01—Abstract
Summary
Summary of the 8-K filed July 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Synchrony Financial (NYSE: SYF) reported second quarter 2026 net earnings of $885 milliona, or $2.59 per diluted share, compared to $967 million, or $2.50 per diluted share in the second quarter of 2025.
Purchase volume rose 8% to $49.8 billionb, a quarterly record per management, and loan receivables increased 2% to $102.2 billion. Average active accounts were flat at 68.3 million, and net interest margin increased 30 basis points to 15.08%. Net interest income grew $87 million, or 2%, to $4.6 billion, while other expense rose $86 million, or 7%, to $1.3 billion, driven by higher operational losses and technology investments.
Credit metrics improved. Net charge-offs were 5.43% of average loan receivables compared to 5.70% a year earlier, and loans 30+ days past due were 4.16% compared to 4.18%. The provision for credit losses increased $55 million to $1.2 billionc, as the company recorded a $163 million reserve release versus a $265 million release in the prior year.
Return on equity declined 170 basis points to 21.4%, and the estimated Common Equity Tier 1 ratio fell to 13.2% from 14.2%. During the quarter the company returned $950 milliond to shareholders, including $850 million of share repurchases, and issued $500 million of preferred stock.
The company's updated 2026 outlook, included in the presentation exhibit, calls for mid-single digit ending loan receivables growth, FY 2026 earnings per diluted share of $9.25 to $9.50, and a net charge-off rate below 5.5%. Management expects receivables growth to accelerate through the second half of 2026 and expects the payment rate to remain elevated.
02—Key points
Key Highlights
- Net earnings of $885 million, or $2.59 per diluted share, versus $967 million, or $2.50 per diluted share, in second quarter 2025.
- Purchase volume rose 8% to $49.8 billion, with management describing it as an all-time high for the business.
- Loan receivables increased 2% to $102.2 billion; average active accounts were flat at 68.3 million.
- Net interest margin rose 30 basis points to 15.08%, and net interest income increased $87 million, or 2%, to $4.6 billion.
- Net charge-offs fell to 5.43% from 5.70%, and loans 90+ days past due improved to 2.01% from 2.06%.
- Other expense rose $86 million, or 7%, to $1.3 billion, driven by higher operational losses and technology investments; the efficiency ratio rose to 35.8%.
- CET1 ratio declined to 13.2% from 14.2%; $950 million was returned to shareholders, and $5.7 billion of repurchase authorization remained as of June 30, 2026.
03—Questions
Frequently Asked Questions
How did Synchrony's second quarter 2026 earnings compare with a year earlier?
Net earnings were $885 million, or $2.59 per diluted share, down from $967 million, or $2.50 per diluted share, in the second quarter of 2025. Net earnings decreased $82 million, or 8%, primarily reflecting higher other expense and a larger provision for credit losses, partly offset by higher net interest income and other income.
What drove growth in purchase volume and loan receivables?
Purchase volume increased 8% to $49.8 billion, with Diversified & Value up 12% and Digital up 9%. Loan receivables rose 2% to $102.2 billion, with Diversified & Value up 6% and Digital up 4%. Management attributed purchase volume growth to partner expansion, higher gas sales, and strong performance across partners with broad, diversified offerings.
How is credit performance trending?
Credit improved year over year. Net charge-offs were 5.43% of average loan receivables versus 5.70%, and loans 30+ days past due were 4.16% versus 4.18%. However, the allowance for credit losses fell to 10.09% of period-end loan receivables from 10.59%, and the provision for credit losses rose $55 million to $1.2 billion because of a smaller reserve release than in the prior year.
What is the company's outlook for 2026?
The updated 2026 outlook projects mid-single digit ending loan receivables growth, FY 2026 earnings per diluted share of $9.25 to $9.50, and a net charge-off rate below 5.5%. Management expects receivables growth to accelerate in the second half of 2026 and expects the payment rate to remain elevated.
How much capital did Synchrony return, and how did capital ratios change?
Synchrony returned $950 million to shareholders, including $850 million of share repurchases and $100 million of common stock dividends. It also issued $500 million of preferred stock. The estimated CET1 ratio was 13.2%, down from 14.2% a year earlier, and the Tier 1 capital ratio was 14.9%, compared with 15.4%.
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