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Synchrony Financial
(NYSE:SYF)
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Rating:70Outperform
Price Target:
$82.00
▲(2.59% Upside)
Action:Reiterated
Date:10/20/26
The score is driven primarily by solid underlying profitability/ROE and an attractive low P/E valuation. These positives are tempered by weakening revenue trends and mixed technical momentum, while the latest earnings call was constructive on near-term EPS and credit performance but highlighted NIM pressure, higher costs/provisions, and expected normalization toward higher losses.
Positive Factors
Broad-based purchase volume growth
Record purchase volume across every sales platform indicates broad customer engagement rather than reliance on one segment. Continued growth supports receivables expansion, strengthens merchant relationships, and gives Synchrony more opportunities to scale its payment, rewards, and financing infrastructure.
Negative Factors
Declining revenue trend
Recent revenue contraction signals that Synchrony’s earnings base is facing weaker top-line momentum despite solid current profitability. If the decline persists, it could constrain operating leverage, reduce resources available for growth investments, and make future earnings more dependent on credit performance or cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based purchase volume growth
Record purchase volume across every sales platform indicates broad customer engagement rather than reliance on one segment. Continued growth supports receivables expansion, strengthens merchant relationships, and gives Synchrony more opportunities to scale its payment, rewards, and financing infrastructure.
Read all positive factors
Synchrony Financial Key Performance Indicators (KPIs)
Any
Net Interest Margin
Measures the gap between interest earned on loans and interest paid on funding, expressed relative to the asset base. For Synchrony, a higher margin means its credit and card lending are more profitable, while a shrinking margin can signal pressure from rising funding costs, competitive pricing, or changes in the loan mix.
Measures the gap between interest earned on loans and interest paid on funding, expressed relative to the asset base. For Synchrony, a higher margin means its credit and card lending are more profitable, while a shrinking margin can signal pressure from rising funding costs, competitive pricing, or changes in the loan mix.
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The Fly
The FlySynchrony Financial (SYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.11B
Dividend Yield1.67%
Average Volume (3M)3.13M
Price to Earnings (P/E)7.7
Beta (1Y)1.46
Revenue Growth-1.80%
EPS Growth4.62%
CountryUS
Employees20,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.86
Shares Outstanding325,370,850
10 Day Avg. Volume3,634,191
30 Day Avg. Volume3,125,701
Financial Highlights & Ratios
PEG Ratio1.09
Price to Book (P/B)1.78
Price to Sales (P/S)1.56
P/FCF Ratio3.03
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue1.36
Enterprise Value/Gross Profit2.60
Enterprise Value/Ebitda4.98
Forecast
1Y Price Target
$85.69Price Target Upside7.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)9.46
Revenue Forecast (FY)$15.11B
Synchrony Financial Business Overview & Revenue Model
Company Description
Synchrony Financial, along with its various subsidiaries, functions as a leading provider of consumer financial services across the United States. The company offers a comprehensive range of credit products, encompassing diverse credit card option...
How the Company Makes Money
Synchrony primarily makes money by extending consumer credit through credit card and financing programs that it operates in partnership with merchants and brands. Its core revenue stream is net interest income: it earns interest and fees charged t...
Synchrony Financial Earnings Call Summary
Earnings Call Date:Oct 20, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 22, 2027
Earnings Call Sentiment Positive
The call was predominantly positive. Synchrony reported record third-quarter purchase volume, strong earnings and returns, broad-based platform growth, improving credit performance, substantial shareholder returns and full-year EPS expectations at the high end of its original range. The main challenges were lower year-over-year net interest margin, elevated payment rates, higher provisions and expenses, declining capital ratios, portfolio seasoning effects and expected future pressure from higher losses and deposit betas. Management nevertheless characterized the core business, consumer behavior and strategic growth initiatives as strong.Positive Updates
Record Third-Quarter Purchase Volume
Total purchase volume reached nearly $50 billion, the highest third-quarter level in Synchrony's history and an increase of 8% versus last year. Growth occurred across all five sales platforms.
Negative Updates
Net Interest Margin Decline Year Over Year
Third-quarter net interest margin decreased 12 basis points versus last year to 15.5%. The decline reflected a 20-basis-point decrease in loan receivable yield, a 62-basis-point reduction in liquidity portfolio yield and a 22-basis-point decrease in the mix of loan receivables as a percentage of interest-earning assets.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Third-Quarter Purchase Volume
Total purchase volume reached nearly $50 billion, the highest third-quarter level in Synchrony's history and an increase of 8% versus last year. Growth occurred across all five sales platforms.
