Commerce Bancshares's (NASDAQ:CBSH) Q4 CY2025 Sales Top Estimates

Regional banking company Commerce Bancshares (NASDAQ:CBSH) reported Q4 CY2025 results exceeding the market’s revenue expectations, with sales up 5.9% year on year to $449.4 million. Its GAAP profit of $1.01 per share was 1.9% above analysts’ consensus estimates.

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“Commerce delivered record revenues in the fourth quarter, driven by strong performance across both net interest income and non-interest income. Our overall results for the quarter and the full year are a reflection of the strength and diversity of our businesses and the dedication of our team members in serving our customers, communities and shareholders,” said John Kemper, President and Chief Executive Officer.

Company Overview

Founded in 1865 during the post-Civil War economic boom, Commerce Bancshares (NASDAQGS:CBSH) is a Midwest-focused bank holding company that provides retail, commercial, and wealth management services to individuals and businesses.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, Commerce Bancshares grew its revenue at a sluggish 5.6% compounded annual growth rate. This was below our standard for the banking sector and is a rough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Commerce Bancshares’s annualized revenue growth of 5.9% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak.

This quarter, Commerce Bancshares reported year-on-year revenue growth of 5.9%, and its $449.4 million of revenue exceeded Wall Street’s estimates by 1.6%.

Net interest income made up 62.1% of the company’s total revenue during the last five years, meaning lending operations are Commerce Bancshares’s largest source of revenue.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Key Takeaways from Commerce Bancshares’s Q4 Results

It was encouraging to see Commerce Bancshares beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates, leading to a slight EPS beat. Zooming out, we think this was a solid quarter. The stock remained flat at $55.11 immediately following the results.

Is Commerce Bancshares an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).