SYF

Leading buy now, pay later (BNPL) solution provider Affirm Holdings, Inc. AFRM is set to report its fourth-quarter fiscal 2026 results on Aug. 27, 2026, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s bottom line is currently pegged at earnings of 33 cents per share on revenues of $1.11 billion. The fiscal fourth-quarter earnings estimate has witnessed two downward revisions over the past 60 days against no movement in the opposite direction. However, the bottom-line projection indicates a year-over-year jump of 65%. Also, the Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 26.4%. Image Source: Zacks Investment Research For full-year fiscal 2026, the Zacks Consensus Estimate for Affirm’s revenues is pegged at $4.21 billion, implying a rise of 30.5% year over year. The consensus mark for the current fiscal year’s EPS is pegged at $1.24, implying a massive improvement from 15 cents a year ago. Affirm beat the consensus estimate for earnings in each of the last four quarters, with the average surprise being 74.9%. Affirm Holdings, Inc. price-eps-surprise | Affirm Holdings, Inc. Quote However, our proven model does not conclusively predict an earnings beat for the company this time around. 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’s not the case here. AFRM currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. Merchant network revenues are likely to have benefited from an expanding Gross Merchandise Volume (GMV). The active merchants figure is expected to have witnessed a significant boost in the fiscal fourth quarter due to the company’s ability to strike deals with different businesses. The Zacks Consensus Estimate for merchant network revenues is pegged at $306.1 million, indicating a 27.8% rise from the prior-year quarter’s figure. The consensus mark for GMV for the fiscal fourth quarter implies 29.3% growth from the prior-year quarter’s number. Management anticipates the metric to be in the range of $13.15-$13.45 billion. For full-year fiscal 2026, it expects GMV to reach $49.265-$49.565 billion. An increase in the number of transactions conducted through the Affirm platform is likely to have been supported by higher active merchants and consumers. The Zacks Consensus Estimate for active consumers indicates 20.2% year-over-year growth. The consensus mark for transactions per active consumer suggests a 13.3% rise from the year-ago period. An increase in the usage of Affirm’s virtual cards is expected to have driven card network revenues. The consensus mark for card network revenues indicates a 13% improvement from the year-ago quarter’s number. Meanwhile, the Zacks Consensus Estimate for interest income is pegged at $542.1 million, which implies a 29.4% year-over-year rise. The consensus mark for servicing income is pegged at $45.4 million, which indicates a 33.9% jump from the year-ago quarter. However, the quarterly results are likely to have witnessed higher transaction costs. Yet, the company expects the adjusted operating margin to be within 27.5-29.5%. Companies like American Express Company AXP, Synchrony Financial SYF and Visa Inc. V have already announced results for the June quarter. Here’s how they have performed: American Express reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by AXP’s elevated operating expenses. Synchrony Financial reported second-quarter 2026 adjusted EPS of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%, and the bottom line increased 3.6% year over year. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, SYF’s higher operating expenses and an increase in the provision for credit losses partly offset these positives. Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year and beating the Zacks Consensus Estimate by 2.8%. The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by Visa’s increased operating expenses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Moody's (MCO). Shares have added about 5.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Moody's due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Moody's Corporation before we dive into how investors and analysts have reacted as of late. Moody's reported second-quarter 2026 adjusted earnings of $4.68 per share, which outpaced the Zacks Consensus Estimate of $4.24. The bottom line jumped 31% from the year-ago quarter.The results primarily benefited from an improvement in revenues. Steady demand for analytics and the robust performance of the Moody’s Investors Service segment supported the results. The company’s liquidity position was strong in the quarter. An increase in operating expenses acted as a headwind.After considering certain non-recurring items, net income attributable to Moody's was $878 million, or $5.03 per share, up from $578 million, or $3.21 per share, in the prior-year quarter. Quarterly revenues were $2.19 billion, which surpassed the Zacks Consensus Estimate of $2.09 billion. The top line rose 15% year over year. Total expenses were $1.14 billion, up 5% year over year.Adjusted operating income of $1.21 billion surged 25% year over year. The adjusted operating margin was 55.3%, up from 50.9% a year ago. Moody’s Investors Service revenues jumped 25% year over year to $1.3 billion. The rise was driven by broad-based performance across all lines of businessMoody’s Analytics revenues rose 4% to $925 million. The increase was driven by 2% growth in Decision Solutions, a 3% rise in Research and Insights and a 9% jump in Data and Information. As of June 30, 2026, Moody’s had total cash, cash equivalents and short-term investments of $1.5 billion, down from $2.45 billion as of Dec. 31, 2025.The company had $6.38 billion in outstanding long-term debt. In the first half of 2026, MCO repurchased $2.2 billion worth of shares. Moody’s expects adjusted earnings in the range of $16.50-$17.00 per share, slightly narrower than the prior target range of $16.40-$17.00 per share. GAAP earnings are projected to be the band of $16.00-$16.50 per share, changed from the prior target of $16.00-$16.60 per share. Moody’s projects revenues to increase in the high-single-digit percent range.Operating expenses are expected to be in the mid-single-digit range. Non-operating income is projected to be between $70 million and $90 million.Net interest expenses are anticipated to be $220-$240 million.The adjusted operating margin is expected to be 52-53%, while the operating margin is likely to be 44%- 45%.Moody’s expects the cash flow from operations to be $3.15-$3.35 billion. The free cash flow is projected to be in the $2.7-$2.9 billion range.The effective tax rate is projected to be 23-25%. MIS segment revenues are expected to increase in the high-single-digit range. The adjusted operating margin is expected to be roughly 65%.Coming to the MA segment, Moody’s anticipates revenues to rise in the mid-single-digit range, while Annualized Recurring Revenue (ARR) is expected to increase in the high-single-digit range. Further, an adjusted operating margin is expected to be 34-35%. In December 2024, Moody’s CEO approved a Strategic and Operational Efficiency Restructuring Program aimed at improving efficiency and focusing on growth areas. The initiative is expected to generate annual savings of $250–$300 million by consolidating functions, reducing staff, exiting leased office