Core Insights - Synchrony reported revenue of $4.52 billion for the quarter ended June 2025, reflecting a year-over-year increase of 2.6% and a surprise of +0.46% over the Zacks Consensus Estimate of $4.5 billion [1] - Earnings per share (EPS) reached $2.50, significantly higher than the $1.55 reported in the same quarter last year, resulting in an EPS surprise of +45.35% compared to the consensus estimate of $1.72 [1] Financial Performance Metrics - Efficiency Ratio was reported at 34.1%, exceeding the average estimate of 32.5% by five analysts [4] - Net interest margin stood at 14.8%, slightly above the estimated 14.5% by five analysts [4] - Net charge-offs as a percentage of average loan receivables were 5.7%, better than the three-analyst average estimate of 6% [4] - Total period-end loan receivables amounted to $99.78 billion, lower than the three-analyst average estimate of $100.94 billion [4] - Total average loan receivables, including those held for sale, were $99.24 billion, compared to the three-analyst average estimate of $100.04 billion [4] - Total interest-earning assets average balance was $122.71 billion, below the three-analyst average estimate of $125.6 billion [4] Platform Analysis - Digital platform period-end loan receivables were $27.79 billion, slightly below the two-analyst average estimate of $27.91 billion [4] - Home & Auto platform average loan receivables, including those held for sale, were $30.14 billion, compared to the two-analyst average estimate of $31.05 billion [4] - Diversified & Value platform purchase volume reached $15.39 billion, exceeding the estimated $15.15 billion by two analysts [4] - Diversified & Value platform period-end loan receivables were $19.51 billion, slightly below the average estimate of $19.59 billion based on two analysts [4] - Health & Wellness platform purchase volume was $4.01 billion, surpassing the average estimate of $3.96 billion based on two analysts [4] Stock Performance - Synchrony shares have returned +9.8% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Synchrony Financial reported net earnings of $967 million or $2.5 per diluted share, with a return on average assets of 3.2% and a return on tangible common equity of 28.3% [8][22][29] - Net revenue decreased by 2% to $3.6 billion, while net interest income increased by 3% to $4.5 billion [19][22] - The efficiency ratio was 34.1%, approximately 240 basis points higher than the previous year [22] Business Line Data and Key Metrics Changes - Purchase volume decreased by 2% year-over-year to $46 billion, with dual and co-branded cards accounting for 45% of that volume, reflecting a 5% increase compared to last year [10][18] - Ending loan receivables decreased by 2% to $100 billion, influenced by lower purchase volume and a higher payment rate of 16.3% [18][19] - Average transaction values improved, declining only 50 basis points compared to last year, a significant improvement from previous quarters [11] Market Data and Key Metrics Changes - The 30-plus delinquency rate decreased to 4.18%, down 29 basis points from the prior year, while the net charge-off rate was 5.7%, a decrease of 72 basis points [23][24] - Total liquid assets increased by 9% to $21.8 billion, representing 18.1% of total assets [25] Company Strategy and Development Direction - Synchrony is focused on evolving its product offerings and enhancing customer experience, with new partnerships and product launches expected to drive growth [12][15] - The company aims to leverage its diversified portfolio and strong credit performance to navigate the uncertain macroeconomic environment [9][15] - The renewal of partnerships with major retailers like Walmart and Amazon is expected to enhance growth opportunities [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer spending and credit performance, noting that credit actions taken previously have strengthened the portfolio's delinquency and net charge-off performance [41][42] - The outlook for 2025 includes expectations for flat ending loan receivables and a loss rate between 5.6% and 5.8%, aligning with long-term underwriting targets [27][29] - Management highlighted the importance of monitoring economic conditions and potential tariff impacts on future performance [65][66] Other Important Information - Synchrony returned $614 million to shareholders, consisting of $500 million in share repurchases and $114 million in dividends [26] - The company has a strong capital position, with a CET1 ratio of 13.6% and plans to continue returning capital to shareholders [25][72] Q&A Session Summary Question: What encouraging signs are being seen in the portfolio? - Management noted that consumer spending remains strong, with co-brand growth up 5% year-over-year, indicating positive trends in retail and discretionary spending [41][42] Question: Can you elaborate on the minor modifications to the PPPC? - Management clarified that any changes are partner-specific and not part of a broader rollback plan, with minimal revenue impact expected [44][46] Question: What drives the expected increase in net interest margin in the second half? - The increase is attributed to a rise in average loan receivables and the impact of product pricing and policy changes [54][56] Question: How does the company view loan growth and credit standards? - Management indicated that while credit standards have been loosened slightly, it will take time for these changes to reflect in growth metrics [65][66] Question: What is the outlook for capital management and potential acquisitions? - The company remains committed to returning capital to shareholders while also exploring selective M&A opportunities [72][76] Question: How are new products with existing customers expected to contribute to growth? - Management highlighted the multi-product strategy with major partners like Amazon, which is expected to enhance growth over time [84][86]

