How did Synchrony's fourth quarter 2025 earnings compare with the prior year?

Net earnings were $751 million, or $2.04 per diluted share, compared with $774 million, or $1.91 per diluted share, in the fourth quarter of 2024. The quarter included a $51 million after-tax restructuring charge tied to a voluntary employee early retirement program, or $0.14 per diluted share.

What drove the increase in operating costs?

Other expense rose $132 million, or 10%, to $1.4 billion, primarily driven by employee costs and technology investments. Employee costs included a $67 million restructuring charge related to the voluntary early retirement program, as well as a shift in headcount mix.

How did credit quality change?

Net charge-offs were 5.37% of average loan receivables, down from 6.45% a year earlier. Loans 30+ days past due were 4.49% of period-end loan receivables, compared with 4.70%, and the provision for credit losses decreased $119 million to $1.4 billion.

What did Synchrony say about its 2026 outlook?

The presentation's baseline assumes mid-single digit ending loan receivables growth, earnings per diluted share of $9.10 to $9.50, and a net charge-off rate of about 5.5% to 6.0%. It also notes significant investment in growth-related initiatives that will affect loan yield, provision, other income and other expenses.

How much capital did Synchrony return to shareholders?

The company returned $1.1 billion, including $952 million of share repurchases and $106 million of common stock dividends. As of December 31, 2025, it had a remaining repurchase authorization of $1.2 billion for the period ending June 30, 2026.

Synchrony Financial 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 27, 2026. Cited figures are marked; the original filing is the authoritative source.

Synchrony Financial (NYSE: SYF) reported fourth quarter 2025 net earnings of $751 million^a, or $2.04 per diluted share, compared with $774 million, or $1.91 per diluted share, in the fourth quarter of 2024.

Results included a $51 million^b after-tax restructuring charge related to a voluntary employee early retirement program, or $0.14 per diluted share. Net interest income rose $169 million to $4.8 billion, and net charge-offs fell to 5.37% of average loan receivables from 6.45% a year earlier. Purchase volume increased 3% to $49.5 billion, and the company stated that loan receivables decreased 1% to $103.8 billion.

Other expense rose $132 million^c, or 10%, to $1.4 billion, driven by employee costs and technology investments, and the efficiency ratio increased to 36.9%. The provision for credit losses decreased $119 million to $1.4 billion. The company returned $1.1 billion to shareholders, including $952 million of share repurchases and $106 million of common stock dividends, and reported an estimated Common Equity Tier 1 ratio of 12.6% compared with 13.3% a year earlier.

Book value per share rose 13% to $44.74^d and tangible book value per share rose 9% to $37.21. The filing also furnishes a financial data supplement, a results presentation, and an explanation of non-GAAP measures. The presentation's 2026 outlook includes a baseline assumption of mid-single digit ending loan receivables growth, earnings per diluted share of $9.10 to $9.50, and a net charge-off rate of about 5.5% to 6.0%, alongside significant investment in growth initiatives.

02—Key points

Key Highlights

Q4 2025 net earnings of $751 million ($2.04 per diluted share), down from $774 million ($1.91 per diluted share) a year earlier, including a $0.14 per diluted share restructuring charge
Net interest income increased $169 million, or 4%, to $4.8 billion, and net interest margin rose 82 basis points to 15.83%
Net charge-offs improved to 5.37% of average loan receivables from 6.45%, and 30+ day delinquencies declined to 4.49% from 4.70%
Other expense increased $132 million, or 10%, to $1.4 billion, and the efficiency ratio rose to 36.9% from 33.3%
Purchase volume rose 3% to $49.5 billion, a record fourth quarter, while period-end loan receivables fell 1% to $103.8 billion
Capital returned totaled $1.1 billion, including $952 million of share repurchases; CET1 ratio was an estimated 12.6% versus 13.3%
2026 outlook assumes mid-single digit ending loan receivables growth, diluted EPS of $9.10 to $9.50, and a net charge-off rate of about 5.5% to 6.0%

03—Questions

Frequently Asked Questions

How did Synchrony's fourth quarter 2025 earnings compare with the prior year?
Net earnings were $751 million, or $2.04 per diluted share, compared with $774 million, or $1.91 per diluted share, in the fourth quarter of 2024. The quarter included a $51 million after-tax restructuring charge tied to a voluntary employee early retirement program, or $0.14 per diluted share.
What drove the increase in operating costs?
Other expense rose $132 million, or 10%, to $1.4 billion, primarily driven by employee costs and technology investments. Employee costs included a $67 million restructuring charge related to the voluntary early retirement program, as well as a shift in headcount mix.
How did credit quality change?
Net charge-offs were 5.37% of average loan receivables, down from 6.45% a year earlier. Loans 30+ days past due were 4.49% of period-end loan receivables, compared with 4.70%, and the provision for credit losses decreased $119 million to $1.4 billion.
What did Synchrony say about its 2026 outlook?
The presentation's baseline assumes mid-single digit ending loan receivables growth, earnings per diluted share of $9.10 to $9.50, and a net charge-off rate of about 5.5% to 6.0%. It also notes significant investment in growth-related initiatives that will affect loan yield, provision, other income and other expenses.
How much capital did Synchrony return to shareholders?
The company returned $1.1 billion, including $952 million of share repurchases and $106 million of common stock dividends. As of December 31, 2025, it had a remaining repurchase authorization of $1.2 billion for the period ending June 30, 2026.

04—Continue

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