Bread Financial (NYSE:BFH) Releases Earnings Results

Bread Financial (NYSE:BFH) issued its quarterly earnings data on Thursday. The company reported $3.55 EPS for the quarter, topping analysts’ consensus estimates of $2.74 by $0.81, FiscalAI reports. Bread Financial had a return on equity of 18.79% and a net margin of 11.90%.The company had revenue of $993.00 million for the quarter, compared to analysts’ expectations of $959.32 million. During the same quarter in the previous year, the firm posted $3.15 earnings per share. The firm’s quarterly revenue was up 6.9% on a year-over-year basis.

Here are the key takeaways from Bread Financial’s conference call:

• Bread Financial said second-quarter results were strong, with net income of $146 million, 11% credit sales growth, 5% loan growth, and 22% year-over-year growth in tangible book value per share.
• Credit quality improved materially, as the delinquency rate fell to 5.25% and the net loss rate declined to 6.98%; management also raised its full-year net loss guidance to 7.0%–7.1%.
• The company’s direct-to-consumer deposit franchise continued to scale, with deposits up 16% year over year to $9.4 billion and now representing 50% of the funding mix, which management called an important milestone.
• Management increased its 2026 loan growth and revenue outlook to low-to-mid single-digit growth and expects positive operating leverage, though it also warned that expenses will rise in the back half of the year as growth and technology investments ramp.
• Bread Financial continued to return capital aggressively, issuing preferred stock and repurchasing 2.8 million shares in the quarter, while ending with a strong CET1 ratio of 12.9% and ample liquidity.

Bread Financial Price Performance

Shares of NYSE BFH opened at $103.85 on Friday. Bread Financial has a fifty-two week low of $53.83 and a fifty-two week high of $109.91. The business has a 50 day moving average price of $97.00 and a two-hundred day moving average price of $84.01. The company has a quick ratio of 1.15, a current ratio of 1.15 and a debt-to-equity ratio of 0.25. The firm has a market cap of $4.20 billion, a PE ratio of 8.51, a price-to-earnings-growth ratio of 0.90 and a beta of 1.10.

Bread Financial Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Monday, August 31st will be issued a $0.23 dividend. The ex-dividend date of this dividend is Monday, August 31st. This represents a $0.92 dividend on an annualized basis and a yield of 0.9%. Bread Financial’s dividend payout ratio is currently 7.53%.

Analyst Ratings Changes

Several equities research analysts recently commented on BFH shares. Barclays set a $109.00 target price on Bread Financial in a report on Friday. Morgan Stanley increased their price objective on shares of Bread Financial from $98.00 to $102.00 and gave the company an “equal weight” rating in a research report on Monday. UBS Group lifted their price objective on shares of Bread Financial from $94.00 to $120.00 and gave the company a “buy” rating in a research note on Tuesday, July 7th. Wolfe Research reissued a “positive” rating on shares of Bread Financial in a research report on Wednesday, June 10th. Finally, TD Cowen restated a “hold” rating on shares of Bread Financial in a research note on Friday. Eight research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Bread Financial has a consensus rating of “Hold” and a consensus target price of $108.67.

Insider Buying and Selling

In related news, Director John J. Fawcett purchased 698 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was acquired at an average price of $86.43 per share, for a total transaction of $60,328.14. Following the completion of the purchase, the director owned 11,000 shares in the company, valued at approximately $950,730. This represents a 6.78% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Ralph J. Andretta sold 15,000 shares of the company’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $89.10, for a total transaction of $1,336,500.00. Following the completion of the sale, the chief executive officer directly owned 582,241 shares in the company, valued at $51,877,673.10. This represents a 2.51% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Bread Financial

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Morgan Stanley lifted its position in shares of Bread Financial by 31.1% during the fourth quarter. Morgan Stanley now owns 910,301 shares of the company’s stock worth $67,390,000 after purchasing an additional 215,795 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Bread Financial by 104.8% during the first quarter. Goldman Sachs Group Inc. now owns 736,604 shares of the company’s stock valued at $36,889,000 after buying an additional 376,920 shares in the last quarter. Millennium Management LLC raised its stake in Bread Financial by 223.4% during the fourth quarter. Millennium Management LLC now owns 665,812 shares of the company’s stock valued at $49,290,000 after buying an additional 459,916 shares in the last quarter. Bank of America Corp DE lifted its holdings in Bread Financial by 241.1% during the 2nd quarter. Bank of America Corp DE now owns 537,656 shares of the company’s stock worth $30,711,000 after buying an additional 380,039 shares during the last quarter. Finally, Ameriprise Financial Inc. lifted its holdings in Bread Financial by 9.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 364,276 shares of the company’s stock worth $20,807,000 after buying an additional 32,086 shares during the last quarter. Institutional investors own 99.52% of the company’s stock.

More Bread Financial News

Here are the key news stories impacting Bread Financial this week:

• Positive Sentiment: BFH reported Q2 2026 adjusted earnings of $3.55 per share, topping Wall Street estimates and improving from $3.15 a year ago, signaling better profitability. Bread Financial Reports Second Quarter 2026 Results
• Positive Sentiment: Revenue came in at $993 million, above consensus expectations, with sales up 6.9% year over year, suggesting healthy business momentum. Bread Financial earnings release and transcript
• Positive Sentiment: The company also announced a quarterly common dividend of $0.23 per share, reinforcing cash generation and shareholder returns. Bread Financial Declares Dividends on Preferred and Common Stock
• Positive Sentiment: Preferred shareholders also received new quarterly dividend declarations, including $0.539 per depositary share for Series A, which may support investor confidence in the balance sheet. Bread Financial Declares Quarterly Dividends on Preferred and Common Stock for Third Quarter 2026

About Bread Financial

Bread Financial, formerly known as Alliance Data Systems, is a Columbus, Ohio–based financial services company that specializes in providing private label credit programs, co-brand credit cards and digital payment solutions for retail partners. The company designs, issues and services proprietary credit products, enabling merchants to offer branded financing options that drive customer loyalty and increase basket sizes at the point of sale. Through its Bread technology platform, Bread Financial delivers installment-based payment options that integrate directly into e-commerce and in-store checkout experiences.

In addition to its core credit offerings, Bread Financial provides analytics, marketing and loyalty services to help merchants better understand consumer behavior and optimize promotional strategies.