Synchrony Financial (NYSE:SYF) Announces Earnings Results

Synchrony Financial (NYSE:SYF) posted its quarterly earnings data on Tuesday. The financial services provider reported $2.18 earnings per share for the quarter, topping the consensus estimate of $2.02 by $0.16, Zacks reports. The firm had revenue of $3.79 billion during the quarter, compared to analyst estimates of $3.84 billion. Synchrony Financial had a return on equity of 22.96% and a net margin of 15.84%.The business’s quarterly revenue was down .2% on a year-over-year basis. During the same period last year, the company posted $1.91 EPS. Synchrony Financial updated its FY 2026 guidance to 9.100-9.500 EPS.

Here are the key takeaways from Synchrony Financial’s conference call:

• Synchrony delivered a strong quarter and year — Q4 net earnings of $751 million ($2.04/share), full-year net earnings of $3.6 billion, and a record Q4 purchase volume of $49 billion (up 3% YoY) with digital purchases up 6%.
• Credit performance improved materially — Q4 net charge-off rate fell to 5.37%, 30+ and 90+ delinquencies declined versus prior year, and management expects portfolio net charge-offs to be in its long?term target range (5.5%–6%) in 2026.
• Strategic growth momentum — added >20 million new accounts, renewed/added 75+ partners (including Bob’s Discount Furniture and Polaris), launched the Walmart One Pay program (fastest de?novo ramp), and expanded Pay Later to ~6,200 merchants, which management says boosts sales when paired with revolving products.
• Near?term pressure from higher reserves and costs — RSAs rose to $1.1 billion (4.3% of avg receivables), other expenses increased ~10% (including a $67 million restructuring charge), the efficiency ratio widened to 36.9%, and capital ratios modestly declined.
• 2026 outlook is mixed — management guides EPS of $9.10–$9.50 with mid?single?digit receivables growth and NII growth expected, but results depend on macro conditions, tax?refund effects, and how investments (new programs, tech, reserves) play out.

Synchrony Financial Stock Up 1.8%

Shares of SYF traded up $1.34 during trading hours on Wednesday, reaching $74.34. 1,438,096 shares of the stock traded hands, compared to its average volume of 4,751,566. Synchrony Financial has a 52 week low of $40.54 and a 52 week high of $88.77. The company has a market cap of $26.78 billion, a price-to-earnings ratio of 8.10, a PEG ratio of 0.53 and a beta of 1.43. The stock has a fifty day simple moving average of $80.96 and a 200 day simple moving average of $75.66. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.91.

Synchrony Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Investors of record on Friday, February 6th will be given a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Friday, February 6th. Synchrony Financial’s dividend payout ratio is presently 13.10%.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on SYF. TD Cowen raised their price objective on shares of Synchrony Financial from $91.00 to $100.00 and gave the stock a “buy” rating in a research report on Thursday, January 8th. Hsbc Global Res upgraded shares of Synchrony Financial from a “hold” rating to a “strong-buy” rating in a report on Thursday, October 9th. JPMorgan Chase & Co. lifted their price target on shares of Synchrony Financial from $75.00 to $86.00 and gave the company a “neutral” rating in a research note on Monday, January 12th. UBS Group increased their price objective on shares of Synchrony Financial from $78.00 to $79.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 7th. Finally, BTIG Research decreased their target price on Synchrony Financial from $100.00 to $96.00 and set a “buy” rating for the company in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, Synchrony Financial has a consensus rating of “Moderate Buy” and an average price target of $87.21.

Synchrony Financial announced that its Board of Directors has approved a stock buyback plan on Wednesday, October 15th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 3.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, insider Darrell Owens sold 2,989 shares of the stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $74.02, for a total transaction of $221,245.78. Following the completion of the sale, the insider directly owned 16,096 shares of the company’s stock, valued at approximately $1,191,425.92. This trade represents a 15.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Curtis Howse sold 12,086 shares of the business’s stock in a transaction on Monday, November 3rd. The stock was sold at an average price of $74.02, for a total value of $894,605.72. Following the completion of the transaction, the insider directly owned 108,271 shares in the company, valued at approximately $8,014,219.42. This represents a 10.04% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 55,075 shares of company stock worth $4,036,892. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Synchrony Financial

A number of large investors have recently bought and sold shares of SYF. CIBC Private Wealth Group LLC grew its stake in shares of Synchrony Financial by 50.1% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 7,099 shares of the financial services provider’s stock worth $504,000 after acquiring an additional 2,371 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in Synchrony Financial during the third quarter valued at about $3,669,000. Coldstream Capital Management Inc. boosted its position in Synchrony Financial by 4.0% during the third quarter. Coldstream Capital Management Inc. now owns 10,086 shares of the financial services provider’s stock worth $717,000 after purchasing an additional 388 shares during the period. Advisory Services Network LLC increased its stake in shares of Synchrony Financial by 16.8% in the third quarter. Advisory Services Network LLC now owns 27,172 shares of the financial services provider’s stock worth $1,931,000 after purchasing an additional 3,899 shares in the last quarter. Finally, Palisade Asset Management LLC bought a new stake in shares of Synchrony Financial in the third quarter valued at approximately $29,000. 96.48% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Synchrony Financial

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

• Positive Sentiment: Q4 earnings modestly beat expectations and efficiency improved, driven by margin expansion and buybacks, supporting near?term earnings credibility. Synchrony (SYF) Q4 Earnings Beat Estimates
• Positive Sentiment: Record purchase volume ($49B) and BNPL contribution indicate demand/portfolio momentum that can support revenue and future loan growth. Synchrony Says BNPL Lifts Sales Without Hurting Cards
• Positive Sentiment: Major sell?side shops (BTIG, TD Cowen) reaffirmed Buy with ~$95–96 price targets, citing attractive valuation and multi?year earnings upside — a support for the stock over time. Synchrony Financial: Buy Rating Reaffirmed
• Neutral Sentiment: The company declared a $0.30 quarterly dividend (ex?div Feb 6), a predictable cash return but modest yield (~1.6%). Synchrony Reports Fourth Quarter 2025 Results; Dividend Announced
• Neutral Sentiment: Management issued FY?2026 EPS guidance of $9.10–$9.50 (close to Street consensus) and discussed product expansion; guidance implies limited EPS growth in 2026 as investments and credit provisioning offset volume gains. Synchrony Reports Fourth Quarter 2025 Results; Dividend Announced
• Neutral Sentiment: Full Q4 earnings call/transcript provides detail on growth drivers, margins, and risks for active investors wanting management color. Synchrony (SYF) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue slightly missed Street expectations and loan receivables were softer — a near?term growth headwind that pressured sentiment. SYF misses Q4 CY2025 sales expectations
• Negative Sentiment: Profit was reduced by a restructuring charge and higher costs tied to strategic investments, which, along with planned RSA/capital spending, weigh on near?term margins. Synchrony Financial profit hit by restructuring charge, higher costs
• Negative Sentiment: Independent commentary flags a “growth at a cost” dynamic: 2025 EPS gains came from margin moves and buybacks, but 2026 outlook is flat due to higher loss provisions and RSA costs; political risk around credit?rate caps remains a material downside scenario. Synchrony Financial: Growth At A Cost

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.