Bread Financial (NYSE:BFH) Releases Earnings Results, Beats Estimates By $0.81 EPS

Bread Financial (NYSE:BFH) released its quarterly earnings data on Thursday. The company reported $3.55 earnings per share for the quarter, topping the consensus estimate of $2.74 by $0.81, FiscalAI reports. The company had revenue of $993.00 million for the quarter, compared to analyst estimates of $959.32 million. Bread Financial had a net margin of 11.95% and a return on equity of 18.42%. Bread Financial’s revenue for the quarter was up 6.9% compared to the same quarter last year. During the same period in the previous year, the business earned $3.15 EPS.

Here are the key takeaways from Bread Financial’s conference call:

• Bread Financial said second-quarter results were strong, with net income of $146 million, 11% credit sales growth, 5% loan growth, and 22% year-over-year growth in tangible book value per share.
• Credit quality improved materially, as the delinquency rate fell to 5.25% and the net loss rate declined to 6.98%; management also raised its full-year net loss guidance to 7.0%–7.1%.
• The company’s direct-to-consumer deposit franchise continued to scale, with deposits up 16% year over year to $9.4 billion and now representing 50% of the funding mix, which management called an important milestone.
• Management increased its 2026 loan growth and revenue outlook to low-to-mid single-digit growth and expects positive operating leverage, though it also warned that expenses will rise in the back half of the year as growth and technology investments ramp.
• Bread Financial continued to return capital aggressively, issuing preferred stock and repurchasing 2.8 million shares in the quarter, while ending with a strong CET1 ratio of 12.9% and ample liquidity.

Bread Financial Trading Up 0.6%

Shares of Bread Financial stock opened at $104.15 on Friday. Bread Financial has a 52-week low of $53.83 and a 52-week high of $109.91. The stock has a market cap of $4.21 billion, a PE ratio of 8.12, a PEG ratio of 0.91 and a beta of 1.10. The firm has a 50-day moving average of $97.34 and a 200-day moving average of $84.15. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.15 and a current ratio of 1.17.

Bread Financial Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Monday, August 31st will be issued a dividend of $0.23 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $0.92 dividend on an annualized basis and a dividend yield of 0.9%. Bread Financial’s dividend payout ratio (DPR) is currently 7.18%.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. Zacks Research cut Bread Financial from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Morgan Stanley set a $107.00 price objective on Bread Financial in a research note on Friday. Weiss Ratings raised Bread Financial from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, April 27th. Barclays lifted their target price on Bread Financial from $104.00 to $109.00 and gave the stock an “equal weight” rating in a research note on Friday. Finally, Loop Capital began coverage on Bread Financial in a research note on Thursday, May 21st. They issued a “buy” rating and a $104.00 price target on the stock. Eight equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $110.00.

Insider Buying and Selling

In related news, CEO Ralph J. Andretta sold 15,000 shares of Bread Financial stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $89.10, for a total value of $1,336,500.00. Following the transaction, the chief executive officer directly owned 582,241 shares of the company’s stock, valued at $51,877,673.10. This trade represents a 2.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John J. Fawcett bought 698 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were acquired at an average price of $86.43 per share, for a total transaction of $60,328.14. Following the completion of the transaction, the director owned 11,000 shares in the company, valued at $950,730. This trade represents a 6.78% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in BFH. Kemnay Advisory Services Inc. bought a new stake in shares of Bread Financial during the fourth quarter worth about $28,000. Northwestern Mutual Wealth Management Co. grew its position in shares of Bread Financial by 141.2% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after acquiring an additional 329 shares during the period. EverSource Wealth Advisors LLC increased its position in Bread Financial by 127.2% in the second quarter. EverSource Wealth Advisors LLC now owns 711 shares of the company’s stock worth $41,000 after buying an additional 398 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its holdings in Bread Financial by 8,300.0% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock worth $47,000 after acquiring an additional 830 shares during the last quarter. Finally, Quarry LP lifted its holdings in Bread Financial by 1,509.1% during the third quarter. Quarry LP now owns 885 shares of the company’s stock valued at $49,000 after purchasing an additional 830 shares during the last quarter. 99.52% of the stock is owned by institutional investors.

Key Headlines Impacting Bread Financial

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: BFH reported Q2 earnings of $3.55 per share, topping estimates, while revenue rose to $993 million and also beat expectations. BFH Q2 Earnings Beat Estimates on Solid Credit Sales, Revenues Rise Y/Y
• Positive Sentiment: Management said the quarter benefited from solid credit sales, loan growth, and better credit quality, which points to healthier operating trends. Bread Financial (BFH) Q2 2026 Earnings Call Transcript
• Positive Sentiment: Royal Bank of Canada reaffirmed its “sector perform” rating and raised its price target to $115, suggesting additional upside from recent trading levels. Royal Bank of Canada price target note
• Neutral Sentiment: Bread Financial also declared quarterly dividends on its preferred and common stock, reinforcing capital return to shareholders but not necessarily changing the near-term earnings outlook.

Bread Financial Company Profile

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.