Zacks Research Issues Negative Estimate for SYF Earnings

Key Points

• Zacks Research cut Synchrony Financial’s Q4 2026 EPS estimate to $2.09 from $2.49, while also lowering several near-term quarterly forecasts. Its full-year 2026 estimate remains $9.35, consistent with consensus and the company’s $9.25–$9.50 guidance.
• Synchrony recently reported quarterly EPS of $2.59, beating the $2.14 consensus estimate, on revenue of $3.72 billion. The company posted a 23.09% return on equity and a 15.44% net margin.
• The company increased its quarterly dividend to $0.34 per share from $0.30, implying a 1.8% yield; analysts remain broadly positive, with a “Moderate Buy” consensus rating and an average price target of $87.72.

Synchrony Financial (NYSE:SYF - Free Report) - Zacks Research dropped their Q4 2026 earnings per share estimates for shares of Synchrony Financial in a research report issued to clients and investors on Thursday, July 30th. Zacks Research analyst Team now forecasts that the financial services provider will post earnings of $2.09 per share for the quarter, down from their prior estimate of $2.49. The consensus estimate for Synchrony Financial's current full-year earnings is $9.35 per share. Zacks Research also issued estimates for Synchrony Financial's Q4 2027 earnings at $2.72 EPS, FY2027 earnings at $10.24 EPS and Q2 2028 earnings at $2.53 EPS.

Synchrony Financial (NYSE:SYF - Get Free Report) last announced its quarterly earnings data on Tuesday, July 21st. The financial services provider reported $2.59 earnings per share for the quarter, beating the consensus estimate of $2.14 by $0.45. Synchrony Financial had a return on equity of 23.09% and a net margin of 15.44%.The business had revenue of $3.72 billion during the quarter, compared to analyst estimates of $3.72 billion. During the same quarter in the prior year, the firm posted $2.50 earnings per share. Synchrony Financial has set its FY 2026 guidance at 9.250-9.500 EPS.

Several other research firms have also weighed in on SYF. BTIG Research lowered shares of Synchrony Financial from a "buy" rating to a "neutral" rating in a research report on Wednesday, April 22nd. Wells Fargo & Company dropped their target price on shares of Synchrony Financial from $95.00 to $88.00 and set an "overweight" rating on the stock in a report on Wednesday, July 22nd. JPMorgan Chase & Co. cut their target price on shares of Synchrony Financial from $81.00 to $78.00 and set a "neutral" rating for the company in a research note on Monday, July 13th. UBS Group raised their target price on shares of Synchrony Financial from $77.00 to $84.00 and gave the stock a "neutral" rating in a report on Tuesday, July 7th. Finally, HSBC raised their target price on shares of Synchrony Financial from $93.00 to $97.00 and gave the stock a "buy" rating in a report on Monday, July 13th. Twelve equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat, Synchrony Financial has an average rating of "Moderate Buy" and an average price target of $87.72.

Synchrony Financial Price Performance

NYSE:SYF opened at $75.82 on Monday. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.08. The business's 50-day moving average price is $73.78 and its 200 day moving average price is $72.61. Synchrony Financial has a 52-week low of $63.08 and a 52-week high of $88.77. The firm has a market cap of $24.67 billion, a P/E ratio of 7.77, a PEG ratio of 0.71 and a beta of 1.32.

Synchrony Financial Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 17th. Shareholders of record on Wednesday, August 5th will be paid a dividend of $0.34 per share. This is a boost from Synchrony Financial's previous quarterly dividend of $0.30. This represents a $1.36 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Wednesday, August 5th. Synchrony Financial's payout ratio is currently 12.30%.

Synchrony Financial declared that its Board of Directors has authorized a share repurchase plan on Tuesday, April 21st that allows the company to buyback $0.00 in outstanding shares. This buyback authorization allows the financial services provider to buy shares of its stock through open market purchases. Stock buyback plans are usually a sign that the company's management believes its stock is undervalued.

Insider Buying and Selling

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

Institutional Investors Weigh In On Synchrony Financial

Several hedge funds have recently made changes to their positions in the company. Wedge Capital Management L L P NC grew its position in Synchrony Financial by 4.4% during the 2nd 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 lifted its holdings in shares of Synchrony Financial by 9.0% in 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 shares of 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 valued at $303,000 after purchasing an additional 2,684 shares in the last quarter. Handelsbanken Fonder AB boosted its position in shares of 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 buying an additional 32,047 shares during the period. Finally, Polianta Ltd boosted its position in shares of 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 buying an additional 3,400 shares during the period. Hedge funds and other institutional investors own 96.48% of the company's stock.

Key Headlines Impacting Synchrony Financial

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

• Positive Sentiment: Long-term earnings outlook improved: Zacks Research raised its FY2028 EPS forecast to $11.57 from $10.89 and increased its FY2026 estimate slightly to $9.35 from $9.33. The FY2026 figure is in line with the broader consensus forecast. Zacks Research earnings estimates
• Neutral Sentiment: Synchrony issued $1.1 billion of senior notes: The financing, launched under an underwriting agreement dated July 28, provides additional capital but also increases the company’s debt obligations and future interest expense. Synchrony Financial Issues $1.1 Billion Senior Notes
• Neutral Sentiment: Truist maintained its Hold rating: The reaffirmation indicates no change in the analyst’s view, limiting the potential for a fresh positive catalyst. Truist Financial Reaffirms Hold Rating
• Negative Sentiment: Several near-term EPS forecasts were cut: Zacks lowered its Q3 2026 estimate to $2.40 from $2.55, Q1 2027 to $2.32 from $2.42, Q3 2027 to $2.93 from $3.02, and Q1 2028 to $2.63 from $2.67. These reductions suggest some caution about Synchrony’s nearer-term earnings momentum, despite the stable $9.35 FY2026 consensus forecast.

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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