spaces and retiring legacy software. The program involves $170–$200 million in pre-tax personnel-related restructuring charges and an additional $30–$50 million in non-cash charges. It is projected to strengthen operating margins and support strategic investments, with substantial completion by the end of 2026 and related cash outlays (to be between $210-$230 million) continuing through 2027.Moody’s expanded its Strategic and Operational Efficiency Restructuring Program in July 2026, targeting $300–$350 million in annualized savings. The program focuses on workforce reductions, office consolidation, legacy software retirement, and exits from certain businesses, including the MA Regulatory Solutions divestiture. Moody’s expects $285–$330 million in personnel-related restructuring charges, plus modest non-cash charges related to office exits and software amortization. The program is expected to be substantially completed by end-2027, with cash outlays continuing through 2028. Savings are expected to support margin expansion and strategic investments. It turns out, fresh estimates have trended downward during the past month. Currently, Moody's has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Moody's has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Moody's belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Synchrony (SYF), has gained 6.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Synchrony reported revenues of $4.61 billion in the last reported quarter, representing a year-over-year change of +1.9%. EPS of $2.59 for the same period compares with $2.50 a year ago. For the current quarter, Synchrony is expected to post earnings of $2.38 per share, indicating a change of -16.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.3% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Synchrony. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Moody's Corporation (MCO) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Synchrony (SYF). Shares have added about 9.4% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Synchrony due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Synchrony Beats Q2 Earnings Estimates, Raises 2026 EPS Outlook Synchrony reported second-quarter 2026 adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year. Net interest income increased 1.9% year over year to $4.6 billion but missed the consensus estimate by 1.1%. The growth was driven by lower interest-bearing liability costs, partly offset by lower loan and liquidity portfolio yields. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, higher operating expenses and an increase in the provision for credit losses partly offset these positives. Retailer share arrangements of Synchrony advanced 3.5% year over year to $1 billion in the second quarter. Total loan receivables were $102.2 billion, up 2.4% year over year. The figure beat the Zacks Consensus Estimate of $101.9 billion as well as our estimate of $101.8 billion. Total deposits increased 0.7% year over year to $82.8 billion but missed our estimate of $83.5 billion. Provision for credit losses increased 4.8% year over year to $1.2 billion, primarily due to a smaller reserve release than in the prior-year period, partially offset by lower net charge-offs. However, the reported figure came in below our estimate of $1.5 billion. Synchrony’s purchase volume rose 8.1% year over year to $49.8 billion on higher spend per account. The figure beat the consensus estimate of $48.7 billion and our estimate of $47.7 billion. Interest and fees on loans increased 1% year over year to $5.4 billion but marginally missed our estimate of $5.5 billion. The increase was driven by higher loan receivables yields, partly offset by lower benchmark rates. Net interest margin expanded 30 basis points year over year to 15.08% but fell short of the Zacks Consensus Estimate of 15.25%. Average active accounts increased 0.4% year over year at 68.3 million, missing the Zacks Consensus Estimate of 68.9 million and our estimate of 68.7 million. Total other expenses increased 6.9% year over year to $1.33 billion, slightly above our estimate of $1.30 billion. The efficiency ratio rose 170 basis points year over year to 35.8%, which outpaced the Zacks Consensus Estimate of 35.05%. Home & Auto period-end loan receivables decreased 0.1% year over year in the second quarter. Purchase volume rose 5.8% year over year, reflecting the performance of new programs. Interest and fees on loans declined 0.1% year over year. Digital period-end loan receivables inched up 4.4% year over year. Purchase volume increased 9.2%, driven by strong performance across diversified partners. Interest and fees on loans rose 1.8% year over year. Diversified & Value period-end loan receivables increased 6.5% year over year. Purchase volume increased 11.7%, driven by partner expansion and higher gas sales. Interest and fees on loans increased 1.6% year over year. Health & Wellness period-end loan receivables inched up 0.5% year over year. Purchase volume increased 2.1% year over year, supported by growth in Pet, partly offset by lower Cosmetic spending. Interest and fees on loans advanced 2.7% year over year. Lifestyle period-end loan receivables decreased 0.9% year over year in the second quarter. Purchase volume rose 6%, reflecting new program growth and higher spending in Other Apparel and Goods and Luxury. Interest and fees on loans declined 1.9% year over year. Synchrony exited the second quarter with cash and equivalents of $16.2 billion, which increased from the 2025-end level of $15 billion. Total assets of $121.9 billion increased from the 2025-end figure of $119.1 billion. SYF’s balance sheet was consistently strong in the reported quarter, with total liquidity of $19.8 billion accounting for 16.2% of its total assets. Total borrowings were $16.4 billion, up from $15.2 billion as of Dec. 31, 2025. Total equity of $16.9 billion inched up from the 2025-end figure of $16.8 billion. Return on assets decreased 30 basis points to 2.9%. Return on equity was 21.4%, which decreased 170 bps year over year. Synchrony returned $950 million to shareholders, including $850 million through share buybacks and $100 million in dividends. As of June 30, 2026, the company had a total remaining repurchase authorization of $5.7 billion, with no expiration date. Synchrony continues to anticipate mid-single-digit growth in period-end loan receivables. Strong purchase volume growth is expected to continue throughout 2026. The payment rate is expected to remain high. SYF expects receivables growth to accelerate in the second half of 2026. The company narrowed its 2026 earnings per share guidance to $9.25-$9.50 from $9.10-$9.50, raising the lower end of the range. RSA, as a percentage of average loan receivables, is increasing, reflecting strong program performance, and is expected to remain within the 4-4.5% target range. