Synchrony Financial

SYF Q3 2025 Earnings

Reported Oct 15, 2025 at 6:00 AM ET · SEC Source

Q3 25 EPS

$2.86

BEAT +29.32%

Est. $2.21

Q3 25 Revenue

$3.82B

BEAT +0.61%

Est. $3.80B

vs S&P Since Q3 25

-3.1%

TRAILING MARKET

SYF +7.2% vs S&P +10.2%

Market Reaction

Did SYF Beat Earnings? Q3 2025 Results

Synchrony Financial posted a standout third quarter, with earnings per share of $2.86 beating the $2.21 consensus estimate by 29.32%, as sharply improved credit quality drove net income 37% higher year-over-year to $1.08 billion. Revenue of $3.82 bil… Read more Synchrony Financial posted a standout third quarter, with earnings per share of $2.86 beating the $2.21 consensus estimate by 29.32%, as sharply improved credit quality drove net income 37% higher year-over-year to $1.08 billion. Revenue of $3.82 billion edged past the $3.80 billion consensus by 0.61%, though it declined 23.4% from a year ago, reflecting the company's ongoing portfolio repositioning. The clearest engine behind the earnings beat was a meaningful improvement in credit performance: net charge-offs fell 90 basis points to 5.16% of average loan receivables, and provision for credit losses dropped $451 million to $1.15 billion, including a $152 million reserve release. Net interest margin expanded 58 basis points to 15.62%, supported by lower funding costs. Strategically, Synchrony's expanded Walmart partnership has propelled its app to the top of credit card rankings, adding another growth dimension. Looking ahead, management narrowed full-year 2025 net revenue guidance to $15.00-$15.10 billion and tightened net charge-off expectations to 5.6%-5.7%, projecting second-half net interest margin of approximately 15.70%.

Key Takeaways

  • Return to purchase volume growth of 2%, driven by stronger spend trends across all five platforms
  • Net charge-offs decreased 90 basis points YoY to 5.16%, reflecting underwriting discipline and credit actions
  • Net interest margin expanded 58 basis points to 15.62%, driven by lower funding costs
  • Provision for credit losses decreased 28% or $451 million, including $152 million reserve release
  • Lower benchmark rates reduced interest-bearing liabilities cost by 58 basis points to 4.20%
  • Dual card and co-brand purchase volume increased 8% to $21.1 billion
  • Average Transaction Frequency sustained growth indicating strong consumer engagement
  • Fourth consecutive quarter of improvement in Average Transaction Value
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SYF YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

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SYF Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Synchrony's third quarter performance was highlighted by a return to purchase volume growth, driven by stronger spend trends across all five of our platforms, and continued strength in our credit performance.”

— Brian Doubles, Q3 2025 Earnings Press Release