Synchrony Financial (SYF) Q1 2026 earnings summary

Executive summary

• Net earnings rose 6% year-over-year to $805 million, with diluted EPS up 20% to $2.27, driven by higher net interest income, lower provision for credit losses, and strong purchase volume growth across all platforms.

• Achieved record first quarter purchase volume of $43 billion, up 6% year-over-year, with 68.8–69 million average active accounts and $100 billion in loan receivables.

• Board approved a new $6.5 billion open-ended share repurchase program and a 13% increase in quarterly dividend to $0.34 per share starting Q3 2026.

• Recognized as the #1 Best Company to Work For in the U.S. by Fortune and Great Place to Work in 2026.

• Expanded and renewed partnerships, including Indian Motorcycle, Harbor Freight, Miracle-Ear, and CareCredit collaborations in pet insurance and Walmart.com.

Financial highlights

• Net interest income increased 4% to $4.64 billion, driven by higher loan receivables yield and lower interest expense.

• Net interest margin rose 76 basis points to 15.5% year-over-year.

• Provision for credit losses decreased 10.5% to $1.3–$1.34 billion, reflecting a $242 million drop in net charge-offs.

• Efficiency ratio increased to 35.6%, up 220 basis points year-over-year, mainly due to higher expenses and technology investments.

• Book value per share rose to $45.29, and tangible book value per share reached $37.62.

Outlook and guidance

• FY 2026 EPS expected in the range of $9.10–$9.50, with mid-single-digit growth in ending loan receivables and net charge-off rate projected below 5.5%.

• Receivables and purchase volume growth expected to accelerate in the second half of 2026.

• Payment rate projected to stay elevated; net interest income growth to continue, supported by product, pricing, and policy changes.

• Other expense growth expected to align with loan receivables growth, with continued investment in technology and efficiency.

• Management remains confident in long-term shareholder value creation, supported by capital return initiatives.