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -6.95% due to these changes. At this time, Synchrony has a subpar Growth Score of D, a score with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Synchrony has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synchrony Financial (SYF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Synchrony Financial’s SYF record purchase volume is an important growth driver for the second half of 2026. It reached an all-time high of $49.8 billion in the second quarter, up 8% year over year, with growth across all five sales platforms. This growth accelerated to 11% in June, showing that spending was gaining strength toward the end of the quarter. This trend suggests that growth should continue in the second half as well. The quality of this growth is encouraging. Co-branded card purchase volume jumped 23%, accounting for 52% of total purchase volume. Out-of-partner discretionary spending also grew at a double-digit rate despite elevated fuel prices. This shows that customers are not just opening accounts, they are using cards more actively. Synchrony is also adding to this momentum. It added or renewed more than 15 partners in the second quarter of 2026, while new programs and product upgrades are helping drive customer engagement. The MyLowe’s Pro Rewards acquisition and refreshed DICK’S Sporting Goods program should provide more opportunities to increase card usage. This is important because higher purchase volume can lead to higher loan receivables and net interest income. In the second quarter of 2026, loan receivables grew only 2% as elevated payment rates limited the benefit of stronger spending. Management expects stronger purchase volume to overcome this pressure in the second half. If spending stays strong, SYF could see higher loan receivables and a further lift to earnings in the near term. SYF’s peers in the Finance space, including American Express Company AXP and Capital One Financial Corporation COF, also benefited from strong card spending in the recent quarter. American Express benefited from strong card spending, with billed business rising 9% year over year to $455.8 billion in second-quarter 2026. Higher spending helped drive a 10% increase in revenues and an 8% rise in profit, while AXP raised its 2026 revenue-growth outlook to 10%. Capital One also benefited from strong card spending in second-quarter 2026, with purchase volume rising 15% year over year to $249.2 billion. COF’s solid card activity, along with strong credit performance, is supporting the business and could help sustain results in the coming quarters. Shares of SYF have risen 9.1% over the past year against the industry’s 24.8% decline. Image Source: Zacks Investment Research From a valuation standpoint, SYF trades at a forward price-to-earnings ratio of 7.96X, down from the industry average of 17X. SYF carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for SYF’s 2026 earnings is pegged at $9.37 per share, implying a 0.5% decline from the year-ago period’s level. Image Source: Zacks Investment Research SYF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synchrony Financial (SYF) : Free Stock Analysis Report Capital One Financial Corporation (COF) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PRA Group, Inc. PRAA delivered second-quarter 2026 earnings per share of $1.51, topping the Zacks Consensus Estimate of 52 cents. The bottom line increased 39.8% year over year. Total revenues were $372.2 million, beating the consensus mark of $313 million and rising 29.4% year over year. The strong quarterly results benefited from stronger cash generation across geographies, aided by continued strength in the U.S. legal and digital collections channel and solid performance in Europe. Strong portfolio income also contributed to the upside, partly offset by an elevated expense level. PRA Group, Inc. price-consensus-eps-surprise-chart | PRA Group, Inc. Quote PRAA’s net income of $58.9 million increased 28.9% year over year. Other revenues came in at $7.5 million, which soared 115.2% year over year. PRAA’s cash collections increased to $558.5 million, up 14% from the prior-year quarter, supported by continued momentum in U.S. legal and digital collections as well as strength in Europe. The metric came in lower than the Zacks Consensus Estimate of $561.9 million. The cash efficiency ratio was 61%. By region, U.S. Core cash collections totaled $269.7 million, while Europe Core collections were $200.4 million. The company also generated $49.4 million of collections from other markets, reflecting its diversified footprint. PRA Group’s portfolio income increased 7% year over year to $267.8 million, which management attributed to strong recent purchases at improved returns. Changes in expected recoveries contributed meaningfully as well, totaling $96.9 million in the quarter. Total portfolio revenues rose to $364.7 million compared with $284.2 million a year ago. PRAA’s operating expenses rose $16.3 million year over year to $218.9 million. The largest driver was a rise in legal collection costs, which management tied to investments intended to support future cash collections growth. Offsetting some pressure, compensation and benefits declined $5 million, driven by reductions in workforce and implementation of other cost actions. Communication expense also decreased $2 million as the company used more cost-efficient collection strategies. PRA Group purchased $296.6 million of nonperforming loan portfolios in the quarter, down 14.4% year over year, with purchases spanning the United States, Europe and other markets. Management emphasized an approach focused on higher net returns while balancing investments and leverage. Estimated remaining collections were $8.9 billion at quarter-end, up 7% year over year. The company also disclosed forward flow commitments of $219 million over the next 12 months, led by Europe and the United States. PRA Group exited the second quarter with cash and cash equivalents of $132.4 million, which rose 26.8% from the figure at 2025-end. Total assets of $5.2 billion increased 2.7% from the 2025-end level. Borrowings were $3.8 billion, up 1.7% from the figure as of Dec. 31, 2025. Total equity of $1.1 billion grew 7% from the figure at the end of 2025. PRAA ended the quarter with total availability under its credit facilities of $998 million, including $733 million tied to current ERC (and subject to covenants) plus $265 million of additional availability subject to borrowing base and debt covenants. Management reiterated its intent to keep investing with discipline while targeting net leverage in the mid-2x EBITDA range over the next few years. The company also repurchased $10 million of shares during the quarter as part of its capital allocation toolkit. PRAA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Here are some stocks from the broader finance space that have also reported their quarterly results: Synchrony Financial SYF, Virtu Financial, Inc. VIRT and American Express Company AXP. Here's how they have performed: Synchrony reported second-quarter 2026 adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year. Net interest income increased 1.9% year over year to $4.6 billion. SYF’s quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, higher operating expenses and an increase in the provision for credit losses partly offset these positives. Virtu Financial reported second-quarter adjusted earnings per share (EPS) of $1.82, which beat the Zacks Consensus Estimate by 8.3%. The bottom line increased 19% year over year. Adjusted Net Trading Income rose 26.4% year over year to $717.9 million. VIRT’s quarterly results were driven by higher commissions and technology services revenues, increased interest and dividend income, and solid Market Making performance. However, higher operating expenses partially offset these gains. American Express reported second-quarter 2026 earnings per share (EPS) of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. Total revenues, net of interest expense, improved 10% year over year to $19.6 billion. AXP’s quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by elevated operating expenses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PRA Group, Inc. (PRAA) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Global Payments Inc. GPN is set to report second-quarter 2026 results on Aug. 5, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $3.46 per share on revenues of $3.17 billion. The second-quarter earnings estimate witnessed no upward revision over the past 60 days against six downward movements. The bottom-line projection indicates a year-over-year increase of 11.6%. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 34.4%. Image Source: Zacks Investment Research For full-year 2026, the Zacks Consensus Estimate for Global Payments’ revenues is pegged at $12.43 billion, implying a rise of 33.4% year over year. The consensus mark for the current year EPS is pegged at $13.82, implying a jump of 13.1% on a year-over-year basis. Global Payments’ earnings beat the consensus estimate in three of the last four quarters and met once, with the average surprise being 2.1%. This is depicted in the figure below. Global Payments Inc. price-eps-surprise | Global Payments Inc. Quote Our proven model does not conclusively predict an earnings beat for the company this time around. 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, but that is not the case here. GPN has an Earnings ESP of -0.63% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. GPN’s second-quarter results are expected to reflect the impact of the acquisition of Worldpay and the sale of Issuer Solutions Business. The transaction closed on Jan. 12, 2026. The Zacks Consensus Estimate for revenues from Europe operations is pegged at $658.7 million, which indicates 107.9% year-over-year growth on a comparable basis. Similarly, the consensus mark for revenues from the Americas operations is pegged at $2.7 billion, signaling a 71.4% jump from a year ago. The consensus estimate for revenuesfromAsia Pacific stands at $126.5 million, indicating 56.4% year-over-year growth. The above-mentioned estimates indicate that GPN is positioned for year-over-year growth. However, profit growth from the businesses is likely to have been partially offset by increased costs under certain heads. For the to-be-reported quarter, we anticipate the cost of service to rise 63.2% year over year. We expect total operating costs to be around $2.4 billion in the quarter, a 57% increase from the year-ago level. We expect the adjusted EBITDA margin to decline to 44.4% in the second quarter from 48.9% a year ago. American Express Company AXP, Synchrony Financial SYF and Visa Inc. V are some companies from the broader payments space that have already reported earnings for the June quarter. American Express reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by AXP’s elevated operating expenses. Synchrony Financial reported second-quarter 2026 adjusted EPS of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, SYF’s higher operating expenses and an increase in the provision for credit losses partly offset these positives. Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year. Earnings beat the Zacks Consensus Estimate by 2.8%. The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by Visa’s increased operating expenses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Payments Inc. (GPN) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Coinbase Global, Inc. COIN reported a second-quarter 2026 adjusted operating loss of 39 cents per share, against the Zacks Consensus Estimate of earnings of 14 cents. COIN had reported an operating income of 12 cents per share in the prior-year quarter. The quarter reflected lower transaction and subscription revenues, weaker crypto asset prices and higher restructuring costs, partially offset by growth in institutional transaction revenues. Coinbase Global, Inc. price-consensus-eps-surprise-chart | Coinbase Global, Inc. Quote Total Monthly Transacting Users declined to $7.6 million from $8.7 million a year ago, which was lower than the Zacks Consensus Estimate of $8.1 million. Assets on Platform fell to $245.9 billion from $425 billion, primarily due to lower crypto asset prices. The Zacks Consensus Estimate was pegged at $295 million. Total revenues of $1.2 billion missed the Zacks Consensus Estimate by 5.8%. The top line decreased 18.5% year over year due to lower transaction revenues, subscription and services revenues, and other revenues. Total transaction revenues decreased 21.6% year over year to $599.2 million in the second quarter. The downside was due to a decrease in consumer transaction revenues, offset by an increase in institutional transaction revenues. The Zacks Consensus Estimate was pegged at $640 million. Total subscription and services revenues decreased 12.2% year over year to $555.1 million in the reported quarter. The downside was due to a decrease in blockchain rewards and reduced stablecoin revenues, offset by higher average USDC balances and growth in interest and finance fee income. The Zacks Consensus Estimate was pegged at $600.5 million. Adjusted EBITDA was $207.8 million in the reported quarter, which fell 59.4% from the year-ago quarter. Total operating expenses decreased 12.4% to $1.3 billion in the second quarter due to lower transaction expenses and other operating expenses, partly offset by higher technology and development expenses, restructuring charges and losses on crypto assets held for operations. Coinbase exited the second quarter with cash and cash equivalents of $8.6 billion as of June 30, 2026, down 23.9% from 2025-end. As of June 30, 2026, long-term debt remained flat from 2025-end at $5.9 billion. Shareholders' equity was $13.1 billion at second-quarter 2026, down 11.6% from 2025-end. Net cash used in operating activities was $380.1 million in the second quarterfirst half of 2026, which decreased 65.2% year over year. Coinbase expects subscription and services revenues to be in the range of $500-$580 million. Coinbase expects third-quarter 2026 transaction expenses to be in the mid-teens as a percentage of net revenues, while adjusted expenses are projected to be in the range of $980-$1,080 million. Coinbase expects stock-based compensation to be approximately $245 million. COIN also expects 2026 adjusted expenses between $4.2 billion-$4.45 billion, revised from $4.25 billion-$4.6 billion. COIN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Synchrony Financial SYF reported second-quarter 2026 adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year. Net interest income increased 1.9% year over year to $4.6 billion but missed the Zacks Consensus Estimate by 1.1%. Bread Financial Holdings, Inc. BFH reported second-quarter 2026 operating income of $3.55 per share, outperforming the Zacks Consensus Estimate by 40.9%. The bottom line rose 20.7% year over year. Revenues increased 7% from the prior-year level to $993 million, exceeding the consensus estimate by 4.2%. Credit sales of $7.5 billion increased 11% year over year, driven by growth in new partnerships and increased general-purpose spending. Average loans increased 3% to $18.2 billion, while end-of-period loans rose 5% to $18.5 billion. Virtu Financial, Inc. VIRT reported second-quarter 2026 adjusted earnings of $1.82 per share, which beat the Zacks Consensus Estimate by 8.3%. The bottom line increased 19% year over year. Adjusted Net Trading Income rose 26.4% year over year to $717.9 million. Revenues from commissions, net and technology services rose 16.7% year over year to $179.5 million. The metric beat the Zacks Consensus Estimate and our model estimate of $177.9 million. Interest and dividend income of $145.9 million increased 13.6% year over year, surpassing the Zacks Consensus Estimate of $134.4 million. Adjusted EBITDA increased 18.2% year over year to $436.8 million. Adjusted EBITDA margin declined year over year to 60.8% from 65.1% a year ago. