Annaly Capital Management (NYSE: NLY) Q3 2026 Earnings Preview: Interest Rates in Focus
Key points
- Annaly Capital Management is set to report Q3 2026 earnings with Wall Street estimating $0.77 EPS and $637 million in revenue.
- Zacks forecasts $0.78 EPS, a 6.9% year-over-year increase, alongside significant growth in net interest income ($545 million, up 97.6%) and net servicing income ($164.20 million, up 30%).
- Rising interest rates, with the 10-year Treasury yield above 5%, pose a key risk by potentially increasing borrowing costs for Annaly and making Treasuries more attractive to investors.
Annaly Capital Management (NYSE: NLY) is a mortgage real estate investment trust that invests in mortgage-related assets. It is scheduled to report third-quarter 2026 earnings after the market closes on October 20. Wall Street estimates earnings of $0.77 per share and revenue of approximately $637 million.
A separate forecast cited by Zacks puts earnings at $0.78 per share, up 6.9% from a year earlier. It projects net interest income of $545 million, up 97.6%, and net servicing income of $164.20 million, up 30%. These income measures are parts of Annaly’s business, not the same as total revenue.
Interest rates are an important risk for the report. As highlighted by The Motley Fool, the 10-year Treasury yield has climbed above 5%, from roughly 4% before the war with Iran. Higher rates can increase Annaly’s borrowing costs relative to the income from its mortgage investments. They can also make Treasuries more attractive to income investors.
Annaly enters the report after its earnings available for distribution per share beat the Zacks Consensus Estimate in the previous quarter. As highlighted by Zacks, net interest income, net interest margin and book value per share improved year over year, while higher funding costs remained a concern. Annaly’s debt-to-equity ratio is 7.38, making borrowing costs worth watching.
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