Kearny Financial (KRNY) just wrapped up FY 2026 with Q4 revenue of US$44.9 million and EPS of US$0.11, while trailing twelve month revenue came in at US$176.4 million and EPS at US$0.58, alongside earnings growth of 39.1% over the past year. Over recent periods the company has seen revenue move from US$151.6 million and EPS of US$0.42 on a trailing basis in FY 2025 to the current US$176.4 million and US$0.58 respectively, with net profit margin up from 17.2% to 20.6% over the same horizon. With that backdrop, the latest numbers point to a story where profitability metrics and margins are increasingly central to how investors read this result.
See our full analysis for Kearny Financial.With the headline figures set, the next step is to compare them with the main narratives around Kearny Financial, highlighting where the earnings line up with expectations and where the story starts to shift.
Curious how numbers become stories that shape markets? Explore Community Narratives
Net interest margin at 2.18% shapes Kearny Financial’s profit mix
- For FY 2026, Kearny Financial’s trailing net interest margin sits at 2.18% alongside trailing revenue of US$176.4 million and net income of US$36.3 million, which helps explain how earnings growth of 39.1% and a 20.6% net profit margin are being generated on a relatively modest revenue growth profile.
- Supporters with a bullish tilt often point to this kind of margin profile as evidence that the core lending business is doing its job, yet the numbers here also show why they focus so heavily on credit quality and funding costs:
- Across FY 2026, quarterly net interest margin ranged between 2.1% and 2.21% while total loans hovered around US$5.8b, so the trailing 2.18% figure is consistent with the quarterly run rate rather than a one off.
- The same period produced trailing EPS of US$0.58, up from US$0.42 a year earlier, which heavily supports the bullish case that earnings strength is currently more about improving profitability than aggressive balance sheet expansion.
Investors who want to see how this margin story fits into the broader community view on Kearny Financial’s future can step back and review the shared narratives and valuation angles in one place Curious how numbers become stories that shape markets? Explore Community Narratives.
Non performing loans and 95% allowance keep credit in focus
- Non performing loans on a trailing basis are reported at US$47.9 million against a loan book of about US$5.9b, while the allowance for bad loans is described as low at 95%, so credit reserves are a key part of the risk discussion alongside the improved 20.6% net profit margin.
- Critics with a bearish lean highlight this combination as a pressure point, and the reported figures give them specific data to work with rather than just a general concern:
- Within FY 2026, non performing loans moved between US$47.9 million and US$64.6 million on trailing and quarterly views, which bears argue keeps attention on asset quality even as EPS trends higher.
- The comment that the allowance for bad loans sits at 95% is used by cautious investors to argue that provisions may not leave much room if credit conditions worsen, especially given the bank size implied by roughly US$5.9b of loans.
P/E of 16.3x sits between banks and broad US market
- At a share price of US$9.40, Kearny Financial is trading on a P/E of 16.3x, which is above the US Banks industry average of 12.1x but below the broader US market at 19.1x and well below the cited peer average of 43.4x, while trailing earnings growth of 39.1% and analysts’ earnings growth forecast of about 27.4% provide the key backdrop for how investors weigh that multiple.
- What stands out for investors weighing a generally bullish versus more cautious stance is how this mix of growth and valuation intersects with other fundamentals rather than pointing clearly in one direction:
- On one side, the P/E being lower than the broader market and peer average aligns with bullish arguments that the stock is not priced like a high growth outlier even though earnings have been expanding faster than revenue and net margin has risen from 17.2% to 20.6%.
- On the other side, the multiple still sits above the US Banks industry benchmark while the dividend record is described as unstable and the allowance for bad loans is flagged as low at 95%, which gives more cautious investors specific reasons to question whether the current price fully reflects these risks.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Kearny Financial's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
If this mix of positives and concerns around Kearny Financial leaves you unsure, take a moment to review the figures yourself and decide where you stand. You can then round out your view by checking the 3 key rewards and 2 important warning signs.
See What Else Is Out There
For all the positives around earnings growth, Kearny Financial still faces questions on credit quality, with non performing loans and a 95% allowance ratio keeping risk in focus.
If you want less concern around credit reserves and asset quality weighing on your confidence, check out the 81 resilient stocks with low risk scores to quickly spot companies with more resilient risk profiles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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