SYF changes

Pick any two versions below to diff them.

FromTo

View the full Oct 20, 2026 version

Price: $73.68 → $72.02(−2.3%)
Next earnings: Oct 20, 2026 → Jan 20, 2027
Next earnings is estimate: No → Yes
About: Synchrony Financial is a US consumer financing company based in Stamford, Connecticut. It issues private label and co-branded credit cards, installment loans and pay later products through partners, and it funds itself mostly with deposits at Synchrony Bank. It has five sales platforms: Home & Auto, Digital, Diversified & Value, Health & Wellness (including CareCredit) and Lifestyle. Its five largest programs in 2025 were Amazon, Lowe's, PayPal, Sam's Club and TJX, which together gave 54% of its interest and fees on loans. In September 2025, it launched a credit card program at Walmart with OnePay. At removed: June added: September 30, 2026, loan receivables were removed: $102.2 added: $103.3 billion and deposits were removed: $82.8 added: $83.0 billion. Most of its income is interest on card balances, less credit losses and payments to partners under retailer share arrangements.
Thesis: The market prices Synchrony for the risk of higher credit losses on its card loans to consumers and for its dependence on a few large partners. Its customers include many lower-income and middle-income households, so a weaker job market can raise loan losses quickly. Five partners gave 54% of its interest and fees on loans in 2025, and the loss of one large program would lower earnings. Recent added: credit results are good: in removed: Q2 added: Q3 2026, removed: purchase volume rose 8% to a record $49.8 billion, the net charge-off rate fell to removed: 5.43% added: 4.79% and removed: the net interest margin added: purchase volume rose added: 8% to removed: 15.08%. Diluted added: $49.7 billion. But diluted EPS removed: was $2.59, added: fell to $2.68 from $2.86 a year earlier, because expenses and removed: Synchrony returned $950 million added: payments to removed: shareholders. added: partners rose and a reserve release did not repeat. For the gap to close, three things must be true. The net charge-off rate must stay near or below its long-term target range as loan growth speeds up. Loan receivables must grow faster than the removed: 2% added: 3% of removed: Q2 added: Q3 2026 with the new Walmart and Lowe's removed: programs. added: programs, in line with the mid-single-digit growth that Synchrony expects for 2026. The CET1 removed: ratio added: ratio, which fell to 12.9% after $1.1 billion of removed: 13.2% added: buybacks in Q3 2026, must added: still support steady buybacks. The removed: Q3 2026 report on October 20, 2026, is the next test. The Q4 report and the 2027 outlook in January 2027 are the removed: main added: next test. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a rise in unemployment, which would raise loan losses.
Risks: Most of Synchrony's loans are unsecured card balances to consumers. Higher unemployment or high inflation can raise delinquencies and loan losses. Loans 30 or more days past due were removed: 4.16% added: 4.34% at removed: June added: September 30, 2026. Five programs gave 54% of interest and fees on loans in 2025. If a large partner ends or changes its program, or asks for a larger share of income, earnings can fall. Synchrony is a regulated bank holding company. New rules on card fees, interest rates or capital can lower its income or limit buybacks. Large banks, card networks and pay later companies compete for the same partners and customers.
Balance sheet: Synchrony funds itself mostly with deposits. At removed: June added: September 30, 2026, total assets were removed: $121.9 added: $122.5 billion and deposits were removed: $82.8 added: $83.0 billion, 83% of its funding. Borrowings were removed: $16.4 added: $17.0 billion: $8.9 billion of securitized financings and removed: $7.5 added: $8.1 billion of senior and subordinated unsecured notes. Cash and equivalents were removed: $16.2 added: $15.9 billion, and total liquid assets were removed: $19.8 added: $19.5 billion, or removed: 16.2% added: 15.9% of total assets. Loan receivables were removed: $102.2 added: $103.3 billion, with an allowance for credit losses of $10.3 billion, or removed: 10.09% added: 10.01% of loans. Total equity was removed: $16.9 added: $16.6 billion. The estimated CET1 ratio was added: 12.9%, down from 13.2% added: at June 30, 2026, and the Tier 1 capital ratio was removed: 14.9%. added: 14.5%. Book value per share was removed: $46.67 added: $47.64 and tangible book value per share was removed: $42.01. added: $42.79. The remaining share buyback authorization was removed: $5.7 added: about $4.6 billion. As of removed: Jun added: Sep 30, 2026.
Checkpoints: Oct 20, 2026: Q3 2026 earnings: credit and loan growth. removed: Pending. added: Failed. Watch: A stable or lower net charge-off rate and faster loan receivables growth pass; a rise in delinquencies or a reserve build fails. added: Outcome: The net charge-off rate fell to 4.79% and loan growth rose to 3%, but Synchrony built its reserve by $30 million, which this test counts as a fail, although the allowance fell to 10.01% of loans. Jan added: 20, 2027 (estimate): Q4 2026 results and the 2027 outlook. Pending. Watch: A 2027 outlook with loan growth and net charge-offs within the long-term target range passes; guidance for higher losses fails.
Recent events: added: Oct 20, 2026: Synchrony reported Q3 2026 results. Net earnings were $892 million, or $2.68 per diluted share, compared with $2.86 a year earlier. Purchase volume rose 8% to $49.7 billion and loan receivables rose 3% to $103.3 billion. The net charge-off rate fell to 4.79% from 5.16%, and loans 30 or more days past due were 4.34%. The net interest margin fell to 15.50%, and other expense rose 10%. Synchrony returned $1.2 billion to shareholders, including $1.1 billion of buybacks. For 2026, it now expects EPS of about $9.50, mid-single-digit loan growth and a net charge-off rate below 5.5%. Sep 22, 2026: Synchrony said that it will report Q3 2026 results on October 20, 2026. Jul 31, 2026: Synchrony issued $600 million of 5.450% fixed-to-floating rate senior notes due 2030 and $500 million of 6.276% fixed-to-floating rate senior notes due 2037. Jul 21, 2026: Synchrony reported Q2 2026 results. Net earnings were $885 million, or $2.59 per diluted share, compared with $2.50 a year earlier. Purchase volume rose 8% to a record $49.8 billion and loan receivables rose 2% to $102.2 billion. The net charge-off rate fell to 5.43% and loans 30 or more days past due were 4.16%. The net interest margin rose to 15.08%. Synchrony returned $950 million to shareholders, including $850 million of buybacks. Jun 29, 2026: Synchrony named Carol Juel CEO of its Digital platform, after Bart Schaller announced plans to retire. It also made other changes in its technology and operations leadership. Jun 5, 2026: Synchrony issued $500 million of 7.250% Series C fixed rate reset preferred stock.