KeyCorp (NYSE:KEY) Announces Quarterly Earnings Results

KeyCorp (NYSE:KEY) released its quarterly earnings results on Tuesday. The financial services provider reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.39 by $0.02, FiscalAI reports. The business had revenue of $2.01 billion for the quarter, compared to analysts’ expectations of $1.95 billion. KeyCorp had a net margin of 10.08% and a return on equity of 10.14%. The firm’s revenue for the quarter was up 131.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.30 earnings per share.

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 Stock Down 0.5%

Shares of NYSE KEY opened at $21.06 on Wednesday. The firm has a market cap of $23.02 billion, a price-to-earnings ratio of 26.00, a price-to-earnings-growth ratio of 0.52 and a beta of 1.09. The company’s 50-day simple moving average is $19.88 and its 200-day simple moving average is $18.85. The company has a quick ratio of 0.83, a current ratio of 0.83 and a debt-to-equity ratio of 0.62. KeyCorp has a 52-week low of $12.73 and a 52-week high of $21.75.

KeyCorp Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Tuesday, March 3rd will be issued a dividend of $0.205 per share. This represents a $0.82 annualized dividend and a yield of 3.9%. The ex-dividend date of this dividend is Tuesday, March 3rd. KeyCorp’s dividend payout ratio (DPR) is presently 101.23%.

Trending Headlines about KeyCorp

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Q4 results beat consensus — adjusted EPS ~$0.41 and revenue ~ $2.0B, with net income and pre-provision revenue showing large year-over-year gains, supporting earnings momentum. KEYCORP REPORTS FOURTH QUARTER 2025 NET INCOME
• Positive Sentiment: Net interest income and investment banking fees rose (NII helped drive revenue growth), indicating improved core banking performance. US lender KeyCorp beats fourth-quarter profit estimates
• Positive Sentiment: Management signaled capital return and confidence — $1.2B in planned repurchases for 2026 and continued buybacks (Q4 repurchases already ~$200M); management is also investing in AI/automation to support disciplined lending and operating leverage. KeyCorp outlines $1.2B share repurchase plan
• Neutral Sentiment: Board refresh announced (new lead independent director, nominations ahead of 2026 meeting) — corporate governance move amid activist pressure; could reduce activist risk but also signals prior shareholder friction. KeyCorp Board of Directors Update
• Neutral Sentiment: Management set a 2026 revenue growth target (~7%) — a positive roadmap but some commentary called guidance underwhelming vs. the beat, leaving investor reaction mixed. KeyCorp Q4 earnings top consensus, but guidance fails to impress
• Neutral Sentiment: Analyst position: Morgan Stanley reiterated a Hold and $24 PT, calling the operational momentum largely reflected in the current valuation (balanced risk/reward). Balanced Risk-Reward at KeyCorp
• Negative Sentiment: Provisions rose sharply in Q4, which pressured the stock despite the beat — investors focused on higher credit costs and the near-term earnings impact. KEY Q4 Earnings Beat as NII Jumps, Stock Down on Rise in Provisions
• Negative Sentiment: Insider selling and activist attention were highlighted in coverage — while not uncommon, insider sales plus investor agitation can weigh on sentiment until governance changes settle. KeyCorp Releases Q4 2025 Earnings: Revenue, EPS Beat

Institutional Investors Weigh In On KeyCorp

Several large investors have recently bought and sold shares of the company. Kelleher Financial Advisors purchased a new position in shares of KeyCorp in the third quarter valued at approximately $32,000. MUFG Securities EMEA plc acquired a new position in KeyCorp in the 2nd quarter valued at $51,000. EverSource Wealth Advisors LLC lifted its holdings in KeyCorp by 58.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,148 shares of the financial services provider’s stock valued at $90,000 after purchasing an additional 1,890 shares in the last quarter. Triumph Capital Management purchased a new position in KeyCorp in the 3rd quarter valued at $112,000. Finally, Parallel Advisors LLC boosted 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 worth $119,000 after purchasing an additional 827 shares during the last quarter. 79.69% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

KEY has been the topic of a number of research reports. Jefferies Financial Group lifted their price target on shares of KeyCorp from $19.00 to $22.00 and gave the stock a “hold” rating in a report on Wednesday, December 10th. Keefe, Bruyette & Woods boosted their price objective on KeyCorp from $21.00 to $24.00 and gave the stock an “outperform” rating in a report on Wednesday, December 17th. The Goldman Sachs Group increased their price objective on KeyCorp from $22.00 to $25.00 and gave the stock a “buy” rating in a report on Tuesday, January 6th. Cowen reissued a “buy” rating on shares of KeyCorp in a research report on Wednesday, January 7th. Finally, Citigroup reaffirmed a “neutral” rating on shares of KeyCorp in a report on Wednesday, December 31st. Eleven investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $22.33.

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.