| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 7.7x | 17.6x | Top tier | |
Growth | 26 | 0.1% | 7.1% | Bottom tier | |
Quality | 93 | — | — | Top tier | |
Safety | 21 | — | — | Bottom tier | |
Capital Return | 63 | 1.60% | 2.15% | Around median | |
Momentum | 64 | 5.9% | 2.3% | Around median | |
Sentiment | 67 | 17 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Synchrony Financial is a consumer finance company that derives its income primarily from interest and fees on loans and cards, and operates through five sales platforms: Diversified Value, Digital, Home & Auto, Lifestyle, and Health & Wellness. Its ecosystem includes private-label cards, co-branded cards, revolving and installment financing solutions, as well as CareCredit; co-branded cards, including consumer and business cards, accounted for 52% of purchase volume in Q2 fiscal 2026. The company relies on retail and service partnerships and added or renewed more than 15 partnerships during that quarter, including Suzuki Motor, AmeriVet, and Roto-Rooter.
In Q2 fiscal 2026, Synchrony reported revenue of $5.7 billion and net income of $885 million, equivalent to $2.59 per diluted share, compared with net income of $967 million and earnings of $2.50 per share in Q2 fiscal 2025. Return on average assets was 2.9%, and return on tangible equity was 25.2%, while net interest income increased 2% to $4.6 billion and net interest margin reached 15.08%, up 30 basis points year over year and down 42 basis points sequentially. The efficiency ratio was 35.8%, approximately 170 basis points higher than the prior year, with other expenses rising 7% to $1.3 billion.
Purchase volume in Q2 fiscal 2026 reached a record of nearly $50 billion, growing 8%, while period-end loan receivables increased 2% to $102 billion. Diversified Value led growth with a 12% increase, followed by Digital at 9%, then Home & Auto and Lifestyle at 6% each, and Health & Wellness at 2%. Co-branded card purchase volume increased 23%, showing that spending growth was concentrated in the most frequently used products across partners and new programs.
The analyst consensus is "Buy," with an average price target of $88.3, within a range of $80 to $104; the average is very close to the 52-week high of $88.77, while the highest target exceeds that high by approximately 17%. The wide gap between the $80 and $104 targets indicates differing analyst assessments of the impact of loan growth and margin improvement versus credit and late-fee risks, and the data does not include a valid earnings multiple to provide another valuation anchor.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Synchrony reported revenue of $5.7 billion and net income of $885 million in Q2 fiscal 2026. Diluted earnings per share were $2.59, return on average assets was 2.9%, and return on tangible equity was 25.2%. Net interest income was $4.6 billion, and net interest margin was 15.08%. Purchase volume also reached a record of nearly $50 billion, up 8% year over year.
Management raised its diluted earnings-per-share outlook for fiscal 2026 to $9.25–$9.50. It expects mid-single-digit growth in year-end loan receivables, with net interest income growth driven by higher average loans and a lower cost of funding liabilities. It also expects the net charge-off rate to remain below 5.5% and revenue-sharing payments to remain within a range of 4%–4.5% of average loans. Management said on July 21, 2026, that the 15.08% net interest margin should increase sequentially during the second half of fiscal 2026, assuming interest rates remain unchanged.
Synchrony announced on August 17, 2026, that the partnership will enable purchases directly within ChatGPT using its co-branded cards at brands including Amazon, Walmart, and Lowe's. Disclosures on August 22 and 23, 2026, clarified that the collaboration also includes underwriting, credit risk management, product development, and payment experiences. AI tools were already being used by 90% of exempt employees, according to the July 21, 2026 call, with use cases in technology, contact centers, collections, fraud, and credit. Management said token costs were not material to results as of that date and that the FinOps team monitors licensing and consumption costs.
Automated analysis for informational purposes only — not investment advice.
Management said on the July 21, 2026 call that Walmart OnePay is Synchrony's fastest-growing program in its history across several metrics. The program operates entirely through the OnePay app and has a stronger loyalty proposition than Walmart's previous relationship with the company. More than half of the program's accounts belong to Walmart+ members, whom management described as highly engaged with the brand. Management expects the program to become one of Synchrony's five largest programs.
The net charge-off rate was 5.43% in Q2 fiscal 2026, down from 5.70% a year earlier, while the allowance for credit losses declined to 10.09% of loans from 10.59% a year earlier. Nevertheless, the provision for credit losses on the income statement was $1.2 billion, and management expects provisions related to loan growth to increase during the second half of fiscal 2026. Direct deposits increased $2.9 billion year over year, while brokered deposits declined $2.4 billion, and deposits accounted for 83% of total funding. Liquid assets were $19.8 billion, or 16.2% of total assets, at the end of the quarter.
Net interest margin declined 42 basis points sequentially to 15.08% in Q2 fiscal 2026, primarily due to lower late fees and lower interest and fee yields. Other expenses increased 7% to $1.3 billion due to operational losses and technology investments, raising the efficiency ratio to 35.8%. Management expects expenses in the second half of fiscal 2026 to be close to first-half levels, with continued technology investment and volume-related expenses. Any potential regulation of late fees or interest rates also remains a risk, although management said on July 21, 2026, that no formal action had been drafted.
