Upside case
Bull case
$172+135.1%
WBS would need investors to value it at roughly 26x earnings — about 15x more generous than today's 11x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewHoldUpdated May 1, 2026
Webster Financial Corporation (WBS) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Hold
Covering
31
analysts
14 bullish · 1 bearish · 31 covering WBS
Strong Buy
0
Buy
14
Hold
16
Sell
1
Strong Sell
0
Consensus Target
$74
+1.3% vs today
Scenario Range
$63 – $172
Model bear to bull value window
Coverage
31
Published analyst ratings
Valuation Context
11.1x
Forward P/E · Market cap $11.9B
WBS price targets
Three scenarios for where WBS stock could go
Current
~$73
Confidence
54 / 100
Updated
May 1, 2026
Where we are now
Current · $73
Bear
$63
Base
$93
Bull
$172
Market caseClosest to today
Base case
$93+27.3%
At 14x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$63-14.2%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push WBS down roughly 14% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Webster Financial Corporation
WBS · NYSEFinancial ServicesBanks - RegionalDecember year-end
Webster Financial Corporation is a regional bank holding company that provides commercial banking, retail banking, and health savings account services primarily in the Northeastern United States. It generates revenue through net interest income from loans and deposits (roughly 70% of total revenue) and non-interest income from fees, wealth management, and payment services. The company's key advantage is its specialized HSA Bank segment—one of the largest health savings account administrators in the country—which provides a sticky, fee-generating business with strong cross-selling opportunities.
Market Cap
$11.9B
Net Income TTM
$1.0B
WBS Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
45%Exceptional
vs consensus estimates
Avg EPS Surprise
+1.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.52/$1.44
Revenue
$716M/$717M
Q4 2025
EPS
$1.54/$1.52
Revenue
$733M/$728M
Q1 2026
EPS
$1.59/$1.52
Revenue
$746M/$731M
Q2 2026
EPS
$1.57/$1.53
Revenue
$736M/$735M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.52/$1.44 | +5.6% | $716M/$717M | -0.1% |
| Q4 2025 | $1.54/$1.52 | +1.3% | $733M/$728M | +0.7% |
| Q1 2026 | $1.59/$1.52 | +4.6% | $746M/$731M | +2.1% |
| Q2 2026 | $1.57/$1.53 | +2.6% | $736M/$735M | +0.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$4.2B
-5.0% YoY
FY2
$4.6B
+8.6% YoY
EPS Outlook
FY1
$6.78
+6.1% YoY
FY2
$7.52
+10.9% YoY
Trailing FCF (TTM)$1.2B
Next Earnings
—
Expected EPS
—
Expected Revenue
—
WBS beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
WBS Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $238M
Product Mix
Latest annual revenue by segment or product family
Deposit Service Fees
66.3%
-2.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Deposit Service Fees is the largest disclosed segment at 66.3% of FY 2025 revenue, down 2.0% YoY.
WBS Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Fairly Valued
Fair value est. $75 — implies +4.4% from today's price.
Upside to Fair Value
4.4%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
WBS
12.4x
vs
S&P 500
25.2x
51% discount
vs Financial Services Trailing P/E
WBS
12.4x
vs
Financial Services
13.4x
7% discount
vs WBS 5Y Avg P/E
Today
12.4x
vs
5Y Average
11.8x
+5% premium
Forward PE
11.1x
S&P 500
19.1x
-42%
Financial Services
10.5x
+6%
5Y Avg
—
—
Trailing PE
12.4x
S&P 500
25.2x
-51%
Financial Services
13.4x
-7%
5Y Avg
11.8x
+5%
PEG Ratio
0.61x
S&P 500
1.75x
-65%
Financial Services
1.03x
-40%
5Y Avg
—
—
EV/EBITDA
10.9x
S&P 500
15.3x
-28%
Financial Services
11.4x
-4%
5Y Avg
11.2x
-3%
Price/FCF
11.8x
S&P 500
21.3x
-45%
Financial Services
10.6x
+11%
5Y Avg
8.0x
+48%
Price/Sales
2.7x
S&P 500
3.1x
-14%
Financial Services
2.3x
+19%
5Y Avg
2.7x
-2%
Dividend Yield
2.27%
S&P 500
1.88%
+21%
Financial Services
2.68%
-16%
5Y Avg
2.94%
-23%
| Metric | WBS | S&P 500 | Financial Services | 5Y Avg WBS |
|---|---|---|---|---|
| Forward PE | 11.1x | 19.1x-42% | 10.5x | — |
| Trailing PE | 12.4x | 25.2x-51% | 13.4x | 11.8x |
| PEG Ratio | 0.61x | 1.75x-65% | 1.03x-40% | — |
| EV/EBITDA | 10.9x | 15.3x-28% | 11.4x | 11.2x |
| Price/FCF | 11.8x | 21.3x-45% | 10.6x+11% | 8.0x+48% |
| Price/Sales | 2.7x | 3.1x-14% | 2.3x+19% | 2.7x |
| Dividend Yield | 2.27% | 1.88% | 2.68% | 2.94% |
WBS trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolWBS Financial Health
Verdict
Stressed
WBS generates 10.8% ROE and 1.2% return on assets — the two primary signals for banking profitability. FCF-based metrics are not applicable to financial companies.