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fidelity National Information Services, Inc. FIS is set to report second-quarter 2026 results on Aug. 4, 2026, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.47 per share,and the same for revenues is pinned at $3.38 billion. The second-quarter earnings estimate has witnessed one downward revision against no movement in the opposite direction over the past 60 days. However, the bottom-line prediction indicates an 8.1% year-over-year increase. The Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 29.4%. Image Source: Zacks Investment Research For full-year 2026, the Zacks Consensus Estimate for Fidelity National’s revenues is pegged at $13.80 billion, implying a rise of 29.3% year over year. Meanwhile, the consensus mark for the current year EPS is pegged at $6.27, implying growth of around 9% on a year-over-year basis. Fidelity National’s earningsbeat the consensus estimate in two of the last four quarters, met once and missed on another occasion, with the average surprise being 1.9%. Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote Our proven model does not conclusively predict an earnings beat for the company this time around. 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’s not the case here. FIS has an Earnings ESP of -0.70% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for Banking Solutions revenues indicates a 37.3% year-over-year increase. The acquisition of Global Payments’ Issuer Solutions business, which was closed in January, is likely to boost the performance of the segment. The consensus mark indicates a 6.1% increase in revenues from Capital Market Solutions compared with the same quarter last year. The Zacks Consensus Estimate for Banking Solutions’ adjusted EBITDA indicates a 41.7% year-over-year increase. The consensus mark for Capital Market Solutions’ adjusted EBITDA indicates 10.3% year-over-year growth. The factors stated above are likely to have positioned FIS for year-over-year growth. The positives are likely to have been partially offset bythe rising cost of revenues. Also, the consensus estimate for corporate and other adjusted EBITDA signals a 4.4% deterioration from a year ago. The company earlier stated that it expects second-quarter 2026 consolidated adjusted EBITDA to be in the range of $1.395-$1.415 billion. Here are some companies in the broader payments space that have already reported earnings for the June quarter: Synchrony Financial SYF, American Express Company AXP and Visa Inc. V. Synchrony Financial reported second-quarter 2026 adjusted EPS of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%, and the bottom line increased 3.6% year over year. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, SYF’s higher operating expenses and an increase in the provision for credit losses partly offset these positives. American Express reported second-quarter 2026 EPS of $4.53, which surpassed the Zacks Consensus Estimate by 2.7%. The bottom line advanced 11% year over year. The strong quarterly results were driven by increased Card Member spending, higher net interest income and improved card fee growth. However, the upside was partly offset by AXP’s elevated operating expenses. Visa delivered third-quarter fiscal 2026 adjusted earnings of $3.32 per share, up 11% year over year and beating the Zacks Consensus Estimate by 2.8%. The strong quarterly results reflected resilient spending trends, higher cross-border volumes and solid network activity, including a 10% year-over-year increase in payments volume on a constant-dollar basis. However, the upside was partly offset by Visa’s increased operating expenses. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report Visa Inc. (V) : Free Stock Analysis Report American Express Company (AXP) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bread Financial Holdings, Inc. BFH reported second-quarter 2026 operating income of $3.55 per share, outperforming the Zacks Consensus Estimate by 40.9%. The bottom line rose 20.7% year over year. Revenues increased 7% from the prior-year level to $993 million, exceeding the consensus estimate by 4.2%. The solid performance reflected higher revenues driven by loan growth, pricing actions, lower interest expense and higher interchange and merchant fees, along with improved credit quality. However, the gains were partially offset by higher provision for credit losses and elevated compensation costs. Bread Financial Holdings, Inc. price-consensus-eps-surprise-chart | Bread Financial Holdings, Inc. Quote Credit sales of $7.5 billion increased 11% year over year, driven by growth in new partnerships and increased general-purpose spending. Average loans increased 3% to $18.2 billion, while end-of-period loans rose 5% to $18.5 billion, supported by strong credit sales and partner expansion. Total interest income increased 3% to $1.2 billion, beating the Zacks Consensus Estimate by 0.8%, and our model estimate by 0.02%. The net interest margin improved 78 basis points to 18.5%, whereas the Zacks Consensus Estimate was pegged at 16.9%. Total non-interest expenses remained flat year over year at $483 million, as higher employee compensation and benefits costs were offset by the prior-year impact of debt repurchases. The delinquency rate of 5.7% improved from 5.2% year over year. The net loss rate of 6.9% improved 90 basis points year over year. Pre-tax pre-provision earnings increased 14% year over year to $510 million. Adjusted PPNR, a non-GAAP financial measure that excludes gains on portfolio sales and the impact of debt repurchases, increased 11% year over year to $510 million. Bread Financial exited the second quarter of 2026 with cash and cash equivalents of $3.6 billion, largely unchanged from the 2025-end level. Tangible book value was $63.66 per share as of June 30, 2026, up 22% year over year. Return on average equity was 17.1%, which decreased 40 basis points year over year. BFH repurchased 2.8 million shares of common stock for $241 million during the second quarter of 2026. It ended the second quarter with $449 million remaining under its share repurchase authorization. Management expects average loan growth to increase year over year at a low- to mid-single-digit rate. It expects total revenues to grow at a low- to mid-single-digit pace, broadly in line with loan growth. The net loss rate is expected to be 7-7.1%. The effective tax rate is anticipated to be 25-27%, with some quarterly variability. Bread Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Synchrony Financial SYF reported second-quarter 2026 adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year. Net interest income increased 1.9% year over year to $4.6 billion but missed the consensus estimate by 1.1%. Alerus Financial ALRS is set to report second-quarter 2026 results on July 29, after the market closes. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, which has witnessed one upward revision in the past 60 days, with no movement in the opposite direction. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 35.8%. The consensus estimate for Alerus Financial’s second-quarter revenues is pinned at $76.85 million. Acadian Asset Management Inc. AAMI is set to report second-quarter 2026 results on July 30, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.05 per share, which has witnessed one upward revision in the past 60 days, with no movement in the opposite direction. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus estimate for Acadian Asset Management’s second-quarter revenues is pinned at $179.43 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bread Financial Holdings, Inc. (BFH) : Free Stock Analysis Report Synchrony Financial (SYF) : Free Stock Analysis Report Alerus Financial (ALRS) : Free Stock Analysis Report Acadian Asset Management Inc. (AAMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Consumer finance stocks face a mixed environment. While consumer spending remains healthy despite higher energy prices due to inflation and growth concerns arising from the Middle East conflict, investors are navigating the growth and profitability of credit services stocks. Amid this, Synchrony Financial (NYSE:SYF), Ally Financial Inc. (NYSE:ALLY), and Capital One Financial Corporation (NYSE:COF) released their Q2 results. Let’s discover which company delivered the strongest performance. Iakov Filimonov/Shutterstock.com The company reported its Q2 results on July 21, missing revenue by 0.6% and beating EPS by 21.4%. With these mixed results, the company also narrowed its FY26 EPS range to $9.25-$9.50 from $9.10-$9.50, with the consensus standing at $9.30. The earnings beat was driven by record purchase volume, enhanced active account growth, strong credit performance, and rising loan growth. Management expects mid-single-digit growth in ending loan receivables, continued purchase volume, and a net charge-off rate below 5.5%. However, delinquency and net charge-off performance is anticipated to remain high. With that said, investors must weigh its attractive growth and profitability outlook against the risk of rising credit costs. When Ally Financial Inc. (NYSE:ALLY) delivered its Q2 results on July 21, it reported revenue of $2.28 billion, higher than the forecasted $2.22 billion, and adjusted EPS of $1.21, lower than the projected $1.22. The results mark a 22% YoY increase in adjusted EPS and 10% YoY growth in adjusted net revenue. As the company transitions into a digital-first banking offering with industry-leading retention rates, its retail depositor base continues to expand. The important takeaway for investors is the company’s improved outlook. Management projects average earning assets of 3%-5%, up from an earlier guidance of 2%-4%, while expecting margin to remain 3.6%-3.7%. This growth may come with higher costs, with delinquencies remaining a key concern for the company. Capital One Financial Corporation (NYSE:COF) delivered the strongest performance of all three. The company reported revenue of $15.9 billion and adjusted EPS of $5.81, surpassing estimates by $0.13 billion and $1.09, respectively. Much of this outperformance was driven by solid top-line growth and impressive credit performance, highlighting solid operating momentum. The integration of Discover is also beginning to provide tangible growth benefits. Purchase volume increased 26% YoY, and revenue surged 30% YoY. With strong earnings momentum and an additional catalyst from the Discover integration, COF appears better positioned for long-term growth. The latest earnings make Capital One Financial Corporation (NYSE:COF) the winner among the three companies. Both EPS and revenue exceeded the consensus estimates for COF. The company’s progress with Discover gives it an additional long-term growth catalyst, and at the same time, SYF's purchase volume and Ally's higher growth expectations provide their own positives. COF offers an attractive forward revenue growth of 19.80% relative to the -0.17% and 5.43% forecasted for SYF and ALLY, respectively. From a valuation perspective, SYF appears the most expensive of all. Ally Financial appears the most attractively valued on a Price/Book basis, trading at 0.95x forward book value, compared with 1.10x for Capital One and 1.49x for Synchrony. However, when its stronger revenue growth potential is taken into account, COF's modest valuation premium appears justified. Similarly, COF is expected to deliver a Dividend Per Share Growth of 13.69%, slightly above SYF's 12.38% but significantly higher than ALLY’s 1.52%. For investors valuing returns, COF appears as the right investment. According to Insider Monkey’s database, hedge fund interest also favors Capital One, with 135 funds holding COF. This is significantly more than the 53 holding ALLY and 49 holding SYF. Overall, Capital One Financial Corporation (NYSE:COF) stands out for its stronger growth profile and the long-term potential of its Discover integration. With healthy earnings, improving performance, and solid synergies, COF appears to offer the most attractive risk-reward among the three. While we acknowledge the potential of COF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years Disclosure: None. Follow Insider Monkey on Google News.

Interested in Synchrony Financial? Here are five stocks we like better. Synchrony Financial delivered strong second-quarter 2026 results, with net earnings of $885 million and record purchase volume of nearly $50 billion, up 8% year over year. Management said new account growth, higher active accounts and broad-based spending across its platforms drove the performance. Credit trends remained stable, with the net charge-off rate improving to 5.43% from 5.70% a year earlier and delinquency levels generally in line with last year. The company said its credit discipline is still intact even as elevated payment rates continue to pressure receivables growth. Synchrony raised its full-year 2026 outlook, now expecting EPS of $9.25 to $9.50 and full-year net charge-offs below 5.5%. It also returned $950 million to shareholders in the quarter through buybacks and dividends, while keeping a strong capital position with a 13.2% CET1 ratio. MarketBeat Week in Review – 06/08 - 06/12 Synchrony Financial (NYSE:SYF) reported second-quarter 2026 net earnings of $885 million, or $2.59 per diluted share, as executives pointed to record purchase volume, renewed account growth and continued credit discipline during the company’s earnings call. President and Chief Executive Officer Brian Doubles said the quarter reflected “strong momentum across our core business drivers,” with new accounts continuing to grow and average active accounts returning to growth. Purchase volume rose 8% from a year earlier to nearly $50 billion, which Doubles said was an all-time high for the company. