Overview

* Synchrony Financial ( SYF ) Q3 net earnings rise 37% to $1.1 bln, driven by improved credit grades

* Net interest income for Q3 increased 2% to $4.7 bln, reflecting lower interest costs

* Company announces $1 bln share repurchase authorization, showing financial confidence

Outlook

* Synchrony authorized $1.0 bln in share repurchases through June 30, 2026

Result Drivers

* PURCHASE VOLUME GROWTH - Driven by stronger spending trends across all platforms and improved credit performance, per CEO Brian Doubles

* NET INTEREST INCOME - Increased by 2% to $4.7 bln, primarily due to lower interest costs, contributing to higher retailer share arrangements

* CREDIT LOSS PROVISION - Decreased to $1.1 bln, driven by lower net charge-offs and a reserve release

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $3.82

Revenue bln

Q3 EPS $2.86

Q3 Net $1.10

Income bln

Q3 Net $4.70

Interest bln

Income

Q3 $1.10

Credit bln

Loss

Provisio

n

Q3 ROCE 25.10%

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy"

* Wall Street's median 12-month price target for Synchrony Financial ( SYF ) is $82.50, about 11.7% above its October 14 closing price of $72.84

* The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)