Earnings Engine
Revenue, profitability, and return on capital
Revenue (TTM)
Trailing-twelve-month sales base
—
Revenue Growth
TTM vs prior year
—
Operating Margin
Operating income divided by revenue
—
Net Margin
Net income divided by revenue
—
EPS (TTM)
Diluted earnings per share, trailing twelve months
$6.39
ROE
Return on equity — the primary profitability signal for banks
10.8%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
7.2%
ROA
Return on assets, trailing twelve months
1.2%
Cash & Equivalents
Liquid assets on the balance sheet
$2.4B
Net Debt
Total debt minus cash
$1.9B
FCF Analysis
Traditional FCF and debt/FCF ratios are not meaningful for financial companies. Focus on ROE and ROA above.
ROE
Return on equity — the headline bank profitability metric
10.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
7.5%
Dividend
2.3%
Buyback
5.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$616M
Dividend / Share
Annualized trailing dividend per share
$1.66
Payout Ratio
Share of earnings distributed as dividends
26.6%
Shares Outstanding
Declining as buybacks retire shares
162M
All figures from the trailing twelve months. For financial companies, ROE and ROA are the primary health signals — FCF-based metrics are not applicable.
Open full ratios pageWBS Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Interest Rate and Market Volatility
Webster Financial's profitability is highly sensitive to fluctuations in interest rates, which can significantly impact net interest income and the value of its investment portfolio. Additionally, market volatility may lead to unrealized losses on investment securities, posing a substantial threat to the bank's financial stability.
High Risk
Regulatory and Compliance Risks
Operating under stringent regulatory requirements, WBS faces the risk of non-compliance, which can result in significant penalties and reputational damage. The financial industry is subject to evolving regulations, increasing the complexity of compliance efforts.
High Risk
Merger with Banco Santander
The pending acquisition by Banco Santander, expected to close in the second half of 2026, introduces complexities that could pose risks during the integration process. Regulatory hurdles and the suspension of forward-looking financial guidance due to this transaction add uncertainty to WBS's future performance.
Medium
Loan and Lease Portfolio Performance
While WBS has maintained strong asset quality, there are notable concentrations in commercial real estate and residential real estate loans that require monitoring. A recent decline in interest income from loans and leases indicates a potential need for reassessment of the portfolio strategy.
Medium
Operational Cost Pressures
Increasing non-interest expenses, particularly in compensation, benefits, and technology, can adversely affect WBS's profitability. Effective management of these operational costs is crucial for the bank's long-term sustainability.
Medium
Economic Conditions
Broader economic downturns or recessions can negatively impact loan demand and increase credit risk, which may affect WBS's overall financial performance. Economic fluctuations can lead to increased defaults and reduced lending activity.
Lower
Competition
The banking sector is highly competitive, requiring WBS to continuously innovate and adapt its strategies to maintain its market position. While the company has performed well relative to its peers, ongoing competition poses a risk to its growth and profitability.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why WBS Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Loan and Deposit Growth
Webster Financial has demonstrated strong sequential growth in both loans and deposits. Loans increased by 0.8% to $51.9 billion, driven by commercial and industrial growth and higher residential mortgage balances. Deposits rose by 2.5% to $62.3 billion, supported by increases in interLINK and certificate of deposit balances.
Net Interest Income Increase
The company's net interest income increased by 0.8% to $572.3 million, and its margin expanded. This growth in net interest income is a positive indicator of the bank's profitability and operational efficiency.
Diversified Business Model
The company's business mix, including healthcare financial services and HSA administration, supports its lending business and can lead to meaningful non-interest income growth. An asset management joint venture with Marathon Asset Management is expected to expand commercial lending opportunities and create new fee income streams, particularly starting in 2026.
Significant Earnings Growth
Webster Financial has shown significant earnings growth, with a 32.5% year-over-year increase in earnings for the trailing twelve months. Earnings are forecast to grow by 5.85% per year, with a projected EPS of $6.69 for 2026.
Strong Historical Stock Performance
WBS has shown strong historical performance, with a one-year total shareholder return of over 50% and a three-year return of over 100%. The stock has also outperformed the US Banks industry and the broader US market over the past year.
