For Synchrony Financial ( SYF ), 2025 was all about growing earnings without much growth in the number of customers or loan balances. Synchrony set itself upI retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income. I mostly write on positions I already hold or am considering changing. I prefer to hold ...

Core Insights - Synchrony Financial (NYSE:SYF) is a leading consumer financial services company in the U.S., offering various credit products and known for strong partnerships with retailers and healthcare providers [1] Financial Performance - On January 27, 2026, SYF reported an earnings per share (EPS) of $2.47, exceeding the estimated $2.02, and showing an increase from $1.91 a year ago [2] - The company reported revenue of $5.86 billion, surpassing the estimated $3.80 billion, with a previous quarter revenue of $4.76 billion, reflecting a 3.7% year-over-year increase [3] - SYF's net interest income reached $4.8 billion, a 3.7% increase year over year, driven by improved efficiency and higher purchase volumes [4] Valuation Metrics - SYF has a price-to-earnings (P/E) ratio of approximately 6.25 and a price-to-sales ratio of about 1.34, indicating strong earnings potential for investors [5] - The enterprise value to sales ratio is around 0.60, and the enterprise value to operating cash flow ratio is approximately 1.25, further reflecting the company's financial health [5]

This week’s Acquirer’s Multiple® Large-Cap screen again clusters around capital-intensive cyclicals, cheap financials, and mature hardware franchises whose realized cash economics continue to be priced as fundamentally fragile.The broader equity tape remains dominated by long-duration growth optionality and thematic scarcity, leaving balance sheet strength and free-cash-flow compounding chronically discounted.Across the top decile, capital returns remain abundant, but the market continues to underwrite dura ...

Management described broad-based improvement in transaction behavior, noting average transaction values increased about 30 basis points versus last year and average transaction frequency rose about 3.7% across all credit cohorts. Synchrony also said it continued to see year-over-year improvement in discretionary spend within out-of-partner purchase volume, citing categories such as electronics, entertainment, and travel.Purchase volume reached a fourth-quarter record of $49 billion , up 3% year over year, w ...

Core Insights - Synchrony Financial reported a record fourth-quarter purchase volume of $49 billion, marking a 3% year-over-year increase, driven by strengthened spending patterns and growth in co-branded cards [2] - The company's CEO noted steady consumer behavior, with increased transaction frequency and average ticket sizes, indicating resilience in consumer spending [4] - The Pay Later product has become integral to Synchrony's strategy, available at over 6,200 merchants, and is associated with at least a 10% increase in sales when combined with revolving credit [5][6] Financial Performance - Overall card activity showed broad improvement, with co-brand and dual cards accounting for about half of the fourth-quarter purchase volume and growing 16% year-over-year [7] - Digital platform purchase volume rose by 6%, while health and wellness spending increased by 4%, reflecting trends in consumer preferences [8] - Revenues for the quarter were approximately $3.8 billion, slightly below consensus expectations, leading to a 6% drop in shares during early trading [9] Strategic Developments - Synchrony is focusing on digital enhancements, reporting an 18% increase in total digital visits and a 17% rise in sales, attributed to improvements in its marketplace, website, and mobile app [9] - Investments in AI search, mobile wallet integration, and platform connectivity are seen as key drivers for increasing consumer engagement [10] - The partnership with Walmart is highlighted as a significant growth contributor, with the retailer being described as Synchrony's fastest-growing program [10][11] Regulatory Concerns - Management expressed strong opposition to proposed 10% APR caps, arguing that such measures would reduce credit availability, particularly impacting lower-income consumers [12] - The company supports around 400,000 small and mid-sized businesses, warning that credit caps could disrupt merchant economics and consumer access to credit [12][13] - Synchrony anticipates mid-single-digit receivables growth in 2026, supported by the maturation of new programs and improved core volumes [13]

Synchrony Financial (NYSE:SYF) Q4 2025 Earnings call January 27, 2026 08:00 AM ET Company ParticipantsBrian Doubles - CEOBrian Wenzel - CFOKathryn Miller - SVP of Investor RelationsConference Call ParticipantsErika Najarian - AnalystMihir Bhatia - AnalystMoshe Orenbuch - AnalystRyan Nash - AnalystSanjay Sakrani - AnalystOperatorGood morning, and welcome to the Synchrony Financial fourth quarter 2025 earnings conference call. Please refer to the company's investor relations website for access to their earnin ...

