Synchrony Financial Reports Q3 Earnings: Record Purchase Volume and Updated Guidance
Synchrony Financial (SYF) reported its third-quarter earnings for 2026, highlighting a record purchase volume of $49.7 billion, an 8% year-over-year increase. Net interest income rose to $4.8 billion due to higher fees and lower interest expenses, while diluted EPS came in at $2.68 compared to $2.86 the previous year. The company maintained a stable credit performance with a net charge-off rate of 4.8%, down from 5.2% last year. Despite these positive metrics, Synchrony faced challenges including an efficiency ratio increase to 35.9% and a decline in return on average assets to 2.9%. The company also warned about potential pressure on interest margins due to rising deposit costs amid competitive dynamics. Management raised its full-year earnings guidance for 2026 to $9.50, reflecting strong performance across various customer segments like Gen Z and millennials. Synchrony attributed much of the growth in purchase volume to strategic initiatives such as integrating into digital commerce channels and leveraging data analytics platforms.