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

KeyCorp (NYSE:KEY) released its quarterly earnings data on Tuesday. The financial services provider reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.02, FiscalAI reports. KeyCorp had a return on equity of 10.80% and a net margin of 17.03%.The firm had revenue of $1.96 billion during the quarter, compared to analyst estimates of $1.97 billion. During the same quarter in the prior year, the company posted $0.35 earnings per share. The business’s quarterly revenue was up 6.7% compared to the same quarter last year.

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

• KeyCorp reported EPS of $0.44, up 26% year over year, with revenue up 7% and pre-provision net revenue up 9%, highlighting solid operating momentum.
• Net interest margin expanded to 2.89% in the quarter, and management reiterated confidence in reaching 3.0%-3.05% by year-end as fixed-asset repricing and deposit growth accelerate in the second half.
• Commercial lending remained strong, with C&I loans up $2.1 billion sequentially and management raising full-year average loan growth guidance to 4%-5% and commercial loan growth to 8%-10%.
• The bank raised its 2026 guidance for revenue to 7%-8% and net interest income to 9%-11%, while still expecting expenses to grow 3%-4%, implying strong operating leverage if the environment remains constructive.
• Credit quality stayed broadly stable, but non-performing assets rose on a few idiosyncratic credits; management said these issues do not change its 42-45 bps net charge-off outlook and expects resolutions later this year.

KeyCorp Stock Performance

NYSE KEY opened at $23.02 on Wednesday. The business’s 50 day moving average price is $22.36 and its 200-day moving average price is $21.56. KeyCorp has a fifty-two week low of $16.47 and a fifty-two week high of $24.07. The company has a market cap of $24.85 billion, a P/E ratio of 14.12, a P/E/G ratio of 0.73 and a beta of 1.02. 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 Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a $0.205 dividend. This represents a $0.82 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Tuesday, September 1st. KeyCorp’s dividend payout ratio (DPR) is presently 50.31%.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the company. TD Cowen reissued a “buy” rating and issued a $68.00 price target on shares of KeyCorp in a report on Tuesday, June 23rd. Wall Street Zen downgraded shares of KeyCorp from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. DA Davidson boosted their price target on shares of KeyCorp from $26.00 to $27.00 and gave the stock a “buy” rating in a research note on Monday, May 4th. Susquehanna raised their price objective on KeyCorp from $300.00 to $415.00 and gave the company a “positive” rating in a research report on Monday, May 18th. Finally, Wells Fargo & Company lifted their target price on KeyCorp from $24.00 to $27.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Thirteen analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $47.34.

Insider Activity

In related news, insider Angela G. Mago sold 22,826 shares of KeyCorp stock in a transaction dated Friday, May 8th. The shares were sold at an average price of $21.66, for a total transaction of $494,411.16. Following the completion of the transaction, the insider directly owned 281,564 shares of the company’s stock, valued at approximately $6,098,676.24. The trade was a 7.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On KeyCorp

A number of institutional investors and hedge funds have recently modified their holdings of KEY. Brighton Jones LLC bought a new position in KeyCorp in the 4th quarter worth about $476,000. Integrated Wealth Concepts LLC boosted its holdings in shares of KeyCorp by 25.8% in the fourth quarter. Integrated Wealth Concepts LLC now owns 24,363 shares of the financial services provider’s stock valued at $503,000 after purchasing an additional 4,994 shares during the period. Vident Advisory LLC increased its holdings in KeyCorp by 3.3% during the 2nd quarter. Vident Advisory LLC now owns 27,490 shares of the financial services provider’s stock worth $479,000 after purchasing an additional 878 shares during the period. Dorsey & Whitney Trust CO LLC raised its position in KeyCorp by 7.2% during the 4th quarter. Dorsey & Whitney Trust CO LLC now owns 20,906 shares of the financial services provider’s stock valued at $432,000 after purchasing an additional 1,410 shares in the last quarter. Finally, J.W. Cole Advisors Inc. raised its position in KeyCorp by 3.8% during the 4th quarter. J.W. Cole Advisors Inc. now owns 15,082 shares of the financial services provider’s stock valued at $311,000 after purchasing an additional 547 shares in the last quarter. 79.69% of the stock is owned by institutional investors.

More KeyCorp News

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: KeyCorp’s Q2 earnings beat expectations, helped by stronger net interest income, higher fee income, lower provisions, and loan growth. KeyCorp Q2 2026 earnings release
• Positive Sentiment: Management raised 2026 guidance for loan growth and net interest income, reinforcing confidence in the bank’s margin expansion and earnings trajectory. KeyCorp analyst rating update
• Positive Sentiment: Analysts and commentators highlighted improving profitability and margin expansion, while BofA kept a Buy rating and a $26 price target. KeyCorp earnings call commentary
• Neutral Sentiment: Some coverage noted revenue came in slightly below expectations and noninterest income/margins were a bit softer than hoped, which may temper the market’s enthusiasm. KeyCorp revenue and margin article
• Neutral Sentiment: CEO commentary on Scotiabank’s investment and the bank’s push into middle-market, payments, wealth management, and European M&A underscores the growth strategy, but is more of a long-term catalyst than an immediate earnings driver. KeyCorp strategy article

KeyCorp declared that its Board of Directors has approved a share buyback program on Wednesday, May 13th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the financial services provider to reacquire up to 13% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

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.