As of mid‑day on December 4, 2025, Bank of Montreal stock (BMO) is trading lower on the day but remains near the upper end of its 52‑week range after a strong 2025 and a fresh set of better‑than‑expected Q4 earnings and a dividend increase.
BMO has also announced a new board appointment, advanced its U.S. branch-optimization story, and deepened major retail partnerships—developments that all feed into how investors are now thinking about the BMO stock price and 2026 outlook. [1]
BMO stock price today, December 4, 2025
On the Toronto Stock Exchange (TSX:BMO)
- Price: about C$174 per share (around C$174.22 at 11:14 a.m. EST)
- Day move: roughly –1.6% vs. yesterday’s close around C$177.02
- Day range: about C$171.8 – C$178.9
- 52‑week range:C$121.31 – C$182.90
- Market cap: about C$126 billion
- Trailing P/E: ~15.5x, forward P/E ~13.6x
- Trailing annual dividend:C$6.52 per share (3.7% yield), moving to C$6.68 annualized with the new dividend [2]
Over the past 12 months, BMO’s Toronto‑listed shares have returned close to 30%, materially outperforming many global bank indices and helping drive the S&P/TSX 60 higher. [3]
On the New York Stock Exchange (NYSE:BMO)
- Price: about US$125.1 (–1.3% on the day)
- 52‑week range: roughly US$85.4 – US$131.4
- Market cap: about US$90 billion, trailing P/E ~15.3x and dividend yield ~3.7%. [4]
In both markets, BMO is trading near the upper half of its 12‑month range, reflecting how strongly the stock has rallied since mid‑2024.
Q4 2025 earnings: solid beat on adjusted EPS and revenue
Before the market opened on December 4, 2025, BMO reported fourth‑quarter and full‑year fiscal 2025 results for the period ended October 31, 2025. [5]
Headline numbers (Q4 2025 vs. Q4 2024, all in CAD)
According to BMO’s official release: [6]
- Reported net income: C$2.295 billion (slightly down from C$2.304 billion)
- Adjusted net income:C$2.514 billion, up 63% from C$1.542 billion
- Reported EPS:C$2.97, up 1% from C$2.94
- Adjusted EPS:C$3.28, up 73% from C$1.90
- Provision for credit losses (PCL):C$755 million, down sharply from C$1.523 billion
- Reported ROE:10.7% (vs. 11.4%)
- Adjusted ROE:11.8% (vs. 7.4%)
In other words, underlying profitability and operating leverage improved meaningfully, even though headline net income was roughly flat year‑on‑year.
External coverage from Nasdaq, GuruFocus and others confirms that BMO beat consensus estimates on both earnings and revenue, with one summary citing a roughly 9% EPS beat and a mid‑single‑digit revenue beat versus analyst expectations. [7]
Full‑year fiscal 2025 snapshot
For the full fiscal year, BMO reported: [8]
- Reported net income:C$8.725 billion, up 19% vs. 2024
- Adjusted net income:C$9.248 billion, up 24%
- Reported EPS:C$11.44, up 20%
- Adjusted EPS:C$12.16, up 26%
- PCL: C$3.617 billion, modestly lower than C$3.761 billion in 2024
- Reported ROE:10.6% (vs. 9.7% in 2024)
- Adjusted ROE:11.3% (vs. 9.8%)
Management highlighted “robust earnings growth and improved return on equity” driven by pre‑provision, pre‑tax earnings expansion and sustained positive operating leverage across diversified businesses. [9]
Capital position
BMO ended the quarter with a CET1 ratio of 13.3%, only slightly below 13.6% a year earlier, still providing a sizeable capital buffer for organic growth, dividends and buybacks. [10]
Reuters also noted that BMO, alongside TD and CIBC, topped profit estimates on the back of stronger capital markets revenue and a rebound in deal activity, echoing the story seen at other Canadian banks this earnings season. [11]
Dividend hike: BMO leans into its income‑investor appeal
BMO paired its Q4 numbers with a fresh dividend increase:
- New quarterly dividend:C$1.67 per common share
- Up C$0.04 (2%) from the prior quarter
- Up C$0.08 (5%) vs. the same quarter last year [12]
At today’s TSX price around C$174, the new payout implies a forward dividend yield of roughly 3.8% in Canadian dollars. That keeps BMO firmly positioned as a core dividend stock within the Canadian banking sector.
BMO is also running a normal course issuer bid (NCIB): in late August it received approvals to repurchase up to 30 million common shares, underscoring management’s willingness to return excess capital when conditions allow. [13]
Taken together—steady buybacks + a rising dividend + mid‑single‑digit earnings growth—BMO is signalling confidence in its earnings power heading into 2026.
Governance update: Tammy Brown joins the board
On the same day as its earnings release, BMO announced that Tammy Brown has been appointed to its Board of Directors. [14]
Key details from the announcement:
- Brown previously served as Deputy Chair of KPMG Canada’s Board and as Partner & National Industry Leader for Industrial Markets at KPMG.
