KeyCorp (NYSE:KEY) Announces Earnings Results

Key Points

• Q1 EPS beat: KeyCorp reported $0.44 EPS vs. $0.41 expected and revenue of $1.95 billion (vs. $1.93B), with a return on equity of 10.28% and a net margin of 15.97%.
• Core earnings drivers stronger: Net interest income rose ~11% year-over-year, the NIM increased to 2.87% (up 5 bps sequentially), and period-end loans grew by $2.6 billion (commercial loans +$3.3B), supporting NII stability going forward.
• Capital return and credit profile supportive: KeyCorp repurchased $389 million of common stock while credit metrics remained healthy (nonperforming assets 63 bps, net charge-offs 38 bps) and CET1 ratio was 11.4%.

KeyCorp (NYSE:KEY - Get Free Report) posted its quarterly earnings data on Thursday. The financial services provider reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.03, FiscalAI reports. KeyCorp had a return on equity of 10.28% and a net margin of 15.97%.The company had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.93 billion.

KeyCorp Stock Performance

KeyCorp stock opened at $21.57 on Thursday. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 0.55. KeyCorp has a 1 year low of $13.68 and a 1 year high of $23.34. The company has a market cap of $23.14 billion, a PE ratio of 14.19, a PEG ratio of 0.71 and a beta of 1.07. The company's 50-day moving average is $20.77 and its two-hundred day moving average is $19.87.

KeyCorp News Summary

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Q1 beat on EPS and revenue — KeyCorp reported $0.44 EPS vs. $0.41 expected and $1.95B revenue (vs. $1.93B), showing core outperformance that supports earnings upside. KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME OF $486 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 33% YEAR-OVER-YEAR
• Positive Sentiment: Net interest income and loan growth boosted results — NII rose ~11% YoY, NIM increased to 2.87% (up 5 bps sequentially), period-end loans rose $2.6B (commercial loans +$3.3B). These drivers underpin future NII stability. KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME OF $486 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 33% YEAR-OVER-YEAR
• Positive Sentiment: Capital return and credit strength — Key repurchased $389M of common stock in the quarter; credit metrics remain healthy (nonperforming assets 63 bps, net charge-offs 38 bps) and CET1 ratio at 11.4%. Buybacks and clean credit profile are supportive for the multiple. KEYCORP REPORTS FIRST QUARTER 2026 NET INCOME OF $486 MILLION, OR $0.44 PER DILUTED COMMON SHARE INCREASING 33% YEAR-OVER-YEAR
• Neutral Sentiment: Analyst stance remains constructive — Street consensus is about a "Moderate Buy," implying expectations for continued outperformance but not runaway upside. KeyCorp NYSE: KEY Given Average Recommendation of "Moderate Buy" by Analysts
• Neutral Sentiment: Strategic initiatives aim to broaden fee income — KeyBank is rolling out virtual commercial cards and homebuyer support programs that can boost fee and client engagement over time. KeyBank adds virtual commerce cards to ward off fintechs
• Neutral Sentiment: Sector backdrop mixed but generally supportive — Bigger banks (e.g., BAC, MTB) reported beats that help sentiment for regional banks, though cross-bank dynamics matter for multiple expansion. BAC Stock Gains as Q1 Earnings Beat on NII, Trading & IB Strength
• Negative Sentiment: Investor scrutiny on loan-growth quality — Some coverage warns Q1 loan growth will be closely examined for sustainability and mix (commercial vs. consumer), which can increase volatility if guidance or details disappoint. All eyes on KeyCorp earnings as Q1 loan growth faces scrutiny

Insider Activity at KeyCorp

In related news, Director Trina M. Evans sold 32,695 shares of the company's stock in a transaction dated Thursday, January 22nd. The stock was sold at an average price of $21.74, for a total value of $710,789.30. Following the completion of the sale, the director owned 58,719 shares in the company, valued at approximately $1,276,551.06. This represents a 35.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Angela G. Mago sold 62,850 shares of the company's stock in a transaction dated Thursday, January 29th. The shares were sold at an average price of $21.55, for a total value of $1,354,417.50. Following the completion of the sale, the insider owned 261,415 shares of the company's stock, valued at $5,633,493.25. This represents a 19.38% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 161,506 shares of company stock worth $3,597,481. 0.56% of the stock is owned by insiders.

Institutional Investors Weigh In On KeyCorp

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Compound Planning Inc. increased its holdings in KeyCorp by 10.0% in the fourth quarter. Compound Planning Inc. now owns 33,254 shares of the financial services provider's stock valued at $686,000 after purchasing an additional 3,011 shares during the last quarter. Invesco Ltd. increased its holdings in KeyCorp by 4.7% in the fourth quarter. Invesco Ltd. now owns 20,567,184 shares of the financial services provider's stock valued at $424,507,000 after purchasing an additional 916,732 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its holdings in KeyCorp by 195.5% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 141,668 shares of the financial services provider's stock valued at $2,924,000 after purchasing an additional 93,720 shares during the last quarter. Beacon Pointe Advisors LLC increased its holdings in KeyCorp by 124.4% in the fourth quarter. Beacon Pointe Advisors LLC now owns 22,802 shares of the financial services provider's stock valued at $471,000 after purchasing an additional 12,640 shares during the last quarter. Finally, EP Wealth Advisors LLC bought a new stake in KeyCorp in the fourth quarter valued at about $285,000. Institutional investors own 79.69% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on KEY shares. JPMorgan Chase & Co. decreased their price target on KeyCorp from $24.50 to $22.50 and set a "neutral" rating on the stock in a report on Tuesday, April 7th. Wells Fargo & Company set a $18.00 target price on shares of KeyCorp and gave the company an "underperform" rating in a research report on Tuesday, January 6th. Evercore cut their target price on shares of KeyCorp from $26.00 to $24.00 and set an "outperform" rating on the stock in a research report on Monday, April 6th. Argus upped their target price on shares of KeyCorp from $21.00 to $25.00 and gave the company a "buy" rating in a research report on Thursday, January 22nd. Finally, Weiss Ratings upgraded shares of KeyCorp from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, February 25th. Twelve equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, KeyCorp presently has an average rating of "Moderate Buy" and an average target price of $22.61.

About KeyCorp

KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank's offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company's product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.

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