Synchrony Financial released its second-quarter 2026 financial results on July 21, revealing robust growth in its core business with a record high for purchase volume. However, net profit declined year-over-year, impacted by rising expenses and increased credit provisions.

The financial report indicates Synchrony's second-quarter purchase volume grew 8% year-over-year to a historic high of nearly $50 billion. CEO Brian Doubles stated this growth was driven by continued new account additions, a return to growth in active accounts, and higher spending per account across sales platforms. Co-branded cards performed particularly well, accounting for 52% of total purchase volume and growing 23% year-over-year. End-of-period loan receivables increased to $102.2 billion, up 2% from the same period last year.

Regarding profitability, net interest income grew 2% to $4.6 billion, and the net interest margin expanded by 30 basis points to 15.08%, primarily benefiting from lower funding costs. However, the provision for credit losses increased by $55 million to $1.2 billion, and other expenses rose 7% to $1.3 billion, mainly due to increased technology investments and operational losses. This led to a decline in net profit to $885 million from $967 million in the prior-year period. Despite this, diluted earnings per share still grew 4% to $2.59, supported by the company's ongoing share repurchases and exceeding market expectations of $2.14.

In terms of credit quality, the net charge-off rate improved to 5.43% from 5.70% a year ago, while both 30+ and 90+ day delinquency rates remained largely flat compared to the prior-year period. The company returned $950 million of capital to shareholders in the second quarter, including $850 million in share repurchases and $100 million in dividends.

Furthermore, the company added or renewed more than 15 partner relationships during the quarter, including renewals with Suzuki Motor, AmeriVet, and Roto-Rooter. Synchrony also reaffirmed its full-year 2026 guidance for earnings per share in the range of $9.25 to $9.50 and expects the full-year net charge-off rate to be below 5.5%.