Synchrony Financial 2Q core a little light but nice momentum headed into 2H; Reiterate Buy

Research evidence excerpt

Synchrony Financial 2Q core a little light but nice momentum headed into 2H; Reiterate Buy

Accessible version

Synchrony Financial

2Q core a little light but nice momentum

headed into 2H; Reiterate Buy

Reiterate Rating: BUY | PO: 89.00 USD | Price: 71.64 USD

Some moving pieces in 2Q but positive signals for 2H26 21 July 2026

Earlier, Buy-rated SYF reported earnings featuring an EPS beat of $2.59 (BofA/Street = Equity

$2.10/$2.13) driven by provisions (+$0.59 p.s. relative to BofAe). Momentum in purchase

volume trends and loan growth was the highlight in 2Q – a positive signal for consumer

Key Changesengagement and the full-year loan growth outlook. Net interest margin (NIM), which was

in-focus into the print, and OpEx both came in a little below expectations. Reiterate Buy. (US$) Previous Current

Price Obj. 91.00 89.00

’26 guidance: EPS narrowed to top end of range

SYF now expects FY26 EPS of $9.25-$9.50, up from $9.10-$9.50 prior. The updated Mihir Bhatia

guide brackets BofAe/consensus at $9.36/$9.29 heading into 2Q, but given the strong Research Analyst BofAS

2Q results is a step-down on prior 2H estimates. That said, 2Q was a credit driven beat +1 415 436 3553

and with SYF maintaining key aspects of the 2026 guide (mid-single digit loan growth, mihir.bhatia@bofa.com

NCOs <5.5%), we believe the 2H stepdown is largely driven by reserve release timing MatthewResearch AnalystC. O'Neill

and there we do not see it as alarming. Loan growth will benefit from new program BofAS

+1 646 855 1681

seasoning and accelerate in 2H, though payment rates likely remain elevated. 2H matthew.c.oneill@bofa.com

expense dollars are expected to remain consistent with 1H and RSA outlook of 4.0%- Caroline Latta

4.5% of average receivables was reiterated. Research Analyst

BofAS