Brokers Offer Predictions for Bread Financial Q1 Earnings

Bread Financial Holdings, Inc. (NYSE:BFH) – Research analysts at Zacks Research upped their Q1 2026 earnings estimates for shares of Bread Financial in a research report issued on Wednesday, February 11th. Zacks Research analyst Team now anticipates that the company will post earnings of $2.78 per share for the quarter, up from their prior estimate of $2.47. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Bread Financial’s current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial’s Q3 2026 earnings at $3.02 EPS, FY2026 earnings at $9.27 EPS, Q1 2027 earnings at $2.30 EPS and Q3 2027 earnings at $3.68 EPS.

Bread Financial (NYSE:BFH) last announced its earnings results on Thursday, January 29th. The company reported $2.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $1.67. The business had revenue of $975.00 million during the quarter, compared to the consensus estimate of $954.74 million. Bread Financial had a net margin of 11.02% and a return on equity of 17.92%. During the same quarter last year, the firm earned $0.41 earnings per share.

Several other brokerages have also commented on BFH. Royal Bank Of Canada restated a “sector perform” rating and set a $83.00 target price on shares of Bread Financial in a research report on Monday, January 12th. Keefe, Bruyette & Woods boosted their price target on Bread Financial from $82.00 to $92.00 and gave the company an “outperform” rating in a research note on Friday, January 2nd. Morgan Stanley increased their price target on Bread Financial from $62.00 to $68.00 and gave the stock an “underweight” rating in a report on Friday, January 30th. TD Cowen lifted their price objective on shares of Bread Financial from $85.00 to $88.00 and gave the company a “hold” rating in a research note on Friday, January 30th. Finally, Evercore ISI upgraded shares of Bread Financial from a “hold” rating to a “strong-buy” rating in a research report on Thursday, February 5th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $80.09.

Bread Financial Stock Performance

Shares of Bread Financial stock opened at $72.48 on Friday. The business has a 50-day moving average price of $74.52 and a two-hundred day moving average price of $66.39. Bread Financial has a 1-year low of $38.21 and a 1-year high of $82.03. The company has a current ratio of 1.17, a quick ratio of 1.19 and a debt-to-equity ratio of 0.27. The company has a market cap of $3.31 billion, a P/E ratio of 6.69, a PEG ratio of 0.48 and a beta of 1.26.

Institutional Trading of Bread Financial

Several hedge funds have recently bought and sold shares of the business. Cullen Frost Bankers Inc. bought a new stake in Bread Financial during the 4th quarter valued at $29,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Bread Financial by 141.2% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after buying an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in shares of Bread Financial by 127.2% during the second quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after acquiring an additional 398 shares in the last quarter. BOK Financial Private Wealth Inc. acquired a new stake in shares of Bread Financial in the 2nd quarter worth about $42,000. Finally, Caitong International Asset Management Co. Ltd lifted its position in Bread Financial by 8,300.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock valued at $47,000 after acquiring an additional 830 shares in the last quarter. Institutional investors and hedge funds own 99.52% of the company’s stock.

Bread Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Friday, February 27th will be given a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, February 27th. Bread Financial’s dividend payout ratio is presently 8.49%.

Bread Financial declared that its board has initiated a share repurchase plan on Thursday, October 23rd that authorizes the company to buyback $200.00 million in shares. This buyback authorization authorizes the company to buy up to 7.1% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its shares are undervalued.

Bread Financial News Roundup

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

• Positive Sentiment: Zacks raised its Q2 2026 EPS forecast to $2.47 from $2.37, signaling slightly stronger expected performance in the upcoming quarter. This could support near?term revenue/earnings momentum if management execution aligns with the upgrade.
• Positive Sentiment: Zacks also nudged Q2 2027 EPS higher to $2.41 from $2.37, reflecting a modestly improved view of the company’s mid?cycle earnings power. Small upward revisions can limit downside if confirmed by results.
• Neutral Sentiment: Transcript of Bread Financial’s presentation at the UBS Financial Services Conference is available; investors should scan management commentary for guidance, portfolio trends, credit metrics and any color on buyback/dividend plans. UBS Presentation Transcript
• Neutral Sentiment: Zacks published an FY2028 EPS projection of $10.76. While a long?range estimate, investors should treat multi?year numbers cautiously and focus on nearer?term guidance and margin drivers before inferring material valuation changes.
• Neutral Sentiment: Independent comparative coverage (Bread vs. Consumer Portfolio Services) is available for investors reviewing competitive positioning, credit risk and valuation—useful background but not an immediate catalyst. Head to Head Review
• Negative Sentiment: Zacks cut its Q4 2027 EPS estimate to $2.09 from $2.29, signaling lower expected end?of?year profitability versus prior expectations. Downward revisions to full?year quarter estimates can pressure the stock as they reduce near?term earnings visibility.
• Negative Sentiment: Zacks reduced its Q4 2026 EPS estimate sharply to $1.00 from $1.18, indicating a weaker outlook for that quarter and potential seasonality or credit concerns that investors will scrutinize.
• Negative Sentiment: Zacks trimmed FY2027 EPS to $10.48 from $10.56. Although a modest cut, it contributes to an overall tone of lowered near?to?mid?term expectations; Zacks maintains a “Hold” rating, which is not a bullish endorsement.

About Bread Financial

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.