Financial Data and Key Metrics Changes - The company reported net earnings of $751 million, or $2.04 per diluted share, which included a restructuring charge of $0.14 related to a voluntary employee early retirement program [5][19] - The return on average assets was 2.5%, and the return on tangible common equity was 21.8% [5][19] - 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% [20] Business Line Data and Key Metrics Changes - Purchase volume reached $49 billion in Q4, a record for the quarter, reflecting a 3% year-over-year increase [5][20] - Digital platform purchase volume increased by 6%, driven by higher spend per account [5] - Purchase volume in health and wellness grew by 4%, while lifestyle platform purchase volume increased by 3% [6] - Dual and co-branded cards accounted for 50% of total purchase volume, increasing by 16% year-over-year [6] Market Data and Key Metrics Changes - The company added or renewed over 25 partners in Q4, including significant partnerships with Bob's Discount Furniture and Polaris [9][10] - The company now partners with over 50 merchant and practice management platforms, enhancing access to financing solutions [12] Company Strategy and Development Direction - The company aims to enhance the value and utility of its financing solutions, broaden its reach, and deliver powerful experiences for customers and partners [8] - Investments in AI and cloud technology are prioritized to drive productivity and growth [76] - The company is focused on diversifying its programs and products while maintaining strong relationships with partners [11][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the consumer's resilience and spending patterns, indicating a constructive macro environment [40] - The company expects mid-single-digit growth in ending receivables for 2026, driven by new partnerships and improved consumer confidence [30][31] - The net charge-off rate is anticipated to align with the long-term target of 5.5%-6% [31] Other Important Information - The efficiency ratio for Q4 was 36.9%, impacted by higher overall expenses and restructuring charges [25] - The company returned $1.1 billion to shareholders in Q4, including $952 million in share repurchases [29] Q&A Session Summary Question: Can you discuss the mid-single digit growth guide for receivables growth? - Management noted that consumer spending has been resilient, with purchase volume showing a positive trajectory and co-brand volume growth accelerating, particularly with Walmart [40][41] Question: What are your views on the 10% APR caps? - Management expressed concerns that APR caps would limit credit availability for lower-income consumers and negatively impact merchants who rely on credit programs [48][49] Question: Can you unpack the credit guide and expected losses? - Management indicated that while there is a strong foundation entering 2026, new portfolios like Walmart may introduce early losses, impacting the overall credit guide [59] Question: What net interest margin is embedded within the guidance? - Management expects net interest income to increase, with a bias for margin improvement, despite potential headwinds from the interest rate environment [61][62] Question: How are the PPPCs tracking relative to expectations? - Management reported that PPPCs are slightly ahead of expectations, with benefits from elevated payment rates [71][72] Question: What investments are being made for growth? - Significant investments are being made in reserves for asset growth, marketing, and technology, particularly in AI and cloud initiatives [76][78]

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]

