Synchrony Financial Stock Earnings Reports

Synchrony reported strong Q1 2026 results driven by record first-quarter purchase volume of $43 billion (up 6% YoY) and growth across most of its five platforms (Diversified & Value +9%, Digital +8%, Lifestyle +7%). Ending loan receivables were flat at $100 billion but showed a positive inflection with a $477 million increase in the quarter. Net interest income rose 4% to $4.6 billion and net interest margin expanded 76 bps YoY to 15.5%, helped by higher loan yields (including PPPC impact) and lower funding costs. Credit trends improved: payment rate was ~16.3% (up ~50 bps YoY), 30+/90+ delinquencies were roughly in line with prior year, and net charge-offs fell to 5.42% (down 96 bps YoY). RSAs were $1.1 billion (4.31% of avg. receivables); provision expense declined. Expenses rose on technology investments and operational losses; efficiency ratio was 35.6%. Capital and liquidity: CET1 12.7%, deposits 83% of funding, $1 billion returned to shareholders in Q1 (including $900 million buybacks), and the Board authorized a new open-ended $6.5 billion repurchase program. Outlook: management expects mid-single-digit growth in ending loan receivables by year-end with receivables growth accelerating into H2, full-year net charge-offs <5.5%, RSAs to remain in long-term 4.0%–4.5% range, and EPS guidance of $9.10–$9.50. Key investor considerations: resilient consumer demand and stronger credit trends support growth and capital returns, but watch payment rate dynamics, expense investments (AI/tech), RWA/capital impacts from final Basel policy, and macro/headline risks (inflation, fuel, geopolitics).