KeyCorp · KEY-PI · FY2025 Q4 · Calendar Q1 2026
KeyCorp outlines 2026 growth plan amid credit and funding risks
KeyCorp's earnings support a constructive operating trajectory: commercial lending and fee-based businesses are expected to drive growth while technology investment supports efficiency. The thesis remains conditional on deposit costs, credit quality, and a sustained recovery in middle-market M&A activity.
Earnings scorecard
Reported versus consensusMarket reaction
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Transcript intelligence
What changed
Management paired maintained 2026 guidance with an expanded capital-return plan, including at least $300 million of Q1 repurchases and $1.2 billion for the full year. The company also highlighted $1 billion of technology and AI spending, further cost savings, frontline-bank hiring, and a shift toward client deposits.
Guidance delta
Maintained: 2026 guidance calls for approximately 7% revenue growth, 8%-10% net-interest-income growth, 3%-4% expense growth, and 300-400 basis points of operating leverage.
Key takeaways
- KeyCorp reported record Q4 and full-year 2025 results, with strong net-interest and fee-income growth.
- Management expects 2026 growth from commercial lending, payments, investment banking, wealth management, and technology initiatives.
- Credit metrics improved, but CRE, consumer runoff, funding costs, and macro uncertainty remain key watch items.
- The bank plans accelerated share repurchases while targeting a lower CET1 range.
Management priorities
- Expand middle-market lending, commercial payments, investment banking, and wealth management.
- Increase technology and AI spending to $1 billion and pursue additional cost savings.
- Hire frontline bankers to support fee growth and broaden commercial pipelines.
- Shift funding from brokered CDs toward client deposits and reduce brokered CD balances near zero by mid-2026.
- Return capital through planned share repurchases while managing CET1 toward a 9.5%-10% target.
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Try FN2 freeEarnings History
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| JP Morgan | Neutral | Neutral | Maintain | Oct 4, 2023 |
| Wolfe Research | Peer Perform | Underperform | Upgrade | Oct 3, 2023 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Sep 26, 2023 |
| Piper Sandler | Overweight | Neutral | Upgrade | Sep 14, 2023 |
| Goldman Sachs | Buy | Buy | Maintain | Jul 23, 2023 |
| Citigroup | Buy | Buy | Maintain | Jul 23, 2023 |
| Argus Research | Buy | Buy | Maintain | Jul 23, 2023 |
| Wedbush | Neutral | Neutral | Maintain | Jul 20, 2023 |
| Wells Fargo | Overweight | Overweight | Maintain | Jun 12, 2023 |
| RBC Capital | Outperform | Outperform | Maintain | Jun 12, 2023 |
| Odeon Capital | Buy | Hold | Upgrade | May 21, 2023 |
| DA Davidson | Buy | Buy | Maintain | Apr 20, 2023 |
| Baird | Outperform | Neutral | Upgrade | Mar 9, 2023 |
| Keefe, Bruyette & Woods | Market Perform | Market Perform | Maintain | Mar 7, 2023 |
| Barclays | Equal Weight | Underweight | Upgrade | Jan 2, 2023 |
| Deutsche Bank | Hold | Hold | Maintain | Sep 11, 2022 |
| Jefferies | Hold | Hold | Maintain | Jul 10, 2022 |
| Credit Suisse | Outperform | Neutral | Upgrade | Feb 7, 2022 |
| B of A Securities | Buy | Underperform | Upgrade | Dec 14, 2021 |
| Stephens & Co. | Equal Weight | Equal Weight | Maintain | Oct 21, 2021 |
| UBS | Neutral | Buy | Downgrade | May 3, 2020 |
| Nomura | Neutral | Neutral | Maintain | Apr 6, 2020 |
| BMO Capital | Market Perform | Market Perform | Maintain | Jul 23, 2019 |
| Standpoint Research | Buy | Hold | Upgrade | Oct 11, 2018 |
