A month has gone by since the last earnings report for Synchrony (SYF - Free Report) . Shares have added about 9.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Synchrony due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Synchrony Beats Q2 Earnings Estimates, Raises 2026 EPS Outlook
Synchrony reported second-quarter 2026 adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year.
Net interest income increased 1.9% year over year to $4.6 billion but missed the consensus estimate by 1.1%. The growth was driven by lower interest-bearing liability costs, partly offset by lower loan and liquidity portfolio yields.
The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, higher operating expenses and an increase in the provision for credit losses partly offset these positives.
Synchrony’s Q2 Results in DetailRetailer share arrangements of Synchrony advanced 3.5% year over year to $1 billion in the second quarter. Total loan receivables were $102.2 billion, up 2.4% year over year. The figure beat the Zacks Consensus Estimate of $101.9 billion as well as our estimate of $101.8 billion.
Total deposits increased 0.7% year over year to $82.8 billion but missed our estimate of $83.5 billion. Provision for credit losses increased 4.8% year over year to $1.2 billion, primarily due to a smaller reserve release than in the prior-year period, partially offset by lower net charge-offs. However, the reported figure came in below our estimate of $1.5 billion.
Synchrony’s purchase volume rose 8.1% year over year to $49.8 billion on higher spend per account. The figure beat the consensus estimate of $48.7 billion and our estimate of $47.7 billion.
Interest and fees on loans increased 1% year over year to $5.4 billion but marginally missed our estimate of $5.5 billion. The increase was driven by higher loan receivables yields, partly offset by lower benchmark rates. Net interest margin expanded 30 basis points year over year to 15.08% but fell short of the Zacks Consensus Estimate of 15.25%.
Average active accounts increased 0.4% year over year at 68.3 million, missing the Zacks Consensus Estimate of 68.9 million and our estimate of 68.7 million.
Total other expenses increased 6.9% year over year to $1.33 billion, slightly above our estimate of $1.30 billion. The efficiency ratio rose 170 basis points year over year to 35.8%, which outpaced the Zacks Consensus Estimate of 35.05%.
Movement in Individual Sales PlatformsHome & Auto period-end loan receivables decreased 0.1% year over year in the second quarter. Purchase volume rose 5.8% year over year, reflecting the performance of new programs. Interest and fees on loans declined 0.1% year over year.
Digital period-end loan receivables inched up 4.4% year over year. Purchase volume increased 9.2%, driven by strong performance across diversified partners. Interest and fees on loans rose 1.8% year over year.
Diversified & Value period-end loan receivables increased 6.5% year over year. Purchase volume increased 11.7%, driven by partner expansion and higher gas sales. Interest and fees on loans increased 1.6% year over year.
Health & Wellness period-end loan receivables inched up 0.5% year over year. Purchase volume increased 2.1% year over year, supported by growth in Pet, partly offset by lower Cosmetic spending. Interest and fees on loans advanced 2.7% year over year.
Lifestyle period-end loan receivables decreased 0.9% year over year in the second quarter. Purchase volume rose 6%, reflecting new program growth and higher spending in Other Apparel and Goods and Luxury. Interest and fees on loans declined 1.9% year over year.
Synchrony’s Financial Position (As of June 30, 2026)Synchrony exited the second quarter with cash and equivalents of $16.2 billion, which increased from the 2025-end level of $15 billion. Total assets of $121.9 billion increased from the 2025-end figure of $119.1 billion. SYF’s balance sheet was consistently strong in the reported quarter, with total liquidity of $19.8 billion accounting for 16.2% of its total assets.
Total borrowings were $16.4 billion, up from $15.2 billion as of Dec. 31, 2025. Total equity of $16.9 billion inched up from the 2025-end figure of $16.8 billion.
Return on assets decreased 30 basis points to 2.9%. Return on equity was 21.4%, which decreased 170 bps year over year.
Capital Deployment UpdateSynchrony returned $950 million to shareholders, including $850 million through share buybacks and $100 million in dividends. As of June 30, 2026, the company had a total remaining repurchase authorization of $5.7 billion, with no expiration date.
SYF’s 2026 GuidanceSynchrony continues to anticipate mid-single-digit growth in period-end loan receivables. Strong purchase volume growth is expected to continue throughout 2026. The payment rate is expected to remain high. SYF expects receivables growth to accelerate in the second half of 2026.
