Synchrony Financial (SYF)
Synchrony Financial is a major US consumer bank that specialises in store-branded credit cards and high-yield savings accounts.
Is Synchrony Financial a good stock for a UK beginner?
The honest version: Synchrony Financial is a major US consumer bank that specialises in store-branded credit cards and high-yield savings accounts.
Over about 2 years to 2026-07-31. This is the share price only - reinvesting the dividends would add to it. And it's the USD return - as a UK investor your actual £ return also moves with the exchange rate. Past performance is not a guide to the future, and it could just as easily have fallen.
Based on beta - how much the price swings versus the whole market. Bumpier isn't bad; it just means a rougher ride, which matters more the sooner you might need the money.
Prices move on results, news and the mood of the whole market - no single headline explains a day, and a quiet week is usually just noise, not a signal.
Successful expansion into new digital banking products and services.
Increased competition from fintech firms eroding profit margins.
What does Synchrony Financial do?
Synchrony partners with big retailers to offer store credit cards, helping shoppers finance their purchases while earning interest on the balances. They make money primarily from the interest paid by customers and the fees charged to retailers for processing these transactions. The figure that matters most is how well their customers keep up with debt, since economic shifts can quickly swing how many people fall behind on payments.
On our factor screen it looks strongest on value and income, and weakest on growth.
- ✓Pays a dividend - about 1.8% a year
- ✓Very profitable - turns about 36% of sales into profit
- ·Low P/E of 8 vs last year's earnings
- ✓Strong return on shareholder money (ROE 21%)
- Value screens high (82/100)
- Income screens high (78/100)
- Strong profit margins compared to many other financial institutions.
- High return on equity suggests efficient use of shareholder capital.
- Established partnerships with major retail brands provide a steady customer base.
- Growth screens low (22/100)
- Rising levels of customer defaults could hurt profitability.
- Regulatory changes in the credit card industry could impact fee structures.
- Increased competition from digital-first banks and payment providers.
What do Synchrony Financial's numbers mean?
How much money does Synchrony Financial make?
Revenue and profit by quarter, and how much of each sale turns into profit.
Does Synchrony Financial pay a dividend?
Yes - Synchrony Financial currently pays a dividend of about 1.8% a year (the yearly payout as a share of the price). A dividend is a slice of profit handed to shareholders; the yield moves as the price moves, and a company can cut or stop it.
When does Synchrony Financial report earnings, and how did recent quarters go?
Synchrony Financial is next scheduled to report on about 2026-10-14 - dates can move, and we don't predict results; this just tells you when to look.
Each quarter a company reports its results against what analysts expected. ‘Beating’ or ‘missing’ is about that expectation, not whether the business is doing well in absolute terms.
| Reported | Expected EPS: The earnings per share analysts expected for the quarter - the average of their forecasts. 'Beating' or 'missing' is measured against this number. | Actual EPS | vs expected |
|---|---|---|---|
| 2026-07-21 | $2.13 | $2.59 | Beat +22% |
| 2026-04-21 | $2.16 | $2.27 | Beat +5% |
| 2026-01-27 | $2.02 | $2.18 | Beat +8% |
| 2025-10-15 | $2.21 | $2.86 | Beat +29% |
| 2025-07-22 | $1.79 | $2.50 | Beat +39% |
| 2025-04-22 | $1.65 | $1.89 | Beat +15% |
Across the last 6 quarters here, Synchrony Financial came in ahead of what analysts expected 6 times. One quarter is noise, not a trend.
See who else reports over the next two weeks →
Reported vs expected earnings per share (EPS) from published results; the expectation is the analyst consensus, not our view. Report dates are estimates that can move.
More in Financial Services
What are the scenarios for Synchrony Financial?
An illustrative range for the year ahead, with the assumption behind each case — not a prediction or a price target.
What are the pros and cons of Synchrony Financial?
How many points the write-up makes each way — a balance check, not a score or verdict.
- Strong profit margins compared to many other financial institutions.
- High return on equity suggests efficient use of shareholder capital.
- Established partnerships with major retail brands provide a steady customer base.
- High sensitivity to economic downturns which can lead to unpaid debts.
- Business model relies heavily on the health of the retail sector.
- Higher volatility than the average stock, which may not suit all temperaments.
- Rising levels of customer defaults could hurt profitability.
- Regulatory changes in the credit card industry could impact fee structures.
- Increased competition from digital-first banks and payment providers.
The write-up's own warning lights — if these start happening, the case above changes.
- A sustained period of rising unemployment that forces a change in lending strategy.
- The loss of a major retail partnership that accounts for a large portion of revenue.
Built from public filings & market prices, checked for an education-only tone, and never a price target. How we make these →
This plain-English summary was auto-generated on 2026-08-01 from public data and checked for an education-only, no-advice tone (the figures above carry their own, usually fresher, 'as of' date). It's information, never a recommendation.