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Financial Performance - Net interest income for Q4 2025 was $4,761 million, an increase of 3.7% compared to Q4 2024[1] - Net revenue decreased by 0.2% year-over-year to $3,793 million in Q4 2025[1] - Provision for credit losses decreased by 7.6% to $1,442 million in Q4 2025 compared to Q4 2024[1] - Net earnings for Q4 2025 were $751 million, down 3.0% from $1,077 million in Q4 2024[1] - Basic EPS for Q4 2025 was $2.07, a decrease of 7.3% from $2.89 in Q4 2024[1] - Dividend declared per share increased by 20.0% to $0.30 in Q4 2025 compared to Q4 2024[1] - Common stock price rose by 28.4% to $83.43 at the end of Q4 2025 compared to $65.00 at the end of Q4 2024[1] - Book value per share increased by 13.1% to $44.74 in Q4 2025 from $39.55 in Q4 2024[1] - Shares repurchased in Q4 2025 totaled 13.0 million, a significant increase compared to previous quarters[1] Asset and Liability Management - Total assets decreased by $368 million, or 0.3%, to $119,095 million compared to the previous quarter[7] - Total liabilities decreased by $554 million, or 0.5%, to $102,329 million compared to the previous quarter[7] - Total equity increased by $186 million, or 1.1%, to $16,766 million compared to the previous quarter[7] - Total deposits decreased by $918 million, or 1.1%, to $81,144 million compared to the previous quarter[7] - Goodwill increased by $89 million, or 7.0%, to $1,363 million compared to the previous quarter[7] - Intangible assets increased by $401 million, or 47.0%, to $1,255 million compared to the previous quarter[7] Credit Quality - Return on assets for Q4 2025 was 2.5%, down from 3.0% in Q4 2024, reflecting a decrease of 0.5%[2] - Return on equity decreased to 17.6% in Q4 2025 from 21.1% in Q4 2024, a decline of 3.5%[2] - Net charge-offs for Q4 2025 were $1,367 million, a decrease of 11.8% from $1,588 million in Q4 2024[2] - Allowance for credit losses at period-end was $10,442 million, down 4.5% from $10,929 million in Q4 2024[2] Interest Income and Expense - Total interest income for Q4 2025 was $5,734 million, a slight increase of 0.4% compared to Q4 2024[6] - Interest expense for Q4 2025 was $973 million, a decrease of 13.0% from $1,011 million in Q4 2024[6] - Net interest income after retailer share arrangements and provision for credit losses was $2,225 million, reflecting a 5.4% increase from Q4 2024[6] Segment Performance - Home & Auto segment purchase volume decreased by 1.6% year-over-year to $10,381 million for the quarter ended December 31, 2025, and by 4.9% to $42,347 million for the twelve months ended December 31, 2025[17] - Digital segment purchase volume increased by 5.8% to $16,206 million for the quarter ended December 31, 2025, and by 3.1% to $56,376 million for the twelve months ended December 31, 2025[17] - Total purchase volume for Synchrony Financial increased by 3.2% to $49,476 million for the quarter ended December 31, 2025, and by 0.1% to $182,285 million for the twelve months ended December 31, 2025[17] Capital Ratios and Equity - Total common equity as of December 31, 2025, is $15,544 million, reflecting a 1.2% increase from $15,358 million on December 31, 2024[13] - Tangible common equity decreased to $12,926 million as of December 31, 2025, down 2.3% from $13,230 million a year earlier[13] - Total risk-based capital ratio stands at 15.8% as of December 31, 2025, a decrease from 16.5% on December 31, 2024[13] - Tier 1 risk-based capital ratio is 13.8% as of December 31, 2025, down from 14.5% a year prior[13] Transition to CECL - The company is in the process of transitioning to the CECL framework, with capital ratios reflecting 100% of the phase-in effects for 2025[15] - Regulatory capital ratios are preliminary and subject to change, indicating ongoing adjustments in financial reporting[14]

Core Insights - Synchrony Financial announced its fourth quarter 2025 results for the fiscal year ending December 31, 2025 [1] - The company declared a quarterly cash dividend of $0.30 per share of common stock, payable on February 17, 2026 [3] - The Board also declared dividends on its preferred stock, approximately $14.06 per share for Series A and $20.63 per share for Series B, both payable on February 17, 2026 [3] Financial Performance - The earnings news release and presentation are available on the company's Investor Relations website [1] - A conference call to review financial results and outlook will be hosted by the CEO and CFO [2] Company Overview - Synchrony is a leading consumer financing company, providing credit and banking products to improve financial lives [4] - The company supports the growth of respected brands and small to midsize businesses, including health and wellness providers [4] - Synchrony has been recognized as the 2 Best Company to Work For in the U.S. by Fortune magazine and Great Place to Work [4]