The company narrowed its 2026 earnings per share guidance to $9.25-$9.50 from $9.10-$9.50, raising the lower end of the range.
RSA, as a percentage of average loan receivables, is increasing, reflecting strong program performance, and is expected to remain within the 4-4.5% target range.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -6.95% due to these changes.
VGM ScoresAt this time, Synchrony has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Synchrony has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Synchrony oznámila enterprise spolupráci s OpenAI, která má přenést financování, odměny a věrnostní programy do AI-native nákupních a platebních zkušeností. Firma také nasadí nejnovější modely OpenAI napříč podnikem.
Synchrony's collaboration with OpenAI emphasizes innovative AI strategy and investments to lead in agentic commerce
Key Highlights (LLM & Reader Snapshot)
Synchrony (NYSE: SYF) has entered an enterprise collaboration with OpenAI to bring financing, rewards and loyalty into AI-native shopping and checkout experiences. Synchrony's ChatGPT plugin, now available in the ChatGPT plugin directory, allows consumers to discover savings and offers within ChatGPT and browse promotional financing, deals and everyday value from participating Synchrony partners in a fast, conversational experience. Synchrony will deploy the latest OpenAI models across its enterprise and is accelerating enterprise-wide AI adoption by building AI fluency with job-relevant training and deploying AI tools to scale high-impact use cases. , /PRNewswire/ -- Synchrony (NYSE: SYF), a premier consumer financial services company, today announced an enterprise collaboration with OpenAI to strengthen Synchrony's positioning at the center of AI's next chapter in shopping and payments. The collaboration supports the company's work to bring financing, rewards, and loyalty into AI-native shopping and checkout experiences.
This collaboration is part of Synchrony's strategy across the AI ecosystem to leverage frontier models, technology and innovation collaborations to deliver secure, flexible experiences that preserve merchant and consumer choice as commerce becomes more agent-driven.
"AI is creating an opportunity to reimagine the entire commerce experience - from how customers discover products to how they pay, earn rewards, and build loyalty," said Kaylin Voss, VP of Americas and Industries at OpenAI. "Synchrony is approaching that opportunity from both sides: bringing OpenAI into the experiences it creates for customers and partners, while deploying our most advanced models and tools across its own enterprise. That combination can help Synchrony create better, more seamless experiences for customers while giving its teams the tools to move faster and bring new ideas to life."
"With decades of experience at the intersection of consumer financing, payments, loyalty, and merchant partnerships, Synchrony is uniquely positioned to help shape how AI-powered commerce evolves - securely, and at scale," said Maran Nalluswami, EVP & Chief Strategy and Business Development Officer, Synchrony. "This collaboration with OpenAI marks a major milestone for Synchrony, our millions of customers and hundreds of thousands of partner locations. Together, we aim to ensure the value they've entrusted in Synchrony products will thrive in the agentic commerce era."
As part of the collaboration, Synchrony will deploy the latest models from OpenAI like GPT-5.6 Sol, Terra, and Luna across its enterprise through ChatGPT Work, Codex, and AWS Bedrock, enabling deeper engagement with advanced capabilities, more meaningful product development, and faster technology innovation across the enterprise.
Synchrony has long focused on ensuring its partners extend leadership in every arena of consumer financing —from online shopping to digital wallets. The OpenAI collaboration reflects Synchrony's focus on building AI in a secure, scalable way across the enterprise and strengthens Synchrony's role in defining what trusted, AI-powered commerce looks like.
Synchrony will also launch a ChatGPT plugin into the ChatGPT plugin directory. The plugin will allow consumers to discover savings and offers within the Synchrony Marketplace directly within ChatGPT and browse promotional financing, deals and everyday value from participating Synchrony partners in a fast, conversational experience. By bringing Marketplace offers into ChatGPT, Synchrony is expanding discoverability, creating a more convenient discovery journey and exploring new ways for businesses to drive conversion and engage consumers.
Synchrony is also accelerating enterprise-wide AI adoption by building AI fluency with job-relevant training as well as deploying AI tools to scale high-impact use cases across the organization. With nearly 100% of its professional workforce actively using AI tools like ChatGPT since 2024 and the upcoming access to Chat GPT Enterprise and ChatGPT Work, employees will have the ability to integrate AI into daily workflows to enhance productivity, decision-making, and customer outcomes. Employee trust remains strong, with 90% of employees expressing confidence in Synchrony's commitment to using AI fairly, ethically, and responsibly.
