Brokers Offer Predictions for Bread Financial Q2 Earnings

Bread Financial Holdings, Inc. (NYSE:BFH) – Equities research analysts at Zacks Research raised their Q2 2026 earnings per share (EPS) estimates for shares of Bread Financial in a research note issued on Wednesday, February 11th. Zacks Research analyst Team now expects that the company will post earnings of $2.47 per share for the quarter, up from their prior estimate of $2.37. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Bread Financial’s current full-year earnings is $6.45 per share. Zacks Research also issued estimates for Bread Financial’s Q4 2026 earnings at $1.00 EPS, Q2 2027 earnings at $2.41 EPS, Q4 2027 earnings at $2.09 EPS, FY2027 earnings at $10.48 EPS and FY2028 earnings at $10.76 EPS.

Bread Financial (NYSE:BFH) last released its earnings results on Thursday, January 29th. The company reported $2.07 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $1.67. The business had revenue of $975.00 million for the quarter, compared to the consensus estimate of $954.74 million. Bread Financial had a net margin of 11.02% and a return on equity of 17.92%. During the same period in the previous year, the firm earned $0.41 EPS.

Several other research firms also recently weighed in on BFH. Barclays lifted their target price on shares of Bread Financial from $61.00 to $64.00 and gave the stock an “underweight” rating in a research report on Friday, January 30th. Keefe, Bruyette & Woods increased their target price on Bread Financial from $82.00 to $92.00 and gave the company an “outperform” rating in a report on Friday, January 2nd. Evercore upgraded Bread Financial from an “in-line” rating to an “outperform” rating and set a $90.00 price target on the stock in a report on Thursday, February 5th. Royal Bank Of Canada reissued a “sector perform” rating and set a $83.00 price target on shares of Bread Financial in a research report on Monday, January 12th. Finally, BTIG Research restated a “buy” rating and set a $98.00 price objective on shares of Bread Financial in a research report on Friday, January 30th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, six have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $80.09.

Bread Financial Price Performance

NYSE BFH opened at $72.48 on Thursday. The company has a current ratio of 1.17, a quick ratio of 1.19 and a debt-to-equity ratio of 0.27. Bread Financial has a 1 year low of $38.21 and a 1 year high of $82.03. The company has a market cap of $3.31 billion, a PE ratio of 6.69, a PEG ratio of 0.48 and a beta of 1.26. The stock’s 50-day moving average price is $74.52 and its two-hundred day moving average price is $66.39.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in shares of Bread Financial by 0.6% in the third quarter. Vanguard Group Inc. now owns 5,273,797 shares of the company’s stock valued at $294,120,000 after purchasing an additional 30,962 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Bread Financial by 0.5% in the 3rd quarter. Dimensional Fund Advisors LP now owns 3,076,004 shares of the company’s stock valued at $171,557,000 after buying an additional 16,143 shares during the last quarter. Franklin Resources Inc. increased its position in Bread Financial by 17.3% in the 4th quarter. Franklin Resources Inc. now owns 2,029,894 shares of the company’s stock worth $150,273,000 after buying an additional 299,439 shares during the period. American Century Companies Inc. increased its position in Bread Financial by 4.4% in the 3rd quarter. American Century Companies Inc. now owns 1,555,968 shares of the company’s stock worth $86,776,000 after buying an additional 65,223 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of Bread Financial by 25.1% during the second quarter. Arrowstreet Capital Limited Partnership now owns 1,233,121 shares of the company’s stock worth $70,436,000 after buying an additional 247,437 shares during the last quarter. Institutional investors and hedge funds own 99.52% of the company’s stock.

Bread Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Investors of record on Friday, February 27th will be issued a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, February 27th. Bread Financial’s dividend payout ratio is currently 8.49%.

Bread Financial announced that its board has authorized a stock repurchase plan on Thursday, October 23rd that allows the company to repurchase $200.00 million in shares. This repurchase authorization allows the company to repurchase up to 7.1% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Bread Financial News Summary

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

• Positive Sentiment: Zacks raised its Q2 2026 EPS forecast to $2.47 from $2.37, signaling slightly stronger expected performance in the upcoming quarter. This could support near‑term revenue/earnings momentum if management execution aligns with the upgrade.
• Positive Sentiment: Zacks also nudged Q2 2027 EPS higher to $2.41 from $2.37, reflecting a modestly improved view of the company’s mid‑cycle earnings power. Small upward revisions can limit downside if confirmed by results.
• Neutral Sentiment: Transcript of Bread Financial’s presentation at the UBS Financial Services Conference is available; investors should scan management commentary for guidance, portfolio trends, credit metrics and any color on buyback/dividend plans. UBS Presentation Transcript
• Neutral Sentiment: Zacks published an FY2028 EPS projection of $10.76. While a long‑range estimate, investors should treat multi‑year numbers cautiously and focus on nearer‑term guidance and margin drivers before inferring material valuation changes.
• Neutral Sentiment: Independent comparative coverage (Bread vs. Consumer Portfolio Services) is available for investors reviewing competitive positioning, credit risk and valuation—useful background but not an immediate catalyst. Head to Head Review
• Negative Sentiment: Zacks cut its Q4 2027 EPS estimate to $2.09 from $2.29, signaling lower expected end‑of‑year profitability versus prior expectations. Downward revisions to full‑year quarter estimates can pressure the stock as they reduce near‑term earnings visibility.
• Negative Sentiment: Zacks reduced its Q4 2026 EPS estimate sharply to $1.00 from $1.18, indicating a weaker outlook for that quarter and potential seasonality or credit concerns that investors will scrutinize.
• Negative Sentiment: Zacks trimmed FY2027 EPS to $10.48 from $10.56. Although a modest cut, it contributes to an overall tone of lowered near‑to‑mid‑term expectations; Zacks maintains a “Hold” rating, which is not a bullish endorsement.

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.