Synchrony Financial (NYSE:SYF) Releases Earnings Results, Beats Estimates By $0.16 EPS

Synchrony Financial (NYSE:SYF) released its quarterly earnings data on Tuesday. The financial services provider reported $2.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.02 by $0.16, Zacks reports. The business had revenue of $3.79 billion during the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period in the prior year, the firm 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 Trading Up 1.6%

Shares of SYF traded up $1.17 during trading hours on Wednesday, hitting $74.17. 1,552,010 shares of the stock were exchanged, compared to its average volume of 4,751,566. Synchrony Financial has a fifty-two week low of $40.54 and a fifty-two week high of $88.77. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.24 and a quick ratio of 1.24. The business has a 50-day moving average of $80.96 and a 200-day moving average of $75.66. The firm has a market capitalization of $26.71 billion, a P/E ratio of 8.10, a price-to-earnings-growth ratio of 0.53 and a beta of 1.43.

Synchrony Financial Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, February 17th. Shareholders 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 dividend yield of 1.6%. The ex-dividend date is Friday, February 6th. Synchrony Financial’s payout ratio is 13.10%.

Analyst Upgrades and Downgrades

SYF has been the subject of several recent analyst reports. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Synchrony Financial in a research report on Wednesday, January 21st. Barclays cut their price objective on shares of Synchrony Financial from $101.00 to $93.00 and set an “overweight” rating on the stock in a research report on Wednesday. Wolfe Research assumed coverage on Synchrony Financial in a research note on Monday, December 8th. They issued an “outperform” rating and a $92.00 price target on the stock. Wall Street Zen upgraded Synchrony Financial from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. Finally, Hsbc Global Res raised shares of Synchrony Financial from a “hold” rating to a “strong-buy” rating in a research report on Thursday, October 9th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, Synchrony Financial presently has a consensus rating of “Moderate Buy” and an average price target of $87.21.

Synchrony Financial declared that its board has initiated a stock repurchase program on Wednesday, October 15th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 3.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Synchrony Financial News Roundup

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

Insider Transactions at Synchrony Financial

In other Synchrony Financial news, insider Jonathan S. Mothner sold 32,000 shares of the business’s stock in a transaction on Monday, November 17th. The shares were sold at an average price of $72.80, for a total transaction of $2,329,600.00. Following the completion of the sale, the insider owned 127,100 shares in the company, valued at approximately $9,252,880. The trade was a 20.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Arthur W. Coviello, Jr. sold 8,000 shares of Synchrony Financial stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $73.93, for a total transaction of $591,440.00. Following the transaction, the director directly owned 35,769 shares in the company, valued at approximately $2,644,402.17. This represents a 18.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 55,075 shares of company stock valued at $4,036,892 in the last 90 days. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Synchrony Financial

Several hedge funds and other institutional investors have recently modified their holdings of the company. FWL Investment Management LLC acquired a new stake in shares of Synchrony Financial during the 3rd quarter worth approximately $26,000. Palisade Asset Management LLC acquired a new position in shares of Synchrony Financial during the 3rd quarter worth about $29,000. Towarzystwo Funduszy Inwestycyjnych PZU SA boosted its holdings in Synchrony Financial by 75.8% in the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 580 shares of the financial services provider’s stock worth $41,000 after buying an additional 250 shares during the last quarter. Geneos Wealth Management Inc. increased its stake in Synchrony Financial by 337.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 590 shares of the financial services provider’s stock worth $31,000 after buying an additional 455 shares in the last quarter. Finally, Larson Financial Group LLC raised its holdings in shares of Synchrony Financial by 22.7% during the third quarter. Larson Financial Group LLC now owns 904 shares of the financial services provider’s stock valued at $64,000 after acquiring an additional 167 shares during the last quarter. 96.48% of the stock is owned by institutional investors.

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.