Let’s dig into the relative performance of U.S. Bancorp (NYSE: USB) and its peers as we unravel the now-completed Q1 diversified banks earnings season.

At their core, diversified banks take in deposits and engage in various forms of lending, which means revenue is generated through interest rate spreads (difference between loan and deposit rates) and fees. Other revenue comes from adjacent services such as wealth management, card and account fees, and products such as annuities. These institutions benefit from rising interest rates that improve NIMs (net interest margins), digital transformation reducing operational costs, and expanding wealth management services as populations age. However, they face headwinds including fintech competition disrupting traditional models (how disruptive is crypto?), stringent regulatory requirements increasing compliance costs, and cybersecurity threats requiring substantial technology investments. Economic downturns also pose risks through potential loan defaults and compressed margins during accommodative monetary policy periods.

The 7 diversified banks stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1%.

While some diversified banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% since the latest earnings results.

U.S. Bancorp (NYSE: USB)

With roots dating back to 1863 and a presence across 26 states primarily in the Midwest and West, U.S. Bancorp (NYSE: USB) is one of America's largest banks providing lending, deposit services, wealth management, payment processing, and merchant services to individuals and businesses.

U.S. Bancorp reported revenues of $7.32 billion, up 5.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ tangible book value per share estimates and a narrow beat of analysts’ EPS estimates.

Unsurprisingly, the stock is down 3% since reporting and currently trades at $54.69.

Read our full report on U.S. Bancorp here, it’s free.

Best Q1: Citigroup (NYSE: C)

With operations in nearly 160 countries and a history dating back to 1812, Citigroup (NYSE: C) is a global financial services company that provides banking, investment, wealth management, and payment solutions to consumers, corporations, and governments.

Citigroup reported revenues of $24.66 billion, up 14.1% year on year, outperforming analysts’ expectations by 5.1%. The business had a very strong quarter with an impressive beat of analysts’ revenue and EPS estimates.

Citigroup delivered the biggest analyst estimate beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $125.17.

Is now the time to buy Citigroup? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Wells Fargo (NYSE: WFC)

Founded during the California Gold Rush in 1852 to provide banking and express delivery services to miners and merchants, Wells Fargo (NYSE: WFC) is a diversified financial services company that provides banking, lending, investment, and wealth management services to individuals and businesses.

Wells Fargo reported revenues of $21.52 billion, up 6.4% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS and net interest income estimates.

Wells Fargo delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.3% since the results and currently trades at $76.01.

Read our full analysis of Wells Fargo’s results here.

Bank of America (NYSE: BAC)

Tracing its roots back to 1784 and now serving approximately 67 million consumer and small business clients, Bank of America (NYSE: BAC) is a global financial institution that provides banking, investing, asset management, and risk management products and services to individuals, businesses, and governments.

Bank of America reported revenues of $30.37 billion, up 7% year on year. This number surpassed analysts’ expectations by 1.2%. Taking a step back, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ tangible book value per share estimates.

The stock is down 4.2% since reporting and currently trades at $51.09.

Read our full, actionable report on Bank of America here, it’s free.

PNC Financial Services Group (NYSE: PNC)

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE: PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

PNC Financial Services Group reported revenues of $6.19 billion, up 13% year on year. This print missed analysts’ expectations by 1.1%. It was a slower quarter as it also logged a slight miss of analysts’ revenue estimates and a narrow beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $220.88.

Read our full, actionable report on PNC Financial Services Group here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.