Synchrony Financial Reports Mixed Q4 Results with Analyst Revisions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Benzinga
- Earnings Beat: Synchrony Financial reported Q4 earnings of $2.18 per share, surpassing the analyst consensus of $2.04, indicating resilience in profitability despite mixed overall sales performance.
- Sales Miss: The company posted quarterly sales of $4.761 billion, slightly below the analyst estimate of $4.769 billion, reflecting minor fluctuations in market demand that could impact future growth expectations.
- Cautious Outlook: Synchrony Financial projects FY2026 GAAP EPS between $9.10 and $9.50, below the market estimate of $9.20, indicating a cautious stance on future profitability.
- Analyst Target Adjustments: Following the earnings announcement, several analysts revised their price targets for Synchrony Financial, with BTIG lowering from $100 to $96, Barclays from $101 to $93, and RBC Capital from $91 to $85, reflecting divergent views on the company's future performance.
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Analyst Views on SYF
Wall Street analysts forecast SYF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SYF is 94.60 USD with a low forecast of 83.00 USD and a high forecast of 101.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
10 Buy
5 Hold
0 Sell
Moderate Buy
Current: 73.420
Low
83.00
Averages
94.60
High
101.00
Current: 73.420
Low
83.00
Averages
94.60
High
101.00
About SYF
Synchrony Financial is a consumer financial services company focused on delivering digitally enabled product suites. The Company provides a range of credit products through financing programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. It offers private label, dual card, co-brand, and general-purpose credit cards, as well as short- and long-term installment loans, and savings products through Synchrony Bank (the Bank). The Company primarily manages its credit products through five sales platforms such as Home & Auto, Digital, Diversified & Value, Health & Wellness and Lifestyle. The Bank offers directly to retail, affinity relationships and commercial customers, a range of deposit products, including certificates of deposit, individual retirement accounts (IRAs), money market accounts, savings accounts and sweep and affinity deposits.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Synchrony Financial Reports Strong Q4 2025 Earnings with Strategic Growth Initiatives
- Earnings Performance: Synchrony Financial reported net earnings of $751 million for Q4 2025, translating to $2.04 per diluted share, despite a $0.14 restructuring charge, indicating robust profitability amidst market fluctuations.
- Record Purchase Volume: The company achieved a record purchase volume of $49 billion in Q4, a 3% year-over-year increase, with digital platform purchases rising by 6%, showcasing significant progress in digital transformation and enhancing competitive positioning.
- Partner Expansion: Synchrony added or renewed over 25 partners in the quarter, including Bob's Discount Furniture and RH, further solidifying its market position in co-branded partnerships and driving sales growth.
- Optimistic Outlook: Management projects net earnings per diluted share between $9.10 and $9.50 for 2026, reflecting confidence in new programs and technology investments while cautioning about potential regulatory risks, particularly concerning APR caps.
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RBC Lowers Synchrony Price Target to $85
- Price Target Adjustment: RBC Capital analyst Jon Arfstrom lowered Synchrony's price target from $91 to $85, reflecting a cautious outlook on the company's future performance while maintaining a Sector Perform rating.
- Positive Quarterly Performance: Despite the price target reduction, the fourth quarter showed year-over-year improvements in spending volumes and credit metrics, indicating the company's resilience in the market and potentially laying the groundwork for future growth.
- Stable 2026 Outlook: The analyst noted that the outlook for 2026 is mostly consistent with recent commentary and expectations, suggesting that the company maintains stability in its long-term strategy, which may attract investor interest.
- Market Reaction Anticipation: With the price target lowered, the market may adopt a cautious stance on Synchrony's short-term performance, prompting investors to closely monitor upcoming financial reports to assess the company's recovery capabilities.
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