It has been about a month since the last earnings report for Zions (ZION Quick QuoteZION - Free Report) . Shares have lost about 6.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Zions due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Zions Bancorporation, N.A. before we dive into how investors and analysts have reacted as of late.

Zions' Q3 Earnings Beat Estimates on Higher NII & Fee Income

Zions Bancorporation's third-quarter 2025 adjusted earnings per share of $1.54 beat the Zacks Consensus Estimate of $1.40. Moreover, the bottom line surged 12.4% from the year-ago quarter.

The results were primarily aided by higher NII and non-interest income. Additionally, a higher deposit balance was a positive. However, a rise in adjusted non-interest expenses and provisions alongside a decline in loans was a major headwind.

Results in the reported quarter excluded the negative impact of 6 cents per share from net credit valuation adjustment (CVA) loss due to an update in valuation methodology for derivatives. After considering it, net income attributable to its common shareholders (GAAP) was $221 million, up 8.3% year over year. We had projected the metric to be $211.7 million.

Revenues Up, Expenses Rise

Net revenues (tax equivalent) were $861 million, up 8.7% year over year. Further, the top line beat the Zacks Consensus Estimate of $845.5 million.

NII was $672 million, up 8.4%. The increase was mainly attributed to lower funding costs alongside a favorable mix in average interest-earning assets. Likewise, NIM expanded 25 bps to 3.28%. Our estimates for NII and NIM were $644.6 million and 3.04%, respectively.

Non-interest income rose 9.9% to $189 million. The rise was driven by an increase in almost all the components except capital markets fees and income. We had projected non-interest income to be $169.9 million.

Adjusted non-interest expenses increased 4.2% to $520 million. Our estimate for the metric was $517.7 million.

Adjusted efficiency ratio was 59.6%, down from 62.5% in the prior-year period. A decline in the efficiency ratio indicates an increase in profitability.

As of Sept. 30, 2025, net loans and leases held for investment were $59.6 billion, down roughly 1% from the prior quarter. On the other hand, total deposits were up 1.5% to $74.9 billion. Our estimates for net loans and leases held for investment and total deposits were $60.2 billion and $75.7 billion, respectively.

Credit Quality: A Mixed Bag

The ratio of non-performing assets to loans and leases, as well as other real estate owned, contracted 8 bps year over year to 0.54%.

In the reported quarter, the company recorded net loan and lease charge-offs of $56 million, significantly up from $3 million in the prior-year quarter. Provision for credit losses was $49 million in the reported quarter, up from $13 million in the year-ago quarter.

Profitability & Capital Ratios

Tier 1 leverage ratio was 8.8% as of Sept. 30, 2025, up from 8.6% in the prior-year quarter. The common equity tier 1 capital ratio was 11.3%, up from 10.7% in the prior-year period.

As of Sept. 30, 2025, the tier 1 risk-based capital ratio was stable at 11.4% compared with the prior-year quarter.

At the end of the third quarter, the return on average assets was 0.99%, up from 0.95% in the prior-year quarter. Return on average tangible common equity was 16%, down from 17.4% in the year-ago quarter.

Outlook

Management provided an outlook for third-quarter 2026. The quarters in between are subject to normal seasonality.

Period-end loan balances are expected to increase marginally on a year-over-year basis. The growth will be driven by an increase in commercial loans. Further, management expects commercial real estate classified balances to continue to decline due to payoffs and upgrades.

NII is expected to witness a moderate year-over-year increase, primarily driven by earning asset remix, loan and deposit growth, and fixed-rate asset repricing.

Customer-related non-interest income is anticipated to rise moderately from the prior-year quarter, driven by increased customer activity and new client acquisition, with capital markets contributing in an outsized way.

Adjusted non-interest expenses are projected to witness a moderate increase year over year. Technology costs, increased marketing expense and continued investments in revenue-generating businesses are expected to put pressure on non-interest expenses. Management expects to have positive operating leverage.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 7.4% due to these changes.

VGM Scores

At this time, Zions has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Zions has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Zions is part of the Zacks Banks - West industry. Over the past month, WaFd (WAFD Quick QuoteWAFD - Free Report) , a stock from the same industry, has gained 6.5%. The company reported its results for the quarter ended September 2025 more than a month ago.

WaFd reported revenues of $188.3 million in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $0.72 for the same period compares with $0.70 a year ago.

WaFd is expected to post earnings of $0.74 per share for the current quarter, representing a year-over-year change of +19.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.

WaFd has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.