SYF earnings analysis
What we found in SYF's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 5.6% to $42,984 million and net interest margin expanded to 15.50% from 14.74%, while credit metrics showed improving net charge-offs (5.42%) but a modest decline in allowance coverage to 10.42%. Management announced an open-ended $6.5 billion repurchase program and a planned dividend increase to $0.34 per share beginning Q3 2026.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Net earnings increased QoQ/Yoy
- Net earnings were $805 million for the three months ended March 31, 2026, up from $757 million for the three months ended March 31, 2025 (increase of $48 million) (see 'Summary Highlights').
- Net interest income and margin expansion
- Net interest income rose to $4,635 million (increase of $171 million vs prior year) and net interest margin expanded to 15.50% from 14.74% (see 'Net Interest Income' and 'Selected Performance Metrics').
- Purchase volume and digital strength
- Total purchase volume increased 5.6% to $42,984 million (from $40,720 million), with the Digital platform purchase volume up to $13,499 million from $12,479 million (see 'Selected Performance Metrics' and 'Digital').
- Stable low-cost funding via deposits
- Deposits represented 83% of total funding and total deposits were $82.9 billion at March 31, 2026 (management notes deposits increased 2.2% vs December 31, 2025) (see 'Introduction' and 'Funding, Liquidity and Capital').
- Capital return program expanded
- Company repurchased $900 million of common stock during the quarter and in April 2026 the Board approved a new share repurchase program of up to $6.5 billion with no expiration date (see 'Funding, Liquidity and Capital' and 'Unregistered Sales of Equity Securities').
- Improving net charge-offs
- Net charge-offs decreased by $242 million; net charge-off rate fell to 5.42% for the three months ended March 31, 2026 (from 6.38% prior year) and management expects the net charge-off rate for the year ended December 31, 2026 will be below their long-term target range of 5.5% to 6.0% (see 'Provision for Credit Losses').
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising operating expense / efficiency
- Other expense increased $73 million to $1,316 million (up from $1,243 million), driving the efficiency ratio worse to 35.6% from 33.4% (see 'Other Expense' and 'Selected Performance Metrics').
- Higher retailer share arrangements
- Retailer share arrangements increased $175 million to $(1,070) million for the three months ended March 31, 2026 (vs $(895) million), increasing expense and reducing NII after program sharing (see 'Retailer Share Arrangements').
- Allowance coverage declined YoY
- Allowance for credit losses as a percentage of period-end loan receivables decreased to 10.42% at March 31, 2026 from 10.87% at March 31, 2025 (see 'Loan receivables and Asset Quality' and 'Selected Performance Metrics').
- Seasonal loan receivables decline
- Loan receivables decreased by $3.7 billion (3.6%) to $100.1 billion at March 31, 2026 from $103.8 billion at December 31, 2025, reflecting seasonal paydowns that can pressure future revenue and credit metrics (see 'Business Trends and Conditions').
- Net interest income sensitive to rates
- The company reports an estimated 12-month net interest income impact of $(134) million for a -100 basis point move and $56 million for a +100 basis point move to interest rates, reflecting material rate sensitivity (see 'Quantitative and Qualitative Disclosures about Market Risk').
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.27
- Segment
- Digital — purchase volume $13,499 million; interest and fees on loans $1,632 million; average active accounts 21,268 (see 'Digital' and 'Selected Performance Metrics').
- Segment
- Diversified & Value — purchase volume $14,926 million; interest and fees on loans $1,195 million; average active accounts 20,416 (see 'Diversified & Value').
- Segment
- Home & Auto — purchase volume $9,443 million; interest and fees on loans $1,379 million; average active accounts 16,847 (see 'Home & Auto').
- Segment
- Health & Wellness — purchase volume $3,871 million; period-end loan receivables $ (purchase volume shown) $3,871 million (interest and fees on loans not separately itemized in excerpt) (see 'Selected Performance Metrics').
- Segment
- Lifestyle — purchase volume $1,245 million; average active accounts and product mix noted (interest and fees on loans not separately itemized in excerpt) (see 'Selected Performance Metrics').
- Segment
- Corp, Other — includes previously sold/terminated program activity and miscellaneous fee income (see 'Our Sales Platforms' and 'Platform Analysis').
What they said about what is next.
No explicit numeric quarterly revenue or EPS guidance provided in the 10-Q. Management provided a credit outlook that 'we expect our net charge-off rate for the year ended December 31, 2026 will be below our long‑term target range of 5.5% to 6.0%.' The Board approved a new $6.5 billion open‑ended share repurchase program and plans to increase the quarterly dividend to $0.34 per share commencing Q3 2026 (see 'Provision for Credit Losses' and 'Funding, Liquidity and Capital').
The filing reads about the same as the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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