Frequently Asked Questions
Q1: What is the significance of the Synchrony and OpenAI collaboration?
A1: The enterprise collaboration strengthens Synchrony's positioning at the center of AI's next chapter in shopping and payments, bringing financing, rewards and loyalty into AI-native shopping and checkout experiences as commerce becomes more agent-driven.
Q2: How does this compare to existing approaches to AI in consumer financing?
A2: Synchrony is leveraging the benefits of frontier models, technology and innovation collaborations to deliver secure, flexible experiences that preserve merchant and consumer choice. The collaboration reflects Synchrony's focus on building AI in a secure, scalable way across the enterprise and strengthens its role in defining what trusted, AI-powered commerce looks like.
Q3: Where can I learn more about Synchrony's AI-powered commerce products?
A3: Visit www.synchrony.com or the Synchrony investor relations site at https://investors.synchronyfinancial.com/. Synchrony's plugin is available in the ChatGPT plugin directory.
Q4: How is Synchrony using AI across its enterprise?
A4: Synchrony is accelerating enterprise-wide adoption through job-relevant training and AI tools designed to support high-impact use cases across the organization. Nearly 100% of Synchrony's professional workforce is actively using AI tools, soon to include ChatGPT Enterprise and ChatGPT Work, to support daily workflows, productivity, decision-making and customer outcomes.
About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation's most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #1 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®. For more information, visit www.synchrony.com.
Forward-Looking Statements
This press release includes certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. Forward-looking statements may be identified by words such as "will," "aim" or words of similar meaning. The forward-looking statements convey our expectations related to the collaboration with Open AI, and are subject to inherent uncertainties, risks and changes that are difficult to predict, may change over time and many of which are beyond our control. As a result, actual results could differ materially from those indicated in these forward-looking statements. For these reasons, we caution you against relying on any forward-looking statements, which should also be read in conjunction with our public filings, including under the headings "Risk Factors Relating to Our Business" and "Risk Factors Relating to Regulation" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed on February 6, 2026. Any forward-looking statement speaks only as of the date on which it is made and we undertake no obligation to update any forward-looking statement, except as otherwise may be required by law.
Media Contact
Tyler Allen
Synchrony
[email protected]
Synchrony jmenovala Nimroda Baraka novým Chief AI Officer s účinností od 30. června 2026. Má vést firemní AI strategii, správu i nasazení napříč byznysem.
, /PRNewswire/ -- Synchrony (NYSE: SYF), a premier consumer financial services company, announced the appointment of Nimrod Barak as Chief AI Officer effective June 30, 2026. Barak will spearhead Synchrony's enterprise AI strategy and execution, accelerating innovation across the business to elevate consumer experiences, unlock new value for partners, and fuel growth.
Synchrony Elevates AI Strategy Hiring Nimrod Barak as Chief AI Officer to Accelerate Innovation. In his new role, Barak will lead Synchrony's enterprise-wide AI strategy, governance, and execution, helping further strengthen how the company serves customers, supports partners, and empowers employees. He will oversee the development and deployment of AI capabilities across the business, accelerating innovation, advancing agentic and intelligent automation initiatives, and ensuring AI is embedded responsibly into products, operations, and decision-making.
"Over the past several years, Synchrony has been thoughtfully rolling out new AI capabilities across the organization and preparing for the next phase of agentic commerce," said Florin Arghirescu, EVP & Chief Technology Officer, Synchrony. "We look forward to Nimrod's leadership to accelerate AI adoption as part of our commitment to responsible innovation built on decades of trust with consumers and partners."
Barak is a globally recognized technology and innovation executive with more than 20 years of experience leading large-scale engineering, data, and AI organizations. Most recently, he served as Managing Director, Head of AI Center of Excellence and Emerging Technologies at Citi. Throughout his career, Barak has built and scaled high-performing global teams, pioneered the deployment of emerging technologies, and helped organizations modernize operations, improve customer experiences, and create new sources of business value through innovation and responsible AI.
Synchrony is scaling enterprise-wide AI readiness and adoption by rolling out AI capabilities across the enterprise and implementing AI focused use-cases. Adoption is strong, with nearly 100% of its professional workforce using AI tools including Synchrony GPT since 2024. And, employee trust is high – 90% of employees trust Synchrony to use AI fairly, ethically, and responsibly.