Core Insights - An 18-month CD is highlighted as a competitive option for earning returns on savings without long-term commitment, offering higher interest rates than typical savings accounts while providing more flexibility than longer-term CDs [1] Best 18-Month CDs - Ally Bank offers the top-rated 18-month CD with a 3.6% APY and no minimum opening deposit requirement, with daily compounding interest [3] - Synchrony Bank provides a competitive 3.8% APY with no minimum opening deposit, but has a penalty of 180 days' simple interest for early withdrawals [4] - Marcus by Goldman Sachs features a 4% APY with a minimum deposit of $500, and early withdrawal incurs a penalty of 180 days' interest [5] - Limelight Bank's CD offers a 3.85% APY with a minimum deposit of $1,000, with daily compounding and quarterly credited interest [10] - Live Oak Bank has a 3.7% APY but requires the highest minimum deposit of $2,500, with a 90-day simple interest penalty for early withdrawals [11] - America First Credit Union provides a 3.95% APY with a $500 minimum deposit, and dividends are compounded and credited monthly [12] - Bank5Connect offers a 3.5% APY with a $500 minimum deposit, with a six-month interest penalty for early withdrawals [13] - Bask Bank features a 3.75% APY with a $1,000 minimum deposit, and early withdrawal incurs a penalty of 180 days' interest [15] - TAB Bank has a 3.87% APY with a $1,000 minimum deposit and daily compounding interest [20] - Bread Savings offers a 3.75% APY with a higher minimum deposit of $1,500, with daily compounding and monthly credited interest [22] Methodology for Best 18-Month CDs - The evaluation of the best 18-month CDs was based on over 300 data points, focusing on metrics such as annual percentage yield (APY), minimum opening deposit, and compounding frequency [24][25] - Accounts with higher APYs received more points, while those with lower or no minimum deposit requirements ranked more favorably [26]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Opportunity - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI data centers, making it a potentially lucrative investment [3][8] Energy Infrastructure - The company owns significant nuclear energy infrastructure assets, which are crucial for America's future power strategy [7] - It is one of the few global firms capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is noted for being completely debt-free and holding a substantial cash reserve, amounting to nearly one-third of its market capitalization [8] - It also has a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9] Market Perception - The company is described as undervalued, trading at less than seven times earnings, which is attractive given its ties to the rapidly growing AI and energy sectors [10] - There is a growing interest from hedge funds, indicating that this stock is gaining attention among savvy investors [9][10] Future Trends - The article emphasizes the importance of AI as a disruptive force in traditional industries, suggesting that companies that adapt to AI will thrive [11] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, reinforcing the case for investment in AI-related companies [12] Conclusion - The time to invest in AI and the associated energy infrastructure is now, with the potential for significant returns in the near future [13][15]

Core Insights - Synchrony Financial (SYF) has experienced a 50.6% gain over the past nine months but is currently facing a 6.3% decline in January 2026 after reaching a record high of $88.77 on January 9 [1] - The stock has found support at the $75 level, which may help it recover, as it is near a historically bullish trendline that could lead to further gains in the upcoming weeks [1] Technical Analysis - SYF is currently within 0.75 of its 126-day moving average's 20-day average true range (ATR), having remained above this level 80% of the time in the last two weeks and 80% of the past 42 trading sessions [2] - Historical data shows that similar signals have led to a 64% success rate for the stock being higher one month later, with an average gain of 5.5%, suggesting a potential target of above $82 from its current price of $77.94 [2] Options Market Sentiment - Options traders are showing a bullish sentiment, indicated by a 50-day call/put volume ratio of 4.25, which is higher than 84% of annual readings [4] - The affordability of options is supported by a Schaeffer's Volatility Index (SVI) of 41%, ranking in the 22nd percentile over the last 12 months, suggesting favorable conditions for options trading [5] - SYF's Schaeffer's Volatility Scorecard (SVS) is high at 85 out of 100, indicating that the stock has historically exceeded options traders' volatility expectations [5]

Core Viewpoint - Synchrony Financial (SYF) is expected to report its fourth-quarter 2025 results on January 27, with earnings estimated at $2.02 per share and revenues at $4.79 billion, indicating a year-over-year growth in earnings of 5.8% and revenue growth of 4.3% [1][2]. Financial Performance Estimates - The full-year 2025 revenue estimate for Synchrony is $17.92 billion, reflecting a slight decline of 0.5% year-over-year, while the EPS for the current year is projected at $9.25, representing a significant increase of approximately 40.4% year-over-year [3]. - Synchrony has consistently exceeded earnings estimates in the past four quarters, with an average surprise of 22.67% [3]. Earnings Prediction Insights - The current model indicates uncertainty regarding an earnings beat for Synchrony, as it has an Earnings ESP of -0.60% and a Zacks Rank of 3 (Hold) [4]. - Factors contributing to the fourth-quarter results include increased net interest margin, higher purchase volumes, and a decrease in net charge-offs, which are expected to support year-over-year growth [5][7]. Key Financial Metrics - The estimated interest and fees on loans for the quarter are projected at $5.6 billion, slightly up from $5.5 billion a year ago, with a net interest margin consensus of 15.72%, an increase from 15.01% the previous year [6]. - The net charge-offs ratio is expected to be 5.41, down from 6.45 a year ago, indicating improved credit quality [7]. - However, the company is anticipated to face challenges from increased employee costs and a nearly 2% decline in average active accounts [5][8]. Comparative Analysis - While Synchrony faces uncertainty regarding its earnings beat, other companies in the finance sector, such as Barclays PLC and Cboe Global Markets, show promising earnings potential with positive Earnings ESPs and favorable Zacks Ranks [9][10][11].