KeyCorp (NYSE:KEY) Tops Q3 2025 Earnings Estimates Despite Revenue Miss

KeyCorp (NYSE:KEY) has reported its third-quarter 2025 financial results, delivering a performance that notably exceeded analyst expectations on earnings per share while falling slightly short on the top line. The market's immediate reaction appears cautiously positive, with the stock trading higher in the pre-market session.

Earnings and Revenue Performance

The bank holding company posted earnings and revenue figures that painted a mixed, yet generally favorable, picture against Wall Street's forecasts.

• Earnings Per Share (EPS): KEY reported a non-GAAP EPS of $0.41 for the quarter. This surpassed the analyst consensus estimate of $0.39.
• Total Revenue: The company reported revenue of $1.886 billion. This came in just below the estimated $1.899 billion.

The ability to beat bottom-line estimates, even with a slight revenue miss, suggests effective cost management or other income sources contributed positively to the net income figure of $454 million.

Market Reaction

The initial market response to the earnings release has been modestly upbeat. Following the announcement, KEY shares are indicating a positive open, with pre-market trading showing an increase of approximately 0.11%. This upward move in the face of a slight revenue shortfall indicates that investors are likely focusing on the earnings beat and the underlying strength in the company's profitability. This pre-market gain stands in contrast to the stock's recent performance, which has seen declines over the past week, two weeks, and month.

Press Release Highlights

Beyond the headline numbers, KeyCorp's press release emphasized several key strengths from the quarter. A central point was the year-over-year growth in revenue, which was reported as being up 17% when adjusted for a securities portfolio repositioning that occurred in the prior year. The company also highlighted achieving positive operating leverage, meaning its revenue growth outpaced its expense growth, both on a total basis and on an adjusted fee basis. This is a critical metric for banks, signaling improved operational efficiency and profitability.

Looking Ahead

While the press release did not provide a specific quantitative financial outlook for the coming quarters, analysts have already established estimates. For the full year 2025, the consensus sales estimate stands at $7.49 billion. Looking specifically to the next quarter, analysts are projecting KeyCorp to report Q4 2025 revenue of $1.94 billion. The absence of formal guidance from the company is a common practice and does not inherently signal a positive or negative future trajectory. Investors will be watching subsequent management commentary for clues on whether the company is tracking to meet these external forecasts.

For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the data available on the KeyCorp earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.