About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation's most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #1 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®. For more information, visit www.synchrony.com.
Media Contact
Tyler Allen
Synchrony
[email protected]
Key Takeaways Synchrony Financial posted record Q2 purchase volume of $49.8B, up 8% year over year.Co-branded card volume surged 23%, while June purchase volume growth accelerated to 11%.Stronger spending could lift loan receivables and net interest income despite elevated payment rates.
Synchrony Financial’s (SYF - Free Report) record purchase volume is an important growth driver for the second half of 2026. It reached an all-time high of $49.8 billion in the second quarter, up 8% year over year, with growth across all five sales platforms. This growth accelerated to 11% in June, showing that spending was gaining strength toward the end of the quarter. This trend suggests that growth should continue in the second half as well.
The quality of this growth is encouraging. Co-branded card purchase volume jumped 23%, accounting for 52% of total purchase volume. Out-of-partner discretionary spending also grew at a double-digit rate despite elevated fuel prices. This shows that customers are not just opening accounts, they are using cards more actively.
Synchrony is also adding to this momentum. It added or renewed more than 15 partners in the second quarter of 2026, while new programs and product upgrades are helping drive customer engagement. The MyLowe’s Pro Rewards acquisition and refreshed DICK’S Sporting Goods program should provide more opportunities to increase card usage.
This is important because higher purchase volume can lead to higher loan receivables and net interest income. In the second quarter of 2026, loan receivables grew only 2% as elevated payment rates limited the benefit of stronger spending. Management expects stronger purchase volume to overcome this pressure in the second half. If spending stays strong, SYF could see higher loan receivables and a further lift to earnings in the near term.
How Are SYF’s Peers Faring?SYF’s peers in the Finance space, including American Express Company (AXP - Free Report) and Capital One Financial Corporation (COF - Free Report) , also benefited from strong card spending in the recent quarter.
American Express benefited from strong card spending, with billed business rising 9% year over year to $455.8 billion in second-quarter 2026. Higher spending helped drive a 10% increase in revenues and an 8% rise in profit, while AXP raised its 2026 revenue-growth outlook to 10%.
Capital One also benefited from strong card spending in second-quarter 2026, with purchase volume rising 15% year over year to $249.2 billion. COF’s solid card activity, along with strong credit performance, is supporting the business and could help sustain results in the coming quarters.
SYF’s Price Performance, Valuation & EstimatesShares of SYF have risen 9.1% over the past year against the industry’s 24.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, SYF trades at a forward price-to-earnings ratio of 7.96X, down from the industry average of 17X. SYF carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SYF’s 2026 earnings is pegged at $9.37 per share, implying a 0.5% decline from the year-ago period’s level.
Image Source: Zacks Investment Research
SYF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Synchrony spojila CareCredit se Stripe, aby zdravotnické a wellness firmy mohly nabízet financování přímo v online pokladně bez další integrace. Zpřístupní to také více než 12 milionům držitelů CareCredit.
Health and wellness providers and retailers using Stripe can soon offer CareCredit to customers directly within their existing payment platform, making it easier to offer trusted financing while expanding access for more than 12 million CareCredit cardholders.
Key Highlights:
Simplified Provider Experience: Health and wellness providers using Stripe will soon be able to activate CareCredit directly online within the payment platform they already use, with no additional integration required. Expanded Patient Access: More than 12 million CareCredit cardholders and new approved applicants will have more opportunities to use their card for health and wellness purchases through participating Stripe providers. , /PRNewswire/ -- Synchrony (NYSE: SYF), a premier consumer financial services company, today announced a new integration with Stripe, the programmable financial services company, making it easier for Synchrony and Stripe's health and wellness providers and retailers to offer CareCredit financing as part of their online checkout experience.
U.S. health and wellness providers using Stripe or new to Stripe will soon be able to offer CareCredit directly within the platform, eliminating the need for additional integrations while giving patients access to a trusted financing solution at checkout. The initial partnership includes CareCredit's standard card transactions and six-month promotional financing options.
"As more health and wellness purchases move online, providers need payment solutions that are both simple to implement and easy for patients to use," said Beto Casellas, Executive Vice President and Chief Executive Officer of Health & Wellness at Synchrony. "By integrating CareCredit directly into Stripe, we're making it easier for providers to offer trusted financing while helping more than 12 million CareCredit cardholders access the care and wellness products they need through the providers they already trust."