| Mizuho | Overweight | Overweight | Maintain | Jul 23, 2018 |
| Susquehanna | Positive | Neutral | Upgrade | Apr 23, 2018 |
| Bernstein | Outperform | Market Perform | Upgrade | Sep 13, 2017 |
| Rafferty Capital | Buy | Hold | Upgrade | Oct 24, 2016 |
| FBR Capital | Outperform | Market Perform | Upgrade | Jul 10, 2016 |
| Macquarie | Outperform | Outperform | Maintain | Nov 1, 2015 |
| Wunderlich Securities | Buy | Buy | Maintain | Jul 16, 2015 |
| SunTrust Robinson Humphrey | Neutral | Neutral | Maintain | Jun 28, 2015 |
| IBERIA Capital Partners | Sector Perform | Outperform | Downgrade | Jul 17, 2014 |
| Compass Point | Buy | Buy | Maintain | Apr 20, 2014 |
| BTIG | Neutral | Buy | Downgrade | May 14, 2013 |
| Stifel | Sell | Hold | Downgrade | Feb 10, 2013 |
| Sterne Agee | Neutral | Neutral | Maintain | Jan 27, 2013 |
| CLSA | Outperform | Sell | Upgrade | Jan 22, 2013 |
| Oppenheimer | Outperform | Perform | Upgrade | Jan 8, 2013 |
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Start freeCompany context
Snapshot as of publicationKeyCorp, established in Cleveland, Ohio, in 1849, functions as the parent entity for KeyBank National Association, delivering a comprehensive spectrum of retail and commercial banking services across the United States. The company operates through two main divisions: Consumer Bank and Commercial Bank. The Consumer Bank provides individuals and small to medium-sized businesses with a variety of deposit accounts, investment solutions, and personal finance offerings, including financial wellness tools, student loan refinancing, mortgages, home equity products, lending, and credit cards. It also offers treasury management, business advisory, wealth and asset management, investment consultation, cash management, portfolio management, and trust services.…
Historical context
All KEY-PI earningsFinancial Services peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| KEY-PK KeyCorp | FY2026 Q3 · Calendar Q4 2026 | +10.5% | — | KeyCorp posts strong Q3 as deposits and loan demand support growth |
| KEY-PL KeyCorp | FY2026 Q3 · Calendar Q4 2026 | +10.5% | — | KeyCorp posts strong Q3 as deposits and commercial demand rise |
| KEY-PJ KeyCorp | FY2026 Q3 · Calendar Q4 2026 | +10.5% | — | KeyCorp reports record revenue as deposits and commercial lending strengthen |
| KEY KeyCorp | FY2026 Q3 · Calendar Q4 2026 | +10.5% | +4.5% | KeyCorp Q3 revenue tops $2 billion as deposits and utilization strengthen |
| ALLY Ally Financial Inc. | FY2026 Q3 · Calendar Q4 2026 | +1.5% | +1.0% | Ally reports strong Q3 growth while monitoring credit quality |
| SYF-PA Synchrony Financial | FY2026 Q3 · Calendar Q4 2026 | +10.7% | — | Synchrony reaffirms FY EPS outlook as digital partnerships expand |
Latest beats and misses
Who reports nextBeat on EPS
- HALFY2026 Q3 · October 20, 2026+2.7% EPS+1.8% move
- RTXFY2026 Q3 · October 20, 2026+27.0% EPS+0.6% move
- MMMFY2026 Q3 · October 20, 2026+5.0% EPS+5.8% move
- GPCFY2026 Q3 · October 20, 2026+1.5% EPS-5.1% move
- KEY-PKFY2026 Q3 · October 20, 2026+10.5% EPS— move
- KEY-PLFY2026 Q3 · October 20, 2026+10.5% EPS— move
Missed on EPS
- AGNCZFY2026 Q3 · October 19, 2026-0.6% EPS+0.3% move
- AGNCLFY2026 Q3 · October 19, 2026-0.6% EPS-0.3% move
- AGNCOFY2026 Q3 · October 19, 2026-0.6% EPS+0.3% move
- AGNCPFY2026 Q3 · October 19, 2026-0.6% EPS0.0% move
- AGNCMFY2026 Q3 · October 19, 2026-0.6% EPS-0.3% move
- STLDFY2026 Q3 · October 19, 2026-4.0% EPS-0.3% move
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Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
- Polygon adjusted daily market bars
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-21. For educational purposes only; not investment advice.