GET DAILY SIGNALSAxos Financial (AX) Delivers +15% Net Income Growth in Fiscal Q1
Key Takeaways
- Axos Financial reported net income of $129.6 million for the first quarter of fiscal 2027, up roughly 15% from the prior-year period.
- Adjusted (non-GAAP) earnings per share came in at $2.34, exceeding the analyst consensus of $2.26.
- Total revenue reached $395.1 million, up about 22% year over year and ahead of the roughly $386 million consensus estimate.
- Net interest margin (NIM), a key measure of lending profitability, rose to 4.64%, up 10 basis points from the prior quarter.
- Non-interest income nearly doubled year over year to $63.8 million, reflecting contributions from the Verdant Commercial Capital acquisition.
- For more context on AX, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
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Why the Quarter Matters
Axos Financial (AX), the holding company for Axos Bank, Axos Clearing, and Axos Invest, has established itself as a fast-growing digital bank in a competitive regional banking space. The first-quarter fiscal 2027 results, covering the three months ended September 30, 2026, provided an update on whether the company can keep building deposits and loans while holding margins steady amid changing interest rates. After a prior quarter that featured a sizable earnings beat, I was watching for continued strength in deposits, credit quality, and non-interest income—the same drivers that support its premium valuation versus many traditional peers.
The Reported Figures
Axos Financial posted first-quarter fiscal 2027 net income of $129.6 million, compared with $112.4 million in the year-earlier period. GAAP diluted earnings per share rose to $2.25 from $1.94. On an adjusted (non-GAAP) basis that excludes acquisition-related costs and intangible amortization, EPS reached $2.34 and topped the $2.26 consensus. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Total revenue climbed 22% year over year to $395.1 million, beating the roughly $386.3 million estimate. Net interest income increased to $331.3 million, while non-interest income nearly doubled to $63.8 million thanks in part to operating lease and other revenue from the Verdant acquisition. Net interest margin improved to 4.64%, up 10 basis points from the previous quarter, even as the provision for credit losses rose to $24.5 million from $17.3 million. Total assets stood at $30.8 billion at quarter end.
Market Reaction and Sentiment
Heading into the release, analyst sentiment on AX stayed largely positive, with most covering firms maintaining buy ratings. The adjusted EPS beat and revenue outperformance aligned with Axos’s recent pattern of topping estimates. Attention remains focused on deposit growth and funding-cost advantages that support lending and margin expansion. Post-earnings moves will likely hinge on how well the results reinforce that narrative, especially after the strong prior quarter and with credit quality still in focus.
Key Items to Monitor Ahead
Looking forward, the ability to sustain deposit momentum stands out as central. Axos finished fiscal 2026 with solid year-over-year deposit growth, and that base underpins lending at attractive spreads. Any slowdown in inflows or rise in funding costs would affect near-term profitability.
Credit quality deserves continued attention. Non-performing assets improved to 0.51% of total assets, though the annualized net charge-off rate of 1.09% reflected two previously reserved C&I loans. Management noted the underlying rate was lower once those items were excluded. Investors will want to see those core trends remain stable, especially in commercial real estate and specialty lending.
Finally, progress integrating the Verdant acquisition and earlier moves around Arc Technologies could support further non-interest income growth. Sustaining net interest margin, controlling expenses, and executing on these initiatives will likely influence how the market values Axos through the rest of fiscal 2027.
Using AI Tools in My Research
When reviewing bank names like this one, I often turn to Tickeron’s AI Screener to quickly filter peers by fundamentals, technical patterns, and performance metrics. The platform helps surface comparable ideas without hours of manual work and has become a regular part of how I cross-check sector trends.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for AX turns positive, indicating new upward trend
AX saw its Momentum Indicator move above the 0 level on October 20, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In 62 of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at 79%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AX's RSI Indicator exited the oversold zone, 20 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 71%.
The Moving Average Convergence Divergence (MACD) for AX just turned positive on October 05, 2026. Looking at past instances where AX's MACD turned positive, the stock continued to rise in 23 of 40 cases over the following month. The odds of a continued upward trend are 57%.
Following a +2.97% 3-day Advance, the price is estimated to grow further. Considering data from situations where AX advanced for three days, in 207 of 300 cases, the price rose further within the following month. The odds of a continued upward trend are 69%.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
AX moved below its 50-day moving average on October 28, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for AX moved below the 200-day moving average on October 23, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 70%.
AX broke above its upper Bollinger Band on October 20, 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 Aroon Indicator for AX entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 11 (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 35 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 56, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is 42 (best 1 - 100 worst), pointing to consistent 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 50 (best 1 - 100 worst), indicating fairly steady price growth. AX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 78 (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 (1.639) is normal, around the industry mean (1.268). P/E Ratio (10.564) is within average values for comparable stocks, (13.299). Projected Growth (PEG Ratio) (0.620) is also within normal values, averaging (1.190). Dividend Yield (0.000) settles around the average of (0.035) among similar stocks. P/S Ratio (3.659) is also within normal values, averaging (3.738).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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