Bread Financial Q1 EPS Forecast Boosted by Zacks Research

Key Points

• Zacks Research raised its Q1 2026 EPS estimate for Bread Financial to $2.80 (from $2.79), kept a "Strong‑Buy" rating, and lifted FY2027/FY2028 forecasts to $11.07 and $11.05 respectively, signaling an improved earnings outlook.
• Bread Financial recently reported strong results, posting $2.07 EPS (vs. $0.40 consensus) and $975M revenue for the last quarter, with a 17.9% ROE and an 11.0% net margin.
• The board approved a $600 million stock buyback (up to 19% of shares) and the company pays a $0.23 quarterly dividend (≈1.0% yield), actions that suggest management views the stock as undervalued despite a MarketBeat consensus target near $83.83.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Investment analysts at Zacks Research raised their Q1 2026 earnings per share (EPS) estimates for shares of Bread Financial in a report issued on Friday, April 17th. Zacks Research analyst Team now expects that the company will post earnings of $2.80 per share for the quarter, up from their prior forecast of $2.79. Zacks Research currently has a "Strong-Buy" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $9.88 per share. Zacks Research also issued estimates for Bread Financial's FY2026 earnings at $9.29 EPS, Q1 2027 earnings at $2.41 EPS, Q2 2027 earnings at $2.49 EPS, Q3 2027 earnings at $3.84 EPS, Q4 2027 earnings at $2.33 EPS, FY2027 earnings at $11.07 EPS, Q1 2028 earnings at $1.81 EPS and FY2028 earnings at $11.05 EPS.

Bread Financial (NYSE:BFH - Get Free Report) last released its earnings results on Thursday, January 29th. The company reported $2.07 EPS for the quarter, topping the consensus estimate of $0.40 by $1.67. Bread Financial had a return on equity of 17.92% and a net margin of 11.02%.The business had revenue of $975.00 million during the quarter, compared to analysts' expectations of $954.74 million. During the same quarter last year, the firm posted $0.41 earnings per share.

Other analysts have also issued research reports about the stock. Weiss Ratings reiterated a "buy (b-)" rating on shares of Bread Financial in a research note on Friday, March 27th. The Goldman Sachs Group upgraded shares of Bread Financial from a "sell" rating to a "hold" rating and set a $84.00 price target for the company in a report on Tuesday, January 6th. Royal Bank Of Canada set a $90.00 price target on shares of Bread Financial and gave the company a "sector perform" rating in a research note on Friday, April 10th. Keefe, Bruyette & Woods upped their price objective on shares of Bread Financial from $82.00 to $92.00 and gave the company an "outperform" rating in a report on Friday, January 2nd. Finally, Evercore raised shares of Bread Financial from a "hold" rating to an "outperform" rating and set a $90.00 price objective on the stock in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Bread Financial currently has a consensus rating of "Hold" and a consensus target price of $83.83.

Bread Financial Price Performance

Bread Financial stock opened at $91.87 on Tuesday. The stock has a market capitalization of $3.81 billion, a price-to-earnings ratio of 8.48, a PEG ratio of 1.33 and a beta of 1.11. Bread Financial has a 52-week low of $44.88 and a 52-week high of $92.20. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.17 and a current ratio of 1.17. The stock's 50 day moving average price is $75.31 and its two-hundred day moving average price is $70.96.

Institutional Trading of Bread Financial

Several institutional investors and hedge funds have recently made changes to their positions in the company. Daiwa Securities Group Inc. raised its holdings in shares of Bread Financial by 5.6% in the fourth quarter. Daiwa Securities Group Inc. now owns 3,535 shares of the company's stock valued at $262,000 after purchasing an additional 187 shares during the last quarter. Arizona State Retirement System raised its holdings in shares of Bread Financial by 1.4% in the third quarter. Arizona State Retirement System now owns 14,527 shares of the company's stock valued at $810,000 after purchasing an additional 200 shares during the last quarter. Illinois Municipal Retirement Fund raised its holdings in shares of Bread Financial by 0.9% in the third quarter. Illinois Municipal Retirement Fund now owns 25,186 shares of the company's stock valued at $1,405,000 after purchasing an additional 213 shares during the last quarter. Vista Investment Management raised its holdings in shares of Bread Financial by 1.1% in the fourth quarter. Vista Investment Management now owns 22,858 shares of the company's stock valued at $1,692,000 after purchasing an additional 241 shares during the last quarter. Finally, Corient Private Wealth LLC raised its holdings in shares of Bread Financial by 6.6% in the fourth quarter. Corient Private Wealth LLC now owns 4,206 shares of the company's stock valued at $311,000 after purchasing an additional 259 shares during the last quarter. Hedge funds and other institutional investors own 99.52% of the company's stock.

Bread Financial Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Friday, February 27th were issued a dividend of $0.23 per share. The ex-dividend date was Friday, February 27th. This represents a $0.92 annualized dividend and a yield of 1.0%. Bread Financial's dividend payout ratio is presently 8.49%.

Bread Financial announced that its Board of Directors has approved a stock buyback plan on Thursday, February 26th that permits the company to repurchase $600.00 million in shares. This repurchase authorization permits the company to buy up to 19% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company's board of directors believes its stock is undervalued.

Bread Financial News Summary

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: Zacks Research raised multiple 2026–2028 quarterly and annual EPS forecasts — notable lifts include FY2027 to $11.07 (from $10.48) and FY2028 to $11.05 (from $10.74), plus higher Q1–Q4 2027 and Q1 2026 quarterly guides — and retained a "Strong‑Buy" rating. These revisions signal stronger-than-expected earnings trajectory and are the main near-term catalyst for the share strength.
• Positive Sentiment: Zacks also featured BFH as a momentum pick, highlighting the company to investors (coverage and commentary). Are You Looking for a Top Momentum Pick? Why Bread Financial Holdings (BFH) is a Great Choice

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.

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