KeyCorp Q2 2026: Net Income $472M, Raises Full-Year Revenue and Loan Growth Outlook
KEY sits 40% above its 52-week low of $16.47.
Summary
KeyCorp reported Q2 2026 net income of $472 million ($0.44 EPS), raised full-year revenue and loan growth guidance, and continued aggressive share buybacks. The net interest margin expanded to 2.89%, and the company announced an acquisition to expand its international M&A advisory business.
Key Events · Earnings and Guidance · KEY
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Q2 2026 Earnings Beat
Net income of $472 million, or $0.44 per share, a 26% increase year-over-year, driven by higher net interest income and lower provision for credit losses.
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Full-Year Guidance Raised
Revenue outlook raised to up 7-8% (from ~7%), net interest income to up 9-11% (from 9-10%), average loans to up 4-5% (from 2-4%), and average commercial loans to up 8-10% (from 6-8%).
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Net Interest Margin Expansion
Net interest margin increased 23 basis points year-over-year to 2.89%, benefiting from lower deposit costs and a shift toward higher-yielding commercial and industrial loans.
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Acquisition of Clearwater UK
Announced agreement to acquire Clearwater Corporate Finance LLP, a UK-based middle-market M&A advisory firm, to expand international investment banking capabilities.
Analysis · KEY · Finance
KeyCorp delivered a strong second quarter, with net income rising 26% year-over-year to $472 million, or $0.44 per share. Management raised its full-year outlook for revenue, net interest income, and loan growth, reflecting robust commercial loan pipelines and client acquisition. The net interest margin expanded 23 basis points to 2.89%, driven by lower deposit costs and favorable asset mix shifts. The company also announced an acquisition to expand its international M&A advisory capabilities and continued aggressive share buybacks, repurchasing $341 million in the quarter under a new $3.0 billion authorization. While nonperforming assets ticked up due to idiosyncratic credits, broader credit quality remains within management's expectations, and capital ratios remain strong with a CET1 ratio of 11.2%.
At the time of this filing, KEY was trading at $23.10 on NYSE in the Finance sector, with a market capitalization of approximately $24.9B. The 52-week trading range was $16.47 to $24.07. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.