Bank of Nova Scotia stock gains after Q3 2026 earnings beat and higher guidance

Bank of Nova Scotia stock is benefiting from stronger-than-expected Q3 2026 results and an improved return on equity, while analysts see moderate upside from current levels based on their average target price.

Bank of Nova Scotia stock (ISIN CA0641491075) is trading in positive territory after the Canadian lender reported stronger Q3 2026 results and highlighted a return on equity of 14.2 percent, exceeding its own 14 percent target ahead of schedule as of the quarter ended July 2026 according to a call transcript published on September 1, 2026 on a Motley Fool platform.

Q3 2026 earnings beat underpins valuation

In its Q3 2026 earnings call, management at The Bank of Nova Scotia reported what it described as record quarterly results, emphasizing that return on equity reached 14.2 percent in the period, above the bank's stated 14 percent target, which signals a modest but tangible efficiency improvement compared with its previous internal goal as outlined in the same transcript.

The commentary also pointed to record quarterly performance, which indicates that key metrics such as revenue and earnings reached new highs in Q3 2026 versus earlier quarters, although the detailed revenue and earnings figures in the call focus strongly on the return-on-equity milestone rather than breaking out every line item in the summary, leaving investors to focus on the improvement in profitability instead of purely top-line growth.

Analyst consensus signals moderate upside

According to an analyst consensus overview updated on September 2, 2026, Bank of Nova Scotia shares recently closed at 126.76 Canadian dollars and carry an average target price of 132.71 Canadian dollars, implying an upside of 4.70 percent from that closing level and reflecting that the stock trades modestly below the mean of 14 analyst targets as compiled by a MarketScreener consensus page.

The same consensus data classify the stock with an overall rating of Outperform and show that individual targets range from 109.00 Canadian dollars on the low end to 152.00 Canadian dollars on the high end, which means the highest forecast sits 19.91 percent above the current price while the lowest is 14.01 percent below it, giving investors a sense of the spread between bullish and cautious views in the market for Bank of Nova Scotia shares on that same consensus overview.

International banking and wealth franchise

Bank of Nova Scotia, which operates under the Scotiabank brand, generates a large share of its earnings from diversified businesses across Canadian banking, global wealth management and international operations, and its latest quarter shows that a higher return on equity of 14.2 percent in Q3 2026 was achieved without sacrificing balance sheet resilience, which is relevant for shareholders assessing long term profitability and capital allocation strategies.

Bank of Nova Scotia stock valuation snapshot

Based on the closing price of 126.76 Canadian dollars and the average analyst target of 132.71 Canadian dollars as of early September 2026, Bank of Nova Scotia stock trades at a moderate discount of 4.70 percent to the consensus target, while the spread between the lowest and highest targets of 109.00 and 152.00 Canadian dollars underlines that different analysts see either limited downside risk or material upside potential over their respective investment horizons according to the consensus data updated on September 2, 2026.

Bank of Nova Scotia key data

• Company: The Bank of Nova Scotia
• ISIN: CA0641491075
• Ticker: BNS
• Trading venue: NYSE and Toronto Stock Exchange
• Sector / Industry: Financials / Banks
• Index membership: S and P TSX Composite