Synchrony Financial
- Open
- 77.48
- Day high
- 77.69
- Day low
- 76.80
- Prev close
- 78.05
- Volume
- 4.4M
- Mkt cap
- $25.1B
- P/E (TTM)
- 7.8
- EPS (TTM)
- $9.86
- P/B
- 1.5
- P/S
- 1.3
- Yield
- 1.22%
- Per share
- $0.94
- ▼Insiders net selling -$847K over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
Synchrony Financial (SYF) is a Financial Services company listed on NYSE. The stock is up 2% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4).
Synchrony Financial (SYF) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SYF earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 21, 2026 | $2.16 | $2.59 | +19.7% | $3.7B | -1.4% |
| Apr 21, 2026 | $2.22 | $2.27 | +2.3% | $3.7B | -2.4% |
| Jan 27, 2026 | $2.01 | $2.18 | +8.5% | $4.8B | +25.8% |
| Oct 15, 2025 | $2.26 | $2.86 | +26.5% | $4.8B | +27.3% |
| Jul 22, 2025 | $1.82 | $2.50 | +37.4% | $4.7B | +27.1% |
| Apr 22, 2025 | $1.67 | $1.89 | +13.2% | $5.7B | +51.0% |
| Jan 28, 2025 | $1.93 | $1.91 | -1.0% | $3.8B | -0.7% |
| Oct 16, 2024 | $1.79 | $1.94 | +8.4% | $3.8B | +1.4% |
| Jul 17, 2024 | $1.35 | $1.55 | +14.8% | $4.9B | +33.1% |
| Jan 23, 2024 | $0.93 | $1.03 | +10.8% | $3.7B | -18.1% |
| Jul 18, 2023 | $1.24 | $1.32 | +6.5% | $3.3B | -23.8% |
| Apr 19, 2023 | $1.46 | $1.35 | -7.5% | $3.2B | -19.5% |
SYF insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 19, 2026 | AGUIRRE FERNANDOdirector | Grant | 14 | $80.75 |
| Aug 19, 2026 | COLAO DANIEL Odirector | Grant | 14 | $80.75 |
| Aug 19, 2026 | COVIELLO ARTHUR W JRdirector | Grant | 14 | $80.75 |
| Aug 19, 2026 | Zane Ellen Mdirector | Grant | 14 | $80.75 |
| Aug 19, 2026 | Howse Curtisofficer: See remarks | Grant | 182 | $80.75 |
| Aug 19, 2026 | Richie Laureldirector | Grant | 138 | $80.75 |
| Aug 19, 2026 | Juel Carolofficer: See remarks | Grant | 218 | $80.75 |
| Aug 19, 2026 | Wenzel Brian J. Sr.officer: See remarks | Grant | 272 | $80.75 |
| Aug 19, 2026 | Parker P.W.director | Grant | 14 | $80.75 |
| Aug 19, 2026 | Casellas Albertoofficer: See remarks | Grant | 182 | $80.75 |
| Aug 19, 2026 | NAYLOR JEFFREY Gdirector | Grant | 203 | $80.75 |
| Aug 19, 2026 | Tiliakos Amyofficer: See remarks | Grant | 49 | $80.75 |
| Aug 19, 2026 | DOUBLES BRIAN Ddirector, officer: See remarks | Grant | 1,001 | $80.75 |
| Aug 19, 2026 | Alves Paget Leonarddirector | Grant | 157 | $80.75 |
| Aug 19, 2026 | Owens Darrellofficer: See remarks | Grant | 70 | $80.75 |
Source: SYF SEC Form 4 filings, latest Aug 19, 2026. For informational purposes only — not investment advice.
See the full SYF insider & 13F page →Synchrony Financial company profile
Overview
Synchrony Financial (NYSE:SYF) is a consumer financial services company founded in 1932 and headquartered in Stamford, Connecticut. Originally part of General Electric's financial services division, Synchrony became an independent public company in 2014 following its initial public offering. The company has evolved into one of the largest issuers of private label credit cards and store-branded financing solutions in the United States, serving millions of consumers through partnerships with major retailers and healthcare providers.
