HSBC Holdings PLC's stock surged 5.68% during intraday trading on Wednesday, marking a significant gain for the global banking giant.

The sharp rise follows the release of the bank's 2025 annual results, which revealed a profit beat despite a year-over-year decline. HSBC's pretax profit of $29.91 billion exceeded analyst consensus, driven by robust net interest income and a 24% climb in wealth fee income. The bank simultaneously lifted its key profitability target, aiming for a return on tangible equity of 17% or better over the next three years, up from its previous mid-teens goal.

Investor sentiment was further bolstered by management's confident guidance, including an expectation for net interest income to reach at least $45 billion in 2026 and confirmation that cost-reduction goals are being achieved ahead of schedule. Analysts highlighted the strong underlying performance and upgraded targets as positive catalysts, with one commentary noting the bank's strategic plan is bearing fruit and reflects "explosive potential."