KeyCorp (KEY) Q1 2026 Earnings
Reported Apr 16, 2026 at 6:32 AM ET · SEC Source
Q1 26 EPS
$0.44
BEAT +8.03%
Est. $0.41
Q1 26 Revenue
$1.95B
BEAT +0.75%
Est. $1.94B
vs S&P Since Q1 26
-1.1%
TRAILING MARKET
KEY +6.1% vs S&P +7.1%
Market Reaction
Did KEY Beat Earnings? Q1 2026 Results
KeyCorp opened 2026 on solid footing, posting first-quarter earnings per share of $0.44 against a consensus estimate of $0.41, an 8.03% beat, while revenue of $1.95 billion edged past the $1.94 billion estimate by 0.75%. The headline EPS figure repre… Read more KeyCorp opened 2026 on solid footing, posting first-quarter earnings per share of $0.44 against a consensus estimate of $0.41, an 8.03% beat, while revenue of $1.95 billion edged past the $1.94 billion estimate by 0.75%. The headline EPS figure represented 33% year-over-year growth, even as reported revenue reflected a 27.6% year-over-year decline tied to prior-period comparisons. The clearest engine behind the quarter's strength was net interest margin expansion, with NIM widening 29 basis points year-over-year to 2.87%, driven by falling deposit costs, the reinvestment of maturing low-yielding securities, and a deliberate pivot toward higher-yielding commercial and industrial loans, which grew 10.1% on average year-over-year. Fee-based businesses added further lift, with investment banking and debt placement fees rising 13% to $197 million. Looking ahead, management raised its full-year net interest income growth outlook to 9-10% and lifted its average loan growth forecast to 2-4%, while targeting at least $1.30 billion in share repurchases for 2026.
Key Takeaways
- • Net interest income growth of 11% YoY driven by lower deposit costs, reinvestment of maturing low-yielding securities and swaps into higher-yielding investments, and favorable balance sheet mix shift to C&I loans
- • Net interest margin expansion of 29 bps YoY to 2.87%
- • Priority fee-based businesses (investment banking, commercial payments, wealth management) collectively grew 12% YoY
- • Commercial loan growth of $3.3 billion QoQ (4%), with C&I line utilization rising ~100 bps to 31.5%
- • Total deposit cost declined 16 bps QoQ to 1.65%, with cumulative down interest-bearing deposit beta of ~56%
- • Revenue growth of 10% YoY outpaced expense growth of 4% YoY, generating 5.73% positive adjusted operating leverage
- • Cash efficiency ratio improved to 60.4% from 63.5% a year ago
KEY Forward Guidance & Outlook
For FY2026 vs. FY2025: Total revenue (TE) expected up ~7% (baseline $7,513M). Net interest income (TE) up 9-10% (raised from 8-10%; baseline $4,671M), with Q4 NIM exit rate of ~3.05% (raised from 3.00-3.05%). Average earning assets stable to 1Q26 levels. Noninterest income up 3-4% (adjusted up 5-6%). Adjusted noninterest expense up 3-4% (baseline $4,729M). Average loans up 2-4% (raised from 1-2%; baseline $105.7B), with average commercial loans up 6-8% (raised from ~5%). Net charge-offs expected at 40-45 bps. GAAP tax rate of ~22%. Q4 2027 targets: NIM 3.25%+ and ROTCE 15%+. Long-term ROTCE target of 16-19%. Plans to repurchase at least $1.3 billion of common shares in 2026, with $300M+ per quarter for the remainder of the year.
KEY YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
KEY Revenue by Segment
With YoY comparisons, source: SEC Filings
“Our strong first quarter performance demonstrates disciplined execution and significant momentum as we continue to deliver on our commitments. Revenue grew 10% year-over-year, growing at more than double the rate of expenses. We grew net interest income and net interest margin sequentially and year-over-year. Our priority fee-based businesses - investment banking, commercial payments, and wealth management - collectively grew 12% year-over-year. Return on tangible common equity exceeded 13%, reflecting significant progress toward achieving our goal of 15%+ return on tangible common equity by year-end 2027.”
— Chris Gorman, Q1 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
4 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| 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% |