Synchrony Financial
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.49%.
Did SYF Beat Earnings? Q1 2026 Results
Synchrony Financial delivered a strong first quarter for 2026, with earnings per share of $2.27 beating the $2.16 consensus estimate by 5.09% and revenue of $4.77 billion clearing analyst expectations by 26.32%, even as revenue slipped 0.8% from a year ago. The primary engine behind the results was a meaningful improvement in credit quality, with net charge-offs declining 96 basis points to 5.42% of average loan receivables, supporting a 10% drop in provision for credit losses to $1.33 billion. Net interest income grew 4% to $4.63 billion as the company's Product, Pricing, and Policy Changes lifted loan yields while falling benchmark rates reduced funding costs, pushing net interest margin 76 basis points higher to 15.50%. Purchase volume climbed 6% to $42.98 billion, with co-branded card receivables rising 22%. A new $6.50 billion share repurchase authorization and a 13% dividend increase to $0.34 per share underscored management's confidence in the outlook, with full-year 2026 EPS guidance set at $9.10 to $9.50 and loan receivables growth expected to accelerate through the second half.
- Purchase volume increased 6% to $43.0 billion driven by higher spend per account across all five platforms
- Net interest margin expanded 76 basis points to 15.50% driven by higher loan receivables yield and lower liabilities costs
- Net charge-offs decreased 96 basis points to 5.42%, reducing provision for credit losses by $156 million
- Impact of Product, Pricing, and Policy Changes (PPPCs) contributed to higher interest and fees on loans
- Lower benchmark rates reduced interest expense by 11%
- Co-branded card receivables grew 22% to $33.9 billion
- Payment rate of 16.3% up approximately 50 basis points year-over-year
“Synchrony's year is off to a strong start with record first quarter purchase volume. The broad utility and strong value propositions of our product offerings continued to resonate with both new and existing customers, contributing to continued sequential improvement in our average active account trends as well as higher spend per account across all five of our platforms.”
Synchrony Financial CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, Synchrony guided to diluted EPS of $9.10 to $9.50, mid-single digit ending loan receivables growth, and a net charge-off rate below 5.5%. Strong purchase volume growth is expected to continue throughout 2026 with receivables growth expected to accelerate through the second half. Net interest income growth is anticipated, reflecting building impact of PPPCs and lower funding costs, partially offset by lower late fee incidence and new account acceleration. RSA as a percentage of average loan receivables is expected to stay within the 4.0%-4.5% target range. Other expense growth is projected in line with receivables, excluding $98 million in notable items from FY2025. Continued strength in delinquency and net charge-off performance is expected, with losses peaking in Q2 2026 following normal seasonality. Payment rates are expected to remain elevated. Baseline assumptions include no additional broad-based credit refinements, no regulatory or legislative changes, a stable macroeconomic environment, no significant change in inflation rates, and no additional modifications to PPPCs.
SYF YoY Financials
SYF Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.