AI Takeaway
Synchrony Financial (SYF) delivered solid Q1 FY2026 results with net income rising 6.3% YoY to $805M and EPS surging ~20% to $2.27 diluted, supported by strong capital returns and a stable balance sheet despite a slight contraction in total assets.
EPS (Basic)
$2.29
++19.90% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Net income grew 6.3% YoY to $805M in Q1 FY2026, while diluted EPS jumped 20.1% to $2.27 (from $1.89), reflecting both improved profitability and the benefit of share repurchases reducing the share count.
Source: Source: 10-Q Income Statement
SYF repurchased $900M in shares during Q1 FY2026, a 48.8% increase over the $605M repurchased in the prior-year period, signaling management's confidence in the company's capital position and commitment to returning value to shareholders.
Source: Source: 10-Q Cash Flow Statement
Total assets declined slightly by 0.4% YoY to $121.5B, while long-term debt decreased 3.4% to $16.4B, suggesting disciplined liability management and a modest reduction in leverage.
Source: Source: 10-Q Balance Sheet
2 more insights available
Upgrade to unlockSYF's debt-to-equity ratio stands at approximately 6.37x, which is elevated and typical for consumer finance companies but leaves limited buffer against credit losses or funding market disruptions. A deterioration in credit quality or rising funding costs could disproportionately impact earnings and capital adequacy.
Source: Source: 10-Q Balance Sheet / Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.27 versus the $2.21 analyst consensus — a +2.8% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Income | $805M | $757M | +6.34% |
EPS (Basic) | $2.29 | $1.91 | +19.90% |
EPS (Diluted) | $2.27 | $1.89 | +20.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $121.5B | $122.03B | -0.43% |
Total Liabilities | $105.02B | $105.44B | -0.40% |
Stockholders' Equity | $16.48B | $16.58B | -0.63% |
Cash & Equivalents | $20.56B | $21.63B | -4.95% |
Long-Term Debt | $16.43B | $17.01B | -3.42% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.18B | $2.2B | -0.77% |
Investing Cash Flow | $1.52B | $3.6B | -57.70% |
Financing Cash Flow | $1.88B | $2.12B | -11.33% |
Share Buybacks | $900M | $605M | +48.76% |
D&A | $143M | $125M | +14.40% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
ROE | 4.9% | — | — |
ROA | 0.7% | — | — |
Debt to Equity | $6.374 | — | — |
Other companies in Consumer Finance
SYF reported diluted EPS of $2.27 in Q1 FY2026, up 20.1% from $1.89 in the prior-year period, and net income of $805M, up 6.3% YoY. Whether this beat Wall Street consensus estimates would require comparison to analyst forecasts not included in the filing itself.
The key takeaways from SYF's Q1 FY2026 results include strong EPS growth of ~20% driven by both earnings improvement and aggressive share buybacks of $900M, net income of $805M, and a stable balance sheet with total assets of $121.5B and reduced long-term debt of $16.4B.
Synchrony Financial repurchased $900M in shares during Q1 FY2026, a significant 48.8% increase compared to $605M in the same period last year, which was a major driver of the 20.1% surge in diluted EPS to $2.27.
Based on the financial data, key risks for SYF include high financial leverage with a debt-to-equity ratio of ~6.37x, exposure to consumer credit quality deterioration, and regulatory risk from CFPB oversight of credit card practices. A 4.9% decline in cash and equivalents to $20.6B also warrants monitoring.
SYF's financial health appears stable: it holds $20.6B in cash, generated $2.18B in operating cash flow, and reduced long-term debt by 3.4% to $16.4B. However, its leverage remains elevated at ~6.37x debt-to-equity, which is characteristic of consumer finance companies but requires ongoing credit quality vigilance.