Digital banking company Axos Financial (NYSE: AX) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 20.9% year on year to $379.8 million. Its non-GAAP profit of $2.53 per share was 17.4% above analysts’ consensus estimates.
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Axos Financial (AX) Q2 CY2026 Highlights:
- Net Interest Income: $317.9 million vs analyst estimates of $315.1 million (13.5% year-on-year growth, 0.9% beat)
- Net Interest Margin: 4.5% vs analyst estimates of 4.5% (in line)
- Revenue: $379.8 million vs analyst estimates of $375.8 million (20.9% year-on-year growth, 1.1% beat)
- Efficiency Ratio: 54.2% vs analyst estimates of 49.4% (480.7 basis point miss)
- Adjusted EPS: $2.53 vs analyst estimates of $2.16 (17.4% beat)
- Tangible Book Value per Share: $50.96 vs analyst estimates of $52.10 (13% year-on-year growth, 2.2% miss)
- Market Capitalization: $5.58 billion
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
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Thankfully, Axos Financial’s 17.8% annualized revenue growth over the last five years was excellent. 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 15.6% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. 
Note: Quarters not shown were determined to be outliers because they were 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 20.9%, and its $379.8 million of revenue topped Wall Street estimates by 1.1%.
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.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Axos Financial’s TBVPS grew at an incredible 18.7% annual clip over the last five years. TBVPS growth has recently decelerated a bit to 16.2% annual growth over the last two years (from $37.77 to $50.96 per share).
Over the next 12 months, Consensus estimates call for Axos Financial’s TBVPS to grow by 21% to $61.67, top-notch growth rate.
Key Takeaways from Axos Financial’s Q2 Results
It was good to see Axos Financial beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its tangible book value per share missed. Overall, this print had some key positives. The stock remained flat at $97.86 immediately following the results.
So should you invest in Axos Financial 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).
