valued at $31,973,000 after acquiring an additional 133,529 shares during the last quarter. UBS Group AG increased its holdings in shares of Axos Financial by 65.7% during the 3rd quarter. UBS Group AG now owns 267,312 shares of the company’s stock valued at $22,628,000 after acquiring an additional 106,003 shares during the last quarter. Cerity Partners LLC increased its holdings in shares of Axos Financial by 712.9% during the 4th quarter. Cerity Partners LLC now owns 112,014 shares of the company’s stock valued at $9,651,000 after acquiring an additional 98,235 shares during the last quarter. Finally, Wellington Management Group LLP increased its holdings in shares of Axos Financial by 18.6% during the 4th quarter. Wellington Management Group LLP now owns 528,300 shares of the company’s stock valued at $45,518,000 after acquiring an additional 82,888 shares during the last quarter. Institutional investors and hedge funds own 83.79% of the company’s stock.

Axos Financial News Roundup

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

• Positive Sentiment: Non‑interest income and acquisition-driven revenue growth — Non‑interest income surged ~158% to $86M, largely from the Verdant acquisition, and total revenue beat estimates, showing that acquisitions are materially expanding fee revenue. Axos Financial: The Digital Bank Trades At Lofty Premium
• Positive Sentiment: Large deposit inflows and deal progression — Management highlighted advancing deposit deals (approx. $2.3B from Jenius and $3.2B from Capital One) that should support low‑to‑mid‑teens loan growth and funding for portfolio expansion. Axos projects low- to mid-teens loan growth as $2.3B Jenius and $3.2B Capital One deposit deals advance
• Neutral Sentiment: Top‑line beat but mixed signal — Reported revenue of $392.3M exceeded consensus (~$372.5M), indicating solid growth momentum, yet the revenue beat did not offset concerns from the EPS miss. Axos Financial, Inc. Reports Third Quarter Fiscal Year 2026 Results
• Neutral Sentiment: Earnings call and slide deck available — Management’s transcript and presentation provide detail on growth drivers, integration of recent acquisitions, capital and liquidity, and outlook — useful for gauging execution risk vs. opportunity. Axos Financial, Inc. (AX) Q3 2026 Earnings Call Transcript
• Negative Sentiment: EPS missed consensus — Adjusted EPS (~$1.90) missed the Street (~$2.13), which likely triggered the sell‑off despite revenue strength; earnings misses often drive near‑term weakness in valuation-sensitive stocks. Axos Financial (AX) Misses Q3 Earnings Estimates
• Negative Sentiment: Provision and valuation concerns — Management took a ~$41M provision for credit losses tied to newly acquired assets and some commentators flagged that Axos is trading at a premium to peers, raising sensitivity to execution or future earnings slips. Axos Financial: The Digital Bank Trades At Lofty Premium

Analysts Set New Price Targets

Several research firms recently weighed in on AX. Jefferies Financial Group upped their price target on Axos Financial from $110.00 to $115.00 and gave the company a “buy” rating in a research report on Friday, January 30th. Raymond James Financial raised Axos Financial from an “outperform” rating to a “strong-buy” rating and dropped their price target for the company from $110.00 to $100.00 in a research report on Tuesday, April 7th. Needham & Company LLC reissued a “buy” rating and set a $110.00 price target on shares of Axos Financial in a research report on Monday, March 16th. Weiss Ratings raised Axos Financial from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, April 24th. Finally, DA Davidson upped their price target on Axos Financial from $107.50 to $112.00 and gave the company a “buy” rating in a research report on Friday, January 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $109.40.

About Axos Financial

Axos Financial, Inc (NYSE: AX) is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.