Business
Synchrony Financial operates as a consumer financial services company specializing in private label credit cards, co-branded credit cards, and point-of-sale financing solutions. The company's core business model revolves around partnering with retailers, healthcare providers, and other merchants to offer branded credit and financing products to their customers at the point of purchase. The company's primary offerings include several types of credit products. Private label credit cards are store-specific cards that can only be used at a particular retailer or merchant network, such as a Gap card that works only at Gap stores. Co-branded and dual cards function like traditional credit cards with broader acceptance while offering special benefits at partner merchants. Consumer installment loans provide fixed-term financing for larger purchases, while point-of-sale financing offers immediate credit decisions for customers making purchases. The company organizes its business into several key platforms based on industry verticals: 1. Health and Wellness (approximately 25-30% of purchase volume): This segment includes the CareCredit brand, which provides financing for medical, dental, veterinary, and wellness services. CareCredit allows patients to pay for procedures and treatments over time when insurance doesn't cover the full cost. 2. Digital (approximately 20-25% of purchase volume): Partners with online retailers and e-commerce platforms to provide digital financing solutions and payment options. 3. Diversified and Value (approximately 15-20% of purchase volume): Includes partnerships with discount retailers, warehouse clubs like Sam's Club, and value-oriented merchants. 4. Home and Auto (approximately 15-20% of purchase volume): Provides financing for home improvement projects, automotive services, and related purchases through partnerships with retailers like Discount Tire. 5. Lifestyle (approximately 10-15% of purchase volume): Covers apparel, specialty retail, outdoor recreation, music, and luxury goods financing. Synchrony also operates a digital banking platform that offers deposit products including savings accounts, certificates of deposit, and money market accounts to retail customers, which helps fund its lending operations.
Revenue model
Synchrony Financial generates revenue primarily through interest income from credit card balances and loans, along with various fees charged to both consumers and merchant partners. The company's business model creates multiple revenue streams from its credit products. The primary revenue source is net interest income, earned from the spread between what Synchrony pays to fund its operations (through deposits and wholesale funding) and what it charges borrowers in interest on outstanding balances. When customers carry balances on their credit cards or installment loans, they pay interest rates typically ranging from promotional 0% rates to standard rates in the high teens or low twenties percentage range. Interchange fees represent another significant revenue source, particularly from dual and co-branded cards that can be used anywhere major credit cards are accepted. Every time a customer uses their card, Synchrony receives a small percentage of the transaction value from the merchant's bank. The company also generates fee income from various sources including late payment fees, over-limit fees, annual fees on certain cards, and payment processing fees. Additionally, Synchrony receives partner program fees from its retail and healthcare partners, who may pay for marketing support, customer acquisition, and other services. Several factors influence Synchrony's profitability margins. Interest rate environments significantly impact the company's net interest margin - when rates rise, Synchrony can charge higher rates on new loans, but it also faces higher funding costs. Credit losses represent the company's largest expense, as some borrowers default on their obligations. Economic downturns typically increase charge-off rates, while strong economic conditions reduce them. Consumer spending patterns affect purchase volumes and utilization rates, with discretionary spending categories being more volatile. Regulatory changes, particularly around fee structures like late fees, can impact revenue streams. Competition from other credit card issuers, banks, and emerging fintech companies can pressure pricing and market share. Finally, partner relationship stability is crucial, as losing a major retail partner can significantly impact business volumes.
