Synchrony Financial Q3 EPS Beats by $0.26 as Purchase Volume Hits Record and Credit Quality Improves

Synchrony Financial posted third-quarter 2026 earnings per share of $2.68, beating the consensus estimate of $2.42 by $0.26, while revenue of $3.82 billion edged past forecasts by $10 million. Net interest income rose 2% year over year to $4.8 billion, and purchase volume climbed 8% to $49.7 billion, which the company called a record third-quarter level. Net earnings came in at $892 million, down 17% year over year, partly reflecting a $30 million reserve build in the quarter compared to a $152 million reserve release in the same period last year.

Credit quality showed improvement across key metrics. Net charge-offs fell 37 basis points year over year to 4.79%, and accounts 30 or more days past due declined 5 basis points to 4.34%. Net interest margin dipped 12 basis points to 15.50%, and return on equity was 21.0%, down 410 basis points year over year. The CET1 capital ratio stood at 12.9%.

Purchase volume gains were broad-based across the company's platforms: Diversified and Value led with 13% growth, followed by Home and Auto at 9%, Lifestyle at 6%, Digital at 5%, and Health and Wellness at 3%. Synchrony returned $1.1 billion to shareholders through share repurchases and paid $110 million in common stock dividends, with approximately $4.6 billion remaining under its buyback authorization.

The company also announced two strategic partnerships. It established a collaboration with OpenAI focused on agentic commerce, and separately revealed a new integration with Stripe that brings CareCredit financing to online checkout. Synchrony reaffirmed its full-year earnings guidance at the top of its previously stated range.