TD Bank Q3 2026 Earnings: Capital Strength vs. Cleanup
TD Bank’s Q3 2026 earnings carry two facts that pull against each other. The bank ended the quarter with the strongest capital position in the Big Six. It also raised the bill for a U.S. anti-money-laundering remediation its own filings say is not finished.
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The numbers
For the quarter ended July 31, 2026, TD reported revenue of $16,885 million, net income of $4,615 million and diluted EPS of $2.74, against $1.89 a year earlier (Q3 2026 release, p.4, Table 1). Reported ROE was 15.8% and return on tangible common equity 19.0% (release, p.9). On the adjusted basis TD emphasizes, revenue was $16,926 million, net income $4,671 million and diluted EPS $2.77, up 26%, with adjusted net income up 21%, both as the bank states them (release, p.1). Adjusted ROE was 16.0%.
Read the eight-quarter series in the supplementary (p.4) carefully, because the reported line is distorted: Q2/25 shows revenue of $22,937 million and EPS of $6.27, figures not comparable to the quarters around them. The adjusted series is the like-for-like view: revenue from $14,897 million in Q4/24 to $16,926 million now, adjusted EPS from $1.72 to $2.77. One detail from that table matters: the gap between reported and adjusted EPS has narrowed sharply, from $1.82 versus $2.18 in Q4/25 and $1.89 versus $2.20 in Q3/25, to $2.74 versus $2.77 today (our comparison of the two disclosed series).
TD Bank Group: revenue by quarter, as reported by the company. Source: the bank’s own supplementary financial information.
What it means
CET1 finished at 14.3% (release, p.4). Against the rest of the group’s own Q3 2026 filings (RBC 13.5%, National Bank 13.5%, CIBC 13.4%, Scotiabank 13.1%, BMO 13.0%), TD sits close to a full point clear. Tier 1 was 16.1%, total capital 17.9%, average LCR 133%.
What makes that more than a bragging point is that TD says it does not intend to keep it: the bank “expects to reach a CET1 ratio of approximately 13% by October 31, 2027” (report to shareholders, p.31). The surplus is a stated plan to deploy roughly a point of capital over five quarters, not a permanent buffer. CEO Raymond Chun framed the position as one where capital “enables us to support our clients’ growing needs, invest in our business and return excess capital to our shareholders” (release, p.2). Group comparisons sit on our Canadian bank stocks page and Canadian dividend stocks page.
Segments were positive across the operating businesses, at different quality. Canadian P&C earned $2,095 million, up 7%, at 32.3% ROE. Wealth Management and Insurance earned $841 million, up 20%, at 49.0%. Wholesale Banking earned $743 million, up $345 million or 87% reported and 76% adjusted, a large percentage off a small base. U.S. Banking earned $1,074 million, but its 41% reported increase becomes 12% adjusted (release, p.13), and its 10.2% ROE is the lowest of TD’s operating segments.
The risk
TD now expects U.S. BSA/AML remediation and related governance and control investments of approximately US$550 million pre-tax in fiscal 2026, “higher than the previous guidance of US$500 million due to increased costs associated with lookback activities” (release, p.5). The quarter carried US$125 million of it (p.13). The bank calls Enterprise AML Program remediation “a multi-year endeavour” that “remains ongoing” (p.6), expects to complete the Suspicious Activity Report lookback required by the OCC consent order in calendar 2027 (p.5), and discloses that FINTRAC’s review of its remediation steps “is ongoing, and subject to the outcome, may result in additional regulatory actions” (p.6). No cumulative life-of-program spend figure appears in the release, supplementary or report to shareholders. The total to date is not something anyone can state from these documents.
That is the overhang in plain terms: a cost line already revised up once this year, a milestone in 2027, and an open regulatory review with an undefined outcome. Both things are true at once. The capital is real, and so is the unfinished work.
The Big Six, same quarter, side by side
| Bank | Revenue (CAD millions) | Diluted EPS | Return on equity |
|---|---|---|---|
| Royal Bank | 18,538 | $4.23 | 17.9% |
| TD Bank Group | 16,885 | $2.74 | 15.8% |
| Scotiabank | 10,535 | $2.27 | 14.1% |
| BMO Financial | 9,896 | $2.38 | 8.4% |
| CIBC | 8,368 | $2.47 | 15.2% |
| National Bank | 4,053 | $3.25 | 16.1% |
Every figure above is taken from that bank’s own Q3 2026 earnings release, supplementary pack or report to shareholders, not from an aggregator. Revenue and EPS are as reported.
What to watch
TD declared a $1.12 dividend on August 26, 2026, payable on and after October 31, 2026 to holders of record October 9, up from $1.08. Fiscal 2026 guidance puts total PCLs near the lower end of the 40-50 basis point range (report to shareholders, p.13) against 0.37% this quarter, and adjusted expense growth at 3-4%; margins are expected to modestly increase in Q4 in both Canadian P&C and U.S. Banking.
Next is fiscal Q4, the quarter ending October 31, 2026; no release date is given in these filings. Watch the CET1 glide toward that stated ~13%, and whether the US$550 million remediation figure holds. How the surplus gets spent is the decision that matters most here. For context only, street consensus in our data as of August 29, 2026 is $2.64 for fiscal Q4 across seven analysts; analyst estimates, not a company figure.
Primary sources: TD Investor Relations.
Acting on any of this needs a brokerage that handles Canadian-listed banks and their dividend reinvestment plans; Questrade is the one we use.
The rest of the Big Six this quarter: Royal Bank, Scotiabank, BMO Financial, CIBC, National Bank.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Bank figures from each company’s Q3 2026 supplementary pack.
