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Citigroup Inc. (C - Free Report) is slated to report first-quarter 2026 results on April 14, 2026, before market open.
In 2025, Citigroup witnessed increases in net interest income (NII) and non-interest revenues. The company also registered a solid increase in Investment Banking (IB) revenues, driven by a rebound in deal-making activity.
This globally diversified financial service holding company is expected to have registered bottom and top-line increases in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $23.71 billion, indicating a 9.8% year-over-year increase. The consensus estimate for earnings for the to-be-reported quarter has been revised upward to $2.64 over the past seven days. The figure indicates a 34.7% rise from the prior-year quarter’s actual.
Estimate Revision Trend
Image Source: Zacks Investment Research
The company also has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 13.81%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors to Influence Citigroup’s Q1 Results
NII: In the first quarter of 2026, the Federal Reserve kept interest rates unchanged. This is likely to have supported C’s NII in the quarter, given stabilizing funding/deposit costs.
The Zacks Consensus Estimate for NII is pinned at $15.5 billion, suggesting a 10.7% year-over-year rise.
Loans: Per the Fed’s latest data, the demand for commercial and industrial and consumer loans was impressive in the first two months of the quarter, while real estate loan demand was subdued.
Hence, C is expected to have witnessed a decent rise in loan demand, thereby improving the average interest-earning asset balance. The Zacks Consensus Estimate for Citigroup's average interest-earning assets is pegged at $2.5 trillion, indicating a 9.8% increase from the year-ago quarter’s reported figure.
Fee Income: While global volume in mergers and acquisitions (M&As) declined year over year in the first quarter of 2026, deal value was up as big transactions dominated the space. Despite the Middle Eastern conflict and the ensuing uncertainty about its impacts on the economy in the last month of the quarter, deal-making activity was impressive.
Unlike last year, when President Trump’s announcement of ‘Liberation Day’ tariff plans led to the deal drought for several months, this time, companies acknowledged that volatility is part of life, and they will have to do business around it. Lower capital costs and a focus on scale and AI integration drove the M&As. This is likely to have supported C’s IB revenues in the quarter to be reported. Management expects first-quarter 2026 IB fees to grow year over year in the mid-teens, supported by strong M&A and equity capital market activities.
Client activity and market volatility were solid in the first quarter. Major factors that impacted trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange. Citigroup expects market revenues to grow year over year in the mid-teens in the first quarter of 2026. The Zacks Consensus Estimate for market revenues is pegged at $6.9 billion, which suggests a 16.1% rise on a year-over-year basis.
The Zacks Consensus Estimate for income from commissions and fees is pinned at $2.9 billion, which indicates a 4.4% year-over-year rise.
The Zacks Consensus Estimate for income from principal transactions is pegged at $4.4 billion, which suggests an 12.4% increase from the prior-year quarter’s actual.
The Zacks Consensus Estimate for administration and other fiduciary fees is pinned at $1.1 billion, which implies a year-over-year increase of 4.9%.
The Zacks Consensus Estimate for total non-interest income for the first quarter of 2026 is pegged at $8.2 billion, which suggests an 8.6% rise from the prior-year quarter’s actual.
Expenses: Though Citigroup is focused on lowering expenses through organizational simplification, cost reductions and productivity savings, the bank’s increased investments in business transformation efforts, technological advancements and higher volume-related expenses are likely to have kept the expense base elevated in the first quarter of 2026.
Asset Quality: Citigroup is likely to have set aside a huge amount of money for potential delinquent loans amid a challenging operating backdrop, marked by the Middle East conflict and persistent inflation.
The Zacks Consensus Estimate for non-accrual loans is pegged at $4.2 billion, indicating a jump of 55.9% from the prior year’s reported figure.
What Our Model Unveils for C
Our proven model does conclusively predict an earnings beat for Citigroup this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you can see below.
Citigroup has an Earnings ESP of +0.25%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
In the first quarter of 2026, C shares lost 2.8% compared with the industry’s decline of 8.7%. Shares of its peer Bank of America (BAC - Free Report) fell 11.4% and Wells Fargo (WFC - Free Report) plunged 14.6% in the same period.
Price Performance
Image Source: Zacks Investment Research
Wells Fargo is slated to announce quarterly numbers on the same day as Citigroup, while Bank of America will announce first-quarter 2026 numbers on April 15.
Now, let us look at the value Citigroup offers investors at current levels.
Currently, C is trading at 11.68X forward 12-month earnings, below the industry’s forward price/earnings (P/E) multiple of 13.29X. The company’s valuation looks inexpensive compared with the industry average.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Citigroup’s stock is also trading at a discount compared with Bank of America’s P/E of 11.74X and Wells Fargo's P/E of 12.01X.
