Synchrony Financial (NYSE:SYF) Releases FY 2026 Earnings Guidance

Key Points

• Synchrony raised confidence in its outlook by projecting FY 2026 EPS of approximately $9.50, above the $9.44 consensus estimate.
• The company’s latest quarter exceeded expectations, with EPS of $2.68 versus the $2.42 consensus and revenue of $3.82 billion versus $3.81 billion expected, despite year-over-year profit declining.
• Synchrony declared its regular $0.34 quarterly dividend, equivalent to $1.36 annually and a 1.8% yield; analysts maintain a “Moderate Buy” consensus with an $87.83 average price target.

Synchrony Financial (NYSE:SYF - Get Free Report) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 9.500-9.500 for the period, compared to the consensus estimate of 9.440.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Morgan Stanley dropped their price target on Synchrony Financial from $84.00 to $83.00 and set an "equal weight" rating for the company in a research note on Monday, October 12th. JPMorgan Chase & Co. boosted their target price on shares of Synchrony Financial from $74.00 to $77.00 and gave the stock a "neutral" rating in a report on Wednesday. Royal Bank Of Canada reissued a "sector perform" rating on shares of Synchrony Financial in a report on Tuesday. UBS Group dropped their target price on shares of Synchrony Financial from $87.00 to $81.00 and set a "neutral" rating for the company in a research report on Monday, October 5th. Finally, HSBC raised their target price on shares of Synchrony Financial from $93.00 to $97.00 and gave the company a "buy" rating in a research note on Monday, July 13th. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $87.83.

Synchrony Financial Price Performance

Synchrony Financial stock traded up $0.77 during midday trading on Wednesday, reaching $74.12. 4,051,206 shares of the stock traded hands, compared to its average volume of 3,911,759. The stock has a market cap of $24.12 billion, a P/E ratio of 7.59, a PEG ratio of 0.86 and a beta of 1.35. The stock's fifty day moving average is $75.78 and its 200-day moving average is $74.63. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08. Synchrony Financial has a 12 month low of $63.08 and a 12 month high of $88.77.

Synchrony Financial (NYSE:SYF - Get Free Report) last released its quarterly earnings data on Tuesday, October 20th. The financial services provider reported $2.68 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.42 by $0.26. The business had revenue of $3.82 billion for the quarter, compared to the consensus estimate of $3.81 billion. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%. During the same quarter in the previous year, the company posted $2.86 EPS. As a group, equities research analysts anticipate that Synchrony Financial will post 9.40 EPS for the current year.

Synchrony Financial Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 16th. Investors of record on Thursday, November 5th will be issued a $0.34 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 1.8%. Synchrony Financial's dividend payout ratio (DPR) is 13.93%.

Trending Headlines about Synchrony Financial

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

• Positive Sentiment: Earnings and guidance exceeded expectations. Synchrony reported third-quarter EPS of $2.68, ahead of the $2.42 consensus, while revenue of $3.82 billion was slightly above estimates. Management now expects approximately $9.50 in 2026 EPS, above the $9.44 consensus, reinforcing confidence in its earnings outlook. Synchrony Reports Third Quarter 2026 Results
• Positive Sentiment: Credit performance reduced fears of a consumer default surge. Net charge-offs declined to approximately 4.79%, while 30-day and 90-day delinquencies also improved. Stronger credit quality supports Synchrony’s profitability and suggests households remain capable of servicing debt. Synchrony Third-Quarter Earnings Report
• Positive Sentiment: Purchase volume and shareholder returns were strong. Third-quarter purchase volume rose 8% year over year to roughly $49.7 billion. Synchrony also repurchased about $1.1 billion of stock and declared its regular $0.34-per-share quarterly dividend, supporting per-share earnings and income-oriented investors.
• Positive Sentiment: Analysts raised their targets. Barclays increased its target from $93 to $94 and maintained an “overweight” rating. JPMorgan raised its target from $74 to $77, although it retained a “neutral” rating. Analysts Revise Synchrony Forecasts
• Neutral Sentiment: CareCredit introduced a new installment-payment option. CareCredit Pay Later will give health and wellness consumers an alternative to revolving credit, potentially expanding financing flexibility, though the near-term financial effect is unclear. CareCredit Introduces CareCredit Pay Later
• Negative Sentiment: Reported profit declined year over year. Third-quarter net income fell to $892 million from $1.1 billion, or $2.86 per share, last year. Higher expenses and a modestly lower net interest margin offset the earnings beat.
• Negative Sentiment: Evercore downgraded the stock. Evercore lowered its rating from “outperform” to “in-line,” setting a $78 target. The downgrade highlights valuation and execution concerns despite improving credit metrics. Evercore Analyst Action

Synchrony Financial Company Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that provides private-label credit cards, co-branded credit cards and promotional financing programs. Its financing products are offered through retailers, manufacturers, healthcare providers and other businesses, helping consumers pay for purchases over time.

The company serves a range of industries, including digital commerce, home improvement, furniture, automotive, healthcare, jewelry, apparel, electronics and specialty retail.

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