Synchrony Financial (NYSE:SYF) Issues Earnings Results

Synchrony Financial (NYSE:SYF) issued its quarterly earnings data on Tuesday. The financial services provider reported $2.04 earnings per share for the quarter, topping analysts’ consensus estimates of $2.02 by $0.02, Briefing.com reports. Synchrony Financial had a net margin of 15.84% and a return on equity of 22.96%. The business had revenue of $3.79 billion during the quarter, compared to the consensus estimate of $3.84 billion. During the same quarter in the prior year, the firm posted $1.91 earnings per share. The company’s revenue was down .2% compared to the same quarter last year. 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 Down 5.3%

Synchrony Financial stock traded down $4.08 during mid-day trading on Tuesday, hitting $73.43. The company’s stock had a trading volume of 3,463,147 shares, compared to its average volume of 4,528,291. The stock’s fifty day moving average is $80.93 and its two-hundred day moving average is $75.64. The company has a current ratio of 1.24, a quick ratio of 1.24 and a debt-to-equity ratio of 0.91. The firm has a market capitalization of $26.45 billion, a PE ratio of 8.04, a price-to-earnings-growth ratio of 0.53 and a beta of 1.43. Synchrony Financial has a 1 year low of $40.54 and a 1 year high of $88.77.

Synchrony Financial News Summary

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

• Positive Sentiment: Q4 earnings beat — Synchrony reported EPS of $2.18, above consensus (≈$1.95–$2.02), signaling better-than-expected profitability and top-line performance; the company also released a slide deck and press materials. View Press Release
• Positive Sentiment: Dividend declared — Synchrony announced a quarterly common-stock dividend of $0.30 per share, which supports income-oriented investors and can be seen as a signal of cash-flow confidence. Press Release: Dividend & Q4 Results
• Positive Sentiment: Strong profitability metrics — Management reported a return on equity of 22.96% and a net margin of 15.84%, underscoring solid earnings quality for a finance company. Q4 Results PDF
• Neutral Sentiment: FY‑2026 EPS guidance is mixed — Synchrony updated guidance to $9.10–$9.50 (consensus ~$9.34). The range overlaps the street estimate (midpoint roughly in-line), so this may temper upside that the beat created. (Guidance detail reported in company releases.)
• Neutral Sentiment: Credit metrics released for December — The firm published unaudited monthly charge-off and delinquency statistics; investors will parse these for signs of credit deterioration or improvement, but no headline surprise was flagged in the summary. TipRanks: December Credit Metrics
• Negative Sentiment: Relative underperformance vs. peers — MarketWatch flagged that SYF underperformed competitors on Monday despite daily gains, suggesting some investors may prefer other card/consumer-finance names or are taking profits after the run-up. MarketWatch: Underperformance Note

Synchrony Financial declared that its Board of Directors has authorized a stock repurchase program on Wednesday, October 15th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the financial services provider to repurchase up to 3.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

SYF has been the topic of a number of recent analyst reports. Evercore ISI increased their target price on Synchrony Financial from $83.00 to $84.00 and gave the company an “outperform” rating in a research report on Tuesday, September 30th. Wall Street Zen raised shares of Synchrony Financial from a “hold” rating to a “buy” rating in a research note on Saturday, January 17th. TD Cowen raised their price target on shares of Synchrony Financial from $91.00 to $100.00 and gave the company a “buy” rating in a research note on Thursday, January 8th. Truist Financial lifted their price objective on Synchrony Financial from $78.00 to $92.00 and gave the stock a “hold” rating in a report on Monday, December 22nd. Finally, Hsbc Global Res upgraded 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, twelve have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $86.47.

Insiders Place Their Bets

In other news, insider Jonathan S. Mothner sold 32,000 shares of the business’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $72.80, for a total value of $2,329,600.00. Following the sale, the insider directly owned 127,100 shares of the company’s stock, valued at approximately $9,252,880. The trade was a 20.11% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 transaction, the insider directly owned 16,096 shares of the company’s stock, valued at $1,191,425.92. The trade was a 15.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 55,075 shares of company stock worth $4,036,892. Company insiders own 0.32% of the company’s stock.

Institutional Trading of Synchrony Financial

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SYF. FWL Investment Management LLC acquired a new stake in shares of Synchrony Financial during the third quarter worth about $26,000. Palisade Asset Management LLC purchased a new position in Synchrony Financial during the 3rd quarter worth approximately $29,000. Geneos Wealth Management Inc. increased its position in Synchrony Financial by 337.0% during the first 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 during the period. Towarzystwo Funduszy Inwestycyjnych PZU SA lifted its stake in Synchrony Financial by 75.8% in the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 580 shares of the financial services provider’s stock valued at $41,000 after buying an additional 250 shares during the last quarter. Finally, Larson Financial Group LLC lifted its stake in Synchrony Financial by 22.7% in the third quarter. Larson Financial Group LLC now owns 904 shares of the financial services provider’s stock valued at $64,000 after buying an additional 167 shares during the last quarter. Institutional investors and hedge funds own 96.48% of the company’s stock.

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.