Results
Third Quarter 2026 Results and Key Metrics
4STAMFORD, Conn - Synchrony Financial (NYSE: SYF) today announced third quarter 2026 net earnings of $892 million, or $2.68 per diluted share, compared to $1.1 billion, or $2.86 per diluted share in the third quarter 2025.
Management commentary
CEO Commentary
“Synchrony delivered another strong performance in the third quarter, highlighted by broad-based purchase volume growth across all five of our sales platforms,” said Brian Doubles, Synchrony’s President and Chief Executive Officer.
5“Spend reached a record third quarter level and increased across credit cohorts and generations, with the highest growth once again coming from our Generation Z and Millennial customers.
6In addition, both discretionary and non-discretionary out-of-partner spend increased by double-digits, led by momentum in electronics, entertainment, gas stations and discount stores.”
“Synchrony’s products and experiences resonate because of the everyday utility and enduring value we provide, particularly in a dynamic environment.
Investments in our multi-product suite, distribution network and digital capabilities are embedding our capabilities across the evolving frontier of commerce — from point of sale and digital wallets to payment processors and emerging agentic purchasing paths.
By meeting people wherever they choose to transact, Synchrony is expanding our reach, deepening relationships, and enabling greater choice, trust, and scalability as a leader in a dynamic retail ecosystem.”
“Synchrony is delivering outcomes that matter.
We are empowering tens of millions of customers with financial flexibility, driving loyalty and sales for hundreds of thousands of merchants, partners and providers across the country, and generating attractive, risk-adjusted growth and significant long-term value for our stakeholders.”
Results
2.9%12.9%$1.2B$103.3B
Management commentary
Return on AssetsCET1 RatioCapital ReturnedLoan Receivables
Results
Key Operating and Financial Metrics*
Purchase volume increased 8% to $49.7 billion
Loan receivables increased 3% to $103.3 billion
Average active accounts were flat at 68.3 million
1Net interest margin decreased 12 basis points to 15.50%
Efficiency ratio increased 330 basis points to 35.9%
Return on assets decreased 70 basis points to 2.9%
Return on equity decreased 410 basis points to 21.0%
Return on tangible common equity** decreased 370 basis points to 25.2%
Book value per share increased 8% to $47.64
Tangible book value per share** increased 6% to $42.79
Management commentary
CFO Commentary
“Synchrony’s third quarter financial performance reflected disciplined execution across our strategic priorities,” said Brian Wenzel, Synchrony’s Executive Vice President and Chief Financial Officer.
“We delivered continued growth in both purchase volume and ending loan receivables, and Net interest income increased due to higher average loan receivables and lower funding costs.
Credit performance remained strong during the quarter, with delinquency trends consistent with typical seasonality and net charge-offs declining to a seasonal low.
The resulting improvement in program performance was shared through the RSA, reinforcing the economic alignment between Synchrony and our partners.”
“Together, these results underscore the strength of our differentiated model, which has enabled us to consistently deliver returns on average assets above our long-term target, return substantial capital to shareholders, and invest in opportunities that drive long-term earnings power and intrinsic value.”
Business Highlights
Results
Added or renewed 10 partners in the quarter, including La-Z-Boy and Fender.
Corporate events
Integrated with Vetspire to embed flexible financing from CareCredit directly into Vetspire’s AI-enabled veterinary practice management platform.
Refreshed the Venmo credit card value proposition, featuring an industry-first capability that rewards social spending, offering cardholders more cash back for splitting purchases with friends on Venmo.
Introduced CareCredit Pay Later, expanding consumer payment choice through simplified offer comparison and enhanced digital capabilities.
Announced new integration with Stripe, which will make it easier for both Synchrony’s and Stripe's providers and health and wellness retailers to offer CareCredit financing as part of their online checkout experience.
Established partnership with OpenAI, combining strategic agentic commerce collaboration with enterprise AI access.
Joined the Personal Agent Protocol ("Poppy") initiative led by Sierra and Meta as a design partner, reflecting our commitment to helping define the open standards that will underpin the future of agentic commerce.
Results
Financial Highlights
Interest and fees on loans increased $81 million , or 1% to $5.6 billion, primarily driven by growth in average loan receivables.
3Net interest income increased $89 million, or 2%, to $4.8 billion, primarily driven by the combination of higher interest and fees and lower interest expense, partially offset by lower investment income.
Retailer share arrangements increased $72 million, or 7%, to $1.1 billion, primarily reflecting program performance.
Provision for credit losses increased $120 million, or 10%, to $1.3 billion, primarily driven by a reserve build of $30 million versus a $152 million release in the prior year, partially offset by lower net charge-offs of $62 million.
2Other income decreased $22 million, or 17%, to $105 million, primarily driven by an increase in loyalty costs.
7Other expense increased $123 million, or 10%, to $1.4 billion, primarily driven by higher operational losses, technology investments and marketing expenses.
Net earnings decreased $185 million, or 17%, to $892 million.
Credit Quality
Loans 30+ days past due as a percentage of total period-end loan receivables were 4.34% compared to 4.39% in the prior year, a decrease of 5 basis points.
Loans 90+ days past due as a percentage of total period-end loan receivables were 2.06% compared to 2.12% in the prior year, a decrease of 6 basis points.
Net charge-offs as a percentage of total average loan receivables were 4.79% compared to 5.16% in the prior year, a decrease of 37 basis points.
The allowance for credit losses as a percentage of total period-end loan receivables was 10.01%, compared to 10.09% in the second quarter of 2026 and 10.35% in the third quarter of 2025.
Management commentary
Sales Platform Highlights
Results
Period-end loan receivables were up 8% in Diversified & Value, up 3% in Digital, up 2% in Home & Auto, up 1% in Health & Wellness, and down 1% in Lifestyle.
These results reflected stable purchase volume trends in the third quarter as compared to previous quarters, partially offset by the effects of higher payment rates.
Growth of interest and fees on loans ranged from flat to up 4%, as growth in average loan receivables was partially offset by lower late fee incidence.
Home & Auto purchase volume increased 9%, primarily reflecting the performance of new programs, select Furniture retailers, and the impact of higher gas prices.
Digital purchase volume increased 5%, primarily reflecting strong customer engagement across partners with broad diversified offerings and refreshed value propositions.
Diversified & Value purchase volume increased 13%, primarily reflecting the impact of partner expansion and the impact of higher gas prices.
Health & Wellness purchase volume increased 3%, primarily reflecting growth in Pet, partially offset by lower spend in Audiology and Cosmetic.
8Lifestyle purchase volume increased 6%, primarily reflecting higher spend in Other Apparel and Goods, Luxury and performance of new programs, partially offset by lower spend in Outdoor.
Loan receivables of $103.3 billion increased 3%; purchase volume increased 8% and average active accounts were flat.
Deposits increased 4% or $3.1 billion to $83.0 billion and comprised 83% of funding.
Total liquid assets were $19.5 billion, or 15.9% of total assets.
Capital return
The Company returned $1.2 billion in capital to shareholders, including $1.1 billion of share repurchases and $110 million of common stock dividends.
As of September 30, 2026, the Company had a total remaining repurchase authorization of approximately $4.6 billion.
Results
The estimated Common Equity Tier 1 ratio was 12.9% compared to 14.3%***, and the estimated Tier 1 Capital ratio was 14.5% compared to 15.5%*** in the prior year.
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