Huntington Bancshares (HBAN) opened Q2 2026 with total revenue of US$2.7 billion and basic EPS of US$0.34, backed by net income of US$686 million that sits within an earnings record showing 9.6% annual growth over the past five years and 13% growth over the last year. The company has seen revenue move from US$1.8 billion in Q1 2025 to US$2.7 billion in Q2 2026, while trailing twelve month EPS sits at US$1.30 against this multi year growth backdrop. With this earnings season print, the focus for investors is likely to be on how Huntington’s margins and credit quality shape the sustainability of that growth profile.

See our full analysis for Huntington Bancshares.

With the latest quarter on the table, the next step is to set these numbers against the big narratives around Huntington Bancshares to see which stories hold up and which need a rethink.

Cost discipline shows up in 61.5% efficiency ratio

• Huntington Bancshares reported a Q2 2026 cost to income ratio of 61.5%, compared with 67.2% in Q1 2026 and 59.9% on a trailing basis at the end of Q4 2025, so expenses are taking a smaller share of revenue this quarter than in the prior period while still sitting near the recent trailing range.
• Consensus narrative points to technology spending and process reengineering as levers for better efficiency, and these figures partly line up with that view.
  • Revenue moved from US$2.4 billion in Q1 2026 to US$2.7 billion in Q2 2026 while the cost to income ratio declined, which supports the idea that scale and prior investments are helping Huntington Bancshares generate more income without costs rising at the same pace.
  • At the same time, the trailing cost to income ratio of 59.9% at the end of 2025 was slightly lower than the current 61.5%, which shows that while recent quarter efficiency is solid, it is not yet a clear, one way trend that fully confirms the most optimistic expectations.

Non performing loans climb to US$1.6 billion

• Non performing loans reached US$1.6 billion in Q2 2026, compared with US$1.3 billion in Q1 2026 and US$931 million at the end of Q4 2025, alongside total loans of US$189.4 billion this quarter versus US$188.8 billion in Q1 2026.
• Bears argue that geographic expansion and concentration risks could weigh on credit quality, and the recent non performing loan figures give that concern something concrete to point to.
  • As Huntington Bancshares has grown its loan book from US$132.5 billion in Q1 2025 to US$189.4 billion in Q2 2026, non performing loans have increased in absolute terms, which critics see as a reminder that faster balance sheet growth can come with higher problem loan totals that need careful management.
  • The bearish narrative also highlights integration and regulatory costs, and if those expenses rise while non performing loans keep trending higher, that combination could put extra pressure on future net income compared with the current trailing figure of US$2.2 billion.

On the back of higher non performing loans and expansion plans, some investors are asking whether the cautious view is gaining ground, and that is where a structured Bear Case walkthrough can really help you stress test the downside narrative before making any decisions about Huntington Bancshares 🐻 Huntington Bancshares Bear Case.

Valuation tension between 15.6x P/E and DCF fair value

• Huntington Bancshares is trading at US$17.36 per share, which equates to a 15.6x P/E compared with peers at 12.9x and the US Banks industry at 12.1x, while a DCF fair value of US$34.19 and an analyst consensus price target of US$20.34 sit above the current price.
• Bullish investors point to earnings growth and non interest income potential to justify paying more than peer P/E multiples, and the gap to valuation models is a key part of that story.
  • Earnings have grown 9.6% per year over the past five years and 13% over the last year, and with trailing net income at US$2.2 billion, bulls see the current P/E of 15.6x as compatible with those growth figures even though it is higher than peer and industry averages.
  • Supporters also note that the dividend yield of 3.57%, combined with a DCF fair value of US$34.19 and a consensus price target of US$20.34 versus the current US$17.36 share price, creates a valuation spread that they believe helps balance concerns about shareholder dilution over the past year.

For anyone trying to weigh that growth story against the richer P/E and past dilution, a dedicated Bull Case breakdown can make it easier to connect these numbers to the optimistic narrative around Huntington Bancshares 🐂 Huntington Bancshares Bull Case

Next Steps

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

If this mix of growth, credit questions and valuation tension around Huntington Bancshares leaves you unsure, move quickly from headline takeaways to your own assessment by reviewing the company’s full risk and reward profile with 4 key rewards and 2 important warning signs.

See What Else Is Out There Beyond Huntington Bancshares

Huntington Bancshares carries weaknesses around rising non performing loans, a still evolving efficiency trend and questions about whether its 15.6x P/E leaves enough downside protection.

If you want to balance that credit and valuation risk with sturdier financial profiles, you may consider comparing Huntington Bancshares against companies in the solid balance sheet and fundamentals stocks screener (49 results).

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.