Zacks Research Boosts Earnings Estimates for Bread Financial

Key Points

• Zacks Research raised its FY2026 EPS estimate for Bread Financial to $10.39 (from $9.29), boosted longer‑term forecasts (FY2028 to $12.06) and assigned a “Strong‑Buy” rating, increasing forward earnings visibility.
• Bread Financial recently beat quarterly expectations, reporting $4.18 EPS versus a $3.00 consensus and revenue of $1.02 billion, with a net margin of 11.9% and ROE of 18.8%, signaling stronger profitability.
• The company is simultaneously authorizing a $600 million stock buyback (up to ~19% of shares) and priced an offering of 4.8M depositary shares of its Series B preferred at an 8.875% fixed rate, actions that bolster capital while adding fixed‑cost funding.

Bread Financial Holdings, Inc. (NYSE:BFH - Free Report) - Equities researchers at Zacks Research upped their FY2026 earnings estimates for shares of Bread Financial in a research note issued on Tuesday, May 5th. Zacks Research analyst Team now expects that the company will post earnings of $10.39 per share for the year, up from their previous estimate of $9.29. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Bread Financial's current full-year earnings is $10.43 per share. Zacks Research also issued estimates for Bread Financial's Q2 2027 earnings at $2.46 EPS, Q4 2027 earnings at $2.20 EPS, Q1 2028 earnings at $2.85 EPS and FY2028 earnings at $12.06 EPS.

Bread Financial (NYSE:BFH - Get Free Report) last announced its quarterly earnings data on Thursday, April 23rd. The company reported $4.18 EPS for the quarter, beating the consensus estimate of $3.00 by $1.18. Bread Financial had a net margin of 11.90% and a return on equity of 18.79%. The business had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $992.05 million. During the same period in the previous year, the business posted $2.86 EPS. The business's quarterly revenue was up 4.9% compared to the same quarter last year.

Several other analysts have also recently commented on BFH. Royal Bank Of Canada set a $105.00 price objective on shares of Bread Financial in a research note on Friday, April 24th. Weiss Ratings upgraded shares of Bread Financial from a "buy (b-)" rating to a "buy (b)" rating in a research note on Monday, April 27th. Keefe, Bruyette & Woods lifted their price objective on shares of Bread Financial from $100.00 to $115.00 and gave the company an "outperform" rating in a research note on Friday, April 24th. Evercore restated an "outperform" rating and set a $99.00 price objective on shares of Bread Financial in a research note on Wednesday, April 29th. Finally, Morgan Stanley set a $98.00 price objective on shares of Bread Financial in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $93.36.

Bread Financial Stock Performance

Shares of NYSE BFH opened at $88.43 on Thursday. The company has a current ratio of 1.15, a quick ratio of 1.15 and a debt-to-equity ratio of 0.25. Bread Financial has a 12 month low of $48.15 and a 12 month high of $99.13. The company has a 50 day simple moving average of $78.12 and a two-hundred day simple moving average of $73.18. The stock has a market cap of $3.57 billion, a price-to-earnings ratio of 7.24, a PEG ratio of 1.18 and a beta of 1.12.

Institutional Investors Weigh In On Bread Financial

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. AlphaQuest LLC acquired a new position in shares of Bread Financial during the 3rd quarter valued at about $1,620,000. Public Sector Pension Investment Board boosted its position in shares of Bread Financial by 12.2% during the 3rd quarter. Public Sector Pension Investment Board now owns 209,029 shares of the company's stock valued at $11,658,000 after acquiring an additional 22,745 shares during the last quarter. Allianz Asset Management GmbH boosted its position in shares of Bread Financial by 44.5% during the 3rd quarter. Allianz Asset Management GmbH now owns 943,659 shares of the company's stock valued at $52,628,000 after acquiring an additional 290,803 shares during the last quarter. Mizuho Markets Americas LLC boosted its position in shares of Bread Financial by 11.5% during the 3rd quarter. Mizuho Markets Americas LLC now owns 363,445 shares of the company's stock valued at $20,269,000 after acquiring an additional 37,466 shares during the last quarter. Finally, SG Americas Securities LLC boosted its position in shares of Bread Financial by 748.3% during the 3rd quarter. SG Americas Securities LLC now owns 17,347 shares of the company's stock valued at $967,000 after acquiring an additional 15,302 shares during the last quarter. Hedge funds and other institutional investors own 99.52% of the company's stock.

Insider Buying and Selling

In related news, Director Roger H. Ballou sold 9,687 shares of the business's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $90.32, for a total value of $874,929.84. Following the completion of the sale, the director owned 30,079 shares of the company's stock, valued at approximately $2,716,735.28. The trade was a 24.36% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.30% of the company's stock.

Bread Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Friday, May 29th will be issued a $0.23 dividend. This represents a $0.92 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Friday, May 29th. Bread Financial's payout ratio is presently 7.53%.

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

Trending Headlines about Bread Financial

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

• Positive Sentiment: Zacks Research raised longer‑term earnings forecasts (FY2026 and FY2028 EPS notably higher) and reiterated a "Strong‑Buy" rating — analysts boosted FY2026 to $10.39 from $9.29 and FY2028 to $12.06, and raised several quarterly/annual models (including a large boost to Q1 2028). These upgrades improve forward earnings visibility and likely supported buying interest.
• Neutral Sentiment: Bread priced an underwritten offering of 4.8M depositary shares (each 1/40th of a Series B preferred) carrying an 8.875% fixed‑rate reset; underwriters have a 30‑day option for an additional 720K shares. Proceeds are earmarked for general corporate purposes, including possible contributions to Comenity Capital Bank and share repurchases — this strengthens capital but introduces fixed cost capital. GlobeNewswire — Pricing of Offering
• Neutral Sentiment: The company also announced the launch of the depositary share offering (initial press release) and plans to list the depositary shares on the NYSE — signals management is proactively bolstering funding options. GlobeNewswire — Launch of Offering
• Negative Sentiment: A fund sold $4.7M of BFH shares amid the recent run-up — likely profit‑taking rather than a vote of no confidence, but it could add short‑term selling pressure in a stretched rally. Motley Fool — Why This Fund Sold $4.7M

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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