Synchrony Financial filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $19.31 billion, which rose 2.6% on the year before. That growth rate was down 0.3 percentage points on the rate a quarter earlier.
What stands out
Capital spending rose 16.6%, faster than operating cash flow’s 2.0%. This divergence means less of the cash generated was left over.
Growth and profit
The trailing net margin was 17.3%. Net income over the twelve months was $3.33 billion, which fell 6.8% on the year before.
Cash flow
Operating cash flow over the twelve months was $9.55 billion, down 2.0% on the year before. Capital spending was $577.0 million, or 3.0% of revenue. Free cash flow, operating cash flow less capital spending, was $8.98 billion, down 3.0% on the year before. Free cash flow was 46.5% of revenue (the free-cash-flow margin), down 2.7 percentage points from a year earlier. The average diluted share count fell 11.3% over the year.
In context
Today’s free-cash-flow margin of 46.5% is higher than 41% of the company’s own past quarterly readings, which have ranged from 39.2% to 58.6%. Today’s twelve-month revenue growth rate of 2.6% is higher than 26% of the company’s own past quarterly readings, which have ranged from −14.5% to 16.3%.
Guidance
The company gave its FY’26 guidance for FY’26 EPS: $9.50. The company gave its Full Year 2026 guidance for RSA / Average loan receivables: 4% to 4.5%.
What it means for value
In our model, growth 5 percentage points lower would lower the value by 25.6%, and 5 percentage points higher would raise it by 33.6%. A free-cash-flow margin 1 percentage point lower would lower it by 2.2%.
What to watch
The next filing will show whether the recent decline in revenue growth continues or reverses. It will also reveal if the gap between capital spending and operating cash flow narrows. Finally, it will confirm if the free-cash-flow margin stabilizes after its recent drop.
