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Synchrony Financial
(NYSE:SYF)
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Rating:73Outperform
Price Target:
$86.00
▲(17.97% Upside)
Action:Reiterated
Date:08/01/26
The score is driven primarily by solid underlying profitability/ROE but tempered by declining recent revenue and cash-flow variability. Valuation is a clear positive with a low P/E, while technicals are supportive with the stock trading above major moving averages. Earnings-call guidance and operational momentum help, though margin/expense pressures and late-fee regulatory uncertainty remain notable risks.
Positive Factors
High profitability and ROE
Synchrony’s sustained TTM net margin (~17.7%) and ~21% ROE indicate durable earnings power and efficient capital use. High returns generate internal capital for buybacks/dividends and support reinvestment, helping the firm withstand cyclical credit swings and fund strategic initiatives.
Negative Factors
Weakening revenue momentum
Sustained top-line declines reduce operating leverage and constrain future earnings growth potential. With receivable growth pressured by higher payment rates, continued revenue contraction would force reliance on margin or cost moves to sustain profitability, increasing execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and ROE
Synchrony’s sustained TTM net margin (~17.7%) and ~21% ROE indicate durable earnings power and efficient capital use. High returns generate internal capital for buybacks/dividends and support reinvestment, helping the firm withstand cyclical credit swings and fund strategic initiatives.
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.
Data provided by:
The Fly
The FlySynchrony Financial (SYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.57B
Dividend Yield1.59%
Average Volume (3M)3.82M
Price to Earnings (P/E)7.9
Beta (1Y)1.40
Revenue Growth-2.40%
EPS Growth18.50%
CountryUS
Employees20,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.86
Shares Outstanding325,370,850
10 Day Avg. Volume4,177,193
30 Day Avg. Volume3,816,141
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$89.12Price Target Upside22.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)9.35
Revenue Forecast (FY)$15.17B
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 originating and servicing consumer credit it extends through its partner programs and direct channels. Its core earnings are driven by: (1) Net interest income: Synchrony earns interest and finance charges on rev...
Synchrony Financial Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call communicated strong operating momentum: record purchase volume, accelerating new account growth, robust earnings and return metrics, and continued partner expansion with a constructive outlook and shareholder returns. Headwinds included sequential margin pressure from lower late fees, elevated payment rates limiting receivable growth, higher operational/tech investments that raised expenses and RSA usage, and some regulatory uncertainty around late fees. Overall, the positive top-line momentum, solid profitability and capital flexibility outweigh the near-term margins and expense pressures.Positive Updates
All-Time High Purchase Volume
Purchase volume grew 8% year-over-year to almost $50 billion, reaching an all-time high; month of June accelerated to ~11% growth.
Negative Updates
Sequential Margin Pressure and Late-Fee Headwind
Net interest margin declined 42 basis points quarter-over-quarter, driven by lower assessed late fees (a material sequential headwind) and a decline in loan receivables mix; late-fee incidence remained a drag on NIM.
Read all updates
Q2-2026 Updates
Positive
Negative
All-Time High Purchase Volume
Purchase volume grew 8% year-over-year to almost $50 billion, reaching an all-time high; month of June accelerated to ~11% growth.
Read all positive updates
Company Guidance
Management guided 2026 diluted EPS of $9.25–$9.50 and said it expects average active account acceleration and continued strong purchase‑volume growth in H2 (Q2 purchase volume was up 8% Y/Y to nearly $50B) that should more than offset an elevated payment rate and produce mid‑single‑digit growth in ending loan receivables by year‑end (Q2 loans $102B); they expect net interest income to grow in 2026 (Q2 NII $4.6B; Q2 NIM 15.08% with sequential build expected), net charge‑offs to be less than 5.5% for the full year (Q2 NCO 5.43%), and RSAs to increase but remain within the long‑term target of 4.0%–4.5% of average receivables (Q2 RSA 4%); other expense dollars are expected to be roughly consistent H2 vs H1 as they invest in growth, and capital priorities include progress toward a CET1 target of 11% (Q2 CET1 13.2%), continued shareholder returns (Q2 returns $950M — $850M buybacks and $100M dividend — with ~$5.7B repurchase capacity remaining), while maintaining funding and liquidity (deposits 83% of funding; total liquid assets $19.8B, 16.2% of assets).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 | 19.90B | 19.12B | 20.76B | 17.34B | 13.20B | 11.22B |
| Gross Profit | 13.59B | 9.76B | 9.39B | 7.66B | 8.30B | 9.47B |
| EBITDA | 5.10B | 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 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $25.57B | 7.93 | 20.94% | 1.65% | -2.40% | 18.50% | |
72 Outperform | $5.14B | 7.55 | 30.31% | 2.14% | 4.76% | 78.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $7.47B | 9.48 | 23.07% | 7.01% | 6.93% | 19.96% | |
59 Neutral | $13.30B | 10.21 | 9.42% | 2.80% | 1.97% | 174.08% | |
55 Neutral | $3.03B | 48.62 | 6.59% | ― | 46.30% | ― | |
54 Neutral | $110.05M | -0.36 | -7.18% | 37.29% | -13.83% | -154.13% |
* Financial Sector Average
SYF
Synchrony Financial
78.19
9.73
14.21%
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27.32
-3.76
-12.11%
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Ally Financial
43.79
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21.06%
OMF
OneMain Holdings
63.16
11.35
21.92%
YRD
Yiren Digital
1.25
-4.24
-77.23%
UPST
Upstart Holdings
30.21
-33.25
-52.40%
Synchrony Financial Corporate Events
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...
Business Operations and StrategyExecutive/Board Changes
Synchrony Financial reshapes leadership to drive digital growth
Positive
Jun 29, 2026
On June 29, 2026, Synchrony announced significant executive leadership changes aimed at strengthening its digital platform, technology strategy and operations. Carol Juel, previously Executive Vice President, Chief Technology and Operating Officer...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Synchrony Financial Shareholders Back Board, Auditor and Pay
Positive
Jun 25, 2026
Synchrony Financial held its 2026 Annual Meeting of Stockholders on June 24, 2026, where shareholders elected all nominated directors to the board for the coming year, underscoring continuity in the company’s governance. The meeting also saw...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Synchrony Financial Updates Monthly Credit Performance Disclosures
Positive
Jun 9, 2026
Synchrony Financial reported unaudited monthly charge-off and delinquency statistics for its loan receivables for each of the thirteen months ended May 31, 2026, detailing period-end and average receivables, 30-plus day delinquency rates and net c...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Synchrony Financial Issues New Series C Preferred Stock
Positive
Jun 5, 2026
On June 5, 2026, Synchrony Financial issued and sold 500,000 depositary shares in a public offering, each representing a 1/100th interest in a share of its 7.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C. The preferred s...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Synchrony Financial Enhances Transparency With Monthly Credit Metrics
Positive
May 15, 2026
Synchrony Financial reported unaudited monthly charge-off and delinquency statistics for its credit portfolio for each of the thirteen months ended April 30, 2026, showing period-end loan receivables hovering around $100 billion and 30-plus-day de...
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.