Financial Data and Key Metrics Changes - The company reported net earnings of $967 million or $2.5 per diluted share, with a return on average assets of 3.2% and a return on tangible common equity of 28.3% [6][19][23] - Net revenue decreased by 2% to $3.6 billion, while net interest income increased by 3% to $4.5 billion [16][19] - The efficiency ratio was 34.1%, approximately 240 basis points higher than the previous year [19] Business Line Data and Key Metrics Changes - Purchase volume decreased by 2% year over year to $46 billion, with dual and co-branded cards accounting for 45% of that volume, reflecting a 5% increase compared to last year [7][15] - Ending loan receivables decreased by 2% to $100 billion due to lower purchase volume and a higher payment rate, which increased by approximately 30 basis points to 16.3% [15][16] - The company saw a 1% year-over-year increase in other income, driven by program performance [18] Market Data and Key Metrics Changes - The 30-plus delinquency rate was 4.18%, a decrease of 29 basis points from the previous year, while the net charge-off rate was 5.7%, down 72 basis points [20][21] - Total liquid assets increased by 9% to $21.8 billion, representing 18.1% of total assets [22] Company Strategy and Development Direction - The company is focused on evolving its product offerings and enhancing customer experience, with new partnerships and product launches expected to drive growth [10][13] - The partnership with Walmart and the renewal with Amazon are expected to enhance the company's market position and drive future growth [11][14] - The company aims to maintain a strong credit position while selectively loosening credit standards to drive growth [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about consumer spending and credit performance, noting encouraging signs in the portfolio [36][38] - The company expects ending loan receivables to remain flat compared to last year, with a loss rate projected between 5.6% and 5.8% [24][25] - The outlook for net interest margin is expected to increase to an average of 15.6% in the second half of 2025 [26] Other Important Information - The company returned $614 million to shareholders, consisting of $500 million in share repurchases and $114 million in dividends [23] - The CET1 ratio increased to 13.6%, indicating a strong capital position [22] Q&A Session Summary Question: What encouraging signs are being seen in the portfolio? - Management noted that consumer spending remains strong, with co-branded growth up 5% compared to the prior year, indicating positive trends in retail and discretionary spending [36][37] Question: Can you elaborate on the modifications to the PPPC? - Management stated that any potential rollbacks will occur on a partner-by-partner basis, with minor modifications expected to have a limited impact on net revenue [40][41] Question: What drives the expected increase in net interest margin in the second half? - The increase is attributed to a rise in average loan receivables as a percentage of interest-earning assets and the impact of PPPC on loan yield [48][49] Question: How does the company view loan growth and credit standards? - Management indicated that while loan growth may slow, there is optimism for growth opportunities as credit standards are selectively loosened [58][59] Question: What is the outlook for capital management and potential acquisitions? - The company is committed to returning capital to shareholders and is actively looking for attractive opportunities, including potential acquisitions [66][70]

Core Insights - Synchrony (SYF) reported quarterly earnings of $2.5 per share, exceeding the Zacks Consensus Estimate of $1.72 per share, and up from $1.55 per share a year ago, representing an earnings surprise of +45.35% [1] - The company achieved revenues of $4.52 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.46% and showing an increase from $4.41 billion year-over-year [2] - Synchrony has consistently surpassed consensus EPS estimates over the last four quarters, with a total of four earnings surprises [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.14 on revenues of $4.68 billion, while for the current fiscal year, the estimate is $7.76 on revenues of $18.47 billion [7] - The company's earnings outlook will be influenced by management's commentary during the earnings call, which is crucial for understanding future stock movements [3][4] Industry Context - Synchrony operates within the Zacks Financial - Miscellaneous Services industry, which is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The performance of Synchrony’s stock may also be affected by the overall industry trends, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8] Stock Performance - Synchrony shares have increased by approximately 6.8% since the beginning of the year, compared to a 7.2% gain in the S&P 500 [3] - The current Zacks Rank for Synchrony is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Net earnings available to common stockholders increased by 52% to $946 million compared to $624 million in the second quarter of 2024[13] - Diluted earnings per share increased by 61% to $2.50 compared to $1.55 in the second quarter of 2024[13] - Net revenue decreased by 2%, or $65 million, to $3647 million[15, 19] - Provision for credit losses decreased 32%, or $545 million, due to a reserve release and lower net charge-offs[26] Key Metrics - Loan receivables decreased by 2% to $99.8 billion from $102.3 billion in the second quarter of 2024[11] - Purchase volume decreased by 2% to $46.1 billion from $46.8 billion in the second quarter of 2024[11] - Net interest margin increased by 32 bps to 14.78%[15, 17] - Net charge-offs decreased to 5.70% from 6.42% in the second quarter of 2024[11] Capital and Funding - Common Equity Tier 1 (CET1) capital ratio increased to 13.6% from 12.6% in the second quarter of 2024[11, 35] - Capital returned to shareholders increased to $614 million from $400 million in the second quarter of 2024[11] - Total funding decreased slightly to $98.3 billion from $98.7 billion in the second quarter of 2024[35] Outlook Revision - The company revised its full-year 2025 net revenue outlook to $150 billion - $153 billion, down from the previous outlook of $152 billion - $157 billion[37] - The company revised its full-year 2025 net charge-offs outlook to 5.6% - 5.8%, improved from the previous outlook of 5.8% - 6.0%[37]

