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    Freddie Mac Stock Has The Bull Case Changed After An Earnings Beat

    Simply Wall St·11/01/2026 08:34:48
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    • Federal Home Loan Mortgage Corporation, or Freddie Mac, reported third quarter 2026 net income of US$3,235 million and nine month net income of US$10,631 million, with basic earnings per share from continuing operations of US$0.01 for both periods.
    • Stronger net interest and non interest income, alongside a shift in the multifamily book toward fully guaranteed securitizations, points to Freddie Mac leaning more heavily on guarantee fee driven earnings and a very large US$3.7t mortgage portfolio to support profitability.
    • We will now look at how Freddie Mac's stronger net income and revenue mix reshape the investment narrative investors have been using.

    Scan how Freddie Mac’s earnings story compares with other housing finance plays and see which peers are quietly building momentum through list of solid balance sheet and fundamentals (24 results).

    Federal Home Loan Mortgage Investment Narrative Recap

    To own Freddie Mac, you have to believe its core mission of supplying mortgage liquidity can keep generating earnings from a huge US$3.7t book, even as housing and rate cycles move around. The latest Q3 and nine month results, with net income of US$3,235m and US$10,631m, reinforce that the engine is working today rather than resetting the story.

    The most important short term swing factor still looks like credit costs and how assumptions around home prices and losses evolve. The biggest risk remains regulatory capital and funding, given the capital shortfall and reliance on higher risk wholesale sources, and these earnings do not materially change that backdrop.

    The SLST Series 2026 1 seasoned loan securitization ties directly into the same theme Q3 highlighted. Freddie Mac is working through less liquid mortgage assets and turning them into guaranteed senior paper and subordinate risk pieces, which supports fee based revenue and can help tidy up the investment portfolio over time.

    At roughly US$243.4m, this transaction is small compared with the overall portfolio. However, it illustrates how the business keeps recycling credit risk and freeing balance sheet capacity alongside tender offers for older STACR notes. For investors watching catalysts, execution on these programs feeds into credit quality, risk transfer progress and the ability to keep writing new guarantees without stretching capital further.

    What The Freddie Mac Forecasts Are Actually Saying

    Federal Home Loan Mortgage's narrative projects US$23.7b revenue and earnings of US$0.0 thousand by 2029. This lines up with analysts assuming 1.2% yearly revenue growth and an earnings increase of about US$24.0m from earnings today of a US$24.0m loss.

    Uncover why Federal Home Loan Mortgage's fair value indicates a 233% potential upside to its current price, which could narrow quickly.

    OTCPK:FMCC 1-Year Stock Price Chart
    OTCPK:FMCC 1-Year Stock Price Chart

    Exploring Other Perspectives

    The Simply Wall St Community offers three fair value views on Freddie Mac, ranging from US$4.50 to about US$33.68 per share, so opinions already span several multiples. These community forecasts sit alongside risks related to regulatory capital, housing policy and credit costs, which could all influence how Freddie Mac converts its large mortgage portfolio into future earnings. Readers should treat these community estimates as one input and consider several alternative viewpoints before forming their own perspective.

    Explore 2 other Federal Home Loan Mortgage fair value estimates, including one that suggests it could be worth just $4.50.

    The Verdict Is Yours

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking For More Investment Ideas Beyond Federal Home Loan Mortgage?

    If Freddie Mac has you thinking about where else capital could work hard for you, broaden the field with a few focused stock shortlists built around balance sheet strength, value and risk.