It has been about a month since the last earnings report for Citigroup (C Quick QuoteC - Free Report) . Shares have lost about 5.8% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Citigroup due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Citigroup Inc. before we dive into how investors and analysts have reacted as of late.

Citigroup Q1 Earnings Top Estimates on Higher NII

Citigroup reported first-quarter 2026 earnings per share of $3.06, beating the Zacks Consensus Estimate by 15.8% and jumping 56% year over year.

Net income of $5.8 billion in the first quarter of 2026 rose 42% from the year-ago quarter.

The company’s results benefited from a year-over-year rise in net interest income (NII), broad growth across each of its five core businesses and positive operating leverage.

Citigroup also registered a year-over-year increase of 19% in investment banking (IB) revenues, reflecting growth in Advisory and Equity Capital Markets. However, higher operating expenses, an increase in provisions for credit losses and a weaker capital position acted as offsetting factors.

Revenues Increase, Expenses Rise

Revenues, net of interest expenses, were $24.6 billion in the first quarter of 2026, up 14% year over year and beating the consensus mark by 3.8%.

NII rose 12% year over year to $15.7 billion, while non-interest revenues increased 17% to $8.9 billion. NII, excluding Markets, was $12.9 billion, up 7% from the prior-year quarter.

Citigroup’s operating expenses increased 7% year over year to $14.3 billion. The rise was primarily driven by higher compensation and benefits expenses, including severance, the impacts of foreign exchange translation, and higher transaction and product servicing costs, partly offset by productivity savings, lower legal expenses and reduced transformation expenses in Corporate/Other.

Segmental Performance

In the Services segment, total revenues, net of interest expenses, were $6.1 billion, up 17% year over year. The increase reflected growth in Treasury and Trade Solutions, and Securities Services.

The Markets segment’s revenues increased 19% year over year to $7.2 billion, driven by growth in Fixed Income and Equity markets revenues. 

Banking revenues were $1.8 billion, up 15% year over year, primarily driven by a rise in Investment Banking revenues. Advisory fees rose 19% and Equity Capital Markets fees surged 64%, while Debt Capital Markets fees declined 6%.

In the Wealth segment, revenues were $3.1 billion, rising 11% year over year. The increase was driven by growth in Citigold, Retail Banking and the Private Bank, partly offset by lower revenues in Wealth at Work.

U.S. Consumer Cards revenues were $4.8 billion, up 4% year over year, driven by higher NII on increased interest-earning balances and higher spreads, along with higher non-interest revenues.

In the All Other segment, on a managed basis, revenues were $1.7 billion, up 15% year over year.

Balance Sheet Position Solid

As of March 31, 2026, end-of-period deposits were $1.45 trillion, up 3% from the prior quarter. End-of-period loans were $761.6 billion, up 1% sequentially.

Credit Quality: Mixed Bag

Total non-accrual loans increased 25% year over year to $3.4 billion.

Total allowance for credit losses was $22 billion at the quarter-end, down from $22.8 billion in the prior-year period. 

Provisions for credit losses and benefits, and claims were $2.8 billion in the quarter, up 3% year over year.

Capital Position Weak

At the end of the first quarter of 2026, Citigroup’s Common Equity Tier 1 capital ratio was 12.7%, down from 13.4% in the year-ago quarter and 13.2% in the prior quarter.

The supplementary leverage ratio was 5.2%, down from 5.8% in the prior-year quarter.

2026 Outlook

Management expects NII (excluding Markets) to increase 5-6% on a year-over-year basis in 2026.

Management anticipates an efficiency ratio of 60% in 2026, with another year of positive operating leverage.

Management continues to target a return on tangible common equity (RoTCE) of 10-11% in 2026.

U.S Cards net credit loss (NCL) as a percentage of average loans is expected to be 4-4.5%. In 2025, U.S. Cards NCL was 4.1%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Citigroup has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

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 broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Citigroup 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

Citigroup is part of the Zacks Financial - Investment Bank industry. Over the past month, Goldman Sachs (GS Quick QuoteGS - Free Report) , a stock from the same industry, has gained 6.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Goldman reported revenues of $17.23 billion in the last reported quarter, representing a year-over-year change of +14.4%. EPS of $17.55 for the same period compares with $14.12 a year ago.

Goldman is expected to post earnings of $13.71 per share for the current quarter, representing a year-over-year change of +25.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.2%.

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