Is Royal Bank of Canada (RY) a Buy Post Earnings?

Royal Bank of Canada (NYSE:RY) is one of the best undervalued stocks to invest in right now.

On February 27, Scotiabank lifted the price target on Royal Bank of Canada (NYSE:RY) to C$247 from C$242, reiterating an Outperform rating on the shares. However, the same day, TD Securities cut the price target on the stock to C$259 from C$260 and reaffirmed a Buy rating on the shares.

The rating updates came after Royal Bank of Canada (NYSE:RY) reported on February 26 a record net income of $5.8 billion for the quarter ended January 31, 2026, up $654 million or 13% from the prior year. Diluted EPS reached $4.03, up 14% over the same period, reflecting improved results in Wealth Management, Personal Banking, Commercial Banking, and Capital Markets, partially offset by lower results in Insurance. Royal Bank of Canada (NYSE:RY) also reported adjusted net income and adjusted diluted EPS of $5.9 billion and $4.08, up 12% and 13%, respectively, compared to the prior year.

Royal Bank of Canada (NYSE:RY) provides banking and financial services. The company’s operations are divided into the following segments: Personal and Commercial Banking, Wealth Management, Insurance, Capital Markets, and Corporate Support.

While we acknowledge the potential of RY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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