Competitive moat
Synchrony Financial's competitive moat is moderately strong but not impregnable, built primarily around its extensive network of retail partnerships and specialized expertise in point-of-sale financing. The company's most significant advantage lies in its deep integration with merchant partners, where Synchrony's credit products become embedded in the customer shopping experience. These partnerships often involve multi-year exclusive agreements, creating switching costs for both retailers and consumers who have established accounts. The company has developed specialized underwriting expertise in retail and healthcare financing, understanding the unique credit characteristics of customers making purchases in different categories. This sector-specific knowledge, combined with proprietary data analytics from millions of transactions, provides advantages in risk assessment and product design that generic credit card issuers may lack. Synchrony's scale advantages in private label credit cards create operational efficiencies and negotiating power with partners. The company's technology infrastructure and customer service capabilities are specifically designed for retail partnerships, making it costly for partners to switch providers. However, the moat faces several vulnerabilities. Partner concentration risk is significant - losing major retail relationships could substantially impact the business. The rise of fintech competitors like Affirm, Klarna, and other buy-now-pay-later providers threatens Synchrony's point-of-sale financing dominance, particularly among younger consumers who prefer alternative payment methods. Direct lending by retailers represents another threat, as large merchants with strong balance sheets might choose to offer credit directly rather than through partners. Regulatory pressure on credit card fees and practices could erode profitability, while economic sensitivity makes the business vulnerable during downturns when credit losses spike. The company's competitive position is solid in its core markets but requires continuous investment in technology and partner relationships to maintain relevance against evolving payment preferences and competitive threats.
Risks & safety
Synchrony Financial presents a moderate margin of safety with manageable financial risks but some inherent vulnerabilities due to its credit-focused business model. • Liquidity and Solvency: Strong cash position with $21.6 billion in cash and short-term investments as of Q1 2025. The company maintains higher liquidity levels around 17% of assets. Debt-to-equity ratio of 1.03 is typical for financial services companies. No immediate solvency concerns given strong capital generation. • Capital Adequacy: CET1 ratio of 13.2% well above the 11% target and regulatory minimums. The company has excess capital above operating needs, providing cushion for economic downturns. • Valuation Metrics: Trading at P/E of 7.1x, suggesting reasonable valuation relative to earnings. Price-to-book ratio of 1.30x appears modest for a financial services company. Graham number indicates potential undervaluation. • Credit Risk Management: Net charge-off rates expected between 5.8-6.0%, within historical norms. Allowance for credit losses at 10.79% of loan receivables provides reasonable coverage. Credit actions taken in 2023 showing positive impact on delinquency trends. • Other Considerations: Revenue concentration in consumer discretionary spending creates economic sensitivity. Regulatory risks around fee structures could impact profitability. Strong free cash flow generation of $2.2 billion provides financial flexibility.
Recent development
Over the past several years, Synchrony Financial has executed several strategic initiatives to diversify its business and strengthen its competitive position. The company has significantly expanded its partner network, adding over 45 new partners in 2024 alone, including Virgin, Gibson, BRP, Sun Country Airlines, and American Eagle, while renewing key relationships with major partners like Sam's Club, JCPenney, and Verizon. A major focus has been strengthening the health and wellness platform, particularly through CareCredit, which has shown consistent growth with 10% loan growth year-over-year. The company expanded CareCredit into new wellness markets and enhanced its capabilities with features like pet insurance reimbursement integration. Synchrony has invested heavily in digital transformation and multi-product strategies. The company launched Synchrony Pay Later financing solutions, expanded its digital wallet strategy with an 85% increase in active wallet users, and integrated Apple Pay capabilities. The company's marketplace platform generated 228 million customer visits, demonstrating growing digital engagement. The company made strategic portfolio adjustments by acquiring Ally Lending's point-of-sale financing business to expand its capabilities while divesting the Pets Best insurance business to Independence Pet Holdings, allowing greater focus on core credit operations. In response to potential regulatory changes, Synchrony implemented comprehensive Product, Policy, and Pricing Changes (PPPCs) to prepare for potential late fee rule modifications while maintaining profitability. The company has also taken disciplined credit actions since mid-2023 to manage portfolio risk, which are showing positive results in delinquency trends. Recent capital management initiatives include increasing the quarterly dividend by 20% to $0.30 per share and authorizing a new $2.5 billion share repurchase program, reflecting confidence in cash generation capabilities.
SYF company profile · for informational purposes only — not investment advice.
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