KeyCorp (NYSE:KEY) Announces Earnings Results

KeyCorp (NYSE:KEY) announced its earnings results on Tuesday. The financial services provider reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.46 by $0.05, FiscalAI reports. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The business had revenue of $2.05 billion during the quarter, compared to the consensus estimate of $2.05 billion. During the same quarter last year, the firm earned $0.41 earnings per share. The business’s revenue for the quarter was up 8.3% on a year-over-year basis.

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

• Strong third-quarter performance: EPS rose 24% year over year to $0.51, revenue reached a record $2 billion, PPNR increased, and ROTCE improved to 15.1%.
• Deposit and commercial lending momentum remained strong. Average deposits grew $3.6 billion, C&I loans increased 5% sequentially, and Key expects fourth-quarter loan growth to be fully funded by client deposits.
• Credit trends improved, with net charge-offs falling to 32 basis points and nonperforming assets declining to 55 basis points; the company lowered its full-year net charge-off outlook to 37–39 basis points from 40–45 basis points.
• Key raised or maintained several 2026 outlook metrics, including approximately 10% net interest income growth and 5% average loan growth, while remaining on pace for $1.3 billion of share repurchases and retaining confidence in its 15%+ ROTCE and 3.25%+ NIM targets for late 2027.
• Investment banking pipelines remain elevated and fees rose 27% sequentially, but middle-market M&A and transactional real estate activity are still constrained by rate volatility and uncertainty; management expects some fourth-quarter loan-growth moderation.

KeyCorp Stock Performance

Shares of NYSE KEY opened at $20.79 on Wednesday. The firm’s 50-day moving average price is $21.17 and its 200-day moving average price is $21.83. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.63. The company has a market cap of $22.18 billion, a PE ratio of 11.72, a PEG ratio of 0.75 and a beta of 1.08. KeyCorp has a 52-week low of $16.91 and a 52-week high of $24.07.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. DA Davidson restated a “buy” rating and issued a $28.00 price target on shares of KeyCorp in a research note on Wednesday, July 22nd. Keefe, Bruyette & Woods increased their target price on KeyCorp from $25.00 to $26.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 22nd. Wall Street Zen cut KeyCorp from a “hold” rating to a “sell” rating in a research note on Saturday. UBS Group reduced their price target on KeyCorp from $27.00 to $25.00 and set a “buy” rating for the company in a report on Monday, October 5th. Finally, Argus raised KeyCorp to a “strong-buy” rating in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $46.33.

Key Headlines Impacting KeyCorp

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Third-quarter results exceeded expectations: KeyCorp reported diluted EPS of $0.51, up 24% year over year and above the $0.46 analyst consensus. Revenue reached a record $2.04 billion, increasing approximately 8% from a year earlier. KeyCorp third-quarter earnings release
• Positive Sentiment: Core banking trends strengthened: Net interest income rose 9.8% year over year, while net interest margin expanded to 2.95%. Average deposits grew by $3.6 billion sequentially and average loans increased by $1.5 billion, indicating improving funding and lending momentum. KeyCorp Q3 revenue and profit report
• Positive Sentiment: Fee income and shareholder returns supported sentiment: Investment-banking and debt-placement fees increased 27% sequentially. KeyCorp also repurchased $320 million of stock, paid its $0.205 quarterly dividend and generated a return on tangible common equity above 15%. Management is targeting net interest margin above 3.25% by the fourth quarter of 2027 and raised revenue guidance toward the upper end of its range. KeyCorp NIM and NII outlook
• Neutral Sentiment: Management tightened its 2026 net interest income growth outlook to approximately 10%, although it continues to signal strong longer-term growth. Analysts remain broadly constructive, with several targets above the current trading range.
• Negative Sentiment: Potential offsets include rising expenses, a Common Equity Tier 1 ratio of 11.1% and two reported insider share sales. Bank of America also reduced its price target for KeyCorp to $23, limiting some of the immediate upside implied by the earnings reaction. BofA KeyCorp price target reduction

KeyCorp Company Profile

KeyCorp is a financial services company headquartered in Cleveland, Ohio, and the parent company of KeyBank National Association. Through KeyBank, it provides retail and commercial banking services to individuals, businesses, institutional clients and government entities.

KeyBank’s offerings include checking and savings accounts, consumer lending, mortgages, home equity financing, credit cards, business loans, treasury management and payment services. The company also provides investment banking and capital markets services through KeyBanc Capital Markets, as well as wealth management, investment management and personal financial planning services.

KeyCorp traces its history to 1825, when the institution that became KeyBank was established in Albany, New York.