Bread Financial Reports 5% Revenue Growth and 28% Increase in Income from Continuing Operations for Q1 2026

Bread Financial Holdings, Inc. reported its financial results for the first quarter of 2026, revealing a total net interest and non-interest income of $1.018 billion, a 5% increase from $970 million in the same period last year. The company’s income from continuing operations rose to $181 million, up 28% from $142 million in the first quarter of 2025. Earnings per diluted share also saw significant growth, increasing to $4.15 from $2.78 year-over-year. The net interest margin improved to 19.25%, compared to 18.06% in the prior year, reflecting the benefits of pricing actions and improved funding costs.

In terms of operational metrics, Bread Financial reported credit sales of $6.51 billion, a 7% increase year-over-year, driven by new partner growth and increased general-purpose spending. The average credit card and other loans increased by 1% to $18.3 billion, while end-of-period loans rose by 2% to $18.1 billion. The company also noted a decrease in its allowance for credit losses, which fell to $2.078 billion from $2.106 billion at the end of 2025, attributed to a reduction in the credit card and other loans balance as seasonal transactor balances were paid down.

Strategically, Bread Financial has continued to diversify its product offerings, particularly through the expansion of its co-brand credit card programs, which have shown higher credit sales per account and improved credit risk metrics. The company has also announced a $600 million increase to its share repurchase authorization, bringing the total to $690 million as of March 31, 2026. During the quarter, Bread Financial repurchased $150 million worth of its common stock, reflecting its commitment to returning value to shareholders.

Looking ahead, Bread Financial maintains its financial outlook for 2026, expecting low-single-digit growth in average credit card and other loans, as well as total net interest and non-interest income. The company anticipates that its net interest margin will be higher than in 2025, driven by ongoing pricing actions and improved cost of funds, although it expects some moderation in the benefits from these pricing actions as the majority of its credit card loan portfolio will have repriced. The company continues to focus on expanding its product offerings and investing in technology and innovation to drive growth and operational efficiencies.