KeyCorp (NYSE:KEY) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Posted by Geri Gentry on Jul 23rd, 2026

KeyCorp (NYSE:KEY – Get Free Report) announced its quarterly earnings results on Tuesday. The financial services provider reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.42 by $0.02, FiscalAI reports. The firm had revenue of $1.96 billion during the quarter, compared to the consensus estimate of $1.97 billion. KeyCorp had a net margin of 17.83% and a return on equity of 11.23%. The firm’s quarterly revenue was up 6.7% on a year-over-year basis. During the same period last year, the firm posted $0.35 EPS.

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

KeyCorp reported EPS of $0.44, up 26% year over year, with revenue up 7% and pre-provision net revenue up 9%, highlighting solid operating momentum.
Net interest margin expanded to 2.89% in the quarter, and management reiterated confidence in reaching 3.0%-3.05% by year-end as fixed-asset repricing and deposit growth accelerate in the second half.
Commercial lending remained strong, with C&I loans up $2.1 billion sequentially and management raising full-year average loan growth guidance to 4%-5% and commercial loan growth to 8%-10%.
The bank raised its 2026 guidance for revenue to 7%-8% and net interest income to 9%-11%, while still expecting expenses to grow 3%-4%, implying strong operating leverage if the environment remains constructive.
Credit quality stayed broadly stable, but non-performing assets rose on a few idiosyncratic credits; management said these issues do not change its 42-45 bps net charge-off outlook and expects resolutions later this year.

KeyCorp Trading Up 0.6%

KEY stock opened at $23.09 on Thursday. The business has a fifty day moving average of $22.41 and a 200-day moving average of $21.58. The company has a market cap of $24.92 billion, a P/E ratio of 13.42, a PEG ratio of 0.72 and a beta of 1.02. KeyCorp has a twelve month low of $16.47 and a twelve month high of $24.07. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.63.

KeyCorp Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a $0.205 dividend. This represents a $0.82 annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Tuesday, September 1st. KeyCorp’s dividend payout ratio (DPR) is 50.31%.

KeyCorp announced that its board has authorized a share repurchase program on Wednesday, May 13th that permits the company to buyback $3.00 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 13% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In other news, insider Angela G. Mago sold 22,826 shares of KeyCorp stock in a transaction on Friday, May 8th. The shares were sold at an average price of $21.66, for a total transaction of $494,411.16. Following the transaction, the insider directly owned 281,564 shares of the company’s stock, valued at $6,098,676.24. This trade represents a 7.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On KeyCorp

A number of hedge funds and other institutional investors have recently bought and sold shares of KEY. Wellington Management Group LLP grew its position in KeyCorp by 90.2% in the third quarter. Wellington Management Group LLP now owns 36,370,694 shares of the financial services provider’s stock valued at $679,768,000 after purchasing an additional 17,245,128 shares in the last quarter. Invesco Ltd. raised its stake in shares of KeyCorp by 4.7% during the 4th quarter. Invesco Ltd. now owns 20,567,184 shares of the financial services provider’s stock worth $424,507,000 after purchasing an additional 916,732 shares in the last quarter. Morgan Stanley boosted its holdings in shares of KeyCorp by 8.7% in the 4th quarter. Morgan Stanley now owns 14,730,816 shares of the financial services provider’s stock valued at $304,044,000 after buying an additional 1,179,957 shares during the last quarter. Deutsche Bank AG grew its stake in shares of KeyCorp by 132.7% in the fourth quarter. Deutsche Bank AG now owns 8,259,754 shares of the financial services provider’s stock valued at $170,481,000 after buying an additional 4,709,698 shares in the last quarter. Finally, Victory Capital Management Inc. grew its stake in shares of KeyCorp by 16.3% in the fourth quarter. Victory Capital Management Inc. now owns 7,974,888 shares of the financial services provider’s stock valued at $164,602,000 after buying an additional 1,118,354 shares in the last quarter. Institutional investors and hedge funds own 79.69% of the company’s stock.

Key Stories Impacting KeyCorp

Here are the key news stories impacting KeyCorp this week:

Positive Sentiment: KeyCorp beat Q2 earnings estimates, reporting $0.44 per share versus $0.42 expected, with higher net interest income, stronger fee income, lower provisions, and loan growth all helping results. Article Title
Positive Sentiment: Analysts have turned more constructive after earnings, with price-target increases from Keefe, Bruyette & Woods and Bank of America Securities, and upbeat commentary around KeyCorp’s growth outlook and fee businesses. Article Title
Positive Sentiment: Scotiabank’s investment in KeyCorp is expected to add about $82 million to third-quarter net income, giving investors another potential earnings tailwind. Article Title
Neutral Sentiment: Several post-earnings articles highlighted a confident management tone, continued expansion in middle-market banking, and growth in investment banking, commercial payments, and wealth management. Article Title
Neutral Sentiment: Despite the earnings beat, some coverage pointed out weaker-than-expected noninterest income and margin pressure, which may be limiting the stock’s upside. Article Title
Negative Sentiment: The stock has also underperformed some peers in recent trading, suggesting investors are still weighing the quality of the revenue beat and margin outlook against the better earnings headline. Article Title

Analysts Set New Price Targets

KEY has been the subject of several recent analyst reports. Royal Bank Of Canada raised their price objective on shares of KeyCorp from $24.00 to $25.00 and gave the stock an “outperform” rating in a report on Wednesday. DA Davidson reissued a “buy” rating and issued a $28.00 target price on shares of KeyCorp in a report on Wednesday. Keefe, Bruyette & Woods increased their price target on KeyCorp from $25.00 to $26.00 and gave the stock an “outperform” rating in a research report on Wednesday. Robert W. Baird raised their price target on KeyCorp from $22.00 to $23.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Susquehanna lifted their price objective on KeyCorp from $300.00 to $415.00 and gave the company a “positive” rating in a research report on Monday, May 18th. Thirteen equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $47.61.

Check Out Our Latest Stock Report on KEY

About KeyCorp

(Get Free Report)

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.