KEYCORP (NYSE:KEY) Reports Q2 2025 Earnings In Line With Estimates, Revenue Slightly Beats

KEYCORP (NYSE:KEY) reported second-quarter 2025 earnings that largely met analyst expectations, though the market reaction has been muted with a slight pre-market dip. The regional bank posted net income of $387 million, or $0.35 per diluted share, aligning closely with the consensus estimate of $0.3501 EPS. Revenue came in at $1.831 billion, narrowly beating expectations of $1.818 billion.

Key Earnings Highlights

• Revenue Growth: Total revenue rose 21% year-over-year, driven by improved net interest income (+4% quarter-over-quarter) and an 8 basis-point expansion in net interest margin.
• Operating Leverage: The bank demonstrated positive operating leverage, with both total and fee-based revenue contributing to efficiency gains.
• Performance vs. Estimates: While EPS matched expectations almost exactly, the slight revenue beat suggests stable execution in a challenging rate environment.

Market Reaction

The stock was down approximately 0.11% in pre-market trading, reflecting a neutral-to-cautious response from investors. Over the past month, shares have gained 13.1%, indicating broader optimism ahead of earnings. However, the near-flat weekly performance (-0.44%) suggests some hesitation following the report.

Forward Outlook

Analyst estimates for Q3 2025 project revenue of $1.885 billion and EPS of $0.38. For the full year, sales are expected to reach $7.431 billion, with revenue forecast at $1.45 billion. The press release did not provide explicit forward guidance, leaving investors to rely on consensus estimates.

For a deeper dive into KEYCORP’s earnings and future projections, see the detailed estimates here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.