- She also chaired the board of Women’s College Hospital in Toronto and is currently Treasurer of the World Ovarian Cancer Coalition.
- She has been recognized as a Fellow of the Chartered Professional Accountants of Ontario (FCPA). [15]
BMO describes itself as the seventh‑largest bank in North America by assets, with about C$1.5 trillion in assets and ~13 million customers as of October 31, 2025. [16]
For investors focused on governance and risk management, a board addition with deep audit and accounting expertise reinforces BMO’s emphasis on balance‑sheet discipline at a time when credit and capital rules remain in the spotlight.
Strategy check: branch sales, big‑box partners and payments modernization
Beyond the quarterly numbers, several recent strategic moves frame the BMO stock story heading into 2026.
1. U.S. branch optimization and capital redeployment
In October, BMO announced an agreement to sell 138 U.S. branches with about US$5.7 billion in deposits to First‑Citizens Bank & Trust Company. The bank framed this as part of a broader “branch optimization” strategy following its Bank of the West acquisition. [17]
Management plans to open 150 new branches over five years in core markets, reallocating capital and resources to areas with stronger long‑term growth potential rather than simply shrinking its U.S. footprint. [18]
Investors generally view this as:
- Capital‑efficient: frees up capital tied to lower‑return branches.
- Strategically focused: concentrates U.S. operations in higher‑growth, higher‑density markets.
2. Walmart Canada collaboration
Just ahead of earnings, BMO announced a new strategic collaboration with Walmart Canada. Under the deal, eligible new BMO credit card clients can receive up to 12 months of Walmart Delivery Pass at no cost, reinforcing BMO’s push into everyday‑spend, loyalty‑driven retail banking. [19]
For BMO, the Walmart partnership:
- Deepens its presence with value‑oriented mass‑market consumers.
- Creates data‑rich, recurring interactions (groceries, general retail).
- Offers cross‑sell optionality into other BMO products over time.
3. Instacart and other ecosystem deals
BMO has also struck a multi‑year partnership with Instacart, offering eligible Canadian BMO credit‑card holders free Instacart+ memberships and grocery discounts. [20]
Together with the Walmart arrangement, this positions BMO at the intersection of e‑commerce, delivery and payments, rather than just traditional branch banking.
4. Real‑time payment APIs and bond‑funded digital upgrades
Recent analysis from Kalkine Media and Simply Wall St has highlighted how BMO’s real‑time payment APIs and bond issuance programs are being used to finance treasury modernization and continental system upgrades, reshaping its investment story within the S&P/TSX 60. [21]
The message: BMO is trying to ensure it is not just a high‑yield value bank, but also a modern, API‑driven transaction bank across North America.
How analysts see BMO stock after Q4 2025
Street ratings and 12‑month price targets (CAD)
Across Canadian‑dollar‑based sources, most analysts maintain a “Hold” or “Neutral” view, but still see modest upside from today’s levels:
- Investing.com: average 12‑month target around C$176.8, with a range of C$146 – C$192; rating: Neutral. [22]
- MarketBeat: average target near C$173–174, high C$192, low C$145; overall stance Hold. [23]
- Fintel: average one‑year target around C$176.4, with analysts clustered between roughly C$159 and C$194. [24]
- TradingView: compiled price target roughly C$179–180, with a range of C$163 – C$192 and a consensus tilt toward Hold. [25]
Taken together, these imply a mid‑single‑digit percentage upside in CAD terms from the current price around C$174—not a deep value call, but not priced for perfection either.
USD‑denominated targets
For the NYSE‑listed shares:
- StockAnalysis.com reports a 12‑month target around US$163 (about 30% upside from US$125), with a “Hold” consensus. [26]
- Other U.S. retail platforms report similar target levels, reflecting the currency translation of Canadian price targets. [27]
Recent analyst articles and rating changes
The narrative around BMO isn’t one‑sided:
- A recent Seeking Alpha downgrade titled “Bank Of Montreal: Downgrading And Exiting Banks” argued that BMO was significantly overvalued after its rally, justifying a cut to Hold and warning of limited upside at current prices. [28]
- Earlier in the year, another Seeking Alpha note upgraded BMO on strong fundamentals and reasonable valuation, highlighting its well‑supported book value and improving profitability metrics. [29]
- Benzinga and Nasdaq previews ahead of Q4 emphasised that the stock’s strong 2024‑2025 run meant BMO needed “flawless earnings” to sustain the rally—something the bank largely delivered with its Q4 beat and dividend hike. [30]
Overall, Street research suggests a solid but not explosive risk‑reward: respectable income and mid‑single‑digit price upside, but with the valuation no longer deeply discounted.
