01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial reported first-quarter 2026 net earnings of $805 milliona, up from $757 million a year earlier, with diluted EPS of $2.27 versus $1.89.
The increase was driven mainly by net interest income rising $171 million to $4.635 billionb, as interest expense fell $118 million on lower benchmark rates and the loan receivables yield rose 47 basis points to 21.80%. The provision for credit losses fell $156 million to $1.335 billion on lower net charge-offs, which declined to $1.346 billion and a 5.42% annualized rate. These gains were partly offset by higher retailer share arrangements (up $175 million) and other expense (up $73 million to $1.316 billion), while other income declined to $133 million.
Balance sheet and liquidity remained stable. Loan receivables were flat year over year at $100.1 billion, deposits grew to $82.9 billionc and represented 83% of total funding sources, and liquid assets rose to $22.8 billion from $16.6 billion at year-end 2025. The company repurchased $900 million of common stock and paid $0.30 per share in dividends.
In April 2026 the Board approved a new share repurchase program of up to $6.5 billiond with no expiration date and a planned increase in the quarterly dividend to $0.34 per share beginning in the third quarter of 2026. Capital ratios remained above well-capitalized levels, with a common equity Tier 1 ratio of 12.7%.
Management expects the full-year 2026 net charge-off rate to be below its long-term target range of 5.5% to 6.0%. Over-30 day delinquencies rose slightly to 4.54% of period-end loan receivables, and the allowance coverage ratio fell to 10.42% from 10.87% a year earlier, though it rose from 10.06% at year-end 2025 on seasonal trends.
02—Key points
Key Highlights
- Net earnings rose to $805 million from $757 million; diluted EPS was $2.27 versus $1.89 a year earlier.
- Net interest income increased $171 million to $4.635 billion, driven by lower interest expense, which fell to $968 million from $1.086 billion.
- Provision for credit losses decreased $156 million to $1.335 billion; net charge-off rate fell 96 basis points to 5.42%.
- Retailer share arrangements rose $175 million, and other expense increased $73 million to $1.316 billion.
- Deposits reached $82.9 billion, 83% of total funding sources; liquid assets increased to $22.8 billion from $16.6 billion at December 31, 2025.
- In April 2026, the Board approved a new share repurchase program of up to $6.5 billion with no expiration date and a planned quarterly dividend increase to $0.34 per share starting in Q3 2026.
- Common equity Tier 1 capital ratio was 12.7% at March 31, 2026, up from 12.6% at December 31, 2025; management expects the 2026 net charge-off rate to be below the 5.5% to 6.0% long-term target range.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Net Income | $805.00M$757.00M | +6.3% |
| EPS (Basic) | $2.29$1.91 | +19.9% |
| EPS (Diluted) | $2.27$1.89 | +20.1% |
| Shares Outstanding (Basic) | 342.40M385.20M | −11.1% |
| Shares Outstanding (Diluted) | 346.00M389.40M | −11.1% |
05—Questions
Frequently Asked Questions
Why did Synchrony's net earnings increase in the first quarter of 2026?
Net earnings rose to $805 million from $757 million, primarily because net interest income increased $171 million on lower interest expense and a higher loan receivables yield, and the provision for credit losses fell $156 million on lower net charge-offs. These gains were partly offset by a $175 million increase in retailer share arrangements and a $73 million rise in other expense.
How is Synchrony's credit quality trending?
The net charge-off rate decreased 96 basis points to 5.42% for the quarter, and management expects the full-year 2026 rate to be below its 5.5% to 6.0% long-term target range. Over-30 day delinquencies were 4.54% of period-end loan receivables, up 2 basis points from a year earlier, and the allowance coverage ratio was 10.42%, down from 10.87% at March 31, 2025.
What are Synchrony's capital return plans?
The company repurchased $900 million of common stock in the first quarter. In April 2026, the Board approved a new share repurchase program of up to $6.5 billion, starting in the second quarter of 2026 and with no expiration date, replacing the prior program. The Board also approved raising the quarterly dividend to $0.34 per common share beginning in the third quarter of 2026, from $0.30 currently.
How is Synchrony funded, and how strong is its liquidity?
Deposits were $82.9 billion at March 31, 2026, representing 83% of total funding sources, with $77.2 billion in direct deposits and $5.7 billion in brokered deposits. Liquid assets were $22.8 billion, up from $16.6 billion at December 31, 2025, and the company had $10.4 billion of available discount window borrowing capacity along with $2.6 billion of undrawn securitization capacity.
06—Continue