WaFd (WAFD) Stock Sees Higher Net Interest Margin Supporting Bullish Narratives

WaFd (WAFD) has put up a clean set of Q3 2026 numbers, with total revenue of about US$194.5 million and basic EPS of roughly US$0.85 feeding into trailing 12 month revenue of about US$761.1 million and EPS of around US$3.17. The company has seen revenue move from about US$721.1 million on a trailing basis in Q3 2025 to roughly US$761.1 million by Q3 2026, while trailing EPS shifted from about US$2.62 to US$3.17, setting the backdrop for investors weighing slower top line growth against firmer margins and earnings power.

See our full analysis for WaFd.

With the headline results on the table, the next step is to see how these numbers line up with the most common narratives around WaFd, and where the data may support or challenge those stories.

See what the community is saying about WaFd

Margins and efficiency step up for WaFd

• WaFd’s net profit margin on a trailing basis sits at 31.8% compared with 29.4% a year ago, alongside a Q3 2026 cost to income ratio of 54.6% versus 58.9% on a trailing basis at Q4 2025. Together, these figures point to tighter cost control feeding through to profitability.
• Consensus narrative highlights the Build 2030 push into higher yielding commercial and small business lending as a key driver for margins. The numbers partly back that up while also setting a hurdle:
  • Net interest margin of 2.81% in Q3 2026 is above the 2.58% trailing figure reported in Q4 2025. This supports the idea that shifting the loan mix and redeploying low yielding mortgages into higher yielding assets can help lift returns.
  • At the same time, revenue growth running at 5.6% per year versus the wider US market’s 12.8% highlights that even with better margins, WaFd still operates with slower top line momentum than many companies investors might compare it against.

To see how these margin trends fit into the broader bullish and cautious narratives around WaFd, investors can walk through the full community discussion in See what the community is saying about WaFd.

Loan quality and balance sheet trends

• Non performing loans on a quarterly basis moved from US$59.9 million in Q2 2025 to US$191.3 million in Q1 2026, before sitting at US$123.9 million in Q2 2026, while total loans ranged between US$21.0 billion and US$22.2 billion over that period. This gives a sense of how credit issues compare with the overall loan book size.
• Consensus narrative leans on WaFd’s credit profile as a support for its Build 2030 plan, and the recent figures give both comfort and questions for that view:
  • Critics highlight that the rise in criticized and non performing loans seen in the period around Q1 2026 shows credit costs are an area to watch. This fits with the spike to US$191.3 million of non performing loans before the subsequent move to US$123.9 million.
  • Supporters point to net charge offs described as very low and to the diversified nature of criticized loans. Taken together with continuing net income of US$62.5 million in Q3 2026, this suggests that credit issues have not yet swamped profitability in the way more bearish investors might fear.

Valuation, growth pace and dividends

• On trailing numbers, WaFd’s P/E sits at 11.7x versus the US Banks industry at 12.5x and peers at 15.9x. The DCF fair value of US$35.85 is below the current share price of US$38.12 and the trailing dividend yield is 2.83%, so investors are weighing a lower P/E against a share price that stands above this DCF level.
• What stands out in the bullish narrative is the expectation that Build 2030 and wealth management growth will justify today’s valuation, yet the data keeps that debate grounded:
  • Revenue growth of 5.6% per year and five year earnings growth of 2.9% per year sit below the broader US market’s 12.8% revenue growth. This challenges any bullish claim that WaFd is currently a high growth story simply trading at a discount multiple.
  • On the other hand, one year earnings growth of 14.1%, the 31.8% net margin and the 2.83% dividend yield heavily support the bullish view that investors are paying an 11.7x P/E for a bank with solid profitability and income characteristics, even if the DCF fair value of US$35.85 suggests less upside at the reference price of US$38.12.

Bulls and bears both have data to point to here, so if you want to see how other investors connect these valuation and growth figures into a full story, it is worth reading through the wider community narratives for WaFd in See what the community is saying about WaFd.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for WaFd on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mixed picture around WaFd leaves you weighing the risks and rewards, review the available data in detail, decide on your own stance, then proceed to the 3 key rewards and 1 important warning sign

See What Else Is Out There

WaFd combines firm margins and income with relatively slower 5.6% revenue growth and modest 2.9% five year earnings growth compared with the broader US market.

If you want ideas that focus more on faster potential growth than WaFd currently offers, it is worth scanning the screener containing 20 high quality undiscovered gems to spot alternatives that better fit that goal.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com