KeyCorp (KEY) Q3 2026 Earnings
How Did KEY Stock React to Q3 2026 Earnings?
Did KEY Beat Earnings? Q3 2026 Results
Yes. KeyCorp reported Q3 2026 earnings of $0.51 a share on Oct 20, 2026, beating the $0.46 consensus estimate by 10.4%. Revenue was $2.0B against a $2.1B estimate.
KeyCorp posted a strong third quarter, with GAAP earnings per diluted share of $0.51 beating the $0.46 consensus estimate by 10.39%, marking the regional lender's fifth consecutive quarter of topping Wall Street's EPS expectations. Net income from continuing operations attributable to common shareholders rose to $537.00 million, up from $454.00 million a year ago, as net interest income climbed to $1.30 billion and the taxable-equivalent net interest margin expanded 20 basis points year-over-year to 2.95%, driven by lower deposit costs, disciplined deposit beta management, and the reinvestment of maturing low-yielding securities. Revenue of $2.04 billion came in just shy of the $2.05 billion consensus, a 27.9% decline year-over-year, though noninterest income rose 6% to $744.00 million, bolstered by investment banking and debt placement fees of $214.00 million. Credit quality improved meaningfully, with net charge-offs falling to 0.32% annualized. Looking ahead, management tightened full-year guidance, now targeting net interest income growth of approximately 10% and net charge-offs of 37 to 39 basis points, with a Q4 net interest margin exit rate of approximately 3.00%.
- Net interest margin expansion of 20 basis points year-over-year to 2.95% driven by lower deposit costs and reinvestment of maturing low-yielding securities
- Investment banking and debt placement fees up 27% sequentially and 16% year-over-year, driven by higher M&A fees and syndications
- Average commercial and industrial loan growth of 13.9% year-over-year; period-end C&I loans up 16.3% YoY
- Average deposits increased $3.6 billion sequentially to $151.2 billion
- Broad-based improvement in credit quality with net charge-offs declining to 0.32% from 0.42%
- Nonperforming assets declined to 0.55% from 0.63% year-over-year
- Provision for credit losses decreased 43% year-over-year to $61 million with $28 million reserve release
- C&I line utilization increased ~200 bps to 33.1%, reflecting client investments into their businesses
- Priority fee-based businesses (Wealth Management, Investment Banking, Commercial Payments) grew 12% collectively YoY
“Our third quarter results reflect the strength of Key's relationship-driven franchise, the disciplined execution of our strategy, and the momentum we are building across the business. We delivered record revenue and record pre-provision net revenue, while generating a return on tangible common equity exceeding 15%. These results reinforce our confidence in achieving and sustaining a return on tangible common equity of 15%+ by the end of 2027.”
KeyCorp CEO, on the earnings call
What Is KeyCorp's Outlook?
Management provided updated FY2026 guidance: total revenue up ~8% YoY (FY25 baseline: $7,513MM), net interest income (TE) up ~10% (narrowed from prior 9-11% guidance, FY25 baseline: $4,671MM), with a Q4 NIM exit rate of ~3.00%. Average earning assets expected up $1.5-$2.0 billion from Q3 2026. Noninterest income up 4-5% (adjusted up 6-7%). Adjusted noninterest expense up ~4%. Average loans up ~5% (raised from 4-5%), average commercial loans up ~10% (raised from 8-10%). Net charge-offs improved to 37-39 bps (previously 40-45 bps). GAAP tax rate ~22%. Plans to repurchase $1.3 billion of common shares in 2026 ($320MM completed in Q3). Long-term targets include ROTCE of 16-19%, marked CET1 of 9.5-10%, and NIM of 3.25%+ with ROTCE of 15%+ targeted by Q4 2027.
KEY YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.0B | $2.8B | −27.9% |
| Net Income | $579.0M | $489.0M | +18.4% |
| Operating Income | $738.0M | $602.0M | +22.6% |
KEY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.