Banco Santander (SAN): Q1 2026 Profit Rises +12% YoY, Beats Expectations
Key Takeaways
- Banco Santander reported underlying profit of €3.6 billion for Q1 2026, up 12% year-over-year (YoY) and beating analyst consensus of €3.5 billion.
- Total revenue rose 4% YoY to €15.1 billion, exceeding expectations of €15.0 billion, driven by 4% growth in net interest income (NII) and 6% in net fee income.
- Operating costs fell 3% to €6.5 billion, improving the efficiency ratio to 42.8% from 45.8% a year ago.
- The bank added eight million customers over the past 12 months, reaching 176 million, with loans and deposits up 5% and 4%, respectively, in constant euros.
- Return on tangible equity (RoTE) increased to 15.2%, and Common Equity Tier 1 (CET1) capital ratio strengthened to 14.4%.
- Reiterated 2026 guidance for mid-single-digit revenue growth and lower costs in constant euros.
Q1 2026 Earnings in Context
I've been keeping a close eye on Banco Santander (SAN), one of Europe's largest banks by market capitalization. The bank just released its Q1 2026 results for the quarter ended March 31, 2026, against a backdrop of moderating interest rates and geopolitical uncertainties. With major exposure to Europe, Latin America, and the U.S., these figures provide valuable insights into global lending trends, deposit growth, and fee generation. From what I see, investors are particularly interested in signs of sustained profitability, building on Santander's record annual profits in recent years through smart diversification and cost discipline. This quarter's performance highlights the bank's resilience, which could shape its valuation and appeal as a dividend play in a crowded banking sector.
Breaking Down the Reported Results
Banco Santander (SAN) posted strong Q1 2026 results, with underlying profit of €3.6 billion surpassing consensus estimates of €3.5 billion from 13 analysts. Attributable profit reached €5.5 billion, boosted 60% YoY by a €1.9 billion net capital gain from the Poland disposal. Revenue totaled €15.1 billion, up 4% YoY and ahead of the €15.0 billion forecast, supported by NII of €11.0 billion (+4% YoY, beating €10.9 billion expected) and net fees of €3.4 billion (+6% YoY, near €3.4 billion consensus).
Costs declined 3% to €6.5 billion, better than the €6.6 billion anticipated, driving positive operating leverage and an efficiency ratio of 42.8%. Credit quality remained solid with a cost of risk at 1.14%, stable YoY. Balance sheet growth was robust, with loans +5% and deposits +4% in constant euros. RoTE rose to 15.2%, and CET1 hit 14.4%, reflecting strong capital generation. One thing that stands out to me is the customer growth—eight million new customers in the past year, pushing the total to 176 million—which supports the loan and deposit expansion.
Market Reaction and Investor Sentiment
Shares of Banco Santander (SAN)'s ADR rose about 0.9% in pre-market trading after the earnings release, a reaction I view as endorsement of the profit beat, cost control, and reaffirmed guidance. Investor sentiment has shifted more optimistic, with emphasis on the bank's customer acquisition momentum and capital strength, even as interest rate outlooks remain cautious. Trading volume increased notably, as analysts noted the consistent outperformance versus consensus.
Tickeron’s AI Screener
In my own research process, I often turn to Tickeron’s AI Screener, an AI-powered tool for discovering stocks and ETFs. It lets me filter thousands of assets based on technical patterns, fundamentals, trends, volatility, and AI signals, using customizable criteria like industry, market cap, indicators, or price patterns. This helps me quickly identify trade ideas, breakout candidates, and opportunities that might otherwise take hours to spot manually. I find it streamlines my workflow, especially when comparing banks like SAN to peers—worth exploring if you're looking to sharpen your screening.
Looking Ahead: Guidance and Key Factors
Banco Santander (SAN) reiterated its 2026–2028 strategic targets, expecting mid-single-digit revenue growth, cost reductions in constant euros, and higher profits this year, with CET1 of 12.8%–13% (adjusted for certain transactions). Net fee income is projected to grow faster than NII, supported by rising customer activity across its global footprint. I also checked this using Tickeron’s AI Screener to see how the stock stacks up against industry trends.
Key items I'm watching include loan and deposit expansion, especially in high-growth areas like Latin America, along with fee trends from payments and wealth management. Cost discipline via the ONE Transformation program will be crucial for margins. Credit quality, including the cost of risk, merits attention amid potential economic slowdowns.
Upcoming catalysts are the €5 billion share buyback completion and the final 2025 dividend on May 5. Keep an eye on regulatory provisions like the UK motor finance issue and progress on acquisitions such as Webster. Broader factors like interest rate trajectories and geopolitical tensions could influence NII and provisions.
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Aroon Indicator for SAN shows an upward move is likely
SAN's Aroon Indicator triggered a bullish signal on April 28, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 356 similar instances where the Aroon Indicator showed a similar pattern. In of the 356 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 06, 2026. You may want to consider a long position or call options on SAN as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SAN just turned positive on May 07, 2026. Looking at past instances where SAN's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
SAN moved above its 50-day moving average on April 08, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for SAN crossed bullishly above the 50-day moving average on April 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SAN advanced for three days, in of 307 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for SAN moved out of overbought territory on April 20, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 53 similar instances where the indicator moved out of overbought territory. In of the 53 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SAN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SAN broke above its upper Bollinger Band on April 08, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 30, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SAN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.412) is normal, around the industry mean (1.467). P/E Ratio (11.759) is within average values for comparable stocks, (13.156). Projected Growth (PEG Ratio) (2.859) is also within normal values, averaging (3.677). Dividend Yield (0.023) settles around the average of (0.039) among similar stocks. P/S Ratio (2.530) is also within normal values, averaging (3.694).
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