Financial services company Comerica (NYSE: CMA) announced better-than-expected revenue in Q4 CY2025, with sales up 3.3% year on year to $850 million. Its non-GAAP profit of $1.46 per share was 17% above analysts’ consensus estimates.
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Comerica (CMA) Q4 CY2025 Highlights:
- Net Interest Income: $577 million vs analyst estimates of $573.9 million (flat year on year, 0.5% beat)
- Net Interest Margin: 3.1% vs analyst estimates of 3.2% (8.7 basis point miss)
- Revenue: $850 million vs analyst estimates of $843.6 million (3.3% year-on-year growth, 0.8% beat)
- Efficiency Ratio: 72.3% vs analyst estimates of 70.4% (193.3 basis point miss)
- Adjusted EPS: $1.46 vs analyst estimates of $1.25 (17% beat)
- Tangible Book Value per Share: $52.16 vs analyst estimates of $51.96 (27.6% year-on-year growth, in line)
- Market Capitalization: $11.71 billion
Company Overview
Founded in 1849 during the California Gold Rush era, Comerica (NYSE: CMA) is a financial services company that provides commercial banking, retail banking, and wealth management services to businesses and individuals.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, Comerica’s revenue grew at a sluggish 2.7% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Comerica’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 4.9% annually. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Comerica reported modest year-on-year revenue growth of 3.3% but beat Wall Street’s estimates by 0.8%.
Net interest income made up 67.1% of the company’s total revenue during the last five years, meaning lending operations are Comerica’s largest source of revenue.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.
Comerica’s TBVPS was flat over the last five years. However, TBVPS growth has accelerated recently, growing by 14.3% annually over the last two years from $39.90 to $52.16 per share.
Over the next 12 months, Consensus estimates call for Comerica’s TBVPS to grow by 2.9% to $53.66, lousy growth rate.
Key Takeaways from Comerica’s Q4 Results
It was good to see Comerica beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 2.7% to $94.08 immediately following the results.
Indeed, Comerica had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
