Synchrony Financial shares slip after fourth-quarter earnings disclosure

Synchrony Financial (NYSE: SYF) shares closed at $77.51 on Monday, down 0.6% on the day, after the U.S. consumer finance company released its fourth-quarter 2025 financial results. The stock traded lower as investors reviewed quarterly earnings and credit performance metrics. At the close of trade, Synchrony Financial had a market capitalization of about $28.0 billion, based on the closing price and reported shares outstanding.

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Latest Quarterly Results

For the quarter ended December 31, 2025 (Q4 2025), Synchrony Financial reported consolidated net revenue of $3,793 million, compared with $3,801 million in the same period a year earlier, indicating flat year-on-year performance.

Net earnings available to common stockholders were $730 million, down from $753 million in the year-earlier quarter, representing a decline of about 3% year-on-year.
Diluted earnings per share increased to $2.04 from $1.91, reflecting the impact of share count changes and earnings mix.

Platform-wise highlights (reported basis)

• Home & Auto: Loan receivables of $30.1 billion, down 5% year-on-year; purchase volume of $10.4 billion, down 2%.
• Digital: Loan receivables rose 2% to $30.1 billion; purchase volume increased 6% to $16.2 billion.
• Diversified & Value: Loan receivables increased 2% to $21.2 billion; purchase volume rose 4% to $17.5 billion.
• Health & Wellness: Loan receivables of $15.5 billion, up 1%; purchase volume grew 4% to $3.9 billion.
• Lifestyle: Loan receivables declined 2% to $6.8 billion; purchase volume was broadly stable at $1.5 billion.

All figures are reported on a consolidated basis.

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Full-Year Results Context

For full-year 2025, Synchrony Financial reported net earnings of $3.3 billion. Purchase volume for the year totaled $182 billion, and return on assets stood at 2.5%, according to the company’s year-in-review disclosures. Compared with the prior year, earnings reflected moderation, while purchase activity increased.

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Business & Operations Update

During the quarter, the company reported purchase volume growth of 3%, average active accounts of 69.3 million, and loan receivables of $103.8 billion. Net interest margin improved to 15.83% from 15.01% a year earlier. Net charge-offs declined to 5.37% from 6.45%, while the efficiency ratio increased to 36.9%.

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M&A or Strategic Moves

The company disclosed transaction-related activity linked to the Versatile Credit acquisition, with associated expenses recorded during the quarter. No additional mergers or divestments were announced.

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Equity Analyst Commentary

Institutional commentary following the results focused on flat net revenue, lower net earnings, and trends in credit performance, including charge-offs and payment rates, as reflected in the quarterly disclosures.

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Guidance & Outlook

The company outlined baseline assumptions for 2026, including mid-single-digit ending loan receivables growth and earnings per diluted share of $9.10–$9.50, subject to stated macroeconomic assumptions. No changes to regulatory conditions were assumed.

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Performance Summary

Synchrony Financial shares closed lower on the day.
Quarterly net revenue was flat year-on-year.
Net earnings declined modestly.
Digital and Diversified platforms recorded growth in receivables.