Synchrony (SYF) Reports Q2 Earnings: What Key Metrics Have to Say

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]