Get a deeper insight into the potential performance of KeyCorp (KEY) for the quarter ended September 2026 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
KeyCorp (KEY) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
KeyCorp (KEY) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Regions just raised its dividend while KeyCorp has held its payout frozen for nearly three years, but the real story is what each bank's balance sheet reveals about which payment is actually safe for retirees counting on that income.
KeyCorp NYSE: KEY Chief Financial Officer Clark Khayat said the bank remains confident in its 2026 outlook as client activity, loan growth and credit quality have continued to perform constructively despite uncertainty around interest rates, tariffs and geopolitical developments.
KEY expects about 8% revenue growth in 2026, driven by loan growth, NIM expansion, and continued momentum in fee businesses.
KEY's strong NII, lending, and fee income growth support revenue momentum, while investment banking activity adds further growth opportunities.
KeyCorp reported robust Q2 results, with net interest income up 10% and preferred dividend coverage ratio improving to 7%. KEY's aggressive share buyback program, exceeding $700M in H1, reduced share count and is expected to boost per-share performance. The Series H preferred (KEY.PR.L) offers a 6.2% yield but trades at a premium, reflecting market skepticism about a 2027 call.
KeyCorp preferred shares offer stable dividend coverage and strong capital adequacy, but high duration risk tempers new allocation appeal. KEY.PR.J and KEY.PR.K, trading at discounts to par, presents better relative value and yield versus other fixed-rate series, mitigating call risk. The floating-rate KEY.PR.I has higher call risk due to its impending coupon reset, while the issue is already trading at par, making new allocations less attractive.
KeyCorp KEY recently completed the acquisition of Clearwater Corporate Finance LLP ("Clearwater UK"), a UK-based middle-market investment banking advisory firm. The transaction marks another step in expanding the company's advisory business and establishes its presence in the Western European market.
KeyCorp delivered a decent Q2 report, beating earnings estimates with robust net interest income and expanding fee businesses. KeyCorp's fee-based growth strategy, including payments and investment services, has further support the bank's growth in the second-quarter. Shares offer an attractive 3.6% dividend yield and trade at a 1.43x price-to-book, with upside revaluation potential versus peers.
KeyCorp made gains across its priority growth businesses of investment banking, commercial payments and wealth management in the second quarter, Chairman, CEO and President Chris Gorman said Tuesday (July 14).