Synchrony Financial (SYF) AI Stock Analysis

Synchrony Financial operates as a consumer financial services company in the United States, specializing in credit products. Its solutions include private label credit cards, co-brand and general purpose credit cards, commercial credit products, and consumer installment loans. The company also offers deposit accounts such as certificates of deposit, money market accounts, savings accounts, and IRAs, alongside debt cancellation products. Synchrony Financial provides specialized financing solutions in healthcare under the CareCredit brand, veterinary care through Pets Best, and healthcare services with Walgreens, in addition to tailored retail financing across sectors such as apparel, outdoor recreation, specialty retail, audiology, and dental services.

Revenue expanded at an 8.3% CAGR from FY2020 to FY2025, climbing from $11.22B in FY2021 to a peak of $20.76B in FY2024 before decreasing 7.9% to $19.12B in FY2025. Net income reached $3.55B in FY2025 with an operating margin of 24.2% and EPS of $9.43, up from $6.58 in FY2024. Over the trailing twelve months ended June 30, 2026, revenue stood at $9.91B with an operating margin of 50.2%, profit margin of 35.5%, and EPS of $9.77. In the latest quarter ended June 30, 2026, quarterly revenue grew 0.6% year-over-year while quarterly earnings rose 3.6%.

As of June 30, 2026, Synchrony Financial held $16.19B in cash and short-term investments alongside total debt of $16.43B, yielding net debt of $239.0M. Total assets reached $121.93B against shareholders' equity of $16.90B, with a debt-to-equity ratio of 0.97 and a current ratio of 3.72. In FY2025, free cash flow was $9.85B, fully matching operating cash flow. The company returned capital by spending $2.94B on share buybacks and $510.0M on dividends paid, driving a 38.5% reduction in share count over 5 years.

Synchrony Financial trades at a trailing P/E of 7.5x and a forward P/E of 6.7x, both below the median of its S&P 500 Financial Services peers of 14.2x and 12.6x, respectively. Its price-to-sales ratio of 2.4x sits below the peer median of 3.1x. The company has an enterprise value of $25.93B and an EV-to-revenue multiple of 2.7x. Over the past year, SYF stock gained 6.6%, trailing the 16.8% return for SPY, while its 5-year return of 64.1% compares to 83.0% for SPY.

Synchrony Financial pays a forward annual dividend of $1.36 per share, representing a 1.85% dividend yield at its last close price of $73.68. Dividends have been paid for 11 consecutive years, showing a 5-year annualized dividend growth rate of 5.5%. The payout ratio is 12.5%, and distributions are paid quarterly, with the most recent ex-dividend date on August 5, 2026.

Wall Street coverage consists of 12 Strong Buy, 4 Buy, and 8 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $87.88, which is 19.3% above the last closing price of $73.68. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $15.16B and EPS of $9.45. The company beat EPS expectations in all 4 of its last 4 quarters, and its next earnings date is October 20, 2026.

This page is an AI-written research summary of Synchrony Financial (SYF). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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