KeyCorp (NYSE:KEY) Issues Quarterly Earnings Results

KeyCorp (NYSE:KEY) issued its quarterly earnings results on Tuesday. The financial services provider reported $0.51 EPS for the quarter, topping analysts’ consensus estimates of $0.46 by $0.05, FiscalAI reports. The company had revenue of $2.05 billion for the quarter, compared to analysts’ expectations of $2.05 billion. KeyCorp had a return on equity of 12.06% and a net margin of 18.56%. KeyCorp’s revenue was up 8.3% on a year-over-year basis. During the same quarter last year, the business earned $0.41 earnings per share.

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 Up 1.1%

Shares of NYSE KEY opened at $21.05 on Thursday. The firm has a market cap of $22.46 billion, a PE ratio of 11.56, a P/E/G ratio of 0.78 and a beta of 1.08. KeyCorp has a 12-month low of $16.91 and a 12-month high of $24.07. The company’s fifty day simple moving average is $21.14 and its 200 day simple moving average is $21.84. The company has a quick ratio of 0.83, a current ratio of 0.84 and a debt-to-equity ratio of 0.72.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the stock. Wells Fargo & Company increased their target price on shares of KeyCorp from $24.00 to $27.00 and gave the stock an “overweight” rating in a report on Monday, July 6th. Royal Bank Of Canada decreased their price target on shares of KeyCorp from $25.00 to $24.00 and set an “outperform” rating on the stock in a report on Wednesday. Morgan Stanley upped their price objective on shares of KeyCorp from $24.00 to $25.00 and gave the stock an “equal weight” rating in a research report on Monday, June 29th. Jefferies Financial Group dropped their price objective on shares of KeyCorp from $24.00 to $22.00 and set a “hold” rating for the company in a research note on Thursday, September 24th. Finally, JPMorgan Chase & Co. cut their target price on shares of KeyCorp from $24.50 to $23.00 and set a “neutral” rating on the stock in a research report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, KeyCorp currently has a consensus rating of “Moderate Buy” and a consensus price target of $46.22.

About KeyCorp

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.