Synchrony reported fourth-quarter EPS of $2.18, surpassing the consensus estimate of $2.02 and rising 14% from $1.91 a year earlier. The outperformance reflected a 120-basis-point improvement in efficiency ratio, driven by tight cost controls across marketing and technology spend. Provisions for credit losses fell by 12% year-over-year to $950 million, even as loan receivables softened by 1%, signaling stronger portfolio quality and prudent risk management.

Total fourth-quarter purchase volume reached a company record of $49 billion, up 3% year-over-year, led by co-branded and dual-branded card growth of 16%. Synchrony’s Pay Later offering, now available at over 6,200 merchant locations, lifted partner sales by an average of 10% when paired with revolving credit. Management noted no cannibalization of core card programs, with repeat usage rising and average ticket sizes increasing across electronics, entertainment and travel categories.

Digital platform visits climbed 18% and digital sales grew 17% for the full year, supported by AI-driven search enhancements and mobile wallet integration. Synchrony more than doubled unique digital wallet accounts, positioning financing offers earlier in the customer journey. The board declared a quarterly common dividend of $0.30 per share and preferred dividends of $14.06 and $20.63 per share on its Series A and B preferreds, respectively, underscoring a commitment to shareholder returns as receivables growth is expected to accelerate in the back half of 2026.