Digital banking company Axos Financial (NYSE: AX) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 20.9% year on year to $379.8 million. Its non-GAAP profit of $2.53 per share was 17.4% above analysts’ consensus estimates.
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Axos Financial (AX) Q2 CY2026 Highlights:
- Net Interest Income: $317.9 million vs analyst estimates of $315.1 million (13.5% year-on-year growth, 0.9% beat)
- Net Interest Margin: 4.5% vs analyst estimates of 4.5% (in line)
- Revenue: $379.8 million vs analyst estimates of $375.8 million (20.9% year-on-year growth, 1.1% beat)
- Efficiency Ratio: 54.2% vs analyst estimates of 49.4% (480.7 basis point miss)
- Adjusted EPS: $2.53 vs analyst estimates of $2.16 (17.4% beat)
- Tangible Book Value per Share: $50.96 vs analyst estimates of $52.10 (13% year-on-year growth, 2.2% miss)
- Market Capitalization: $5.58 billion
Company Overview
Originally founded as Bank of Internet USA in 1999 before rebranding in 2018, Axos Financial (NYSE: AX) is a diversified financial services company that provides digital banking, securities clearing, and investment advisory solutions to retail and business customers nationwide.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investment banking, and trading fees. Over the last five years, Axos Financial grew its revenue at an excellent 17.8% compounded annual growth rate. Its growth surpassed the average banking company and shows its offerings resonate with customers, a great 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. Axos Financial’s annualized revenue growth of 15.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
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, Axos Financial reported robust year-on-year revenue growth of 20.9%, and its $379.8 million of revenue topped Wall Street estimates by 1.1%.
Net interest income made up 86.9% of the company’s total revenue during the last five years, meaning Axos Financial barely relies on non-interest income to drive its overall growth.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
Axos Financial’s TBVPS grew at an incredible 18.7% annual clip over the last five years. TBVPS growth has recently decelerated a bit to 16.2% annual growth over the last two years (from $37.77 to $50.96 per share).
Over the next 12 months, Consensus estimates call for Axos Financial’s TBVPS to grow by 21% to $61.67, top-notch growth rate.
Key Takeaways from Axos Financial’s Q2 Results
It was good to see Axos Financial beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its tangible book value per share missed. Overall, this print had some key positives. The stock remained flat at $97.86 immediately after reporting.
So do we think Axos Financial is an attractive buy at the current price? 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).
