Royal Bank (RY) Tops Q4 Earnings and Revenue Estimates

Core Insights - Royal Bank reported quarterly earnings of $2.76 per share, exceeding the Zacks Consensus Estimate of $2.51 per share, and showing an increase from $2.25 per share a year ago, resulting in an earnings surprise of +9.96% [1] - The bank's revenues for the quarter ended October 2025 were $12.33 billion, surpassing the Zacks Consensus Estimate by 2.77%, and up from $11.04 billion year-over-year [2] - Royal Bank shares have increased by approximately 28.2% year-to-date, outperforming the S&P 500's gain of 16.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.61, with expected revenues of $11.99 billion, and for the current fiscal year, the EPS estimate is $10.66 on revenues of $48.68 billion [7] - The trend of estimate revisions for Royal Bank was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Banks - Foreign industry, to which Royal Bank belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, VersaBank, is expected to report quarterly earnings of $0.24 per share, reflecting a year-over-year decline of -14.3%, with revenues projected at $24.27 million, up 21.5% from the previous year [9]