Revenue performance remains mixed with gross margins exhibiting extreme quarterly variance, reaching 82.7% in 2026Q1 compared to 37.7% in 2024Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 |
|---|
| Sales/Revenue | 19.91B | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 12.16B | 9.76B | 9.39B | 7.66B | 8.3B | 9.47B | 5.85B | 9.13B | 7.74B | 7.07B | 6.99B | 6.79B | 6.31B | 5.63B | 5.5B |
| Gross Margin % | 61.08% | 51.04% | 45.24% | 44.19% | 62.9% | 84.34% | 45.62% | 58.53% | 51.07% | 51.4% | 57.17% | 62.44% | 62.18% | 59.6% | 62.42% |
| Gross Profit Growth % | - | 3.88% | 22.58% | -7.68% | -12.33% | 61.76% | -35.92% | 18% | 9.45% | 1.22% | 2.81% | 7.63% | 12.21% | 2.31% | - |
| Operating Expenses | 7.61B | 5.13B | 4.84B | 4.76B | 4.34B | 3.96B | 4.05B | 4.25B | 4.09B | 3.75B | 3.42B | 3.26B | 2.93B | 2.48B | 2.12B |
| OpEx % of Revenue | - | 26.86% | 23.31% | 27.44% | 32.87% | 35.31% | 31.61% | 27.21% | 27.02% | 27.24% | 27.95% | 29.99% | 28.83% | 26.31% | 24.1% |
| Selling, General & Admin | 3.3B | 2.6B | 2.35B | 2.41B | 2.17B | 1.99B | 1.83B | 2B | 1.96B | 1.8B | 1.62B | 1.48B | 1.33B | 967M | 828M |
| SG&A % of Revenue | - | 13.62% | 11.33% | 13.91% | 16.43% | 17.7% | 14.25% | 12.84% | 12.9% | 13.1% | 13.27% | 13.55% | 13.06% | 10.24% | 9.4% |
| Research & Development | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 4.55B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Operating Margin % | 22.85% | 24.17% | 21.93% | 16.75% | 30.03% | 49.03% | 14.01% | 31.32% | 24.05% | 24.16% | 29.21% | 32.45% | 33.35% | 33.28% | 38.32% |
| Operating Income Growth % | - | 1.49% | 56.78% | -26.7% | -28% | 206.23% | -63.23% | 34.11% | 9.63% | -6.89% | 1.1% | 4.28% | 7.77% | -6.93% | - |
| EBITDA | 4.94B | 5.13B | 5.03B | 3.36B | 4.38B | 5.89B | 2.18B | 5.25B | 3.95B | 3.58B | 3.79B | 3.71B | 3.52B | 3.25B | 3.46B |
| EBITDA Margin % | 24.81% | 26.86% | 24.25% | 19.39% | 33.2% | 52.5% | 17% | 33.67% | 26.04% | 26.01% | 31.01% | 34.05% | 34.64% | 34.39% | 39.27% |
| EBITDA Growth % | 14.46% | 2.01% | 49.73% | -23.26% | -25.66% | 170.32% | -58.51% | 33.15% | 10.29% | -5.57% | 2.27% | 5.35% | 8.35% | -6.16% | - |
| D&A (Non-Cash Add-back) | 389M | 514M | 481M | 458M | 419M | 390M | 383M | 367M | 302M | 254M | 219M | 174M | 131M | 104M | 83M |
| EBIT | 4.55B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Net Interest Income | 18.64B | 18.47B | 18.01B | 17B | 15.63B | 14.24B | 14.4B | 16.8B | 16.12B | 15.02B | 13.53B | 12.09B | 11.32B | 10.57B | 9.56B |
| Interest Income | 22.65B | 22.6B | 22.64B | 20.71B | 17.15B | 15.27B | 16.07B | 19.09B | 17.99B | 16.41B | 14.78B | 13.23B | 12.24B | 11.31B | 10.31B |
| Interest Expense | 4.02B | 4.13B | 4.63B | 3.71B | 1.52B | 1.03B | 1.67B | 2.29B | 1.87B | 1.39B | 1.25B | 1.14B | 922M | 742M | 745M |
| Other Income/Expense | 0 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 4.68B | 4.62B | 4.55B | 2.9B | 3.96B | 5.5B | 1.8B | 4.89B | 3.64B | 3.32B | 3.57B | 3.53B | 3.39B | 3.14B | 3.38B |
| Pretax Margin % | 23.52% | 24.17% | 21.93% | 16.75% | 30.03% | 49.03% | 14.01% | 31.32% | 24.05% | 24.16% | 29.21% | 32.45% | 33.35% | 33.28% | 38.32% |
| Income Tax | 1.08B | 1.07B | 1.05B | 666M | 946M | 1.28B | 412M | 1.14B | 854M | 1.39B | 1.32B | 1.32B | 1.28B | 1.16B | 1.26B |
| Effective Tax Rate % | 23.14% | 23.13% | 23.15% | 22.93% | 23.88% | 23.3% | 22.93% | 23.33% | 23.44% | 41.79% | 36.95% | 37.3% | 37.71% | 37.01% | 37.23% |
| Net Income | 3.6B | 3.55B | 3.5B | 2.24B | 3.02B | 4.22B | 1.39B | 3.75B | 2.79B | 1.94B | 2.25B | 2.21B | 2.11B | 1.98B | 2.12B |
| Net Margin % | 18.08% | 18.58% | 16.86% | 12.91% | 22.86% | 37.61% | 10.8% | 24.01% | 18.41% | 14.06% | 18.42% | 20.35% | 20.77% | 20.96% | 24.05% |
| Net Income Growth % | 21.5% | 1.51% | 56.34% | -25.8% | -28.55% | 204.77% | -63.04% | 34.3% | 44.19% | -14.04% | 1.67% | 4.98% | 6.57% | -6.61% | - |
| Net Income (Continuing) | 3.6B | 3.55B | 3.5B | 2.24B | 3.02B | 4.22B | 1.39B | 3.75B | 2.79B | 1.94B | 2.25B | 2.21B | 2.11B | 1.98B | 2.12B |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.40 | 9.29 | 8.55 | 5.19 | 6.15 | 7.34 | 2.27 | 5.56 | 3.74 | 2.42 | 2.71 | 2.65 | 2.78 | 2.38 | 2.55 |