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Synchrony’s Comeback Is Hiding in Plain Sight Chief Financial Officer Brian Wenzel said Synchrony generated a return on average assets of 2.9%, a return on tangible common equity of 25.2% and an 8% increase in tangible book value per share. Ending loan receivables grew 2% to $102 billion, supported by higher purchase volume but partially offset by elevated payment rates. Doubles said growth was broad-based across Synchrony’s five sales platforms. Diversified & Value led the increase, with purchase volume up 12% from a year earlier, helped by partner expansion and higher gas sales. Digital purchase volume grew 9%, which management attributed mainly to partners with broad offerings and highly engaged customers. → Cybersecurity Stocks Are Holding Up as the AI Trade Starts to Crack Adobe Leads 3 Big Buyback Programs Worth Up to 25% of Market Cap Home & Auto and Lifestyle purchase volume each increased 6%. Home & Auto growth was driven by new programs, while Lifestyle benefited from new programs and strength in other apparel and goods as well as luxury. Health & Wellness purchase volume rose 2%, primarily reflecting growth in pet. Co-branded cards, including consumer and commercial dual cards, represented 52% of total purchase volume in the quarter and grew 23% compared with last year. Doubles said the increase reflected new programs, product upgrades, broad-based spending and enhanced utility across card programs. → Strait of Hormuz Tensions Spike Tanker Trade: These 2 Stocks Are Set to Benefit Executives also said discretionary spending remained resilient despite elevated fuel prices. Doubles noted that out-of-partner discretionary spending on consumer co-branded products grew in line with non-discretionary spending, with both up double digits. He cited strength in categories such as entertainment, retail and electronics. Synchrony added or renewed more than 15 partners during the quarter, including Suzuki Motor, AmeriVet and Roto-Rooter Plumbing & Water Cleanup. Doubles said the Suzuki renewal extends a 17-year relationship and continues secured installment financing through more than 700 dealers nationwide. The AmeriVet renewal positions CareCredit as the exclusive financing partner for a network of more than 200 veterinary clinics across 37 states. Synchrony’s agreement with Roto-Rooter will provide revolving and installment financing options for essential home repairs and ongoing home care. Doubles also highlighted Synchrony’s refreshed credit card program with DICK’S Sporting Goods, which now features 10% back in scorecard rewards on qualifying purchases. In April, Synchrony completed its acquisition of the MyLowe’s Pro Rewards American Express Card portfolio and became the issuer, adding a co-branded commercial card alongside the existing MyLowe’s Pro Rewards private label card. Wenzel said net interest income increased 2% to $4.6 billion, driven by higher interest and fees and lower interest expense. Interest and fees rose 1%, reflecting growth in average loan receivables, while interest expense fell 8% due to lower benchmark rates. Synchrony’s second-quarter net interest margin was 15.08%, up 30 basis points from a year earlier but down 42 basis points sequentially. Wenzel said the year-over-year improvement reflected lower costs on interest-bearing liabilities and a higher mix of loan receivables as a percentage of interest-earning assets. Sequentially, the decline was driven primarily by lower assessed late fees and a seasonal pre-funding effect ahead of expected loan acceleration in the second half. The company’s payment rate was 17%, about 70 basis points higher than last year and roughly 170 basis points above the pre-pandemic second-quarter average. Wenzel said the elevated rate reflected new portfolio seasoning, portfolio and product mix shifts and prior credit actions. During the question-and-answer portion of the call, Wenzel said net interest margin was “really at the lowest point” in the second quarter and should begin to build in the second half. He said late-fee pressure should abate and loan receivables should provide a benefit as the year progresses, assuming no changes in Federal Reserve funds rates or interest rates. Provision for credit losses increased $55 million to $1.2 billion, primarily due to a reserve release of $163 million compared with a $265 million release in the prior year. That was partially offset by a $47 million decline in net charge-offs. Synchrony’s net charge-off rate was 5.43%, down from 5.70% a year earlier. Wenzel said 30-plus and 90-plus delinquency rates at quarter-end were generally in line with the prior year. The allowance for credit losses as a percentage of loan receivables was 10.09%, down from 10.42% in the first quarter and 10.59% a year earlier. Asked about the company’s longer-term return profile, Doubles said Synchrony still evaluates business decisions through the lens of long-term guidance of more than 2.5% return on assets. “Everything we’ve brought on, even smaller programs that we’ve exited because they were below our return threshold, they all kind of steer you back to that same range in terms of return,” he said. Synchrony returned $950 million to shareholders in the quarter, including $850 million of share repurchases and $100 million in common stock dividends. The company ended the quarter with about $5.7 billion remaining under its share repurchase authorization. Wenzel said Synchrony issued $500 million of preferred stock during the quarter with a final dividend of 7.25%, adding that the company’s capital stack is “now fully developed.” Synchrony ended the quarter with a common equity tier 1 ratio of 13.2%. The company continues to expect average active account acceleration and strong purchase volume growth in the second half of 2026. Wenzel said that growth should more than offset elevated payment rates and produce mid-single-digit growth in ending loan receivables by year-end. Synchrony also continues to expect net interest income to grow in 2026, supported by higher average loan receivables, PPP fees and lower funding liabilities, partially offset by lower late-fee incidence and faster new account growth. The company expects full-year net charge-offs to be less than 5.5% and now projects diluted earnings per share of $9.25 to $9.50 for 2026. In closing remarks, Doubles said demand remains strong and that Synchrony is “growing while maintaining our credit discipline, generating strong returns, and building significant long-term value for our stakeholders.” Synchrony Financial (NYSE: SYF) is a consumer financial services company that specializes in providing point-of-sale financing and private-label, co-branded and branded credit card programs. The company serves as a payments and lending partner to retailers, digital merchants and service providers, offering consumer financing solutions designed to drive customer engagement and sales. Synchrony also operates a direct bank that offers deposit products, including savings accounts and certificates of deposit, which support its funding and customer-facing product suite. Its core product set includes private-label and co-branded credit cards, general-purpose credit cards, installment loan programs and promotional financing options that are integrated into merchants' checkout experiences. