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# Bread Financial Lowers 2026 Loss-Rate Forecast To Below 7% For Second Time, Raises Dividend 9%
- URL: https://www.bullished.co/bread-financial-lowers-2026-loss-rate-forecast-to-below-7-for-second-time-raises-dividend-b07f3d56/
- Published: 2026-10-22T11:12:33.000Z
- Updated: 2026-10-23T12:54:17.000Z
- Description: Third-quarter net income fell to $156 million on a year-earlier tax benefit, while loans, deposits and credit sales grew.
- Author: Matteo Parrino
- Tags: Earnings, BFH, Industry: Financials

[Bread Financial](https://www.bullished.co/tag/bfh/) now expects a 2026 net loss rate [below 7.0%](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/exh9913q26bfhepr%5Ffinal.htm?ref=bullished.co), its second straight improvement to that forecast, according to the earnings release attached to an [8-K filed Thursday](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/bfh-20261022.htm?ref=bullished.co). Third-quarter net income was $156 million, down from $188 million a year earlier, when a $38 million favorable tax item flattered the result.

## What the results show

Diluted earnings per share were $3.82, against $3.96 a year earlier. Pretax income rose $13 million, or 6%, as revenue grew 5% to $1,017 million from $971 million.

Credit sales rose 9% to $7.4 billion. End-of-period loans of $18.9 billion were up 7%, and consumer deposits climbed 21% to $9.9 billion, according to the [release](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/exh9913q26bfhepr%5Ffinal.htm?ref=bullished.co).

Credit quality improved. The delinquency [rate was 5.57%](https://www.globenewswire.com/news-release/2026/10/22/3386157/0/en/bread-financial-provides-performance-update-for-september-2026.html?ref=bullished.co), down 47 basis points (0.47 percentage points) from a year earlier, and the net loss rate was 6.40%, down 99 basis points. The reserve rate fell 60 basis points to 11.12%.

Chief Financial Officer Perry Beberman said the company is improving its full-year net loss guidance for the second consecutive quarter, given year-to-date credit performance and current delinquency trends.

## Guidance, dividend and buyback

For the full year, the company now expects average loans up about 4% and revenue up about 5% from 2025, with a normalized tax rate of 25% to 27%.

The board raised the quarterly common dividend 9% to $0.25 from $0.23, payable December 15 to holders of record on November 30, per the [dividend release](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/exhibit993cashandpreferred.htm?ref=bullished.co). The company repurchased $75 million of common stock in the quarter, plus $24 million of subordinated debt.

Return on average tangible common equity, an adjusted measure, was 23.6%. Tangible book value per share rose 19% to $66.95.

## Partners and structure

The company extended its Signet Jewelers agreement, adding the Blue Nile brand, and renewed with Sephora, two of its top 10 partners.

The bank merger was completed October 1, which Beberman said provides additional balance sheet and funding flexibility. Moody's also upgraded the company to Ba1 from Ba2 after quarter-end.

CEO Ralph Andretta said both the merger and upgrade were "further evidence of the company's transformation."

## What to watch

Management discusses the results on an 8:30 a.m. ET call Thursday. In Wednesday trading, the stock closed at $108.63, up 3.84%, before the results came out.

The next marker is the December 15 dividend payment, with the full-year net loss rate guided below 7.0%.

### Sources

- [8-K Filing — BREAD FINANCIAL HOLDINGS, INC. (BFH)](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/bfh-20261022.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exh9913q26bfhepr\_final.htm — BREAD FINANCIAL HOLDINGS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/exh9913q26bfhepr%5Ffinal.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exh9923q26bfhfinancialsu.htm — BREAD FINANCIAL HOLDINGS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/exh9923q26bfhfinancialsu.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exhibit993cashandpreferred.htm — BREAD FINANCIAL HOLDINGS, INC. 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001101215/000110121526000087/exhibit993cashandpreferred.htm?ref=bullished.co) — SEC EDGAR
- [Bread Financial Holdings, Inc. (BFH) Stock Price, News, Quote & History - Yahoo Finance](https://ca.finance.yahoo.com/quote/BFH/?ref=bullished.co) — Yahoo Finance
- [Bread Financial Provides Performance Update for September](https://www.globenewswire.com/news-release/2026/10/22/3386157/0/en/bread-financial-provides-performance-update-for-september-2026.html?ref=bullished.co) — globenewswire.com

### More on Bread Financial

- [Bread Financial CFO Says Margin 'Probably Peaked' This Year, Sees 2027 Flat To Slightly Down](https://www.bullished.co/bread-financial-cfo-says-margin-probably-peaked-this-year-sees-2027-flat-to-slightly-down-b3d91ae7/)
- [Bread Financial's Delinquency Rate Falls To 5.57% From 6.04% As Principal Loans Grow](https://www.bullished.co/bread-financials-delinquency-rate-falls-to-5-57-from-6-04-as-principal-loans-grow-55b8e848/)

[All Bread Financial (BFH) coverage →](https://www.bullished.co/tag/bfh/)