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Will Higher Purchase Volumes Boost SYF's Q1 Earnings Beat Potential?
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Key Takeaways
Synchrony Financial is set to report Q1 2026 results on April 21, with EPS expected to be up 19.6% YoY.
SYF is likely to benefit from higher purchase volumes, net interest margin and stronger loan interest & fees.
SYF may face higher processing and employee costs, plus a 1.9% drop in interest-earning assets.
Consumer financial services company, Synchrony Financial (SYF - Free Report) , is set to report first-quarter 2026 results on April 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.26 per shareon revenues of $4.67 billion.
The first-quarter earnings estimate has witnessed one upward revision and three downward movements over the past 60 days. The bottom-line projection indicates a year-over-year increase of 19.6%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 4.6%.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Synchrony’s revenues is pegged at $19.19 billion, implying an increase of 3.9% year over year. However, the consensus mark for the current year EPS is pegged at $9.29, signaling a decline of around 1.4% on a year-over-year basis.
SYF’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 24.7%.
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Synchronyhas an Earnings ESP of +4.19% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping SYF’s Q1 Results?
Synchrony is expected to have seen advantages in the first quarter from increased net interest margin and higher purchase volumes. The net charge-offs are also likely to have substantially decreased in the quarter under review. Our model predicts interest and fees on loans of $5.4 billion for the quarter, up 2.2% from a year ago. Higher figures from Health & Wellness and Digital are likely to have anchored the results.
The Zacks Consensus Estimate for net interest margin is pegged at 15.63%, up from 14.74% achieved a year ago, increasing its profitability. The consensus mark for total purchase volumes indicates 3.1% year-over-year growth. The Zacks Consensus Estimate indicates that the total average active accounts are likely to increase 0.1% in the first quarter.
The consensus mark for the net charge-offsratio is pegged at 5.69, down from 6.38 a year ago. The above-mentioned factors are likely to have benefited the company in the first quarter, positioning it for year-over-year growth and an earnings beat.
However, Synchrony is expected to have incurred increased information processing and employee costs in the first quarter, partially offsetting the positives. Also, it is expected to have witnessed a 1.9% decrease in average interest-earning assets.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.45 per share, which indicates 11.5% year-over-year growth. The consensus estimate for Virtu Financial’s revenues is pegged at $539.61 million, an 8.5% increase from a year ago.
American Express Company (AXP - Free Report) has an Earnings ESP of +4.36% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for AmEx’s bottom line for the to-be-reported quarter is pegged at $4.01 per share, which remained stable over the past week and indicates 10.2% year-over-year growth. The consensus estimate for AmEx’s revenues is pegged at $18.63 billion, a 9.8% increase from a year ago.
Chime Financial, Inc. (CHYM - Free Report) has an Earnings ESP of +64.45% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Chime Financial’s bottom line for the to-be-reported quarter is pegged at 3 cents per share, an improvement from a breakeven a year ago. The consensus estimate for Chime Financial’s revenues is pegged at $633.39 million, a 22.1% year-over-year jump.
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Will Higher Purchase Volumes Boost SYF's Q1 Earnings Beat Potential?
Key Takeaways
Consumer financial services company, Synchrony Financial (SYF - Free Report) , is set to report first-quarter 2026 results on April 21, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $2.26 per shareon revenues of $4.67 billion.
The first-quarter earnings estimate has witnessed one upward revision and three downward movements over the past 60 days. The bottom-line projection indicates a year-over-year increase of 19.6%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 4.6%.
For full-year 2026, the Zacks Consensus Estimate for Synchrony’s revenues is pegged at $19.19 billion, implying an increase of 3.9% year over year. However, the consensus mark for the current year EPS is pegged at $9.29, signaling a decline of around 1.4% on a year-over-year basis.
SYF’s earnings beat the consensus estimate in each of the last four quarters, with the average surprise being 24.7%.
Synchrony Financial Price and EPS Surprise
Synchrony Financial price-eps-surprise | Synchrony Financial Quote
Q1 Earnings Whispers for SYF
Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here.
Synchronyhas an Earnings ESP of +4.19% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
What’s Shaping SYF’s Q1 Results?
Synchrony is expected to have seen advantages in the first quarter from increased net interest margin and higher purchase volumes. The net charge-offs are also likely to have substantially decreased in the quarter under review. Our model predicts interest and fees on loans of $5.4 billion for the quarter, up 2.2% from a year ago. Higher figures from Health & Wellness and Digital are likely to have anchored the results.
The Zacks Consensus Estimate for net interest margin is pegged at 15.63%, up from 14.74% achieved a year ago, increasing its profitability. The consensus mark for total purchase volumes indicates 3.1% year-over-year growth. The Zacks Consensus Estimate indicates that the total average active accounts are likely to increase 0.1% in the first quarter.
The consensus mark for the net charge-offs ratio is pegged at 5.69, down from 6.38 a year ago. The above-mentioned factors are likely to have benefited the company in the first quarter, positioning it for year-over-year growth and an earnings beat.
However, Synchrony is expected to have incurred increased information processing and employee costs in the first quarter, partially offsetting the positives. Also, it is expected to have witnessed a 1.9% decrease in average interest-earning assets.
Other Stocks That Warrant a Look
Here are some other companies worth considering from the broader Finance space, as our model shows that these, too, have the right combination of elements to beat on earnings this time around:
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +15.44% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Virtu Financial’s bottom line for the to-be-reported quarter is pegged at $1.45 per share, which indicates 11.5% year-over-year growth. The consensus estimate for Virtu Financial’s revenues is pegged at $539.61 million, an 8.5% increase from a year ago.
American Express Company (AXP - Free Report) has an Earnings ESP of +4.36% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for AmEx’s bottom line for the to-be-reported quarter is pegged at $4.01 per share, which remained stable over the past week and indicates 10.2% year-over-year growth. The consensus estimate for AmEx’s revenues is pegged at $18.63 billion, a 9.8% increase from a year ago.
Chime Financial, Inc. (CHYM - Free Report) has an Earnings ESP of +64.45% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Chime Financial’s bottom line for the to-be-reported quarter is pegged at 3 cents per share, an improvement from a breakeven a year ago. The consensus estimate for Chime Financial’s revenues is pegged at $633.39 million, a 22.1% year-over-year jump.