NEWT Stock Forecast & Price Target

NewtekOne is positioned positively because management reaffirmed 2026 EPS guidance of $1.70 to $1.80 and separately issued 2027 guidance of $2.00 to $2.20, signaling confidence in sustained earnings growth. The company’s strategy to retain more guaranteed portions of SBA 7(a) loans on balance sheet is already boosting profitability, with 3Q26 net interest income of $18.9 million rising 26% sequentially and 30% year over year. Looking ahead, management expects roughly 20% sequential NII growth in 4Q26, supported by a full quarter of 3Q26 C&I LA originations, seasonal loan demand, and the expanded on-balance-sheet loan mix.

NewtekOne is facing a weakened fundamental setup after reporting $0.34 in EPS, below PSC’s $0.38 and the Street’s $0.45, with the miss driven by a higher provision that offset lower expenses. Credit quality also deteriorated in 2Q26, as 30+ day delinquencies rose to 3.99% from 2.39%, the allowance ratio increased to 5.31%, and provision for credit losses climbed to $12.1M. Although management expects stronger fourth quarter results and reiterated 2026 guidance, the withdrawal of 2026 and 2027 EPS guidance and a multi-quarter shift toward retaining loans signal likely near-term pressure on headline earnings and valuation.