Zacks Research Expects Stronger Earnings for Bread Financial

Bread Financial Holdings, Inc. (NYSE:BFH) – Investment analysts at Zacks Research boosted their Q1 2026 EPS estimates for Bread Financial in a report issued on Wednesday, February 11th. Zacks Research analyst Team now expects that the company will earn $2.78 per share for the quarter, up from their prior forecast of $2.47. Zacks Research 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.

BFH has been the topic of several other research reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of Bread Financial in a research note on Monday, December 29th. The Goldman Sachs Group raised shares of Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 price target on the stock in a report on Tuesday, January 6th. TD Cowen upped their price objective on shares of Bread Financial from $85.00 to $88.00 and gave the stock a “hold” rating in a research report on Friday, January 30th. Morgan Stanley raised their target price on shares of Bread Financial from $62.00 to $68.00 and gave the company an “underweight” rating in a research report on Friday, January 30th. Finally, Evercore raised shares of Bread Financial from an “in-line” rating to an “outperform” rating and set a $90.00 target price on the stock in a research note on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $80.09.

Bread Financial Stock Performance

Shares of NYSE:BFH opened at $72.48 on Friday. The company’s 50 day simple moving average is $74.52 and its 200 day simple moving average is $66.39. The company has a debt-to-equity ratio of 0.27, a current ratio of 1.17 and a quick ratio of 1.19. Bread Financial has a 1 year low of $38.21 and a 1 year high of $82.03. The stock has a market capitalization of $3.31 billion, a price-to-earnings ratio of 6.69, a price-to-earnings-growth ratio of 0.48 and a beta of 1.26.

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

Hedge Funds Weigh In On Bread Financial

Large investors have recently modified their holdings of the business. Daiwa Securities Group Inc. lifted its holdings in shares of Bread Financial by 5.6% during the fourth quarter. Daiwa Securities Group Inc. now owns 3,535 shares of the company’s stock worth $262,000 after purchasing an additional 187 shares during the period. Teacher Retirement System of Texas raised its position in Bread Financial by 2.6% during the 2nd quarter. Teacher Retirement System of Texas now owns 7,460 shares of the company’s stock worth $426,000 after purchasing an additional 192 shares during the last quarter. Arizona State Retirement System raised its position in Bread Financial by 1.4% during the 3rd quarter. Arizona State Retirement System now owns 14,527 shares of the company’s stock worth $810,000 after purchasing an additional 200 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its holdings in Bread Financial by 1.7% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 11,951 shares of the company’s stock worth $683,000 after buying an additional 203 shares during the period. Finally, Illinois Municipal Retirement Fund grew its position in shares of Bread Financial by 0.9% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 25,186 shares of the company’s stock valued at $1,405,000 after buying an additional 213 shares during the last quarter. Institutional investors own 99.52% of the company’s stock.

Bread Financial announced that its Board of Directors has authorized a stock repurchase plan on Thursday, October 23rd that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the company to buy up to 7.1% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Bread Financial Announces Dividend

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

Key Headlines Impacting Bread Financial

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.

Bread Financial Company Profile

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.