Digital banking company Axos Financial (NYSE: AX) reported Q1 CY2026 results beating Wall Street’s revenue expectations, with sales up 27% year on year to $392.2 million. Its non-GAAP profit of $1.90 per share was 10.8% below analysts’ consensus estimates.
Is now the time to buy Axos Financial? Find out by accessing our full research report, it’s free.
Axos Financial (AX) Q1 CY2026 Highlights:
- Net Interest Income: $306.3 million vs analyst estimates of $317 million (11.2% year-on-year growth, 3.4% miss)
- Net Interest Margin: 4.6% vs analyst estimates of 4.7% (8.7 basis point miss)
- Revenue: $392.2 million vs analyst estimates of $367.3 million (27% year-on-year growth, 6.8% beat)
- Efficiency Ratio: 47.4% vs analyst estimates of 48.6% (121 basis point beat)
- Adjusted EPS: $1.90 vs analyst expectations of $2.13 (10.8% miss)
- Tangible Book Value per Share: $49.71 vs analyst estimates of $50.13 (14.5% year-on-year growth, 0.8% miss)
- Market Capitalization: $5.38 billion
“Strong loan growth and good expense discipline resulted in double digit year-over-year increases in net interest income and diluted EPS,” stated Greg Garrabrants, President and Chief Executive Officer of Axos.
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
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Luckily, Axos Financial’s revenue grew at an excellent 17.6% compounded annual growth rate over the last five years. 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 17.1% over the last two years aligns with its five-year trend, suggesting its demand was predictably strong. 
Note: Quarters not shown were determined to be outliers, 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 27%, and its $392.2 million of revenue topped Wall Street estimates by 6.8%.
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.
Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Axos Financial’s TBVPS grew at an incredible 19.1% annual clip over the last five years. TBVPS growth has recently decelerated a bit to 17.6% annual growth over the last two years (from $35.95 to $49.71 per share).
Over the next 12 months, Consensus estimates call for Axos Financial’s TBVPS to grow by 20% to $59.67, top-notch growth rate.
Key Takeaways from Axos Financial’s Q1 Results
We were impressed by how significantly Axos Financial blew past analysts’ revenue expectations this quarter. On the other hand, its net interest income missed and its EPS fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock traded down 6.3% to $90.38 immediately following the results.
Axos Financial underperformed this quarter, but does that create an opportunity to invest right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