Evaluating Citigroup Stock Ahead of Q1 Earnings
C is in the middle of a significant transformation aimed at simplifying operations, sharpening its focus on core markets, and boosting profitability. In February 2026, Citigroup completed the sale of its Russia-based banking subsidiary, AO Citibank, to Renaissance Capital. The sale of AO Citibank strengthens Citigroup’s capital position and streamlines its balance sheet. The transaction is expected to provide an estimated benefit of $4 billion to the company’s Common Equity Tier 1 capital in the first quarter of 2026.
The same month, C announced agreements with several investors for commitments to purchase an aggregate 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex), following the divestiture of 25% stake in Banamex to a Mexican business leader in December 2025. The company is now preparing for a planned initial public offering (IPO) of its Mexican consumer, and small and middle-market banking units. These initiatives will free up capital and help the company pursue investments in wealth management and IB operations, which will stoke fee income growth. The company is targeting annual revenue growth of 4-5% through 2026.
As part of its broader efficiency drive, Citigroup launched a two-year cost-cutting initiative in January 2024 to eliminate 20,000 jobs, which is expected to yield $2-$2.5 billion in annual savings by 2026-end. C is increasingly deploying artificial intelligence (AI) tools to support these efforts.
Citigroup rewards shareholders handsomely. Post-clearing the 2025 Fed stress test, the company hiked its dividend 7.1% to 60 cents per share. In the past five years, it has raised its dividends three times. The company also has a share repurchase plan in place. As of Dec. 31, 2025, $6.8 billion worth of authorization remained available.
Though its restructuring strategy is encouraging, it will keep the expense base elevated in the near term. Also, deteriorating asset quality remains concerning.
Given these factors, investors may want to hold off on new purchases until after the upcoming quarterly results, which may provide greater clarity and a potentially more attractive entry point. Investors should also closely watch management’s commentary on how geopolitical risks and market volatility affected C’s performance and how the company plans to navigate the current environment. Existing shareholders, however, may consider maintaining their positions, as Citigroup’s long-term outlook remains constructive despite near-term challenges.
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Citigroup Set to Report Q1 Earnings: How to Approach the Stock Now?
Key Takeaways
Citigroup Inc. (C - Free Report) is slated to report first-quarter 2026 results on April 14, 2026, before market open.
In 2025, Citigroup witnessed increases in net interest income (NII) and non-interest revenues. The company also registered a solid increase in Investment Banking (IB) revenues, driven by a rebound in deal-making activity.
This globally diversified financial service holding company is expected to have registered bottom and top-line increases in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $23.71 billion, indicating a 9.8% year-over-year increase. The consensus estimate for earnings for the to-be-reported quarter has been revised upward to $2.64 over the past seven days. The figure indicates a 34.7% rise from the prior-year quarter’s actual.
Estimate Revision Trend
Image Source: Zacks Investment Research
The company also has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 13.81%.
Earnings Surprise History
Image Source: Zacks Investment Research
Factors to Influence Citigroup’s Q1 Results
NII: In the first quarter of 2026, the Federal Reserve kept interest rates unchanged. This is likely to have supported C’s NII in the quarter, given stabilizing funding/deposit costs.
The Zacks Consensus Estimate for NII is pinned at $15.5 billion, suggesting a 10.7% year-over-year rise.
Loans: Per the Fed’s latest data, the demand for commercial and industrial and consumer loans was impressive in the first two months of the quarter, while real estate loan demand was subdued.
Hence, C is expected to have witnessed a decent rise in loan demand, thereby improving the average interest-earning asset balance. The Zacks Consensus Estimate for Citigroup's average interest-earning assets is pegged at $2.5 trillion, indicating a 9.8% increase from the year-ago quarter’s reported figure.
Fee Income: While global volume in mergers and acquisitions (M&As) declined year over year in the first quarter of 2026, deal value was up as big transactions dominated the space. Despite the Middle Eastern conflict and the ensuing uncertainty about its impacts on the economy in the last month of the quarter, deal-making activity was impressive.
Unlike last year, when President Trump’s announcement of ‘Liberation Day’ tariff plans led to the deal drought for several months, this time, companies acknowledged that volatility is part of life, and they will have to do business around it. Lower capital costs and a focus on scale and AI integration drove the M&As. This is likely to have supported C’s IB revenues in the quarter to be reported. Management expects first-quarter 2026 IB fees to grow year over year in the mid-teens, supported by strong M&A and equity capital market activities.
