Midwest regional bank QCR Holdings (NASDAQGM:QCRH) fell short of the market’s revenue expectations in Q2 CY2026 as sales rose 3% year on year to $97.34 million. Its non-GAAP profit of $2.19 per share was 14.9% above analysts’ consensus estimates.
Is now the time to buy QCR Holdings? Find out by accessing our full research report, it’s free.
QCR Holdings (QCRH) Q2 CY2026 Highlights:
- Net Interest Income: $67.92 million vs analyst estimates of $67.41 million (9.4% year-on-year growth, 0.7% beat)
- Net Interest Margin: 3.6% vs analyst estimates of 3.6% (4.6 basis point miss)
- Revenue: $97.34 million vs analyst estimates of $104.5 million (3% year-on-year growth, 6.8% miss)
- Efficiency Ratio: 54.6% vs analyst estimates of 55.5% (92.2 basis point beat)
- Adjusted EPS: $2.19 vs analyst estimates of $1.91 (14.9% beat)
- Tangible Book Value per Share: $61.35 vs analyst estimates of $60.72 (15.2% year-on-year growth, 1% beat)
- Market Capitalization: $1.61 billion
“We delivered strong net income and record GAAP EPS for the second quarter, demonstrating the ongoing momentum across our franchise. Adjusted EPS1 also remained near record levels, exceeded only by the fourth quarter of 2025. These results were supported by substantial loan production, a rebound in capital markets revenue, higher net interest income despite significant LIHTC loan sales, and strong contributions from our wealth management business. Noninterest expenses also outperformed our guidance. Together, these results produced meaningful operating leverage and demonstrated the strength of our diversified business model,” said Todd Gipple, President and Chief Executive Officer.
Company Overview
With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.
Sales Growth
In general, banks make money from two primary sources. The first is net interest income, which is interest earned on loans, mortgages, and investments in securities minus interest paid out on deposits. The second source is non-interest income, which can come from bank account, credit card, wealth management, investment banking, and trading fees. Over the last five years, QCR Holdings grew its revenue at a tepid 7.8% compounded annual growth rate. This fell short of our benchmark for the banking sector and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. QCR Holdings’s recent performance shows its demand has slowed as its annualized revenue growth of 5.3% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, QCR Holdings’s revenue grew by 3% year on year to $97.34 million, falling short of Wall Street’s estimates.
Net interest income made up 66.5% of the company’s total revenue during the last five years, meaning lending operations are QCR Holdings’s largest source of revenue.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
Tangible Book Value Per Share (TBVPS)
Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
QCR Holdings’s TBVPS grew at an incredible 12.1% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 14.7% annually over the last two years from $46.65 to $61.35 per share.
Over the next 12 months, Consensus estimates call for QCR Holdings’s TBVPS to grow by 10.9% to $68.03, mediocre growth rate.
Key Takeaways from QCR Holdings’s Q2 Results
It was good to see QCR Holdings beat analysts’ EPS expectations this quarter. We were also happy its tangible book value per share narrowly outperformed Wall Street’s estimates. On the other hand, its revenue missed. Zooming out, we think this was a mixed quarter. The stock remained flat at $96.07 immediately after reporting.
Is QCR Holdings an attractive investment opportunity at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
