KeyCorp Guides FY2026 NII Up 9-11%, Sets 2027 NIM Above 3.25%
KEY sits 42% above its 52-week low of $16.47.
Summary
KeyCorp just dropped a presentation with fresh multi-year targets that go well beyond its last formal guidance update in May. FY2026 net interest income is seen rising 9-11% over FY2025, with total revenue up 7-8% — both figures are new and imply a stronger top-line trajectory than the market may have priced. The company also laid out Q4 2027 goals of a 3.25%+ net interest margin and 15%+ ROTCE, plus long-term ROTCE of 16-19% and a CET1 ratio of 9.5-10%. This follows the Q2 2026 8-K filed earlier today that showed a 26% YoY net income jump and raised full-year revenue guidance, but those numbers didn't include these specific out-year targets. The new NIM and ROTCE targets signal management's confidence that rate and balance-sheet tailwinds will persist well beyond 2026. With the stock near its 52-week high, this could fuel further re-rating if the market buys the long-term earnings power.
At the time of this announcement, 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 news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.