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Royal Bank of Canada (RY) stock analysis

Royal Bank of Canada rebounds toward highs as earnings beats continue and valuation sits above peers

RY closed at 285.46 on Oct 27, 2026, 6.83% below its 52-week high of 306.38, after a 37.98% one-year gain. Earnings have beaten consensus seven times in a row and the dividend has grown for 15 years, but forward P/E of 15.97 is above the sector median of 14.36 and consensus is split. Next earnings are due Dec 3, 2026.

  • Price: 285.46
  • Market Cap (USD): $281.69B
  • P/E: 17.41×
  • Fwd P/E: 15.97×
  • Div Yield: 2.38%
  • 1Y Return: 37.98%
  • Next Earnings: Dec 3, 2026
  • Rating: Strong Buy

Bull case

  • Earnings per share beat consensus in each of the last 7 reports; the Aug 27, 2026 result was 4.24 versus 4.03 expected, a 5.21% surprise.
  • Return on equity is 16.21%, in the 77th percentile of Canadian financials (sector median 13.24%), with a payout ratio of 42.85%.
  • The stock trades 8.94% above its 200-day average and has a relative strength rating of 86, with a one-year return of 37.98% against a sector median of 30.76%.

Bear case

  • Forward P/E is 15.97 on next year's consensus EPS, in the 71st percentile of Canadian financials versus a sector median of 14.36 and an industry median of 10.96.
  • Expected EPS growth next fiscal year is 9.09%, in the 19th percentile of the sector (median 11.95%).
  • The 3-month return is -3.60%, and the price is below its 100-day average of 287.20, showing momentum has faded since the June and July closes near 293.

What to watch

  • Next earnings on Dec 3, 2026 (confirmed); consensus EPS is 4.14.
  • The 52-week and all-time high of 306.38, and the 20-day high of 286.00 that was set on Oct 27.
  • The 100-day average at 287.20 and 50-day average at 283.42 as nearby resistance and support.
  • The next dividend after the Oct 26, 2026 ex-date (1.76 per share) is payable Nov 24, 2026.

General

Royal Bank of Canada is a diversified financial services company with a mega-cap market value of $281.69B. Earnings keep beating estimates and the stock is up strongly over a year, yet it trades at a premium to sector peers and analysts are divided.

The business

The profile describes a globally diversified financial services company. Its Personal & Commercial Banking arm serves individuals and small to medium-sized businesses with deposits, loans, cards, investments and payments, and the company has 101,269 employees.

Recent performance

Q3 FY2026 (period ended 2026-07-31) net income was 6.02B and diluted EPS 4.23, up from 3.75 a year earlier. Trailing EPS is 15.87 and EPS growth over the past year is 20.05%. The stock returned 22.00% year to date.

Valuation and analysts

Trailing P/E is 17.41 and forward P/E is 15.97 on next year's consensus EPS, above the sector median of 14.36. Analyst consensus as of 2026-10-28 is Hold, with 11 Buy, 16 Hold and 1 Sell ratings. Scotiabank, Barclays and TD Securities reiterated positive ratings in August, and CIBC reiterated Neutral.

Long-term investor

Earnings and dividends have compounded steadily, with returns on equity above peers and shares being repurchased. Growth expectations are modest and the valuation is not cheap relative to the sector.

Growth and returns

Annual diluted EPS rose from 10.5 in FY2023 to 11.23 in FY2024 and 14.07 in FY2025, while three-year EPS CAGR is 8.35%. Net income reached 20.36B in FY2025. ROE is 16.21%. Consensus expects 9.09% EPS growth next fiscal year.

Capital returned

The company repurchased 13.49B of stock and paid 8.80B in dividends in FY2025. Shares outstanding fell 1.32% over one year. The yield is 2.38%, with 15 years of dividend growth and a three-year dividend growth rate of 6.79%. The quarterly dividend rose to 1.76 from 1.54 a year earlier.

Balance sheet and valuation

Total assets are 2.50T against equity of 145.04B, and total debt is 417.80B. The Piotroski F-score is 7. Price to book is 2.73 and PEG is 1.76. Forward P/E of 15.97 is in the 71st percentile of peers. Insider buying and selling over 90 days was zero.

Swing trader

The trend is positive, with the price above the 20-, 50- and 200-day averages, but it sits in a range below the June high. Short-term readings are stretched after a rebound, and trend strength is weak.

Trend and momentum

Price of 285.46 is 2.28% above the 20-day average of 279.11, 0.72% above the 50-day of 283.42 and 8.94% above the 200-day of 262.03. It is below the 100-day average of 287.20. RSI is 57.05, ADX is a weak 16.86 and the MACD histogram is 1.25. The 2-day RSI is 87.37.

Recent sessions and levels

The stock rose from 270.87 on Oct 8 to 285.46 on Oct 27, setting a new 20-day high of 286.00 on volume of 7.6M, or 2.12 times normal. Support lies near the 20-day low of 268.96. The Bollinger upper band is 286.63 and the 52-week high is 306.38.

Volatility and catalysts

ATR is 3.99, or 1.40% of price, and 30-day historical volatility is 15.62%. Earnings on Dec 3, 2026 are 37 days away; recent post-earnings moves ranged from -3.85% to 3.63%. No analyst upgrades or downgrades occurred in 30 days. Short interest data is not provided.

Analysis written October 28, 2026 from Qanvo data as of October 27, 2026. AI-generated, for information only; not investment advice.