Quant and technical forecasts: mixed but generally constructive
Alongside human analysts, several algorithmic and technical‑analysis sites track BMO:
- WalletInvestor pegs BMO’s 1‑year target around US$129.4 (only a few percent above today) and a 5‑year target near US$142.6, suggesting a roughly +14% total price gain over five years—a “not bad but not spectacular” long‑term outlook. [31]
- StockScan’s long‑range model projects BMO rising to around US$186 by 2050, but its shorter‑term projections are more volatile and at times imply meaningful downside from current levels, highlighting how sensitive these models are to recent price swings and assumptions. [32]
- The same StockScan page, however, shows technical indicators (RSI, moving averages) skewing “Buy/Strong Buy”, underscoring that short‑term trend tools and long‑term price simulations can send very different signals. [33]
The key takeaway for investors is that quantitative tools are highly assumption‑driven and should be used as a complement to, not a replacement for, fundamental analysis.
Key risks BMO shareholders should watch in 2026
Even with a strong 2025 in the rear‑view mirror, several risks could unsettle the BMO stock price in 2026:
- Credit quality and provisions
- Q4 PCL fell sharply year‑on‑year, helping earnings. If unemployment rises or commercial real estate stress deepens, BMO may have to rebuild allowances, pressuring profits. [34]
- Interest‑rate path and net interest margins
- A 2025‑2026 rate‑cut cycle from the Bank of Canada and the U.S. Federal Reserve could compress margins faster than loan volumes grow, especially in competitive mortgage and commercial lending markets. [35]
- Execution on branch optimization
- Selling 138 U.S. branches and opening 150 new ones in core markets is operationally complex. Any customer attrition, integration issues or regulatory delays could blunt the intended efficiency gains. [36]
- Regulatory and capital headwinds
- BMO’s robust CET1 ratio (13.3%) gives it breathing room, but evolving capital rules or stress‑test outcomes could constrain future buybacks or dividend growth. [37]
- Competition and fee pressure
- From domestic peers (RBC, TD, Scotiabank, CIBC, National Bank) to fintechs and global banks, BMO operates in a crowded market where fees, spreads and deposit costs are under constant scrutiny. [38]
Is BMO stock a buy, sell or hold after Q4 2025?
From a high‑level, non‑personal perspective:
What looks attractive right now
- Income profile: A fresh dividend hike to C$1.67 per quarter and a yield around 3.7–3.8% sit on top of mid‑single‑digit earnings growth. [39]
- Stronger profitability: Adjusted EPS up 73% year‑on‑year in Q4 and adjusted ROE now in the low‑double‑digits suggest improving efficiency. [40]
- Capital and diversification: A CET1 ratio above 13%, diversified earnings across Canadian and U.S. banking, wealth management and capital markets, and growth initiatives in payments and retail partnerships provide multiple earnings levers. [41]
What argues for caution
- Valuation: After a ~30% 12‑month rally, BMO trades at around 15.5x trailing earnings and a mid‑teens forward multiple—reasonable, but not “distressed bank” cheap. [42]
- Consensus upside is modest: Most CAD‑based analyst targets cluster only a few percent above today’s price, implying that a lot of the good news may already be embedded in the stock. [43]
- Macro uncertainty: A turn in the credit cycle, faster‑than‑expected rate cuts, or weaker capital markets could quickly test the market’s optimism around Canadian banks. [44]
Bottom line (informational, not advice):
- For long‑term, income‑oriented investors who are comfortable with Canadian bank risk, BMO offers a combination of solid yield, improving fundamentals and respectable, if not spectacular, upside potential based on current Street targets.
- For value hunters or deep‑discount buyers, the current valuation and relatively modest implied upside may feel less compelling, especially given macro and credit uncertainties.
Any investment decision should factor in your risk tolerance, time horizon, tax situation and broader portfolio. This article is for information only and is not investment advice.
References
1. stockanalysis.com, 2. stockanalysis.com, 3. stockanalysis.com, 4. stockanalysis.com, 5. www.bmo.com, 6. www.prnewswire.com, 7. stockanalysis.com, 8. www.prnewswire.com, 9. www.prnewswire.com, 10. www.prnewswire.com, 11. www.tradingview.com, 12. www.prnewswire.com, 13. stockanalysis.com, 14. newsroom.bmo.com, 15. newsroom.bmo.com, 16. newsroom.bmo.com, 17. stockanalysis.com, 18. stockanalysis.com, 19. stockanalysis.com, 20. stockanalysis.com, 21. kalkinemedia.com, 22. www.investing.com, 23. www.marketbeat.com, 24. fintel.io, 25. www.tradingview.com, 26. stockanalysis.com, 27. public.com, 28. stockanalysis.com, 29. stockanalysis.com, 30. stockanalysis.com, 31. walletinvestor.com, 32. stockscan.io, 33. stockscan.io, 34. www.prnewswire.com, 35. www.reuters.com, 36. stockanalysis.com, 37. www.prnewswire.com, 38. kalkinemedia.com, 39. www.prnewswire.com, 40. www.prnewswire.com, 41. www.prnewswire.com, 42. stockanalysis.com, 43. www.investing.com, 44. www.tradingview.com
