Royal Bank of Canada (RBC) shares advanced 1.4% in pre-market trading on Tuesday after the lender reported adjusted net income of $6.1 billion for the third fiscal quarter of 2026, a 10% increase from the prior-year period.
Adjusted diluted earnings per share (EPS) reached $4.28, exceeding the consensus estimate of approximately CAD$4.04 per share. On a reported basis, net income totaled $6.0 billion, up 11% year-over-year, while diluted EPS of $4.23 rose 13% from a year ago.
The bank’s performance was led by Wealth Management, Capital Markets, and Commercial Banking. Wealth Management net income surged 32% to $1.44 billion, while the CET1 capital ratio remained stable at 13.5%, well above regulatory requirements.
Analysts reacted positively to the results. Barclays raised its price target for RBC to CAD$300 from CAD$260 ahead of the report, while National Bank reaffirmed its buy recommendation on August 24. The six largest Canadian banks released their third-quarter results between August 25 and 28.
The broader market environment also supported gains, with the S&P 500 up 0.5% and the NASDAQ advancing 1.1% during the same session.
