Axos Financial reported strong earnings growth in Q3 FY2026, with net income and diluted EPS up 18.5% and 18.8% year-over-year, respectively, driven by higher loan balances and strategic capital deployment.
Key takeaways
Net income increased 18.5% YoY to $124.7M, reflecting higher interest income on loans due to increased average balances, partially offset by lower interest income on deposits at other financial institutions.
Diluted EPS rose 18.8% YoY to $2.15, consistent with the pace of net income growth and supported by disciplined share count management.
Net cash provided by operating activities was $264.6M, down from $307.0M in Q3 FY2025, as the company continued executing its balance sheet expansion strategy.
Management affirmed no material adverse changes to capital classifications since period-end, supporting confidence in regulatory capital adequacy under CECL transition guidance.
Goodwill arising from acquisitions is expected to be fully tax-deductible, aligning with the Company’s long-term capital and tax planning objectives.