Synchrony Financial Stock Earnings Reports

Synchrony reported a strong start to 2026 with record Q1 purchase volume of $43 billion (up 6% YoY), sequential improvement in average active accounts, higher spend-per-account across all five platforms, and stronger co‑brand card performance (co-branded cards accounted for 51% of volume and grew 20% YoY). Ending loan receivables were flat at $100 billion but showed a positive inflection (+$477 million) as higher purchases were largely offset by elevated payment rates (16.3%, +50 bps YoY). Net interest income rose 4% to $4.6 billion and NIM expanded to 15.5% (+76 bps YoY), driven by higher loan yields (including PPPCs) and lower funding costs. Credit trends improved: net charge-offs fell to 5.42% (down 96 bps YoY), 30+/90+ delinquencies roughly in line with prior year, and allowance for credit losses at 10.42% of receivables. Operating expenses increased (efficiency ratio 35.6%) due to technology investments, higher loyalty/merchant fees, and some idiosyncratic operational losses. Capital and liquidity: CET1 12.7%, deposits 83% of funding, $1.0 billion returned to shareholders in Q1 (including $900M buybacks), and a new open-ended $6.5 billion repurchase authorization. Outlook: expect mid-single-digit year-end receivables growth (with back-half acceleration), net charge-offs <5.5% for full year, RSAs to remain in long-term 4.0–4.5% range, EPS target $9.10–$9.50, continued disciplined underwriting, and continued investments (AI, cloud, AgenTek/partnerships) while returning excess capital prudently.