KeyCorp (NYSE:KEY) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

KeyCorp (NYSE:KEY) released its quarterly earnings results on Tuesday. The financial services provider reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.02, FiscalAI reports. KeyCorp had a return on equity of 10.40% and a net margin of 15.97%.The company had revenue of $2.01 billion during the quarter, compared to analysts’ expectations of $1.95 billion. During the same quarter in the prior year, the business posted $0.30 earnings per share. The company’s revenue for the quarter was up 131.8% compared to the same quarter last year.

Here are the key takeaways from KeyCorp’s conference call:

• Key reported strong results with Q4 EPS of $0.43 (adj. $0.41), revenue up ~12% year‑over‑year on an adjusted basis, tax‑equivalent NII and NIM above targets (NIM 2.82%), and substantial operating leverage after modest expense growth.
• Management accelerated capital return — repurchased $200M in Q4 and plans to buy back at least $300M in Q1 and $1.2B+ in 2026 while managing marked CET1 toward the high end of a 9.5%–10% target.
• 2026 guidance calls for ~7% revenue growth (NII +8%–10%), expenses up 3%–4% (implying ~300–400 bps of operating leverage), average loans +1%–2% with commercial loans ~+5%, and a stable full‑year net charge‑off range of 40–45 bps.
• The bank is investing to scale (nearly 10% more frontline bankers, elevated tech spend ~ $1B and AI initiatives), which supports growth but also drives near‑term expense and hiring cadence considerations.
• Asset‑quality trends are improving — NPAs, criticized loans (down ~$500M sequentially), delinquencies and net charge‑offs (Q4 annualized 39 bps; FY 41 bps) all moved favorably, supporting capital and buyback plans.

KeyCorp Trading Up 2.8%

KeyCorp stock opened at $21.68 on Thursday. The firm has a market cap of $23.69 billion, a price-to-earnings ratio of 14.26, a price-to-earnings-growth ratio of 0.51 and a beta of 1.09. KeyCorp has a 1 year low of $12.73 and a 1 year high of $21.86. The firm’s 50 day moving average price is $19.96 and its two-hundred day moving average price is $18.87. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.83 and a current ratio of 0.83.

KeyCorp Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Tuesday, March 3rd will be given a $0.205 dividend. The ex-dividend date is Tuesday, March 3rd. This represents a $0.82 annualized dividend and a yield of 3.8%. KeyCorp’s payout ratio is 53.95%.

Analysts Set New Price Targets

A number of brokerages recently issued reports on KEY. Evercore ISI increased their target price on shares of KeyCorp from $21.00 to $25.00 and gave the company an “outperform” rating in a research report on Tuesday, January 6th. Keefe, Bruyette & Woods upped their price target on shares of KeyCorp from $21.00 to $24.00 and gave the stock an “outperform” rating in a research note on Wednesday, December 17th. Wells Fargo & Company set a $18.00 price objective on shares of KeyCorp and gave the company an “underperform” rating in a report on Tuesday, January 6th. TD Cowen reissued a “buy” rating on shares of KeyCorp in a report on Wednesday, January 7th. Finally, Jefferies Financial Group increased their price target on KeyCorp from $19.00 to $22.00 and gave the company a “hold” rating in a research note on Wednesday, December 10th. Ten investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $22.44.

Institutional Investors Weigh In On KeyCorp

A number of institutional investors and hedge funds have recently modified their holdings of KEY. Kelleher Financial Advisors purchased a new position in shares of KeyCorp in the third quarter worth approximately $32,000. MUFG Securities EMEA plc acquired a new position in KeyCorp in the 2nd quarter worth approximately $51,000. EverSource Wealth Advisors LLC grew its position in KeyCorp by 58.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,148 shares of the financial services provider’s stock worth $90,000 after purchasing an additional 1,890 shares in the last quarter. Triumph Capital Management purchased a new position in KeyCorp during the 3rd quarter worth approximately $112,000. Finally, Parallel Advisors LLC raised its stake in KeyCorp by 14.9% during the 3rd quarter. Parallel Advisors LLC now owns 6,379 shares of the financial services provider’s stock valued at $119,000 after purchasing an additional 827 shares during the period. 79.69% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about KeyCorp

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Q4 beat and revenue strength: KeyCorp reported Q4 EPS above consensus and revenue that topped estimates, driven by higher net interest income and strong loan momentum — a core reason investors are buying the stock. KeyCorp’s (NYSE:KEY) Q4 CY2025: Beats On Revenue
• Positive Sentiment: Large buyback and 2026 targets: Management announced a $1.2B share repurchase program and a 7% revenue growth target for 2026, signaling confidence in capital returns and growth execution. KeyCorp outlines $1.2B share repurchase plan and 7% revenue growth target for 2026 amid robust loan momentum
• Positive Sentiment: Technology and hiring to drive growth: KeyCorp says it will deploy capital to hire bankers and invest in AI/automation to scale lending and operating leverage, supporting medium‑term revenue and margin expansion. Cleveland’s KeyCorp deploying capital by hiring bankers, investing in AI
• Positive Sentiment: Shares hitting new highs: The stock reached a 52-week high after the report, reflecting market enthusiasm for the earnings beat, buybacks and visible loan momentum. Keycorp stock reaches 52-week high at 21.76 USD
• Neutral Sentiment: Board changes and governance moves: KeyCorp updated its board and named a new lead independent director — framed as a governance adjustment while the company navigates activist investor interest. This reduces some governance uncertainty but is not an immediate earnings lever. KeyCorp Updates Board of Directors
• Neutral Sentiment: Analyst stance: Some analysts view the company as fairly valued (examples: Morgan Stanley Hold) — suggesting limited upside from current levels despite operational momentum. Balanced Risk-Reward at KeyCorp: Solid Operational Momentum Largely Reflected in Current Valuation, Justifying Hold Rating
• Negative Sentiment: Higher provisions and cautious guidance: The quarter showed a notable increase in credit provisions and management’s forward commentary/guidance disappointed some investors, tempering enthusiasm and creating short-term volatility risk. KEY Q4 Earnings Beat as NII Jumps, Stock Down on Rise in Provisions

KeyCorp Company Profile

KeyCorp is a bank holding company headquartered in Cleveland, Ohio, that operates through its primary banking subsidiary, KeyBank. It provides a broad range of banking and financial services to individual consumers, small businesses, middle-market companies and large corporations. KeyBank’s offerings span traditional deposit and lending products as well as more specialized financial solutions designed for commercial and institutional clients.

The company’s product and service mix includes retail banking products such as checking and savings accounts, consumer and residential mortgage lending, and auto financing.