Q3 EPS Estimate for Synchrony Financial Decreased by Analyst

Key Points

• Zacks Research trimmed Synchrony Financial’s Q3 2026 EPS estimate to $2.55 from $2.57, while its longer-term projections still point to higher earnings over time, including FY2028 EPS of $10.89.
• Synchrony’s last quarterly report beat EPS expectations at $2.27 versus $2.14, though revenue came in below estimates at $3.70 billion and was down 7.4% from a year earlier.
• Wall Street remains broadly positive on the stock, with a consensus Moderate Buy rating and average price target around $87, even as some near-term estimates were lowered ahead of the next earnings report.

Synchrony Financial (NYSE:SYF - Free Report) - Research analysts at Zacks Research dropped their Q3 2026 EPS estimates for shares of Synchrony Financial in a report issued on Thursday, July 16th. Zacks Research analyst Team now expects that the financial services provider will post earnings per share of $2.55 for the quarter, down from their prior estimate of $2.57. The consensus estimate for Synchrony Financial's current full-year earnings is $9.34 per share. Zacks Research also issued estimates for Synchrony Financial's Q4 2026 earnings at $2.49 EPS, Q1 2027 earnings at $2.42 EPS, Q3 2027 earnings at $3.02 EPS, Q4 2027 earnings at $2.58 EPS, FY2027 earnings at $10.04 EPS, Q1 2028 earnings at $2.67 EPS, Q2 2028 earnings at $2.17 EPS and FY2028 earnings at $10.89 EPS.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The financial services provider reported $2.27 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.13. The company had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.81 billion. Synchrony Financial had a net margin of 15.80% and a return on equity of 23.41%. The company's revenue for the quarter was down 7.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.89 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.100-9.500 EPS.

Several other brokerages have also weighed in on SYF. BTIG Research lowered shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a report on Wednesday, April 22nd. JPMorgan Chase & Co. dropped their price target on shares of Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating for the company in a research report on Monday. Loop Capital started coverage on shares of Synchrony Financial in a report on Friday, May 22nd. They issued a "hold" rating and a $81.00 price target on the stock. Wells Fargo & Company lowered their price objective on shares of Synchrony Financial from $100.00 to $95.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Finally, Truist Financial upped their price objective on Synchrony Financial from $71.00 to $82.00 and gave the stock a "hold" rating in a report on Thursday, April 23rd. Twelve equities research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, Synchrony Financial presently has a consensus rating of "Moderate Buy" and a consensus price target of $87.32.

Synchrony Financial Stock Performance

Shares of SYF opened at $74.19 on Friday. Synchrony Financial has a 1 year low of $63.08 and a 1 year high of $88.77. The company's 50 day simple moving average is $73.09 and its 200 day simple moving average is $73.46. The company has a market capitalization of $24.96 billion, a price-to-earnings ratio of 7.67, a PEG ratio of 0.69 and a beta of 1.32. The company has a debt-to-equity ratio of 1.08, a quick ratio of 1.24 and a current ratio of 1.24.

Synchrony Financial declared that its board has approved a share buyback plan on Tuesday, April 21st that authorizes the company to buyback $0.00 in outstanding shares. This buyback authorization authorizes the financial services provider to buy shares of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Synchrony Financial Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th were given a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, May 5th. This represents a $1.20 annualized dividend and a dividend yield of 1.6%. Synchrony Financial's payout ratio is presently 12.41%.

Insider Buying and Selling at Synchrony Financial

In related news, insider Jonathan S. Mothner sold 51,258 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $71.23, for a total value of $3,651,107.34. Following the completion of the sale, the insider directly owned 132,664 shares of the company's stock, valued at $9,449,656.72. The trade was a 27.87% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.36% of the company's stock.

Institutional Trading of Synchrony Financial

A number of large investors have recently modified their holdings of SYF. Wedge Capital Management L L P NC grew its stake in shares of Synchrony Financial by 4.4% in the second quarter. Wedge Capital Management L L P NC now owns 495,316 shares of the financial services provider's stock worth $37,669,000 after purchasing an additional 20,959 shares in the last quarter. Tema ETFs LLC raised its stake in shares of Synchrony Financial by 9.0% during the second quarter. Tema ETFs LLC now owns 6,995 shares of the financial services provider's stock valued at $532,000 after purchasing an additional 580 shares in the last quarter. Generali Investments Management Co LLC lifted its holdings in Synchrony Financial by 206.0% in the second quarter. Generali Investments Management Co LLC now owns 3,987 shares of the financial services provider's stock worth $303,000 after purchasing an additional 2,684 shares during the period. Handelsbanken Fonder AB lifted its holdings in Synchrony Financial by 24.4% in the second quarter. Handelsbanken Fonder AB now owns 163,596 shares of the financial services provider's stock worth $12,441,000 after purchasing an additional 32,047 shares during the period. Finally, Polianta Ltd lifted its holdings in Synchrony Financial by 16.2% in the second quarter. Polianta Ltd now owns 24,400 shares of the financial services provider's stock worth $1,855,000 after purchasing an additional 3,400 shares during the period. Institutional investors and hedge funds own 96.48% of the company's stock.

Synchrony Financial News Roundup

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

• Positive Sentiment: Zacks Research lifted long-term profit expectations for Synchrony Financial, including higher FY2028 EPS, which supports the case for improved earnings power over time.
• Neutral Sentiment: Analysts also issued a consensus price target of $86.21, implying further upside if the company executes well. Synchrony Financial NYSE: SYF Receives $86.21 Consensus Price Target from Analysts
• Negative Sentiment: Several near- and medium-term EPS estimates were reduced, which may weigh on sentiment ahead of SYF’s July 21 earnings report and raise questions about short-term growth. Will Higher Purchase Volumes Fuel Synchrony's Q2 Earnings Beat?

Synchrony Financial Company Profile

Synchrony Financial NYSE: SYF is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite.

Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants' checkout experiences.

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