KeyCorp reported Q2 2026 EPS of $0.44, beating prior year, and raised full-year guidance on revenue, net interest income, and loan growth. Management highlighted strong commercial loan growth (C&I up 3% sequentially), record investment banking pipelines, and a positive deposit outlook, while noting some NIM pressure from high-quality loan growth and seasonal deposit trough. Raised FY2026 revenue growth guidance to 7-8% (from ~7%) and NII growth to 9-11% (from 9-10%).
Buzzberg readRaised 2026 guidance for NII and revenueKeyCorp reported Q2 2026 EPS of $0.44, beating prior year, and raised full-year guidance on revenue, net interest income, and loan growth. Management highlighted strong commercial loan growth (C&I up 3% sequentially), record investment banking pipelines, and a positive deposit outlook, while noting some NIM pressure from high-quality loan growth and seasonal deposit trough. Raised FY2026 revenue growth guidance to 7-8% (from ~7%) and NII growth to 9-11% (from 9-10%).Read full analysisCollapse analysis
KeyCorp reported Q2 2026 EPS of $0.44, beating prior year, and raised full-year guidance on revenue, net interest income, and loan growth. Management highlighted strong commercial loan growth (C&I up 3% sequentially), record investment banking pipelines, and a positive deposit outlook, while noting some NIM pressure from high-quality loan growth and seasonal deposit trough. Raised FY2026 revenue growth guidance to 7-8% (from ~7%) and NII growth to 9-11% (from 9-10%).
Expect Q3 investment banking fees up >20% quarter-over-quarter; pipelines at record levels.
Net interest margin expected to exit 2026 at 3.00-3.05%, supported by $9bn of fixed asset repricing and 2% deposit growth in H2.
Commercial loan growth strong at 8-10% full year, driven by utilities, renewables, tech, and real estate; credit quality stable with NCOs within 40-45bp guide.
Revenue$2.059B
-25% QoQ
EPS$0.44
+0% QoQ
Gross margin60.71%
reported
Op margin-2.87%
reported
What changed this quarter
01
Guidance
Raised 2026 guidance for NII and revenue
Guidance · revenue to 7.5%
02
Demand
C&I loans grew $2.1B sequentially
Management struck a confident tone, driven by strong second-quarter results, raised full-year guidance for NII and loan growth, and reaffirmed long-term return targets.
03
Guidance
Q3 investment banking fees expected up 20%+
Guidance · revenue to 7.5%
04
AI
AI reveals massive shortage of power
Management stated that AI has highlighted a massive shortage of power generation and distribution, which is driving lending for infrastructure build-out, particularly in the electrical grid.
AI, capex & demand read
AI
Platform & monetization
Management stated that AI has highlighted a massive shortage of power generation and distribution, which is driving lending for infrastructure build-out, particularly in the electrical grid.
Demand
Bookings & conversion
C&I loans grew $2.1B sequentially. Management struck a confident tone, driven by strong second-quarter results, raised full-year guidance for NII and loan growth, and reaffirmed long-term return targets.
Tone · confident
Management struck a confident tone, driven by strong second-quarter results, raised full-year guidance for NII and loan growth, and reaffirmed long-term return targets.
Bottlenecks
Power & gridworsening
Power or grid availability is constraining capacity
“One of the things that AI has made abundantly clear is that there's a massive shortage both of power generation and distribution.”