Regional banking company Zions Bancorporation (NASDAQ: ZION) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 35.8% year on year to $1.14 billion. Its GAAP profit of $3.05 per share was 58.8% above analysts’ consensus estimates.
Is now the time to buy Zions Bancorporation? Find out by accessing our full research report, it’s free.
Zions Bancorporation (ZION) Q2 CY2026 Highlights:
- Net Interest Income: $677 million vs analyst estimates of $687.9 million (4.5% year-on-year growth, 1.6% miss)
- Net Interest Margin: 3.3% vs analyst estimates of 3.4% (8.1 basis point miss)
- Revenue: $1.14 billion vs analyst estimates of $899.7 million (35.8% year-on-year growth, 26.4% beat)
- Efficiency Ratio: 62.2% vs analyst estimates of 61.5% (68.8 basis point miss)
- EPS (GAAP): $3.05 vs analyst estimates of $1.92 (58.8% beat)
- Tangible Book Value per Share: $44.74 vs analyst estimates of $43.42 (21.5% year-on-year growth, 3% beat)
- Market Capitalization: $10.63 billion
Company Overview
Founded in 1873 during Utah's pioneer era and named after Mount Zion in the Bible, Zions Bancorporation (NASDAQ: ZION) operates seven regional banks across the Western United States, providing commercial, retail, and wealth management services to over a million customers.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Regrettably, Zions Bancorporation’s revenue grew at a sluggish 5.9% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Zions Bancorporation’s annualized revenue growth of 10.8% over the last two years is above its five-year trend, suggesting some bright spots. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Zions Bancorporation reported wonderful year-on-year revenue growth of 35.8%, and its $1.14 billion of revenue exceeded Wall Street’s estimates by 26.4%.
Net interest income made up 88.9% of the company’s total revenue during the last five years, meaning Zions Bancorporation barely relies on non-interest income to drive its overall growth.
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Zions Bancorporation’s TBVPS grew at a sluggish 2% annual clip over the last five years. However, TBVPS growth has accelerated recently, growing by 20.8% annually over the last two years from $30.67 to $44.74 per share.
Over the next 12 months, Consensus estimates call for Zions Bancorporation’s TBVPS to grow by 9.4% to $48.94, paltry growth rate.
Key Takeaways from Zions Bancorporation’s Q2 Results
It was good to see Zions Bancorporation beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates. On the other hand, its net interest income missed. Investors were likely hoping for more, and shares traded down 1.8% to $70.59 immediately after reporting.
Big picture, is Zions Bancorporation a buy here and now? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
