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 improving account acquisition and spend-per-account across its five platforms. Co-branded cards (including dual cards) comprised 51% of purchase volume and grew 20% YoY. Payment rates rose ~50 bps YoY to 16.3%, helped in part by elevated tax refunds, while delinquency and net charge-offs improved (NCOs 5.42%, down 96 bps YoY). Net interest income grew 4% to $4.6 billion and net interest margin widened to 15.5% (up 76 bps YoY), supported by PPPCs and lower funding costs. Reserves for loan losses (RSAs) were $1.1 billion (4.31% of avg receivables); provision decreased versus prior year. Ending loan receivables were flat at $100 billion but showed a positive inflection late in the quarter (+$477 million). Capital generation was strong: CET1 12.7%, return on tangible common equity 24.5%, tangible book value per share up 8%. Synchrony returned $1.0 billion to shareholders in Q1 (including $900M buybacks) and launched a new $6.5 billion open-ended repurchase authorization. Outlook: management expects mid-single-digit growth in ending loan receivables by year-end (with acceleration into H2), net charge-offs <5.5% for full year 2026, RSAs to remain within a 4%–4.5% long-term range, and EPS of $9.10–$9.50. Management highlighted resilient consumer behavior, continued partner wins and product expansion (notable additions: Indian Motorcycle, Harbor Freight, Miracle-Ear, expanded CareCredit partnerships), and continued strategic investments in technology and AI while maintaining expense discipline.