| EPS Growth % | 32.65% | 8.65% | 64.74% | -15.61% | -16.21% | 223.35% | -59.17% | 48.66% | 54.55% | -10.7% | 2.26% | -4.68% | 16.81% | -6.67% | - |
| EPS (Basic) | - | 9.35 | 8.64 | 5.21 | 6.19 | 7.40 | 2.28 | 5.59 | 3.76 | 2.43 | 2.71 | 2.66 | 2.78 | 2.38 | 2.55 |
| Diluted Shares Outstanding | 346M | 357.84M | 400.6M | 423.5M | 483.4M | 569.3M | 590.8M | 673.5M | 746.9M | 799.7M | 831.5M | 835.5M | 757.6M | 831.17M | 831.17M |
| Basic Shares Outstanding | 342.4M | 357.84M | 396.5M | 421.2M | 480.4M | 564.6M | 589M | 670.2M | 742.3M | 795.6M | 829.2M | 833.8M | 757.4M | 830.27M | 830.27M |
| Dividend Payout Ratio | - | 12.02% | 11.37% | 18.14% | 14.39% | 11.85% | 37.55% | 15.51% | 19.14% | 23.05% | 9.51% | - | - | - | - |
Regulatory credit fee caps
As reported in recent financial statements, Synchrony's gross margin reached 82.7% in 2026Q1, reflecting significant quarterly fluctuations from the 37.7% observed in 2024Q1, which suggests that the company's profitability is highly sensitive to the interplay between interest income and the provision for credit losses.
The wide variance in gross margins indicates that the Retailer Share Arrangement (RSA) mechanism acts as a volatile buffer rather than a consistent stabilizer. Investors should monitor whether these margin swings represent genuine operational efficiency or merely accounting adjustments related to credit loss provisioning cycles.
Based on the provided income statement data, operating income scaled to $914 million in 2026Q1, though the efficiency ratio appears inconsistent as SG&A expenses have fluctuated between $563 million and $1.3 billion over the last ten quarters, complicating the assessment of true operating leverage.
The lack of a clear, linear relationship between revenue growth and operating income suggests that management's ability to control overhead is frequently overshadowed by the impact of credit-related expenses. This inconsistency warrants further investigation into whether the firm can maintain profitability if credit normalization accelerates beyond current expectations.
According to the company's quarterly filings, EPS has demonstrated extreme variance, ranging from a low of $1.03 in 2023Q4 to a high of $3.14 in 2024Q1, which suggests that reported net income is heavily influenced by non-operating items and periodic reserve adjustments.
The absence of stock-based compensation in the provided data simplifies the earnings picture, yet the underlying volatility remains concerning for long-term valuation. Analysts should be wary of relying on headline EPS figures, as they appear to be heavily distorted by the timing of credit loss provisions and RSA payouts.
As indicated by the recent income statement trends, the company's reliance on high-margin fee income may be unsustainable, particularly given the 2026Q1 net margin of 14.4% which remains vulnerable to potential regulatory intervention regarding credit card late fee caps and shifting consumer repayment behaviors.
Short-sellers may focus on the potential for permanent margin compression if the regulatory environment forces a reduction in high-margin fee streams. The current reliance on high-yield CDs to fund the portfolio further suggests that the company's net interest margin may face continued pressure in a competitive liquidity environment.
Quick answers to the most common questions about buying SYF-PB stock.
Synchrony Financial (SYF-PB) is profitable, generating $3.55B in net income for the fiscal year ending 2025 with a net profit margin of 18.6%.
Synchrony Financial (SYF-PB) reported an operating income of $4.62B, resulting in an operating profit margin of 24.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Synchrony Financial (SYF-PB) generated $9.76B in gross profit for the year, representing a gross profit margin of 51.0%. This demonstrates the company's core pricing power and production efficiency.