FY2026 EPS Estimates for Bread Financial Raised by Analyst

Key Points

• Zacks Research raised Bread Financial’s FY2026 EPS estimate to $11.78 from $10.38, though its rating remains “Hold.” The new forecast is below the broader consensus estimate of $12.10.
• Bread Financial exceeded expectations in its latest quarter, reporting $3.55 EPS versus the $2.74 consensus and $992 million in revenue, up 6.9% year over year.
• The company declared a quarterly dividend of $0.23 per share, equivalent to a $0.92 annualized payout and a 0.9% yield. Institutional investors own 99.52% of Bread Financial’s outstanding shares.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Equities research analysts at Zacks Research increased their FY2026 earnings per share estimates for shares of Bread Financial in a research note issued on Thursday, August 6th. Zacks Research analyst Team now anticipates that the company will post earnings of $11.78 per share for the year, up from their prior forecast of $10.38. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $12.10 per share. Zacks Research also issued estimates for Bread Financial's FY2027 earnings at $11.51 EPS, Q2 2028 earnings at $3.00 EPS and FY2028 earnings at $12.48 EPS.

Several other equities research analysts also recently commented on the stock. Evercore reiterated an "outperform" rating and set a $116.00 target price on shares of Bread Financial in a research report on Monday, July 6th. Wolfe Research restated a "positive" rating on shares of Bread Financial in a research report on Wednesday, June 10th. Keefe, Bruyette & Woods reaffirmed an "outperform" rating on shares of Bread Financial in a research note on Wednesday, June 10th. Weiss Ratings reiterated a "buy (b)" rating on shares of Bread Financial in a report on Friday, July 24th. Finally, Wall Street Zen raised shares of Bread Financial from a "hold" rating to a "buy" rating in a research note on Saturday, June 13th. Eight investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $110.58.

Bread Financial Stock Performance

NYSE:BFH opened at $108.22 on Monday. The stock's 50-day moving average is $101.73 and its 200-day moving average is $86.61. Bread Financial has a 1-year low of $53.83 and a 1-year high of $114.12. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.25. The stock has a market cap of $4.16 billion, a P/E ratio of 8.44, a price-to-earnings-growth ratio of 0.69 and a beta of 1.11.

Bread Financial (NYSE:BFH - Get Free Report) last posted its earnings results on Thursday, July 23rd. The company reported $3.55 EPS for the quarter, beating the consensus estimate of $2.74 by $0.81. Bread Financial had a return on equity of 18.42% and a net margin of 11.95%.The firm had revenue of $992.00 million during the quarter, compared to the consensus estimate of $959.32 million. During the same period last year, the company earned $3.15 earnings per share. The business's quarterly revenue was up 6.9% on a year-over-year basis.

Institutional Trading of Bread Financial

A number of institutional investors have recently bought and sold shares of BFH. BlackRock Inc. bought a new position in shares of Bread Financial in the 2nd quarter worth about $421,314,000. Dimensional Fund Advisors LP grew its stake in Bread Financial by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 3,086,060 shares of the company's stock worth $231,111,000 after purchasing an additional 9,854 shares during the period. Franklin Resources Inc. grew its stake in Bread Financial by 17.3% during the fourth quarter. Franklin Resources Inc. now owns 2,029,894 shares of the company's stock worth $150,273,000 after purchasing an additional 299,439 shares during the period. Geode Capital Management LLC increased its holdings in Bread Financial by 1.2% in the fourth quarter. Geode Capital Management LLC now owns 1,159,731 shares of the company's stock worth $85,866,000 after purchasing an additional 14,257 shares in the last quarter. Finally, Allianz Asset Management GmbH lifted its stake in Bread Financial by 21.6% in the fourth quarter. Allianz Asset Management GmbH now owns 1,147,366 shares of the company's stock valued at $84,940,000 after buying an additional 203,707 shares during the period. Institutional investors own 99.52% of the company's stock.

Insiders Place Their Bets

In other news, Director Praniti Lakhwara sold 2,802 shares of the business's stock in a transaction that occurred on Tuesday, July 28th. The shares were sold at an average price of $106.12, for a total value of $297,348.24. Following the transaction, the director owned 4,458 shares in the company, valued at approximately $473,082.96. The trade was a 38.60% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Ralph J. Andretta sold 15,000 shares of the company's stock in a transaction on Friday, May 29th. The shares were sold at an average price of $89.10, for a total transaction of $1,336,500.00. Following the completion of the sale, the chief executive officer directly owned 582,241 shares in the company, valued at approximately $51,877,673.10. This represents a 2.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.30% of the company's stock.

Bread Financial Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Monday, August 31st will be issued a dividend of $0.23 per share. The ex-dividend date is Monday, August 31st. This represents a $0.92 annualized dividend and a yield of 0.9%. Bread Financial's dividend payout ratio (DPR) is presently 7.18%.

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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