KeyCorp Raises 2026 Revenue Outlook: What's Driving It?

KeyCorp (KEY) raised its 2026 revenue growth guidance to 8%, up from a prior range of 7-8%, citing accelerating loan expansion and net interest income momentum. The bank now projects loan growth of 4-5% and net interest income growth of 9-11%, while lifting adjusted fee income guidance to 6-7%.

Net interest margin is expected to reach 3.00-3.05% by year-end 2026, benefiting from the company's balance sheet positioning. The improved outlook incorporates contributions from KEY's Clearwater acquisition and stronger-than-expected investment banking activity.

The revision positions KEY ahead of regional bank peers. PNC (PNC) and Citizens Financial (CFG) have also outlined solid 2026 growth trajectories, though KEY's raised guidance marks the most recent upward adjustment among the group.

KEY's preferred shares (KEYPI, KEYPJ, KEYPK, KEYPL) may see secondary market activity as the improved common equity outlook filters through to capital structure pricing. Citizens preferred (CFGPE, CFGPH, CFGPI) trades in a similar yield environment.