Q2 26 EPS
$0.44
BEAT +4.41%
Est. $0.42
Q2 26 Revenue
$1.96B
MISS 0.39%
Est. $1.97B
vs S&P Since Q2 26
-5.0%
TRAILING MARKET
KEY -1.9% vs S&P +3.1%
Market Reaction
Did KEY Beat Earnings? Q2 2026 Results
KeyCorp posted a stronger-than-expected second quarter in 2026, with earnings per share of $0.44 beating the $0.42 analyst consensus by 4.41%, extending the regional bank's streak of topping EPS estimates to four consecutive quarters. Net income from… Read more KeyCorp posted a stronger-than-expected second quarter in 2026, with earnings per share of $0.44 beating the $0.42 analyst consensus by 4.41%, extending the regional bank's streak of topping EPS estimates to four consecutive quarters. Net income from continuing operations attributable to common shareholders reached $472 million, up 26% year-over-year, even as total revenue of $1.96 billion came in just shy of the $1.97 billion consensus, a modest miss of 0.39%, and reflected a 29.8% decline from the prior year period. The primary engine behind the earnings strength was net interest income, which climbed 9% year-over-year to $1.26 billion on a taxable-equivalent basis, as falling deposit costs and the reinvestment of maturing low-yielding securities into higher-yielding assets pushed the net interest margin up 23 basis points to 2.89%. Looking ahead, management raised its full-year revenue growth outlook to 7-8% and lifted commercial loan growth guidance to 8-10%, with a fourth-quarter net interest margin target of 3.00-3.05% and a return on tangible common equity exceeding 15% by year-end 2027.
Key Takeaways
- • Reduction in deposit costs from declining interest rates and proactive deposit beta management
- • Reinvestment of proceeds from maturing low-yielding investment securities and fixed-rate swaps into higher yielding investments
- • Shift in balance sheet composition toward higher-yielding commercial and industrial loans
- • Strong commercial and industrial loan growth of 11.7% year-over-year
- • Double-digit year-over-year growth in commercial payments fee income
- • Assets under management grew to $74 billion, up 15.5% year-over-year
- • Approximately 130 basis points of positive operating leverage year-over-year
- • Cumulative down interest-bearing deposit beta of approximately 56%
- • 91% of commercial loans made to clients who do additional business with Key
- • 3% relationship household growth year-over-year
KEY Forward Guidance & Outlook
KeyCorp raised its full-year 2026 revenue growth outlook to 7–8% (from approximately 7%), with net interest income expected to grow 9–11% (up from 9–10%) and a 4Q NIM exit rate of 3.00–3.05%. Average earning assets are expected to grow $1–2 billion from Q2 2026. Average loan growth was raised to 4–5% (from 2–4%), with commercial loan growth upgraded to 8–10% (from 6–8%). Noninterest income is expected to grow 3–4%, or 5–6% on an adjusted basis. Adjusted noninterest expense growth is targeted at 3–4%. Net charge-offs are projected at 40–45 basis points. The company expects to repurchase at least $1.3 billion in common shares in 2026 ($341 million already completed in Q2). Long-term ROTCE targets are 16–19%, with marked CET1 of 9.5–10%. The 4Q27 target is NIM of 3.25%+ and ROTCE exceeding 15%. CEO Chris Gorman expressed confidence in achieving a return on tangible common equity exceeding 15% by year-end 2027.
KEY YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
KEY Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our second quarter results reflect the strength of our franchise, disciplined execution, and sustained momentum across our businesses. We delivered 7% revenue growth and generated approximately 130 basis points of operating leverage on a year-over-year basis. We expanded net interest margin and grew net interest income both sequentially and year-over-year.”
— Chris Gorman, Q2 2026 Earnings Press Release
KEY Earnings Trends
KEY vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KEY EPS Trend
Earnings per share: estimate vs actual
KEY Revenue Trend
Quarterly revenue: estimate vs actual
KEY Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 BEAT | $0.42 | $0.44 | +4.41% | $1.96B | -0.39% |
| Q1 26 BEAT | $0.41 | $0.44 | +8.03% | $1.95B | +0.75% |
| Q4 25 BEAT FY | $0.39 | $0.43 | +11.46% | $2.01B | +1.82% |
| FY Full Year | $1.48 | $1.52 | +2.91% | $7.51B | +0.47% |
| Q3 25 BEAT | $0.38 | $0.41 | +7.61% | $1.90B | +0.54% |
| Q2 25 BEAT | $0.34 | $0.35 | +2.25% | $1.83B | +1.55% |