KeyCorp Q3 EPS $0.51 Beats, Record $2.04B Revenue; Lifts Loan Growth Outlook
KEY sits 18% above its 52-week low of $16.79.
Summary
KeyCorp reported Q3 2026 EPS of $0.51 (up 24% YoY) on record revenue of $2.04 billion, with net interest margin at 2.95% and net charge-offs down to 0.32%. It raised 2026 loan growth guidance and lowered its credit loss forecast, though its CET1 ratio eased to 11.1%.
Updates
· Reuters — KeyCorp's Q3 revenue of $2.05 billion matched analyst expectations, and the mean analyst price target of $24.30 sits about 18% above the $19.92 last close.
- Adjusted earnings of 51 cents per share beat the mean expectation of nineteen analysts of 47 cents per share; Wall Street expected results to range from 45 cents to 49 cents per share.
Key Events · Earnings and Guidance · KEY
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Q3 EPS $0.51, Up 24% YoY
Net income from continuing operations attributable to common shareholders was $537 million, or $0.51 per diluted share, versus $0.41 a year ago and $0.44 last quarter.
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Record Revenue of $2.04 Billion
Total revenue rose 8% year-over-year and 4.5% sequentially; net interest income of $1.31 billion grew 10% YoY as the net interest margin expanded to 2.95%.
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Credit Quality Improves Sharply
Net charge-offs fell to 0.32% of average loans from 0.42%, nonperforming loans dropped to $618 million from $809 million, and the provision for credit losses fell to $61 million from $107 million a year ago.
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2026 Guidance Raised on Loans, Credit
Average loans now expected up ~5% (previously 4-5%) and average commercial loans up ~10% (previously 8-10%); NCOs to average loans cut to 37-39 bps from 40-45 bps.
Analysis · KEY · Finance
KeyCorp delivered its strongest quarter of the year: EPS of $0.51 rose 24% year-over-year and revenue hit a record $2.04 billion, with the net interest margin expanding to 2.95% as deposit costs fell and commercial loans grew. Credit quality improved sharply — net charge-offs dropped to 0.32% of average loans from 0.42% and nonperforming loans fell 24% sequentially — which let the bank release $28 million of reserves and cut its full-year loss forecast to 37-39 bps from 40-45 bps. Management also nudged up its 2026 average loan growth target to ~5% and commercial loan growth to ~10%, reinforcing the 15%+ return-on-tangible-common-equity target by end-2027. The one soft spot is capital: the CET1 ratio slipped to 11.1% and tangible common equity to assets fell to 6.9% from 7.7%, reflecting $320 million of buybacks and a $1.5 billion hit to accumulated other comprehensive income from securities marks — relevant given the previously disclosed plan for at least $1.3 billion of 2026 repurchases.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 37.4% of the 952 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.87%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, KEY was trading at $19.81 on NYSE in the Finance sector, with a market capitalization of approximately $21.3B. The 52-week trading range was $16.79 to $24.07. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.