By embedding CareCredit into the platforms that providers already use, the partnership simplifies implementation, supports a streamlined checkout experience, and helps providers offer financing with reduced operational complexity.
For more information, please visit CareCredit.com.
About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation's most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #1 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®. For more information, visit www.synchrony.com.
For more information, visit Synchrony.com.
FAQ
What does the new Stripe integration enable?
It will enable H&W providers using Stripe to easily activate CareCredit as a payment option in their online checkout. This simplifies their payment ecosystem by adding a trusted financing choice directly through the platform they already use, with no new integration required.
How can providers begin offering CareCredit through Stripe?
Providers using Stripe can activate CareCredit directly within their Stripe Dashboard. Once enabled, their customers can use an existing CareCredit card or apply for one during the checkout process.
What benefits does the partnership provide consumers?
Consumers gain access to additional health and wellness providers where they can use their CareCredit card online, expanding financing options for eligible purchases.
How does the Stripe integration improve the merchant experience?
The integration enables Stripe health and wellness providers to activate CareCredit through the payment platform they already use, reducing implementation complexity and creating a more streamlined onboarding and on-going operational experience. Providers leveraging CareCredit via their Stripe integration will have one place to go for all their payment methods for enablement, reporting, reconciliation, chargebacks, etc.
Media Contact:
Tyler Allen
Synchrony
[email protected]
The prevailing narrative says the consumer, squeezed by inflation, higher gas prices and a steady sense of uncertainty, is ready to pull back. Synchrony’s second-quarter results point in a more optimistic direction. People are still using their cards, and much of the growth is coming from how often they spend rather than from bigger individual purchases.
The results, reported Tuesday (July 21), put purchase volume at $49.8 billion, up 8% from $46.1 billion a year earlier. Average active accounts were roughly flat at 68.3 million, compared with 68.1 million a year ago. Co-branded cards did much of the work, accounting for $25.8 billion of purchase volume, a 23% increase.
Those figures describe a consumer that Brian Wenzel, executive vice president and chief financial officer at Synchrony, described in an interview with PYMNTS CEO Karen Webster as more durable than sentiment measures might suggest.
“There’s this perception given gas prices and inflation that the consumer is going to bend or come under a lot of duress,” Wenzel said. “Sales accelerated, even though gas prices are up, inflation was up, but [consumers] continue to spend,” and they continue to spend in discretionary categories, he added.
The company’s data support that view. Discretionary spending as a share of out-of-partner co-branded spend held relatively steady through the first half of the year across super-prime, prime and non-prime customers.
Asked whether that reflected broad consumer health or simply a shift in Synchrony’s portfolio toward prime and super-prime borrowers, Wenzel said mix plays a role, though not in the way conventional assumptions might suggest. “Our non-prime is down 130 basis points quarter on quarter. So yes, mix does help,” he said. “But when you look at that non-prime category, we still see resiliency.” The more noticeable softness, he noted, is among middle-prime consumers, who may be seeing less wage growth while facing affordability pressures.
On whether shoppers are buying more or simply paying more for a bigger basket, Wenzel said the answer came down to frequency rather than ticket size. Average transaction values were down on a reported basis because of portfolio mix, he said, and would have risen just under 2% excluding that effect. Transaction frequency, by contrast, was up roughly 6% to 9%.
“So, really, the consumers that we see are engaging and spending more on a frequent basis,” he said.
The strength was broad based across Synchrony’s businesses. Diversified & Value rose 12% to $17.2 billion, Digital increased 9% to $14.9 billion, Home & Auto advanced 6% to $12.1 billion, Lifestyle gained 6% to $1.5 billion and Health & Wellness increased 2% to $4.1 billion.
Credit Holds as Walmart Adds Volume The growth in spending has not, so far, come at the expense of credit quality. The net charge-off rate was 5.43%, down from 5.70% a year earlier. The 30-plus-day delinquency rate stood at 4.16%, and 90-plus-day delinquencies were 2.01%. The allowance for credit losses eased to 10.09% of period-end loan receivables.
Wenzel credited underwriting changes made in 2023 and 2024, along with a shift in how customers pay. More have enrolled in autopay, he said, and Synchrony has used pre-collection outreach to contact higher-risk customers before their accounts move further into delinquency.
