Citigroup Beats Earnings Estimates but Misses Revenue in Q4 2025

Citigroup Inc. (NYSE: C) recently released its financial results for the fourth quarter of 2025, showcasing a mixed performance. While the company managed to exceed earnings per share (EPS) expectations, it fell short on revenue projections.

EPS Surprise Can’t Offset $19.9B Revenue Miss

In the fourth quarter of 2025, Citigroup reported an earnings per share (EPS) of $1.19, which, when adjusted for the Russia-related notable item, resulted in an EPS of $1.81. This figure surpassed the market expectation of $1.70.

However, the company’s revenue for the quarter stood at $19.9 billion, falling short of the anticipated $20.55 billion. The revenue shortfall was primarily attributed to a decline in non-interest revenue and the impact of the Russia-related notable item.

Despite the revenue miss, Citigroup’s net income for the quarter was $2.5 billion, compared to $2.9 billion in the same period last year. Excluding the Russia-related notable item, the net income was $3.6 billion. The company’s operating expenses increased by 6%, driven by higher compensation, benefits expenses, and technology investments. Additionally, the provision for credit losses was $2.2 billion, a decrease from the prior year’s $2.6 billion.

Citigroup’s performance was bolstered by growth in its Banking, Services, U.S. Personal Banking (USPB), and Wealth divisions. The company reported a 2% increase in revenues from the prior year, with notable growth in net interest income driven by Markets, Services, and USPB. However, this was offset by a decline in non-interest revenue, particularly in Legacy Franchises and Markets.

Join our Telegram group and never miss a breaking digital asset story.

Citigroup Targets Stronger Returns and Growth in 2026

Looking ahead, Citigroup has provided optimistic guidance for 2026, with a focus on achieving a return on tangible common equity (RoTCE) target of 10-11% for the year. The company aims to position itself for improved returns in the coming years, driven by strategic investments and a commitment to growth. Citigroup’s CEO, Jane Fraser, highlighted the firm’s momentum across its various businesses and expressed confidence in meeting the RoTCE target.

Citigroup plans to continue returning excess capital to shareholders, having already returned $17.6 billion in 2025 through share buybacks and dividends. The company’s Common Equity Tier 1 (CET1) Capital Ratio stood at 13.2%, 160 basis points above the regulatory requirement, indicating a strong capital position to support future growth.

Citigroup’s strategic priorities for 2026 include simplifying its operations, enhancing business performance, and focusing on key growth areas such as Services and Wealth management. The company is also committed to executing its planned divestitures, including the sale of its Mexico Consumer/SBMM businesses, to streamline operations and concentrate on core segments. Overall, Citigroup’s guidance reflects a positive outlook, with an emphasis on sustainable growth and improved financial returns.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.