Santander Q3 underlying profit rises 19%, reaffirms 2026 targets

Banco Santander reported Q3 attributable profit of €3.43B, down 2% YoY, but underlying profit rose 19% to €3.8B. Nine-month underlying profit hit a record €11.18B, up 16%. The bank added 17M customers and reiterated 2026 targets, including profit above €14.1B and a CET1 ratio of 12.8%-13%. Shares closed at €11.27 on Bolsa de Madrid.

Santander ADR (SAN) reported Q3 EPS of $0.295, beating estimates by $0.05, but revenue of $18B missed expectations of $18.14B. The stock is down 11.56% over 3 months but up 20.48% year-over-year. InvestingPro rates its financial health as 'fair performance'.

Banco Santander reported Q3 Non-GAAP EPS of €0.26, beating estimates by €0.02, while revenue of €15.89B missed by €370M. Year-over-year, profitability improved with RoTE at 17.4% for 9M 2026, and underlying RoTE at 16.0%.

Lula da Silva's runoff victory in Brazil's presidential election caused a selloff in Spanish companies with significant Brazilian exposure. Telefónica, Santander, and Mapfre fell as much as 8%, 5%, and 3% respectively. Brazil accounts for 28% of Telefónica's revenue and 15% of Santander's earnings. The weaker real currency reduces the value of Brazilian revenue when translated to euros.

Banco Santander (SAN) ADR fell 3.7% to $12.37 in pre-market trading after Luiz Inácio Lula da Silva won Brazil's presidential election, surprising markets. Brazil accounts for 15% of Santander's earnings. Jefferies downgraded the stock to Hold, adding to the selloff. The bank's exposure to Brazil and the downgrade drove the decline, not broader market weakness. Investors await Santander's Q3 2026 earnings report on October 28.

Barclays rated Banco Santander (SAN) Overweight with a €14.50 target, citing it as their top Spanish bank pick. The bank warns of a ~10bp capital hit in Q3 if sovereign yields rise 10bp, potentially delaying buybacks. Santander will pay a €0.127 dividend per ADR on Nov 2, with Oct 29 as the record date.