Bank of America Corporation (BAC) reported robust first-quarter 2026 financial results, with net income jumping 17% year-over-year to $8.6 billion. Revenue for the quarter reached $30.3 billion, a 7% increase, surpassing analyst consensus estimates of $29.92 billion. Earnings per share came in at $1.11, beating expectations by $0.10.
The strong performance was driven by a surge in trading revenue and investment banking fees. Sales and trading revenue climbed 13% to $6.4 billion, benefiting from volatile market conditions in early 2026. Investment banking fees saw an even more dramatic rise, jumping 21% to $1.8 billion, more than double the bank's own 10% growth forecast. This was fueled by a record quarter for global mergers and acquisitions, with deal volume exceeding $1.2 trillion.
Bank of America was actively involved in several major deals, including advising on McCormick's $42.7 billion acquisition of Unilever's food business, Boston Scientific's $14.9 billion purchase of Penumbra, and Devon Energy's $26 billion takeover of Coterra Energy.
Other key financial metrics showed strength. Net interest income rose to $15.7 billion. The bank improved its efficiency ratio to approximately 61% through disciplined cost control. It also returned $9.3 billion to shareholders via dividends and share repurchases during the quarter. Despite the strong report, BAC stock was up only 1.5% in premarket trading, closing the prior session at $53.35.
