KeyCorp Q2 2026: Net Income Climbs 26% to $472M, Full-Year Revenue and Loan Growth Outlook Raised
KEY sits 42% above its 52-week low of $16.47.
Summary
KeyCorp posted Q2 2026 net income of $472 million, a 26% year-over-year increase, and raised its full-year revenue and loan growth guidance. The bank repurchased $341 million in shares and plans at least $1.3 billion in buybacks for 2026.
Key Events · Earnings and Guidance · KEY
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Q2 2026 Earnings Beat
Net income reached $472 million, or $0.44 per diluted share, up 26% year-over-year. Revenue rose 7% to $1.96 billion, driven by 9% growth in net interest income.
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Raised Full-Year Guidance
Management now expects 2026 revenue growth of 7-8% (previously ~7%), net interest income growth of 9-11%, and average loan growth of 4-5% (up from 2-4%). The NIM exit rate is guided to 3.00-3.05%.
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Strong Capital Return
During Q2, $341 million of common shares were repurchased at an average price of $21.95. The full-year 2026 buyback target is at least $1.3 billion, supported by a CET1 ratio of 11.2%.
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Credit Quality Stable
Net charge-offs were 42 basis points of average loans, within the guided 40-45 bps range. The allowance for credit losses stood at 1.56% of period-end loans. Nonperforming assets rose to 0.74% from 0.63% last quarter.
Analysis · KEY · Finance
A 26% year-over-year jump in net income to $472 million on $1.96 billion in revenue underscores a strong second quarter for KeyCorp. Net interest margin expanded to 2.89%, and the bank lifted its full-year revenue growth forecast to 7-8% while also raising its loan growth outlook. During the quarter, $341 million of stock was repurchased, with at least $1.3 billion in buybacks planned for the year—a clear signal of confidence in its capital position. Credit quality remains manageable, with net charge-offs at 42 basis points, though nonperforming assets edged higher. The results highlight ongoing momentum in commercial lending and fee-based businesses, and the raised guidance suggests management expects continued strength ahead.
At the time of this filing, KEY was trading at $23.41 on NYSE in the Finance sector, with a market capitalization of approximately $25.2B. 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.