Canadian Imperial Bank of Commerce CM is slated to report second-quarter fiscal 2026 (ended April 30) results on May 28, before market open. The company’s quarterly earnings are expected to have increased on a year-over-year basis.
In the last reported quarter, Canadian Imperial’s results were aided by record revenues across all of its business units. A year-over-year decline in provisions was another positive. However, higher expenses hurt the results to some extent.
Canadian Imperial has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 9.3%.
Canadian Imperial Bank of Commerce Price and EPS Surprise
Canadian Imperial Bank of Commerce price-eps-surprise | Canadian Imperial Bank of Commerce Quote
The Zacks Consensus Estimate for the company’s earnings for the to-be-reported quarter is pegged at $1.78 per share, which has been unchanged in the past seven days. The estimated figure suggests a rise of 23.6% from the year-ago quarter.
Factors Likely to Have Influenced CM’s Q2 Results
The company’s capital markets division is expected to have gotten major support from elevated market volatility and stronger client activity in the April-end quarter. Also, an increase in underwriting fees, as well as higher advisory fees (on a rise in global deal volumes), is likely to have boosted investment banking revenues.
On the lending side, Canadian commercial banking and retail banking operations benefited from decent lending demand and relatively resilient spreads in the quarter. Thus, loan growth and expansion in earning assets are expected to have provided support to Canadian Imperial’s net interest income.
Despite NII growth, the company’s net interest margin (NIM) expansion is likely to have been constrained because of easing interest rates in Canada.
Since the company has continuously been spending on technology modernization and employee compensation, overall costs are expected to have been elevated in the quarter.
What the Zacks Model Unveils for Canadian Imperial
Per our quantitative model, it cannot be conclusively predicted whether Canadian Imperial will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for CM is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Foreign Banks
ICICI Bank Ltd.’s IBN profit after tax for fourth-quarter fiscal 2026 (ended March 31) was INR137.02 billion ($1.50 billion), up 8.5% from the prior-year quarter.
IBN’s results were aided by growth in net interest income and non-interest income. A decline in provisions was a tailwind. However, higher operating expenses, along with a treasury loss, hurt the results to some extent.
Barclays BCS reported first-quarter 2026 (ended March 31) net income attributable to ordinary equity holders of £1.93 billion ($2.60 billion), up 4% from the prior-year quarter.
An increase in revenues and a strong balance sheet supported BCS’ results. However, the company recorded higher operating expenses in the quarter, which, along with an increase in credit impairment charges, hurt the results to some extent.
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This article originally published on Zacks Investment Research (zacks.com).