Client activity and market volatility were solid in the first quarter. Major factors that impacted trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange. Citigroup expects market revenues to grow year over year in the mid-teens in the first quarter of 2026. The Zacks Consensus Estimate for market revenues is pegged at $6.9 billion, which suggests a 16.1% rise on a year-over-year basis.
The Zacks Consensus Estimate for income from commissions and fees is pinned at $2.9 billion, which indicates a 4.4% year-over-year rise.
The Zacks Consensus Estimate for income from principal transactions is pegged at $4.4 billion, which suggests an 12.4% increase from the prior-year quarter’s actual.
The Zacks Consensus Estimate for administration and other fiduciary fees is pinned at $1.1 billion, which implies a year-over-year increase of 4.9%.
The Zacks Consensus Estimate for total non-interest income for the first quarter of 2026 is pegged at $8.2 billion, which suggests an 8.6% rise from the prior-year quarter’s actual.
Expenses: Though Citigroup is focused on lowering expenses through organizational simplification, cost reductions and productivity savings, the bank’s increased investments in business transformation efforts, technological advancements and higher volume-related expenses are likely to have kept the expense base elevated in the first quarter of 2026.
Asset Quality: Citigroup is likely to have set aside a huge amount of money for potential delinquent loans amid a challenging operating backdrop, marked by the Middle East conflict and persistent inflation.
The Zacks Consensus Estimate for non-accrual loans is pegged at $4.2 billion, indicating a jump of 55.9% from the prior year’s reported figure.
What Our Model Unveils for C
Our proven model does conclusively predict an earnings beat for Citigroup this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is the case here, as you can see below.
Citigroup has an Earnings ESP of +0.25%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Citigroup’s Price Performance & Valuation
In the first quarter of 2026, C shares lost 2.8% compared with the industry’s decline of 8.7%. Shares of its peer Bank of America (BAC - Free Report) fell 11.4% and Wells Fargo (WFC - Free Report) plunged 14.6% in the same period.
Price Performance
Image Source: Zacks Investment Research
Wells Fargo is slated to announce quarterly numbers on the same day as Citigroup, while Bank of America will announce first-quarter 2026 numbers on April 15.
Now, let us look at the value Citigroup offers investors at current levels.
Currently, C is trading at 11.68X forward 12-month earnings, below the industry’s forward price/earnings (P/E) multiple of 13.29X. The company’s valuation looks inexpensive compared with the industry average.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Citigroup’s stock is also trading at a discount compared with Bank of America’s P/E of 11.74X and Wells Fargo's P/E of 12.01X.
Evaluating Citigroup Stock Ahead of Q1 Earnings
C is in the middle of a significant transformation aimed at simplifying operations, sharpening its focus on core markets, and boosting profitability. In February 2026, Citigroup completed the sale of its Russia-based banking subsidiary, AO Citibank, to Renaissance Capital. The sale of AO Citibank strengthens Citigroup’s capital position and streamlines its balance sheet. The transaction is expected to provide an estimated benefit of $4 billion to the company’s Common Equity Tier 1 capital in the first quarter of 2026.
The same month, C announced agreements with several investors for commitments to purchase an aggregate 24% equity stake in Grupo Financiero Banamex, S.A. de C.V (Banamex), following the divestiture of 25% stake in Banamex to a Mexican business leader in December 2025. The company is now preparing for a planned initial public offering (IPO) of its Mexican consumer, and small and middle-market banking units. These initiatives will free up capital and help the company pursue investments in wealth management and IB operations, which will stoke fee income growth. The company is targeting annual revenue growth of 4-5% through 2026.
As part of its broader efficiency drive, Citigroup launched a two-year cost-cutting initiative in January 2024 to eliminate 20,000 jobs, which is expected to yield $2-$2.5 billion in annual savings by 2026-end. C is increasingly deploying artificial intelligence (AI) tools to support these efforts.
Citigroup rewards shareholders handsomely. Post-clearing the 2025 Fed stress test, the company hiked its dividend 7.1% to 60 cents per share. In the past five years, it has raised its dividends three times. The company also has a share repurchase plan in place. As of Dec. 31, 2025, $6.8 billion worth of authorization remained available.
Though its restructuring strategy is encouraging, it will keep the expense base elevated in the near term. Also, deteriorating asset quality remains concerning.
Given these factors, investors may want to hold off on new purchases until after the upcoming quarterly results, which may provide greater clarity and a potentially more attractive entry point. Investors should also closely watch management’s commentary on how geopolitical risks and market volatility affected C’s performance and how the company plans to navigate the current environment. Existing shareholders, however, may consider maintaining their positions, as Citigroup’s long-term outlook remains constructive despite near-term challenges.