Synchrony Financial’s third quarter results showed steady performance, with revenue coming in flat year over year and exceeding Wall Street’s expectations. Management pointed to continued strength in credit performance and the impact of selective credit actions, which helped drive a 2% increase in purchase volume across the company’s five sales platforms. CEO Brian Doubles highlighted that “trends across our five platforms improved even as the effects of our previous credit actions continue to impact average active accounts,” noting particular strength in digital and dual/co-branded card spend. Management acknowledged that while customer engagement and transaction frequency rose, higher payment rates and lower late fees softened net interest income.
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Synchrony Financial (SYF) Q3 CY2025 Highlights:
- Revenue: $3.82 billion vs analyst estimates of $3.79 billion (flat year on year, 0.9% beat)
- Adjusted EPS: $2.86 vs analyst estimates of $2.21 (29.3% beat)
- Adjusted Operating Income: $1.43 billion vs analyst estimates of $2.60 billion (37.4% margin, 45.1% miss)
- Operating Margin: 37.4%, up from 27% in the same quarter last year
- Market Capitalization: $26.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Synchrony Financial’s Q3 Earnings Call
- Terry Ma (Barclays) asked about the rationale for reducing the revenue outlook range and the impact of partner-level pricing changes. CFO Brian Wenzel cited lower late fee incidence due to improving delinquencies and elevated payment rates.
- Ryan Nash (Goldman Sachs) pressed for details on the sustainability of improved credit performance and the impact of credit box easing. CEO Brian Doubles pointed to continued consumer resilience and the positive initial results from Walmart and Pay Later programs.
- John Pancari (Evercore) inquired about payment behavior among lower-income cohorts. Wenzel responded that non-prime segments performed better due to prior credit actions, with stronger transaction frequency and lower delinquency.
- Mihir Bhatia (Bank of America) sought clarity on reserve rate trends and the drivers behind active account growth. Wenzel explained that stronger credit performance led to reserve reductions and that new account openings have started to rise sequentially.
- Don Fandetti (Wells Fargo) questioned Synchrony’s pipeline for portfolio acquisitions and the strategic rationale behind the Versatile Credit deal. CEO Brian Doubles highlighted a strong acquisition pipeline and described Versatile as a bolt-on deal to enhance digital lending capabilities.
Catalysts in Upcoming Quarters
In future quarters, we will watch for (1) signs that new product launches like the Walmart credit card and Pay Later at Amazon drive sustained growth in purchase volume, (2) incremental easing of credit standards and any resulting shifts in account openings or loan growth, and (3) the resilience of credit metrics as macroeconomic conditions evolve. The trajectory of technology integration with new partners and the ongoing performance of co-branded card programs will also be key indicators of Synchrony’s execution.
Synchrony Financial currently trades at $73.58, up from $72.81 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).
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