Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
KeyCorp's second quarter of fiscal 2026 reflected the benefits of lower deposit costs and asset repricing, as net interest income grew and fee-based businesses expanded 8%. Net income rose roughly 20%, aided by a smaller provision for credit losses, though pockets of credit stress emerged as nonperforming assets increased from idiosyncratic exposures. Operating cash flow for the first half of the year declined sharply, underscoring the volatility of quarterly cash flows in banking. Management raised its full-year revenue and loan growth outlook, signaling confidence in commercial lending momentum.
Revenue
$1.96B
+6.74% YoY
EPS (Diluted)
$0.44
+25.71% YoY
Source: SEC XBRL
Keycorp (KEY) reported Q2 FY2026 revenue of $1.96B, up 6.7% year over year. KEY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.44 | 0.43 | Beat +3.1% |
| Mar 2026 | 0.44 | 0.42 | Beat +5.8% |
| Dec 2025 | 0.41 | 0.39 | Beat +4.9% |
| Sep 2025 | 0.41 | 0.39 | Beat +6.1% |
Reported EPS of $0.44 versus the $0.43 analyst consensus — a +3.1% beat for Jun 2026.
2 reported segments · SEC XBRL
Segment revenue totals $2.12B; with -$154M of reconciling items (corporate, unallocated and eliminations) it ties to the $1.96B of consolidated revenue on the income statement.
Profit above is reported as net income, the measure KEY itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Net interest income (taxable-equivalent) grew $108 million, or 9.4%, in Q2 2026, driven by lower deposit costs as rates declined, reinvestment of proceeds from maturing low-yielding securities and swaps into higher-yielding assets, and a favorable shift in loan mix toward commercial and industrial loans.
Source: 10-Q Item 2 MD&A
The provision for credit losses declined to $92 million from $138 million a year ago, largely because the prior-year period included reserve builds that were not repeated.
Source: 10-Q Item 2 MD&A
KeyCorp's priority fee-based businesses—investment banking, commercial payments, and wealth management—collectively grew 8% in the first half of 2026, contributing to revenue diversification.
Source: 10-Q Item 2 MD&A
Management increased its full-year guidance: revenue growth now seen at 7-8%, net interest income up 9-11%, and average loans up 4-5%, with commercial loans up 8-10%.
Source: 10-Q Item 2 MD&A
The company repurchased $341 million in common shares during Q2 2026 and remains on pace for at least $1.3 billion in buybacks for the year, while maintaining a CET1 ratio estimated at 11.2%.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
KeyCorp's earnings are highly sensitive to interest rate movements. A rapid rise in rates could increase funding costs faster than loan yields, compressing net interest margin, while a decline could reduce asset yields without a proportional drop in deposit costs.
Source: 10-Q Item 2 MD&A
While net charge-offs remained at the low end of guidance (42 bps), nonperforming assets increased due to idiosyncratic exposures. A broad economic downturn or worsening commercial real estate market could lead to higher credit losses.
Source: 10-Q Item 2 MD&A
Operating cash flow for the first half of 2026 dropped 82% year-over-year to $197 million, and the bank relies on short-term borrowings such as repurchase agreements and bank notes. A constriction in funding markets could challenge liquidity.
Source: 10-Q Cash Flow Statement (XBRL)
KeyCorp holds a significant commercial real estate portfolio, including $13.9 billion in commercial mortgages and $2.8 billion in construction loans. A downturn in commercial property values could materially increase defaults and provisions.
Source: 10-Q Item 2 MD&A
Proposed revisions to CAMELS ratings, FDIC resolution planning, and deposit insurance assessments could increase operational costs or require changes to capital planning. Evolving capital rules may also affect KeyCorp's capital requirements.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.96 $B | 1.84 $B | +6.74% |
Net Income $M | 509.00 $M | 425.00 $M | +19.76% |
EPS (Basic) $ | 0.44 $ | 0.35 $ | +25.71% |
EPS (Diluted) $ | 0.44 $ | 0.35 $ | +25.71% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
KeyCorp (KEY) delivered strong Q1 FY2026 results with revenue rising 10.2% YoY to $1.95B and net income surging 28.9% to $522M, reflecting improved profitability despite negative operating cash flow.
KeyCorp (KEY) delivered a dramatic FY2025 turnaround, swinging from a net loss of $161M to net income of $1.83B on revenue that surged 62.7% to $7.51B, driven by improved net interest income and a strengthened balance sheet.
Other companies in Regional Banks