Zacks Research Expects Lower Earnings for Bread Financial

Bread Financial Holdings, Inc. (NYSE:BFH) – Zacks Research cut their Q1 2026 earnings per share estimates for shares of Bread Financial in a report issued on Tuesday, January 20th. Zacks Research analyst Team now forecasts that the company will post earnings of $2.47 per share for the quarter, down from their previous forecast of $2.50. Zacks Research has a “Hold” rating on the stock. The consensus estimate for Bread Financial’s current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial’s Q3 2026 earnings at $3.10 EPS, Q3 2027 earnings at $3.91 EPS and Q4 2027 earnings at $2.29 EPS.

Bread Financial (NYSE:BFH) last released its earnings results on Thursday, October 23rd. The company reported $4.02 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.11 by $1.91. Bread Financial had a return on equity of 15.97% and a net margin of 10.08%.The business had revenue of $1.24 billion for the quarter, compared to analyst estimates of $974.30 million. During the same quarter in the previous year, the company posted $1.83 earnings per share. The company’s revenue for the quarter was down 1.2% compared to the same quarter last year.

Several other research firms have also recently commented on BFH. Evercore ISI set a $81.00 target price on shares of Bread Financial in a research note on Tuesday, January 6th. Barclays raised their price objective on shares of Bread Financial from $52.00 to $61.00 and gave the company an “underweight” rating in a research report on Tuesday, January 6th. Royal Bank Of Canada reiterated a “sector perform” rating and set a $83.00 target price on shares of Bread Financial in a research report on Monday, January 12th. The Goldman Sachs Group raised Bread Financial from a “sell” rating to a “hold” rating and set a $84.00 target price for the company in a research note on Tuesday, January 6th. Finally, UBS Group initiated coverage on Bread Financial in a research note on Thursday, January 8th. They issued a “buy” rating and a $92.00 price target on the stock. Four research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $78.82.

Bread Financial Stock Performance

NYSE:BFH opened at $70.67 on Thursday. The firm has a market cap of $3.23 billion, a price-to-earnings ratio of 7.20, a price-to-earnings-growth ratio of 0.46 and a beta of 1.27. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.19 and a quick ratio of 1.19. Bread Financial has a 1-year low of $38.21 and a 1-year high of $82.03. The firm’s fifty day moving average price is $71.91 and its 200 day moving average price is $65.07.

Institutional Trading of Bread Financial

Institutional investors have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. grew its position in shares of Bread Financial by 141.2% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 562 shares of the company’s stock valued at $31,000 after purchasing an additional 329 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Bread Financial by 127.2% during 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 in the last quarter. BOK Financial Private Wealth Inc. acquired a new position in shares of Bread Financial in the second quarter worth $42,000. Caitong International Asset Management Co. Ltd lifted its position in shares of Bread Financial by 8,300.0% in the third quarter. Caitong International Asset Management Co. Ltd now owns 840 shares of the company’s stock valued at $47,000 after acquiring an additional 830 shares in the last quarter. Finally, Salomon & Ludwin LLC boosted its stake in shares of Bread Financial by 136.2% during the third quarter. Salomon & Ludwin LLC now owns 888 shares of the company’s stock valued at $49,000 after acquiring an additional 512 shares during the last quarter. 99.52% of the stock is currently owned by hedge funds and other institutional investors.

Bread Financial declared that its board has initiated a share buyback plan on Thursday, October 23rd that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the company to purchase up to 7.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

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.