Valued at $25.2 billion by market cap, Stamford, Connecticut-based Synchrony Financial (SYF) operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The credit services provider is expected to announce its second-quarter results before the markets open on Tuesday, Jul. 22.

Ahead of the event, analysts expect SYF to deliver an adjusted EPS of $1.65, up 6.5% from $1.55 reported in the year-ago quarter. Moreover, the stock has a robust earnings surprise history. It has surpassed the Street’s earnings estimates in each of the past four quarters.

For the full fiscal 2025, SYF is expected to report an EPS of $7.73, up a notable 17.3% from $6.59 reported in fiscal 2024. While in fiscal 2026, its earnings are expected to further grow 13.6% year-over-year to $8.78 per share.

SYF stock has gained 2.7% on a YTD basis, notably underperforming the S&P 500 Index’s ($SPX) 5.5% gains and the Financial Select Sector SPDR Fund’s (XLF) 8.4% surge during the same time frame.

Synchrony Financial’s stock prices gained 2.8% after the release of its better-than-expected Q1 results on Apr. 22. The company observed a marginal drop in interest income, but its interest expense also observed a slight decline, leading to a 1.3% year-over-year growth in net interest income to $4.5 billion. Meanwhile, it observed a notable decline in provision for credit losses, which boosted its profits. Its earnings came in at $1.89 per share, exceeding the consensus estimates by almost 16%, boosting investor confidence.

The stock maintains a consensus “Moderate Buy” rating overall. Of the 23 analysts covering the SYF stock, opinions include 13 “Strong Buys,” one “Moderate Buy,” eight “Holds,” and one “Strong Sell.” As of writing, the stock is trading slightly above its mean price target of $65.05.