Prosperity Bancshares rises 2.1% after quarterly results show higher revenue and earnings beat

What happened

Prosperity Bancshares (PB) rose 2.1% on October 28, 2026, after reporting third-quarter results that included the first full-quarter contribution from the Stellar Bank acquisition. The company reported adjusted earnings per share of $1.67, 23.7% above estimates, and management cited a higher net interest margin and strong loan and deposit growth. Trading volume was 2.0 times its 20-day average, and the move was because of the results.

How big was the move

The stock closed at $71.12, having opened 1.5% above the previous close, and it rose 4.4% over the last five sessions. The session’s gain was 2.3 times a typical daily move for the stock and was 2.1 percentage points better than the Financial Services sector median, which was unchanged on the day. The S&P 500 rose 0.3% on the day and fell 0.2% over the five-session span. The stock’s beta of 0.60 indicates it tends to move less than the market.

The technical picture

The stock was 4.9% above its 20-day moving average, 2.3% above its 50-day moving average and 1.1% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) stood at 66, in a neutral range between 30 and 70. The shares were 7.9% below the 52-week high, had risen 6.3% over one month and fallen 4.9% over three months. Over one year the stock had risen 11.6%, 1.1 percentage points behind the S&P 500. Volatility was 15% annualized over 60 days, lower than 99% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $2.01 billion, which grew 16.7% from a year earlier. Diluted earnings per share were $5.50, which fell 2.0% from a year earlier. Gross margin was 73.9% (a year earlier: 69.8%), while operating margin was 36.4% (a year earlier: 39.5%). Return on invested capital was 1.3% and the balance sheet showed net cash of $350.0 million. Share count over one year increased by 26.1%.

Valuation stood at 12.9 times trailing earnings and 12.2 times expected earnings. The price to trailing earnings was higher than 57% of its own readings over the past five years (five-year median: 12.8 times earnings). Market value was $8.35 billion.

PromtFinance scores within the Financial Services sector ranked Quality at 81, Growth at 69 and Stability at 74. Value was 57, Momentum 48 and Revisions 36.

Earnings and analyst expectations

Prosperity reported on October 28, 2026, with adjusted EPS of $1.67 against $1.35 expected, 23.7% above estimates. Management said the quarter included the first full-quarter contribution from the Stellar Bank acquisition and highlighted a net interest margin of 3.73% and year-over-year growth in loans and deposits of 45.5% and 48.4%, respectively. Revenue for the quarter was reported as $475.7 million. The company scheduled its next report for January 27, 2027.

This marked a second consecutive quarter of beats. Over the last four reports, the average surprise was 3.8% above estimates. The typical two-day reaction after recent reports was fell 1.0%.

Analysts’ consensus rating was Hold, based on 33 reporters. Forty-two percent of analysts gave the stock a Buy or Strong Buy. The consensus price target was $75.75, 6.5% above the closing price.

Market coverage and filings noted the Stellar Bancorp merger drove 41% year-over-year asset growth and materially boosted quarterly revenue and deposit rankings in Texas. Reports from Seeking Alpha and Zacks Investment Research said management pointed to integration progress and expected cost savings from recent acquisitions.

What to watch

• January 27, 2027: next earnings report date
• Net interest margin of 3.73% reported for the quarter
• Loans and deposits growth reported as 45.5% and 48.4%, respectively
• Consensus price target $75.75, 6.5% above the closing price