Banco Santander posts 4% revenue rise in Q1 2026 but earnings miss expectations, shares lag market.

Banco Santander reported a 4% year-on-year revenue increase in Q1 2026, showing resilience despite earnings falling short of analyst consensus. The bank faces mixed net interest income prospects with European rate benefits offset by challenges in Brazil, and fee growth is expected to stay in single digits. Its ONE Transformation program aims to improve operational efficiency by reducing the cost-to-income ratio from 45% in 2025 to 36% by 2028. The stock trades near fair value, leading to a Hold rating due to limited near-term growth and income potential.