Synchrony Financial Q3 net earnings rises 37%, co announces $1bln share buyback

Synchrony Financial

15/10/2025 11:07

Overview

Synchrony Financial Q3 net earnings rise 37% to $1.1 bln, driven by improved credit grades

Net interest income for Q3 increased 2% to $4.7 bln, reflecting lower interest costs

Company announces $1 bln share repurchase authorization, showing financial confidence

Outlook

Synchrony authorized $1.0 bln in share repurchases through June 30, 2026

Result Drivers

PURCHASE VOLUME GROWTH - Driven by stronger spending trends across all platforms and improved credit performance, per CEO Brian Doubles

NET INTEREST INCOME - Increased by 2% to $4.7 bln, primarily due to lower interest costs, contributing to higher retailer share arrangements

CREDIT LOSS PROVISION - Decreased to $1.1 bln, driven by lower net charge-offs and a reserve release

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$3.82 bln
Q3 EPS
$2.86
Q3 Net Income
$1.10 bln
Q3 Net Interest Income
$4.70 bln
Q3 Credit Loss Provision
$1.10 bln
Q3 ROCE
25.10%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the consumer lending peer group is "buy"

Wall Street's median 12-month price target for Synchrony Financial is $82.50, about 11.7% above its October 14 closing price of $72.84

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)