Webster Financial (NYSE:WBS) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Webster Financial (NYSE:WBS) issued its quarterly earnings data on Friday. The financial services provider reported $1.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.52 by $0.07, FiscalAI reports. Webster Financial had a net margin of 21.32% and a return on equity of 11.07%. The business had revenue of $760.48 million during the quarter, compared to the consensus estimate of $731.95 million. During the same period in the prior year, the firm posted $1.43 EPS.

Here are the key takeaways from Webster Financial’s conference call:

• Strong 2025 results — Webster reported a 17% ROTCE, 1.2% ROA, EPS up 10%, loans +8% and deposits +6%, increased tangible book value 13% and repurchased 10.9 million shares, highlighting solid profitability and capital returns.
• Credit remediation and asset quality improvement — commercial classified loans were down 7% year‑over‑year, nonperforming assets down 8%, criticized loans down 6% and charge‑offs were 35 bps, allowing a modest reduction in the allowance.
• 2026 financial outlook — management guides loan growth of 5%–7%, deposit growth 4%–6%, NII $2.57B–$2.63B (assumes Fed cuts), fees $390M–$410M and expenses $1.46B–$1.48B, with NIM expected around the mid‑330 bps range.
• HSA Bank, Ametros and tuck‑ins — management expects HSA eligibility tailwinds to drive $1.0–$2.5 billion of incremental deposits over five years (including $50M–$100M in 2026), is scaling direct‑to‑consumer and added SecureSave to expand employer‑sponsored saving products.
• Deposit competition and near‑term expense pressure — elevated pricing competition in the franchise, seasonal public‑fund outflows and planned Q1 payroll/merit costs may pressure deposit margins and cause a few percentage points spike in first‑quarter expenses.

Webster Financial Stock Down 3.2%

Webster Financial stock opened at $64.13 on Friday. The firm has a 50 day simple moving average of $62.60 and a 200 day simple moving average of $60.16. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.42. Webster Financial has a 1-year low of $39.43 and a 1-year high of $67.43. The firm has a market capitalization of $10.34 billion, a price-to-earnings ratio of 10.85, a P/E/G ratio of 0.54 and a beta of 1.05.

Webster Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, November 20th. Investors of record on Monday, November 10th were issued a $0.40 dividend. The ex-dividend date of this dividend was Monday, November 10th. This represents a $1.60 annualized dividend and a yield of 2.5%. Webster Financial’s dividend payout ratio (DPR) is 27.07%.

Insider Activity

In other news, CEO John R. Ciulla sold 8,000 shares of the firm’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $55.45, for a total value of $443,600.00. Following the completion of the transaction, the chief executive officer directly owned 231,872 shares of the company’s stock, valued at $12,857,302.40. This trade represents a 3.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.54% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. BOKF NA bought a new stake in shares of Webster Financial during the third quarter valued at about $26,000. Caitong International Asset Management Co. Ltd bought a new stake in Webster Financial during the 3rd quarter worth approximately $29,000. Wilmington Savings Fund Society FSB purchased a new stake in Webster Financial in the 3rd quarter worth approximately $33,000. Brown Brothers Harriman & Co. boosted its holdings in Webster Financial by 27.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 839 shares of the financial services provider’s stock valued at $50,000 after purchasing an additional 183 shares during the period. Finally, Geneos Wealth Management Inc. boosted its holdings in Webster Financial by 81.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,107 shares of the financial services provider’s stock valued at $57,000 after purchasing an additional 497 shares during the period. Hedge funds and other institutional investors own 85.58% of the company’s stock.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. Truist Financial restated a “buy” rating and issued a $72.00 price objective on shares of Webster Financial in a research note on Friday, January 9th. Wells Fargo & Company reduced their price target on shares of Webster Financial from $75.00 to $70.00 and set an “overweight” rating for the company in a research report on Monday, October 20th. Raymond James Financial raised their price objective on shares of Webster Financial from $65.00 to $73.00 and gave the stock an “outperform” rating in a report on Wednesday, January 7th. Citigroup reissued a “buy” rating on shares of Webster Financial in a research report on Tuesday, December 30th. Finally, Morgan Stanley raised their price target on shares of Webster Financial from $64.00 to $77.00 and gave the stock an “underperform” rating in a research note on Monday, September 29th. Thirteen investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $72.77.

More Webster Financial News

Here are the key news stories impacting Webster Financial this week:

• Positive Sentiment: Q4 earnings beat — Adjusted EPS of $1.59 topped consensus and net income rose year-over-year; revenue of ~$760.5M also exceeded estimates, driven by loan growth. These beats are the primary fundamental drivers supporting the shares. Business Wire: Webster Reports Fourth Quarter 2025
• Positive Sentiment: Loan-led revenue growth highlighted by multiple outlets — analysts point to core loan expansion as a key revenue driver this quarter, supporting margin stability. Zacks: Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst bullish case: Seeking Alpha keeps WBS as a Buy with a $70 target, citing low‑cost, sticky deposit mix (notably the HSA franchise), resilient credit quality, and strong capital — factors that can sustain earnings and limit rate‑sensitivity vs. peers. Seeking Alpha: Low-Cost Deposit Growth Can Drive Further Upside
• Neutral Sentiment: Earnings call transcript and slides are available for deeper read — management commentary and slides will be useful to assess sustainability of loan growth, deposit trends, and one-time items included in results. Seeking Alpha: Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Analyst estimate revisions were active ahead of the print — some shops updated forecasts pre-earnings, which can amplify intraday moves even when results beat. Benzinga: Analysts Revise Forecasts Ahead Of Earnings
• Negative Sentiment: CRE exposure is a noted risk — Seeking Alpha flags roughly $1.3B in rent‑regulated loans and other CRE concentrations; while reserves and capital are positioned well, this portfolio remains a potential headwind if localized stress emerges. Seeking Alpha: CRE Exposure Note
• Negative Sentiment: Market reaction: despite the beat, the stock is trading lower on the session with above-average volume — suggests profit-taking, where investors are parsing one-time items (gains on debt redemption, charitable items) and portfolio risks rather than the headline beat. MarketBeat: WBS Stock Page

Webster Financial Company Profile

Webster Financial Corporation is a bank holding company headquartered in Waterbury, Connecticut. Through its principal subsidiary, Webster Bank, N.A., the company offers a broad range of banking products and financial services to individuals, small businesses, and middle-market commercial clients. Key offerings include deposit accounts, residential and commercial real estate lending, equipment finance, treasury management, and payment processing solutions.

In addition to traditional banking services, Webster Financial provides wealth management and insurance products designed to help clients plan for retirement, preserve assets, and manage risk.