CM.TO Stock Today: February 26 – Q1 Beat, Record Revenue, Lower PCL
CIBC stock (CM.TO) rallied today after CIBC Q1 results topped forecasts. Adjusted EPS came in at $2.76 versus $2.40 estimated, with record revenue and better net interest margin helped by higher-margin cards. Provisions for credit losses fell quarter over quarter, easing credit concerns. With broad profit growth in Canadian banking and capital markets, investors pushed the CM.TO stock price to a fresh 52-week high. We break down the print, today’s move, valuation, and the key risks to monitor in Canada.
CM.TO Today: Price Action and Valuation
CM.TO stock price traded at C$141.84, up 2.89% (+C$3.99). Intraday ranged C$140.35 to C$143.80, marking a new 52-week high, versus a 52-week low of C$76.17. Volume was 2,875,779 against a 2,775,098 average. Shares sit well above the 50-day average of C$128.17 and the 200-day of C$111.05. One-year performance is +63.45%, with year-to-date up 12.38%.
At the close, CIBC traded at 16.55x trailing EPS of C$8.57, a modest premium to its recent average. The dividend yield is about 2.80% on a C$3.98 TTM payout, with a 47% payout ratio. Price-to-book is 2.06 and market cap stands near C$131.85 billion. The mix implies investors are paying up for improving growth, but not at excessive multiples.
CIBC Q1 Results: Beat and Drivers
CIBC earnings beat with adjusted EPS of $2.76 versus $2.40 expected as management posted record revenue across divisions. Broad-based growth supported operating leverage and confidence in the outlook despite domestic headwinds. Coverage highlighted stronger contributions from Canadian personal and business banking and capital markets. See coverage from The Globe and Mail and Bloomberg.
Net interest margin improved on a product mix shift toward higher-margin credit cards, while fee income also held up. Provisions for credit losses declined quarter over quarter, easing near-term credit cost pressure. Management flagged prudent underwriting and stable consumer trends. Combined, these levers pushed returns higher and supported the rally in cibc stock as investors rewarded quality of earnings and better-than-feared credit.
Segment Performance and Outlook
Canadian personal and business banking profit rose about 25%, supported by card growth, resilient chequing and savings balances, and steady loan demand. Mortgage renewals remain a watch item, but delinquency trends looked manageable. With expense control and stable deposit costs, the bank generated attractive operating leverage. This mix underpins steady earnings power if the Bank of Canada begins cutting rates later in 2026.
Capital markets profit climbed roughly 42% on stronger trading and advisory, with underwriting pipelines showing momentum. Market-sensitive revenue can swing, yet diversified fee streams provide ballast. Management noted healthy client activity and disciplined risk. If volumes hold and volatility stays contained, this engine can complement core Canadian banking, reducing reliance on net interest income through the rest of the fiscal year.
What Canadian investors should watch next
Domestic growth remains soft, and higher-for-longer rates could still pressure borrowers. Upcoming USMCA talks add trade uncertainty for Canadian corporates. Watch loan growth, card delinquencies, and the direction of provisions. Debt-to-equity screens high for a bank, reflecting the model, so capital buffers and funding costs matter. Any negative shift here could cap multiple expansion for cibc stock.
Next earnings is scheduled for May 27, 2026. Technically, RSI sits at 74.85 and price is above the Bollinger upper band of C$139.59, suggesting overbought conditions. ADX at 22.54 signals a building trend. Initial support appears near C$140 and C$132, with resistance around C$143.80 to C$145. Traders may prefer pullbacks, while long-term holders can reassess position size.
Final Thoughts
CIBC delivered a clean Q1 beat: adjusted EPS of $2.76 versus $2.40 estimated, record revenue across divisions, firmer margin from higher-margin cards, and lower provisions. Segment gains were broad, with Canadian personal and business banking up 25% and capital markets up 42%. Today’s move pushed shares to a new high, and valuation at 16.55x EPS with a 2.80% yield remains reasonable if growth persists. Still, the stock screens overbought and Canada’s macro backdrop is mixed, with USMCA talks ahead. Our take: consider phasing buys, monitor provisions and deposit costs, and watch the May 27 update for confirmation on margin, fees, and credit trends. This is not investment advice.
FAQs
Is cibc stock a buy after Q1?
The quarter was strong: EPS beat, record revenue, firmer margin, and lower provisions. Valuation at 16.55x and a 2.80% yield look reasonable if growth holds. Shares are overbought near a 52-week high, so we would scale in on pullbacks and reassess after the May 27 update.
What moved the CM.TO stock price today?
CIBC Q1 results topped estimates with adjusted EPS of $2.76 versus $2.40 expected, record revenue, improved margin from higher-margin cards, and lower provisions quarter over quarter. Broad profit growth in Canadian banking and capital markets boosted sentiment, sending CM.TO to a new 52-week high on above-average volume.
What risks could pressure CIBC earnings this year?
Slower Canadian growth, sticky inflation, or delayed rate cuts could lift funding costs and temper loan demand. Credit normalization, especially in cards and mortgages, could raise provisions. USMCA talks add trade uncertainty for clients. Any uptick in delinquencies or weaker fee income would challenge the multiple on cibc stock.
What technical levels matter for CM.TO now?
RSI at 74.85 and price above the Bollinger upper band of C$139.59 suggest near-term overbought conditions. Initial support sits around C$140, then C$132 near the 50-day area. Resistance is the new high at C$143.80, then C$145. Traders may wait for a fade or base before new entries.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.