On the analyst call, Synchrony reported a 17% payment rate, roughly 70 basis points above the prior year and about 170 basis points above the 2015 to 2019 pre-pandemic average. The company attributed the difference largely to new portfolios, product-mix shifts and prior credit actions.
The rising payment rate cuts both ways. It signals a healthy consumer, but a faster pace of repayment is not necessarily good for the balance sheet. More than half of the recent increase came from new programs including Walmart and Lowe’s, Wenzel said, with lower promotional balances adding to it. Together, those effects accounted for about 85% of the payment rate increase.
Walmart’s OnePay relationship is also beginning to shape Synchrony’s transaction mix. Wenzel described it as a three-party relationship among Synchrony, OnePay and Walmart, with early adoption concentrated among Walmart+ customers. “The value proposition really resonates with the Walmart+ customer. So we see high engagement with those,” he said. “And those folks are buying more than groceries.”
A Measured Take on AI Synchrony is also exploring where artificial intelligence can improve distribution and productivity, though Wenzel was more measured than much of the rhetoric surrounding the technology. He sees opportunities in commerce and internal productivity, he said, but noted that “the curve of delivering that productivity is slower than people thought.” He also pointed to token, credit and licensing costs as something to watch as providers seek returns on heavy AI investment.
Looking ahead, Synchrony’s earnings call commentary and investor materials indicate the company expects strong purchase-volume growth to continue through 2026, receivables growth to accelerate in the second half, and the full-year net charge-off rate to hold in a range of 5.5% to 6%, and perhaps below that level.
For now, Wenzel said, Synchrony is not seeing the pullback that might be expected from consumers worried about employment or household finances. “We don’t see that fear in folks,” he said, adding that “they’re continuing to spend and [are] confident.”
Synchrony (SYF - Free Report) came out with quarterly earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.08 per share. This compares to earnings of $2.5 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +24.52%. A quarter ago, it was expected that this consumer credit company would post earnings of $2.27 per share when it actually produced earnings of $2.27, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Synchrony, which belongs to the Zacks Financial - Miscellaneous Services industry, posted revenues of $4.61 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 1.14%. This compares to year-ago revenues of $4.52 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Synchrony shares have lost about 12% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for Synchrony?While Synchrony has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Synchrony was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.56 on $4.87 billion in revenues for the coming quarter and $9.34 on $19.12 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Miscellaneous Services is currently in the bottom 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Virtu Financial (VIRT - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This high-speed trading company is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of +9.2%. The consensus EPS estimate for the quarter has been revised 9.6% higher over the last 30 days to the current level.
Virtu Financial's revenues are expected to be $639.48 million, up 12.6% from the year-ago quarter.
Synchrony Financial oznámila hospodářské výsledky za 2. čtvrtletí 2026 a schválila čtvrtletní dividendu 0,34 USD na kmenovou akcii. Splatná bude 17. srpna 2026.
Company Announces Quarterly Common Stock Dividend of $0.34 Per Share
, /PRNewswire/ -- Synchrony Financial (NYSE: SYF) today announced its second quarter 2026 results for the fiscal year ending June 30, 2026. The earnings news release and presentation can be found on the company's Investor Relations website at https://investors.synchrony.com/financial-information/financial-results.
Today at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President and Chief Financial Officer, will host a conference call to review the financial results and outlook for certain business drivers. The conference call can be accessed via an audio webcast through the investor relations website at www.investors.synchrony.com, under Events and Presentations. A replay will also be available on the website.
The Company also announced that its Board of Directors (the "Board") declared a quarterly cash dividend of $0.34 per share of common stock. The dividend is payable on August 17, 2026 to holders of record at the close of business on August 5, 2026. The Board also declared a quarterly cash dividend on the outstanding shares of its 5.625% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (the "Series A Preferred Stock"), 8.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (the "Series B Preferred Stock") and 7.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C (the "Series C Preferred Stock"). Each outstanding share of the Series A Preferred Stock and Series B Preferred Stock is represented by depositary shares, each representing a 1/40th interest in a share. Each outstanding share of the Series C Preferred Stock is represented by depositary shares, each representing a 1/100th interest in a share. The dividends of approximately $14.06 per share on the Series A Preferred Stock (equivalent to $0.351563 per outstanding depositary share), approximately $20.63 per share on the Series B Preferred Stock (equivalent to $0.515625 per outstanding depositary share) and approximately $1,409.72 per share on the Series C Preferred Stock (equivalent to $14.09722 per outstanding depositary share) are payable on August 17, 2026 to holders of record at the close of business on August 5, 2026.
