10-Q · April 23, 2026
Synchrony reported strong first-quarter operating results with net earnings of $805 million (up from $757 million) and revenue-equivalent net interest income of $4,635 million (up $171 million). Purchase volume grew…
Earnings analysis · 10-Q
SYF earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Synchrony delivered solid volume and net interest income growth in the third quarter, with net interest income rising 1.9% to $4.809 billion and purchase volume increasing 8.0% to $49.707 billion. Credit metrics…
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Synchrony delivered solid volume and net interest income growth in the third quarter, with net interest income rising 1.9% to $4.809 billion and purchase volume increasing 8.0% to $49.707 billion. Credit metrics improved, including a decline in the net charge-off rate to 4.79%, but profitability weakened as net earnings fell 17.2% to $892 million due to higher retailer share arrangements, a reserve build and rising operating costs. Liquidity and deposits strengthened, although capital ratios declined following substantial share repurchases and dividends. Management provided no revenue or EPS guidance, but expects the 2026 net charge-off rate to remain below its 5.5%–6.0% long-term target range.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $2.68
What stood out
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Net interest income grew despite lower rates
Net interest income increased to $4.809 billion from $4.720 billion, up $89 million or 1.9% year over year. Interest expense declined $32 million to $979 million as cost of funds fell to 3.93% from 4.20%.
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Purchase volume accelerated
Purchase volume increased 8.0% to $49.707 billion, driven by partner expansion, the $0.7 billion Lowe's commercial portfolio acquisition and higher spend per average active account.
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Credit metrics improved year over year
Net charge-offs declined to $1.236 billion from $1.298 billion, and the annualized net charge-off rate improved to 4.79% from 5.16%. Over-30-day delinquencies also improved to 4.34% from 4.39%.
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Funding and liquidity strengthened
Deposits rose 2.2% from December 31, 2025 to $83.0 billion and represented 83% of total funding sources. Liquid assets increased to $19.5 billion from $16.6 billion at year-end.
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Core platforms delivered volume growth
Diversified & Value purchase volume grew 12.8% to $17.394 billion, while Home & Auto grew 9.1% to $12.065 billion and Lifestyle grew 5.8% to $1.450 billion.
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Capital returned to shareholders
The company repurchased $2.9 billion of common stock during the first nine months and had $4.6 billion of remaining authorization at September 30, 2026; the quarterly common dividend increased to $0.34 per share.
What to watch
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Profitability weakened despite revenue growth
Net earnings fell to $892 million from $1.077 billion, down $185 million or 17.2% year over year, while diluted EPS declined to $2.68 from $2.86. Higher retailer share arrangements of $1.096 billion and other expense of $1.371 billion offset net interest income growth.
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Reserve build signals credit risk
Provision for credit losses increased 10.5% to $1.266 billion in the quarter, including a $30 million reserve build versus a $152 million reserve release in the prior-year quarter. The allowance remained high at $10.341 billion, or 10.01% of period-end loan receivables.
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Operating and fraud costs increased
Operating costs increased 9.9% to $1.371 billion, including information-processing expense of $260 million versus $226 million and fraud-related operational losses of $91 million versus $43 million. Management also identified technology investments and higher marketing costs as drivers.
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Capital ratios declined
Common equity Tier 1 capital declined to $13.584 billion, or 12.9%, from $14.290 billion, or 13.5%, at December 31, 2025, primarily due to share repurchases and dividends.
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Credit-card concentration remains material
Loan receivables totaled $103.346 billion, including $95.526 billion of credit cards, or 92.4% of the portfolio. The concentration leaves results exposed to U.S. consumer credit conditions and elevated credit-card losses, which were $1.133 billion in the quarter.
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Large unused credit commitments
The company identified $455 billion of unused credit-card lines at September 30, 2026, up from $440 billion at December 31, 2025. Although lines are generally cancellable, increased utilization could raise funding and credit-loss requirements.
Management's outlook
No numeric revenue or EPS guidance was provided in the 10-Q. Management expects the 2026 net charge-off rate to be below its long-term target range of 5.5% to 6.0%; the filing does not provide a specific point estimate or range.
Earlier filings 1
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