# KeyCorp Q3 2026 Earnings Report

> KeyCorp reports record revenue and improved margins as it targets 15% return on equity by 2027.
- Title: KeyCorp Q3 2026 Earnings Report · The Motley Fool | Shortify
- Summary: KeyCorp reports record revenue and improved margins as it targets 15% return on equity by 2027. KeyCorp achieved $537 million net income and $2.04 billion…
- Keywords: keycorp, q3 2026, earnings call, net income, diluted eps, revenue, net interest margin, return on tangible common equity, commercial loans, deposit growth, ai deployment, capital markets
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/20/keycorp-key-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-20T17:24:54+00:00
- Read time: 1 min
- Topics: keycorp, q3 2026, earnings call, net income, diluted eps, revenue, net interest margin, return on tangible common equity, commercial loans, deposit growth, ai deployment, capital markets
## Q3 2026 Results
KeyCorp reported record quarterly revenue of $2.04 billion, an 8.4% year-over-year increase.
## Net Income Growth
Net income rose to $537 million, an 18.3% year-over-year increase from $453 million.
## Diluted EPS
Diluted earnings per share reached $0.51, up 24.4% from $0.41 in the prior year quarter.
## Net Interest Margin
Net interest margin expanded to 2.95%, a 20 basis point year-over-year improvement.
## Return on Equity
Return on average tangible common equity reached 15.11%, up from 12.51% in Q3 2025.
## Commercial Loan Growth
Commercial loans grew 5.0% year-over-year with utilization increasing 200 basis points to 33%.
## Deposit Growth
Average deposits grew $3.6 billion sequentially, representing 0.5% year-over-year growth.
## Investment Banking
Investment banking fees increased 26.6% sequentially with strong M&A and syndication activity.
## AI Deployment
KeyCorp deployed AI across four domains to improve commercial onboarding, servicing, originations, and software engineering.
## Capital Markets
Capital markets team delivered strong results with investment banking and debt placement fees increasing 27% sequentially.
## Credit Quality
Net charge-off ratio improved to 32 basis points from 42 basis points in the prior year period.
## Capital Structure
KeyCorp redeemed $525 million of Series D preferred stock in September and is evaluating new preferred issuance.
## 2026 Guidance
KeyCorp tightened net interest income growth guidance to approximately 10% from 9%-11% for 2026.
## Commercial Loan Growth Guidance
Commercial loan growth guidance revised upward to approximately 10% from 8%-10% for 2026.
## Net Charge-off Guidance
Net charge-off guidance improved to 37-39 basis points from 40-45 basis points for 2026.
## Q4 2026 Outlook
KeyCorp expects net interest margin of approximately 3.0% in Q4 2026 with strong loan growth.
## Key takeaway

KeyCorp achieved $537 million net income and $2.04 billion revenue in Q3 2026, with guidance for 15%+ return on tangible common equity by year-end 2027.