Regional banking company KeyCorp (NYSE: KEY) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 6.7% year on year to $1.96 billion. Its non-GAAP profit of $0.44 per share was 4.4% above analysts’ consensus estimates.
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KeyCorp (KEY) Q2 CY2026 Highlights:
- Net Interest Income: $1.25 billion vs analyst estimates of $1.26 billion (8.7% year-on-year growth, 1% miss)
- Net Interest Margin: 2.9% vs analyst estimates of 2.9% (5.4 basis point miss)
- Revenue: $1.96 billion vs analyst estimates of $1.97 billion (6.7% year-on-year growth, in line)
- Efficiency Ratio: 61.9% vs analyst estimates of 61.9% (4.7 basis point beat)
- Adjusted EPS: $0.44 vs analyst estimates of $0.42 (4.4% beat)
- Tangible Book Value per Share: $13.62 vs analyst estimates of $13.78 (6.6% year-on-year growth, 1.2% miss)
- Market Capitalization: $25.17 billion
Company Overview
Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE: KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Unfortunately, KeyCorp’s 2.1% annualized revenue growth over the last five years was sluggish. This was below our standards and is a rough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. KeyCorp’s annualized revenue growth of 12.6% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, KeyCorp grew its revenue by 6.7% year on year, and its $1.96 billion of revenue was in line with Wall Street’s estimates.
Net interest income made up 60.4% of the company’s total revenue during the last five years, meaning lending operations are KeyCorp’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
KeyCorp’s TBVPS was flat over the last five years. However, TBVPS growth has accelerated recently, growing by 16.3% annually over the last two years from $10.07 to $13.62 per share.
Over the next 12 months, Consensus estimates call for KeyCorp’s TBVPS to grow by 10.8% to $15.10, mediocre growth rate.
Key Takeaways from KeyCorp’s Q2 Results
KeyCorp's net interest income slightly missed and its tangible book value per share fell slightly short of Wall Street’s estimates. On the other hand, EPS exceeded expectations. Overall, this quarter was mixed. The stock remained flat at $23.27 immediately after reporting.
KeyCorp’s latest earnings report disappointed. One quarter doesn’t define a company’s quality, so let’s explore whether the stock is a buy at the current price. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