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Synchrony Financial Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Synchrony Financial SYF reported second-quarter 2026 adjusted earnings per share (EPS) of $2.59, which surpassed the Zacks Consensus Estimate by 24.5%. The bottom line increased 3.6% year over year. Net interest income increased 1.9% year over year to $4.6 billion but missed the consensus estimate by 1.1%. The growth was driven by lower interest-bearing liability costs, partly offset by lower loan and liquidity portfolio yields. The quarterly results were driven by record purchase volume, accelerated growth in ending loan receivables despite elevated payment behavior, continued credit strength and an expansion in net interest margin. However, higher operating expenses and an increase in the provision for credit losses partly offset these positives. Synchrony Financial price-consensus-eps-surprise-chart | Synchrony Financial Quote Retailer share arrangements of Synchrony advanced 3.5% year over year to $1 billion in the second quarter. Total loan receivables were $102.2 billion, up 2.4% year over year. The figure beat the Zacks Consensus Estimate of $101.9 billion as well as our estimate of $101.8 billion. Total deposits increased 0.7% year over year to $82.8 billion but missed our estimate of $83.5 billion. Provision for credit losses increased 4.8% year over year to $1.2 billion, primarily due to a smaller reserve release than in the prior-year period, partially offset by lower net charge-offs. However, the reported figure came in below our estimate of $1.5 billion. Synchrony’s purchase volume rose 8.1% year over year to $49.8 billion on higher spend per account. The figure beat the consensus estimate of $48.7 billion and our estimate of $47.7 billion. Interest and fees on loans increased 1% year over year to $5.4 billion but marginally missed our estimate of $5.5 billion. The increase was driven by higher loan receivables yields, partly offset by lower benchmark rates. Net interest margin expanded 30 basis points year over year to 15.08% but fell short of the Zacks Consensus Estimate of 15.25%. Average active accounts increased 0.4% year over year at 68.3 million, missing the Zacks Consensus Estimate of 68.9 million and our estimate of 68.7 million. Total other expenses increased 6.9% year over year to $1.33 billion, slightly above our estimate of $1.30 billion. The efficiency ratio rose 170 basis points year over year to 35.8%, which outpaced the Zacks Consensus Estimate of 35.05%. Home & Auto period-end loan receivables decreased 0.1% year over year in the second quarter. Purchase volume rose 5.8% year over year, reflecting the performance of new programs. Interest and fees on loans declined 0.1% year over year. Digital period-end loan receivables inched up 4.4% year over year. Purchase volume increased 9.2%, driven by strong performance across diversified partners. Interest and fees on loans rose 1.8% year over year. Diversified & Value period-end loan receivables increased 6.5% year over year. Purchase volume increased 11.7%, driven by partner expansion and higher gas sales. Interest and fees on loans increased 1.6% year over year. Health & Wellness period-end loan receivables inched up 0.5% year over year. Purchase volume increased 2.1% year over year, supported by growth in Pet, partly offset by lower Cosmetic spending. Interest and fees on loans advanced 2.7% year over year. Lifestyle period-end loan receivables decreased 0.9% year over year in the second quarter. Purchase volume rose 6%, reflecting new program growth and higher spending in Other Apparel and Goods and Luxury. Interest and fees on loans declined 1.9% year over year. Synchrony exited the second quarter with cash and equivalents of $16.2 billion, which increased from the 2025-end level of $15 billion. Total assets of $121.9 billion increased from the 2025-end figure of $119.1 billion. SYF’s balance sheet was consistently strong in the reported quarter, with total liquidity of $19.8 billion accounting for 16.2% of its total assets. Total borrowings were $16.4 billion, up from $15.2 billion as of Dec. 31, 2025. Total equity of $16.9 billion inched up from the 2025-end figure of $16.8 billion. Return on assets decreased 30 basis points to 2.9%. Return on equity was 21.4%, which decreased 170 bps year over year. Synchrony returned $950 million to shareholders, including $850 million through share buybacks and $100 million in dividends. As of June 30, 2026, the company had a total remaining repurchase authorization of $5.7 billion, with no expiration date. Synchrony continues to anticipate mid-single-digit growth in period-end loan receivables. Strong purchase volume growth is expected to continue throughout 2026. The payment rate is expected to remain high. SYF expects receivables growth to accelerate in the second half of 2026. The company narrowed its 2026 earnings per share guidance to $9.25-$9.50 from $9.10-$9.50, raising the lower end of the range. RSA, as a percentage of average loan receivables, is increasing, reflecting strong program performance, and is expected to remain within the 4-4.5% target range. SYF currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Finance space are Alerus Financial Corporation ALRS and AcadianAsset Management Inc. AAMI, both currently sporting a Zacks Rank #1 (Strong Buy), and Trupanion, Inc. TRUP, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Alerus Financial is set to report second-quarter 2026 results on July 29, after the market closes. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, which has witnessed one upward revision in the past 60 days, with no movement in the opposite direction. The company beat on earnings in each of the trailing four quarters, with the average surprise being 35.8%. The consensus estimate for Alerus Financial’s second-quarter revenues is pinned at $76.85 million. Acadian Asset Management is set to report second-quarter 2026 results on July 30, before the market opens. The Zacks Consensus Estimate for earnings is pegged at $1.05 per share, which has witnessed one upward revision in the past 60 days, with no movement in the opposite direction. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 8.6%. The consensus estimate for Acadian Asset Management’s second-quarter revenues is pinned at $179.43 million. Trupanion is set to report second-quarter 2026 results on Aug. 5, after the market closes. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, which has remained stable over the past 60 days. The consensus estimate for Trupanion’s second-quarter revenues is pinned at $389.65 million, indicating a 10.2% year-over-year increase. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Synchrony Financial (SYF) : Free Stock Analysis Report Trupanion, Inc. (TRUP) : Free Stock Analysis Report Alerus Financial (ALRS) : Free Stock Analysis Report Acadian Asset Management Inc. (AAMI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research