Read all positive updates
Company Guidance
For 2026, Synchrony expects approximately $9.50 in diluted earnings per share for the full year, the high end of its original expectations; year end loan receivables will grow by mid single digits, net interest income will increase, net charge offs will be less than 5.5% with delinquency and losses following normal seasonality, RSAs will be higher for the full year but remain within the long term target range of 4% to 4.5% of average receivables, and fourth-quarter other expense dollars will generally be in line with the third quarter. Net interest margin will increase quarter on quarter, while fourth-quarter allowance coverage is expected to decline by significantly less than the typical 25-basis-point range. Management did not provide 2027 guidance, but said its framework should give it a path to double digit EPS growth next year, with operational losses expected to come down in 2027, technology spending slightly elevated this year into next year, and holiday growth rates viewed as cautiously optimistic; NRF has a 4 percentage point increase in holiday sales.Synchrony Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
71
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.96B | 19.12B | 20.76B | 17.34B | 13.20B | 11.22B |
| Gross Profit | 9.91B | 9.76B | 9.39B | 7.66B | 8.30B | 9.47B |
| EBITDA | 5.17B | 5.13B | 5.03B | 3.36B | 4.38B | 5.89B |
| Net Income | 3.52B | 3.55B | 3.50B | 2.24B | 3.02B | 4.22B |
Balance Sheet | ||||||
| Total Assets | 121.93B | 119.09B | 119.46B | 117.48B | 104.56B | 95.75B |
| Cash, Cash Equivalents and Short-Term Investments | 16.19B | 17.32B | 17.79B | 18.06B | 15.17B | 13.62B |
| Total Debt | 16.43B | 15.18B | 15.46B | 15.98B | 14.19B | 14.51B |
| Total Liabilities | 105.03B | 102.33B | 102.88B | 103.58B | 91.69B | 82.09B |
| Stockholders Equity | 16.90B | 16.77B | 16.58B | 13.90B | 12.87B | 13.65B |
Cash Flow | ||||||
| Free Cash Flow | 9.69B | 9.85B | 9.85B | 8.59B | 6.69B | 7.10B |
| Operating Cash Flow | 9.69B | 9.85B | 9.85B | 8.59B | 6.69B | 7.10B |
| Investing Cash Flow | -9.88B | -4.85B | -8.90B | -14.23B | -10.23B | -4.81B |
| Financing Cash Flow | -2.75B | -4.74B | -611.00M | 9.63B | 5.28B | -5.20B |
Synchrony Financial Technical Analysis
Positive
79.93
Price Trends
75.66
Negative
74.97
Negative
73.52
Positive
Market Momentum
-0.29
Negative
51.75
Neutral
61.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYF, the sentiment is Positive. The current price of 79.93 is above the 20-day moving average (MA) of 72.64, above the 50-day MA of 75.66, and above the 200-day MA of 73.52, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 51.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYF.
Synchrony Financial Risk Analysis
Synchrony Financial disclosed 36 risk factors in its most recent earnings report. Synchrony Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Synchrony Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.02B | 8.35 | 17.04% | 0.85% | 0.85% | 117.85% | |
71 Outperform | $126.78B | 12.19 | 9.67% | 1.55% | 26.27% | 613.24% | |
70 Outperform | $24.11B | 7.66 | 19.99% | 1.67% | -1.80% | 4.62% | |
70 Outperform | $214.98B | 19.62 | 34.12% | 1.13% | 9.41% | 15.72% | |
68 Neutral | $24.92B | 12.87 | 47.91% | ― | 32.43% | 3583.15% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.54B | 8.53 | 23.07% | 7.39% | 6.93% | 19.96% |
* Financial Sector Average
SYF
Synchrony Financial
74.11
2.07
2.87%
BFH
Bread Financial Holdings
108.63
43.91
67.84%
AXP
American Express
323.61
-27.37
-7.80%
COF
Capital One Financial
206.66
-10.01
-4.62%
OMF
OneMain Holdings
56.83
4.35
8.30%
AFRM
Affirm Holdings
73.51
-2.03
-2.69%
Synchrony Financial Corporate Events
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Synchrony Releases Monthly Credit Performance and Delinquency Data
Neutral
Oct 20, 2026
Synchrony Financial reported unaudited monthly charge-off and delinquency statistics covering the thirteen months ended Sept. 30, 2026, providing detailed data on loan receivables, delinquency rates and net charge-off rates across its credit portf...
Business Operations and StrategyPrivate Placements and Financing
Synchrony Financial Issues $1.1 Billion Senior Notes
Positive
Jul 31, 2026
On July 28, 2026, Synchrony Financial entered into an underwriting agreement with a syndicate led by J.P. Morgan Securities, TD Securities and Wells Fargo Securities to issue and sell $1.1 billion of fixed-to-floating rate senior notes in a public...
Business Operations and StrategyFinancial Disclosures
Synchrony Financial Reports June 2026 Credit Performance Metrics
Neutral
Jul 21, 2026
Synchrony Financial operates in the consumer financial services industry, focusing primarily on private-label credit cards, co-branded cards, and other revolving credit products. The company partners with retailers and healthcare providers to offe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.