About Synchrony
Synchrony (NYSE: SYF) is a leading consumer financing company that has been at the heart of American commerce and opportunity for nearly a century. Synchrony delivers credit and banking products that empower tens of millions of consumers to improve their financial lives and access what matters most. Leveraging innovative solutions that are shaping the future of retail commerce, Synchrony supports the growth and success of some of the nation's most respected brands, alongside hundreds of thousands of small and midsize businesses, including health and wellness providers. Committed to excellence in service and culture, Synchrony is honored to be ranked the #1 Best Company to Work For® in the U.S. by Fortune magazine and Great Place to Work®. For more information, visit www.synchrony.com.
Contacts
Investor Relations:
Kathryn Miller
(203) 585-6291
[email protected]
Media Relations:
Tyler Allen
(551) 370-2902
[email protected]
Synchrony Financial čeká ve 2. čtvrtletí růst tržeb o 3,4 % na 4,67 miliardy USD, ale zisk na akcii má meziročně klesnout o 19,2 % na 2,02 USD. Firma má přesto pozitivní Earnings ESP +2,07 %.
Key Takeaways SYF is expected to report Q2 revenue growth, despite a projected year-over-year EPS decline.Synchrony may benefit from higher purchase volumes, net interest margin and growth in key lending segments.SYF has a positive Earnings ESP, while higher operating costs may partially offset business gains. Consumer financial services company, Synchrony Financial (SYF - Free Report) , is set to report second-quarter 2026 results on July 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.02 per shareon revenues of $4.67 billion.
The second-quarter earnings estimate has witnessed no upward revision and three downward movements over the past 30 days. The bottom-line projection indicates a year-over-year decrease of 19.2%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 3.4%.
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For full-year 2026, the Zacks Consensus Estimate for Synchrony’s revenues is pegged at $19.12 billion, implying an increase of 3.6% year over year. However, the consensus mark for the current year EPS is pegged at $9.34, signaling a decline of around 0.9% on a year-over-year basis.
SYF’s earnings beat the consensus estimate in three of the last four quarters and met once, with the average surprise being 20.7%.
Q2 Earnings Whispers for SYFOur proven model predicts a likely earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Synchronyhas an Earnings ESP of +2.07% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping SYF’s Q2 Results?Synchrony is expected to have seen advantages in the second quarter from increased net interest margin and higher purchase volumes. Our model predicts interest and fees on loans of $5.47 billion for the quarter, up 2.6% from a year ago. Higher figures from Health & Wellness and Digital are likely to have anchored the results.
The Zacks Consensus Estimate for net interest margin is pegged at 15.31%, up from 14.78% achieved a year ago, increasing its profitability. The consensus mark for total purchase volumes indicates 5.1% year-over-year growth. The Zacks Consensus Estimate indicates that the total average active accounts are likely to increase 1.2% in the second quarter.
The consensus mark for the net charge-offs ratio is pegged at 5.61, down from 5.70 a year ago. The above-mentioned factors are likely to have benefited the company in the second quarter, positioning it for an earnings beat.
However, Synchrony is expected to have incurred increased information processing and employee costs in the second quarter, partially offsetting the positives. Also, RSA is expected to have increased nearly 10% year over year in the second quarter. SYF is expected to have witnessed a 0.2% decrease in average interest-earning assets.
Other Stocks That Warrant a LookHere are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Brookfield Asset Management Ltd. (BAM - Free Report) has an Earnings ESP of +4.55% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Brookfield Asset Management’s bottom line for the to-be-reported quarter is pegged at 44 cents per share, which indicates 15.8% year-over-year growth. The consensus estimate for BAM’s revenues is pegged at $1.49 billion, a 15.6% increase from a year ago.
American Express Company (AXP - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for AmEx’s bottom line for the to-be-reported quarter is pegged at $4.41 per share, which increased by 2 cents over the past week and indicates 8.1% year-over-year growth. The consensus estimate for AmEx’s revenues is pegged at $19.62 billion, a 9.9% increase from a year ago.
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +14.23% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.59 per share, a growth of 3.9% from a year ago. The consensus estimate for VIRT’s revenues is pegged at $602.74 million, a 6.2% year-over-year jump.
