KeyCorp (KEY) Q4 2025 Earnings
How Did KEY Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +1.75%.
Did KEY Beat Earnings? Q4 2025 Results
Yes. KeyCorp reported Q4 2025 earnings of $0.43 a share on Jan 20, 2026, beating the $0.39 consensus estimate by 11.5%. Revenue was $2.0B against a $2.0B estimate.
KeyCorp closed out fiscal 2025 on a strong note, posting fourth-quarter earnings per share of $0.43 against a consensus estimate of $0.38, a beat of 13.16%, while revenue climbed 7.0% year-over-year to $2.00 billion. The standout driver behind the quarter's performance was a sharp recovery in net interest income, which rose 15% year-over-year on a taxable-equivalent basis to $1.22 billion as lower deposit costs, a better funding mix, and the reinvestment of maturing low-yielding assets pushed net interest margin up 41 basis points to 2.82%. Investment banking and debt placement fees added further momentum, reaching $243.00 million, up 10% year-over-year and 32% sequentially on stronger M&A advisory and commercial debt placement activity. The company also repurchased $200.00 million in common stock during the quarter, roughly double its initial target, helping lift tangible book value per share 18% year-over-year to $13.77, and shares touched a 52-week high of $22.07 in the wake of the results. Looking ahead, management guided for approximately 7% revenue growth and $1.20 billion or more in share repurchases in 2026.
- Lower deposit costs drove net interest margin expansion of 41 bps year-over-year to 2.82%
- Reinvestment of maturing low-yielding investment securities and swaps into higher-yielding assets
- Balance sheet composition shift toward higher-yielding commercial and industrial loans
- Investment banking and debt placement fees up 10% YoY driven by higher M&A advisory and debt placement activity
- Trust and investment services income up 10% YoY on higher market levels and positive net flows
- Corporate services income up 17% YoY on higher client FX and derivatives fees
- Improved funding mix as lower-cost deposits increased while wholesale borrowings declined
- Approximately 1,200 bps of adjusted operating leverage generated in full year 2025
“Our strong fourth quarter and full-year results demonstrate the consistent and significant progress we are making on our path to achieving sustainable mid-to-high teens returns on tangible common equity. Fourth quarter revenue exceeded $2 billion, and full year revenue was a record, up 16% year-over-year. Full year results met or exceeded each of the financial targets we communicated at the beginning of the year.”
KeyCorp CEO, on the earnings call
What Was KeyCorp's Outlook in Q4 2025?
For FY2026 vs. FY2025, KeyCorp guided: total revenue (TE) up ~7%; net interest income (TE) up 8–10%; 4Q26 exit NIM of 3.00–3.05% on ~$170 billion average earning assets; noninterest income up 3–4% (adjusted up 5–6%); adjusted noninterest expense up 3–4%; average loans up 1–2% with average commercial loans up ~5%; net charge-offs of 40–45 bps; GAAP tax rate ~22%. Longer-term targets include NIM of 3.25%+ and ROTCE of 15%+ by 4Q27, and 16–19% ROTCE over the long term, with a marked CET1 target of 9.5–10%. The company plans $1.2 billion+ in share repurchases in 2026.
KEY YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $2.0B | $1.9B | +7.0% |
| Net Income | $474.0M | $120.2M | +294.3% |
| Operating Income | $648.0M | $181.6M | +256.9% |
KEY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.