The Macquarie Group Ltd (ASX: MQG) share price has been on the move this month as the global investment bank reported its FY26 third-quarter update.
Macquarie's earnings result is influenced by four different divisions – its banking and financial services (BFS) segment, Macquarie Asset Management (MAM), investment banking (Macquarie Capital) and the commodities and global markets (CGM) segment.
The ASX financial share reported that in the three months to December 2025, MAM's net profit was up "substantially", BFS' net profit rose slightly, CGM's net profit rose "substantially" and Macquarie Capital's net profit grew "substantially".
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Is the Macquarie share price attractive?
Ultimately, UBS thinks the answer is yes – it has a buy rating on the business, with a price target of $235.
A price target is where analysts think the share price of a business will be in 12 months from the time of the investment call. Therefore, investors think the business could rise by 7% within a year.
UBS said that the third quarter update appeared "satisfactory overall", with improved guidance for CGM, where income is now expected to increase rather than remain flat. However, this is partially offset by a "higher-than-anticipated tax rate" for FY26, which suggests an additional tax expense of around $250 million compared to UBS estimates, equating to an impact of around 5.5% on projected cash net profit.
The broker then analysed the commentary on the ASX financial share's divisions:
Commentary around the divisional performance in 3Q26 reads positively, in our view. Mkts facing businesses' (MAM & Mac Cap) result was substantially up on pcp [prior corresponding period] (25%+). CGM commentary notes improved performances from Asset Finance and a stronger performance from Commodities compared to a subdued pcp, primarily due to increased contributions from North American Power, Gas and Emissions, and Resources.
Higher opex [operating expenditure] from investments in the CGM platform is continuing. Mac Cap substantially up on asset realisations and private credit portfolio. BFS continues to grow its deposit and lending franchise well above market, albeit Macquarie calling out mkt and portfolio mix continuing to drive NIM lower, likely offset by further operating leverage coming through.
MAM (ex NA [North America] & Europe public mkts business) benefiting from strong performance fees, which is likely to continue.
Expectations for FY26
UBS noted that MAM's base fees are expected to be "broadly in line", though net other operating income is expected to be up significantly.
BFS is expected to see ongoing growth in the loan portfolio and deposit profits in FY26.
Macquarie Capital's transaction activity is expected to be "in-line". The private credit portfolio and FY26 second-half asset realisations are expected to support investment-related income to be "broadly in line".
In CGM, commodities income is expected to be up, while volatility may create opportunities, according to UBS.
The Macquarie share price is valued at 18.4x FY26's estimated earnings, at the time of writing, based on UBS' forecast of earnings per share (EPS) of $11.85 for the 2026 financial year.