Stable Dividend Yield
The company offers a reliable dividend yield of approximately 2.23%. This consistent dividend payout can attract income-focused investors and enhance shareholder value.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
WBS Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$73.34
52W Range Position
97%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$48.37
+51.6% from the low
52-Week High
$74.00
-0.9% from the high
1 Month
+4.44%
3 Month
+0.29%
YTD
+14.9%
1 Year
+50.9%
3Y CAGR
+30.3%
5Y CAGR
+5.7%
10Y CAGR
+7.8%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
WBS vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
11.1x
vs 10.5x median
+6% above peer median
Revenue Growth
-5.0%
vs -3.0% median
-65% below peer median
Net Margin
—
vs — median
Peer median unavailable
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
WBS WBS Webster Financial Corporation | $11.9B | 11.1x | -5.0% | — | Hold | +1.3% |
WTF WTFC Wintrust Financial Corporation | $10.3B | 11.8x | -3.0% | — | Buy | +13.9% |
FHN FHN First Horizon Corporation | $12.2B | 11.7x | -11.8% | — | Hold | +11.7% |
PNF PNFP Pinnacle Financial Partners, Inc. | $7.7B | 9.7x | +36.7% | — | Buy | +18.0% |
IBC IBCP Independent Bank Corporation | $696M | 9.5x | -3.2% | — | Hold | +12.4% |
UMB UMBF UMB Financial Corporation | $10.2B | 10.5x | +21.2% | — | Buy | +12.3% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
WBS Dividend and Capital Return
WBS returns capital mainly through $616M/year in buybacks (5.3% buyback yield), with a modest 2.30% dividend — combining for 7.6% total shareholder yield.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
7.6%
Dividend + buyback return per year
Buyback Yield
5.3%
Dividend Yield
2.30%
Payout Ratio
26.6%
How WBS Splits Its Return
Div 2.30%
Buyback 5.3%
Dividend 2.30%Buybacks 5.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.66
Growth Streak
Consecutive years of dividend increases
3Y
3Y Div CAGR
0.0%
5Y Div CAGR
0.0%
Ex-Dividend Date
—
Payment Cadence
Semi-Annual
5 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$616M
Estimated Shares Retired
8M
Approx. Share Reduction
5.2%
Shares Outstanding
Current diluted share count from the screening snapshot
162M
At 5.2%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.80 | — | — | — |
| 2025 | $1.60 | 0.0% | 6.1% | 8.7% |
| 2024 | $1.60 | 0.0% | 0.7% | 3.6% |
| 2023 | $1.60 | 0.0% | 1.2% | 4.4% |
| 2022 | $1.60 | 0.0% | 4.0% | 7.1% |
FAQ
7 questionsWBS Investor Questions
Common questions answered from live analyst data and company financials.
01Is Webster Financial Corporation (WBS) stock a buy or sell in 2026?
Webster Financial Corporation (WBS) is rated Hold by Wall Street analysts as of 2026. Of 31 analysts covering the stock, 14 rate it Buy or Strong Buy, 16 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $74, implying +1.3% from the current price of $73. The bear case scenario is $63 and the bull case is $172.
02What is the WBS stock price target for 2026?
The Wall Street consensus price target for WBS is $74 based on 31 analyst estimates. The high-end target is $77 (+5.0% from today), and the low-end target is $70 (-4.6%). The base case model target is $93.
03Is Webster Financial Corporation (WBS) stock overvalued in 2026?
WBS trades at 11.1x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals fairly valued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Webster Financial Corporation (WBS) stock in 2026?
The primary risks for WBS in 2026 are: (1) Interest Rate and Market Volatility — Webster Financial's profitability is highly sensitive to fluctuations in interest rates, which can significantly impact net interest income and the value of its investment portfolio. (2) Regulatory and Compliance Risks — Operating under stringent regulatory requirements, WBS faces the risk of non-compliance, which can result in significant penalties and reputational damage. (3) Merger with Banco Santander — The pending acquisition by Banco Santander, expected to close in the second half of 2026, introduces complexities that could pose risks during the integration process. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Webster Financial Corporation's revenue and earnings forecast?
Analyst consensus estimates WBS will report consensus revenue of $4.2B (-5.0% year-over-year) and EPS of $6.78 (+6.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $4.6B in revenue.
06When does Webster Financial Corporation (WBS) report its next earnings?
A confirmed upcoming earnings date for WBS is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Webster Financial Corporation generate?
Webster Financial Corporation (WBS) generated $1.2B in free cash flow over the trailing twelve months. WBS returns capital to shareholders through dividends (2.3% yield) and share repurchases ($616M TTM).