Exhibit 99.2 FINANCIAL SUMMARY (unaudited, in millions, except per share statistics) | Quarter Ended | | | | | | | | | | | | | | | Six Months Ended | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Jun 30, Mar 31, Dec 31, Sep 30, | | | | | | | | | | Jun 30, | | | | Jun 30, | | Jun 30, | | | | | 2025 2025 | | | | | | 2024 | | 2024 | | 2024 | | 2Q'25 vs. 2Q'24 | | 2025 | | 2024 | | YTD'25 vs. YTD'24 | | | EARNINGS | | | | | | ...

Company also declares preferred stock dividendsSTAMFORD, Conn., July 22, 2025 /PRNewswire/ -- Synchrony Financial (NYSE: SYF) today announced second quarter 2025 results for the period ending June 30, 2025. The Earnings Release and presentation can be found on the company's Investor Relations website at https://investors.synchrony.com/financial-information/financial-results.Today at 8:00 a.m. Eastern Time, Brian Doubles, President and Chief Executive Officer, and Brian Wenzel Sr., Executive Vice President a ...

Investors are always looking for stocks that are poised to beat at earnings season and Synchrony Financial (SYF) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Synchrony Financial is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pr ...

Core Insights - Synchrony Financial (SYF) is expected to report second-quarter 2025 results on July 22, with earnings estimated at $1.72 per share and revenues of $4.5 billion [1] - The earnings estimate has increased by 3 cents over the past week, indicating an 11% year-over-year growth, while revenues are projected to grow by 2.2% year-over-year [2] - For the full year 2025, revenues are estimated at $18.47 billion, reflecting a 2.5% increase year-over-year, and EPS is projected at $7.76, a 17.8% year-over-year jump [3] Earnings Predictions - The model predicts a likely earnings beat for Synchrony, supported by a positive Earnings ESP of +5.16% and a Zacks Rank of 3 (Hold) [4] - Factors contributing to the expected Q2 results include increased net interest margin and a decrease in net charge-offs, which are anticipated to enhance profitability [5][6] Financial Metrics - Interest and fees on loans are projected at $5.3 billion, remaining relatively flat year-over-year, while Average Interest-Earning Assets are expected to increase by 2.5% from the previous year [6] - The net charge-offs ratio is estimated at 5.99, down from 6.42 a year ago, indicating improved credit quality [7] Challenges - Despite positive indicators, Synchrony is expected to face increased information processing and employee costs, along with lower purchase volumes, which may partially offset the positives [7] - The total average active accounts are likely to decline by 0.7% in Q2, and total purchase volumes are projected to decrease by 3.6% year-over-year due to selective consumer spending [8][9]

Core Insights - Analysts expect Synchrony (SYF) to report quarterly earnings of $1.72 per share, reflecting an 11% year-over-year increase, with revenues projected at $4.5 billion, up 2.2% from the previous year [1] - The consensus EPS estimate has been revised 1% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [1][2] Earnings Estimates - The consensus estimate for the 'Efficiency Ratio' is 32.5%, compared to 31.7% in the same quarter last year [4] - Analysts predict a 'Net interest margin' of 14.5%, unchanged from the year-ago value [4] - 'Total Average Loan receivables, including held for sale' is estimated at $100.04 billion, down from $101.48 billion a year ago [4] Charge-offs and Purchase Volume - 'Net charge-offs as a percentage of average loan receivables' are expected to be 6.0%, down from 6.4% in the previous year [5] - 'Total Purchase Volume' is projected to reach $45.17 billion, compared to $46.85 billion reported in the same quarter last year [5] Loan Receivables and Assets - 'Total Period-end loan receivables' are expected to be $100.94 billion, down from $102.28 billion a year ago [6] - 'Total interest-earning assets - Average Balance' is projected at $125.60 billion, compared to $122.55 billion in the same quarter last year [6] Platform Analysis - 'Platform Analysis - Digital - Period-end loan receivables' is estimated at $27.91 billion, slightly up from $27.70 billion a year ago [7] - 'Platform Analysis - Home & Auto - Average loan receivables, including held for sale' is projected at $31.05 billion, down from $32.59 billion in the same quarter last year [7] - 'Platform Analysis - Diversified & Value - Purchase volume' is expected to be $15.15 billion, compared to $15.33 billion a year ago [8] Stock Performance - Shares of Synchrony have increased by 12.8% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.2% [10]