Synchrony Financial's Q3 net earnings fall 17%

Synchrony Financial

20/10/2026 11:07

((This story was generated using AI and automation, please see
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Overview
    * US consumer finance firm's Q3 net earnings fell 17% yr/yr to $892 mln
    * Net interest income for Q3 rose 2% to $4.8 bln, driven by higher loan receivables
    * Company returned $1.2 bln in capital to shareholders via buybacks and dividends

    
Outlook
    * Synchrony did not provide specific financial guidance for the current or upcoming periods in the press release

    
Result Drivers
    * HIGHER LOAN RECEIVABLES - Net interest income rose 2% to $4.8 bln, driven by growth in average loan receivables
    * CREDIT LOSS PROVISION - Provision for credit losses increased 10% to $1.3 bln, contributing to lower net earnings
    * PURCHASE VOLUME GROWTH - Purchase volume increased 8% to $49.7 bln, with broad-based growth across sales platforms

    
Company press release: Full Story
    
Key Details
 Metric    Beat/Mis  Actual    Consensu
           s                   s
                               Estimate
 Q3 EPS              $2.68      
 Q3 Net              $892 mln   
 Income                        
 Q3 Net              $4.80      
 Interest            bln       
 Income                        
 Q3                  $1.3 bln   
 Credit                        
 Loss                          
 Provisio                      
 n                             
 Q3 ROCE             21.00%     
    
Analyst Coverage
    * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 9 "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 $88.00, about 18.5% above its October 19 closing price of $74.24
    * The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

    
Reuters Recommended Reads
    * Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition
    * Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
    * Oct 19 - FNB Q3 net interest income rises on growth in earning assets and lower deposit costs

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

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    Press Release    https://d1io3yog0oux5.cloudfront.net/_6e29633e7bb343c6df300320734a9d53/synchrony/db/3606/34034/earnings_release/Earnings+Press+Release+with+Financial+Tables+%283Q%2726%29.pdf
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    (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.)