KeyCorp (NYSE:KEY) Posts Earnings Results, Beats Expectations By $0.03 EPS

KeyCorp (NYSE:KEY) released its earnings results on Thursday. The financial services provider reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.03, FiscalAI reports. The company had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.93 billion. KeyCorp had a return on equity of 10.80% and a net margin of 17.03%.The business’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.38 EPS.

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

• KeyCorp reported strong Q1 results with EPS of $0.44 (+33% YoY), revenue up 10% and eight consecutive quarters of adjusted PPNR growth, and it raised full-year NII and loan guidance while targeting an exit NIM of ~3.05%.
• The bank highlighted a healthy capital position (reported CET1 11.4%; marked CET1 ~10%) and said the proposed Basel III endgame could improve marked CET1 by 100+ basis points, supporting at least $1.3 billion of share repurchases in 2026.
• Commercial lending momentum remains strong: period-end commercial loans increased ~$3.3 billion (4% sequentially), pipelines are up ~20% from year-end, and full-year average commercial loan growth is now guided to 6%–8%.
• Credit metrics are broadly solid (net charge-off ratio ~38 bps), but management added qualitative reserves for macro uncertainty and non-performing assets rose ~$65 million driven by two credits, signaling some near-term credit caution.
• Management provided extra disclosure on MDFI/private credit: MDFI balances grew $2.4 billion (partly a reclassification) and private credit outstandings are ~$10.9 billion, with ~70% in specialty finance and management describing the portfolio as mostly investment grade and performing.

KeyCorp Stock Up 0.5%

Shares of NYSE KEY opened at $21.79 on Friday. KeyCorp has a 12 month low of $13.68 and a 12 month high of $23.34. The company has a current ratio of 0.83, a quick ratio of 0.82 and a debt-to-equity ratio of 0.62. The firm has a market capitalization of $23.37 billion, a price-to-earnings ratio of 13.37, a PEG ratio of 0.71 and a beta of 1.07. The business has a 50-day moving average of $20.72 and a 200-day moving average of $19.90.

Insider Buying and Selling

In related news, insider Andrew J. Paine III sold 65,961 shares of the business’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $23.23, for a total value of $1,532,274.03. Following the completion of the sale, the insider owned 166,583 shares in the company, valued at $3,869,723.09. The trade was a 28.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Trina M. Evans sold 32,695 shares of the business’s stock in a transaction that occurred on Thursday, January 22nd. The stock was sold at an average price of $21.74, for a total value of $710,789.30. Following the completion of the sale, the director owned 58,719 shares of the company’s stock, valued at $1,276,551.06. The trade was a 35.77% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 161,506 shares of company stock worth $3,597,481 in the last quarter. 0.56% of the stock is owned by insiders.

Institutional Trading of KeyCorp

A number of hedge funds have recently bought and sold shares of KEY. J.W. Cole Advisors Inc. lifted its position in KeyCorp by 3.8% in the fourth quarter. J.W. Cole Advisors Inc. now owns 15,082 shares of the financial services provider’s stock valued at $311,000 after purchasing an additional 547 shares during the last quarter. CIBC Private Wealth Group LLC lifted its position in KeyCorp by 6.5% in the fourth quarter. CIBC Private Wealth Group LLC now owns 12,698 shares of the financial services provider’s stock valued at $262,000 after purchasing an additional 777 shares during the last quarter. Hilltop Holdings Inc. lifted its position in KeyCorp by 3.1% in the third quarter. Hilltop Holdings Inc. now owns 27,538 shares of the financial services provider’s stock valued at $515,000 after purchasing an additional 824 shares during the last quarter. Parallel Advisors LLC lifted its position in KeyCorp by 14.9% in the third quarter. Parallel Advisors LLC now owns 6,379 shares of the financial services provider’s stock valued at $119,000 after purchasing an additional 827 shares during the last quarter. Finally, Vident Advisory LLC lifted its position in KeyCorp by 3.3% in the second quarter. Vident Advisory LLC now owns 27,490 shares of the financial services provider’s stock valued at $479,000 after purchasing an additional 878 shares during the last quarter. Institutional investors own 79.69% of the company’s stock.

KeyCorp News Roundup

Here are the key news stories impacting KeyCorp this week:

• Positive Sentiment: Q1 beat on both top and bottom lines — EPS $0.44 vs. $0.41 consensus and revenue $1.95B (+10.2% y/y). Loan growth and rising net interest income were key drivers of the beat. KEY Q1 Earnings Beat
• Positive Sentiment: Share repurchase program and capital return: Key repurchased $389M in Q1 and signaled at least $1.3B of buybacks for 2026, supporting EPS recovery and shareholder return expectations. Buyback Signal
• Positive Sentiment: Broker upgrades/price target lifts: Multiple firms raised targets (Goldman Sachs and DA Davidson to $26; RBC to $24; Jefferies, Baird nudged targets), a near‑term support for the stock from analysts. Analyst Target Changes
• Neutral Sentiment: Management tone: CEO Chris Gorman described the consumer as “in good shape” on TV, offering reassurance on consumer demand even as certain business lines face headwinds. CEO Interview
• Neutral Sentiment: Operational metrics: NIM guidance and targets (management is targeting ~3.05% exit NIM), CET1 ~11.4%, and quarter‑end loans rose meaningfully — important context for medium‑term profitability but not an immediate catalyst. Q1 Press Release
• Negative Sentiment: Costs and provisions rose and expenses remain elevated; management flagged mixed capital ratios — these factors temper margin upside and valuation multiple expansion. Deep Dive
• Negative Sentiment: Weakness in investment‑banking / M&A fees and guidance caution led to an initial shares dip after the print; deal activity uncertainty is a risk for fee income going forward. Guidance Concerns

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. TD Cowen reiterated a “buy” rating on shares of KeyCorp in a research note on Wednesday, January 7th. Citigroup restated a “neutral” rating on shares of KeyCorp in a research note on Wednesday, December 31st. Piper Sandler boosted their price objective on KeyCorp from $23.00 to $24.00 and gave the stock an “overweight” rating in a report on Friday. Evercore cut their price objective on KeyCorp from $26.00 to $24.00 and set an “outperform” rating for the company in a report on Monday, April 6th. Finally, Truist Financial cut their price objective on KeyCorp from $23.00 to $22.00 and set a “hold” rating for the company in a report on Monday, March 23rd. Twelve analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $23.13.

About KeyCorp

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.