Financial Data and Key Metrics Changes - Synchrony reported net earnings of $751 million, or $2.04 per diluted share, including a restructuring charge of $0.14 related to a voluntary employee early retirement program [4][18] - The return on average assets was 2.5%, and the return on tangible common equity was 21.8% for the fourth quarter [4][18] - For the full year, net earnings reached $3.6 billion, or $9.28 per diluted share, with a return on average assets of 3.0% and a return on tangible common equity of 25.8% [19] Business Line Data and Key Metrics Changes - Purchase volume across the Digital platform increased by 6%, while Diversified and Value purchase volume grew by 4% due to partner expansion [4][5] - Health & Wellness purchase volume also grew by 4%, driven by pet and audiology sectors, while Lifestyle platform purchase volume increased by 3% [5][6] - Home & Auto purchase volume decreased by 2%, reflecting selective spending in home improvement [6] Market Data and Key Metrics Changes - Synchrony added over 20 million new accounts and engaged nearly 70 million existing customers, generating over $182 billion in sales for partners in 2025 [8] - The company added or renewed more than 25 partners in the fourth quarter, including significant partnerships with Bob's Discount Furniture and Polaris [8][9] - Approximately 97% of total interest and fees from top 25 partners are renewed through 2028, indicating strong partner trust [9] Company Strategy and Development Direction - Synchrony aims to enhance the value and utility of financing solutions, broaden reach, and deliver powerful experiences for customers and partners [7][10] - The company is diversifying programs and products, entering partnerships with over 50 merchant and practice management platforms [10][11] - Investments in AI and cloud technology are expected to drive productivity and growth [77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in consumer resilience and spending patterns, indicating a constructive macro environment [41] - The company anticipates mid-single-digit growth in ending receivables for 2026, driven by active accounts and purchase volume growth [29] - The net charge-off rate is expected to align with the long-term target of 5.5%-6% [30] Other Important Information - Synchrony returned $1.1 billion to shareholders in the fourth quarter, including $952 million in share repurchases [27] - The company’s efficiency ratio for the fourth quarter was 36.9%, impacted by higher expenses and restructuring charges [23] - The allowance for credit losses as a percentage of loan receivables was 10.06%, reflecting a decrease from previous quarters [25] Q&A Session Summary Question: Growth guide for receivables - Management noted that the mid-single-digit growth guide is supported by strong consumer spending and the successful launch of the Walmart program, which is the fastest-growing program [40][42] Question: Impact of 10% APR caps - Management expressed concerns that APR caps would limit credit availability for lower-income consumers and negatively impact merchants relying on credit programs [48][49] Question: Credit guide and losses - Management indicated that while losses may increase slightly, strong delinquency performance provides a solid foundation entering 2026 [58][59] Question: Net interest margin guidance - Management expects net interest income and margin to improve, driven by PPPCs and lower funding costs, but acknowledges potential headwinds from the interest rate environment [62][64] Question: PPPC tracking and future expectations - Management reported that PPPCs are performing slightly ahead of expectations, with continued benefits anticipated [71][73] Question: Investments related to growth - Management highlighted significant investments in reserves, marketing, and technology, particularly in AI and cloud initiatives, to support growth [75][77]

Synchrony Financial (NYSE:SYF) Q4 2025 Earnings call January 27, 2026 08:00 AM ET Speaker3Good morning, and welcome to the Synchrony Financial fourth quarter 2025 earnings conference call. Please refer to the company's investor relations website for access to their earnings materials. Please be advised that today's conference is being recorded. Currently, all callers have been placed in a listen-only mode. The call will be opened up for your questions following the conclusion of management's prepared remark ...

Synchrony (SYF) came out with quarterly earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.02 per share. This compares to earnings of $1.91 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +8.08%. A quarter ago, it was expected that this consumer credit company would post earnings of $2.22 per share when it actually produced earnings of $2.86, delivering a surprise of +28.83%.Over the last four quarters, th ...

Financial Performance - Net earnings available to common stockholders decreased by 3% to $730 million in 4Q'25 compared to $753 million in 4Q'24[15] - Diluted earnings per share increased by 7% to $2.04 in 4Q'25 from $1.91 in 4Q'24, which includes ~$0.14 restructuring charge[13, 15] - Net revenue remained flat year-over-year at $3.793 billion in 4Q'25[15, 16] - Net interest margin increased by 82 bps to 15.83% in 4Q'25 compared to 15.01% in 4Q'24[13, 16] Portfolio and Credit Trends - Loan receivables decreased by 1% year-over-year[13] - Purchase volume increased by 3% year-over-year[13] - Net charge-offs decreased to 5.37% in 4Q'25 from 6.45% in 4Q'24[13] Expenses - Other expense increased by 10% to $1.399 billion in 4Q'25 from $1.267 billion in 4Q'24, driven by employee costs and technology investments[15, 21] - Efficiency ratio increased to 36.9% in 4Q'25 from 33.3% in 4Q'24, including an approximate 180bps impact related to restructuring costs[13, 21] Capital and Funding - Common Equity Tier 1 (CET1) capital ratio was 12.6% in 4Q'25[13, 27] - Liquid assets totaled $16.6 billion, representing 13.9% of total assets[26] 2026 Outlook - The company projects mid-single digit ending loan receivables growth[29] - The company anticipates a net charge-off rate of approximately 5.5% to 6.0%[29] - The company forecasts earnings per diluted share to be in the range of $9.10 to $9.50[29]