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KeyCorp’s fourth quarter results outpaced Wall Street’s expectations, supported by double-digit revenue growth and disciplined expense management. Management credited the quarter’s performance to strong momentum in commercial and fee-based businesses, as well as continued investments in technology and talent. CEO Chris Gorman highlighted a focus on organic growth across middle market lending, investment banking, and wealth management, stating, “We added nearly 10% to our frontline banker staff across wealth management, commercial payments, middle market, and investment banking.” The company also reported improvements in asset quality and proactive deposit management, which helped optimize funding costs and maintain peer-leading capital ratios.

KeyCorp (KEY) Q4 CY2025 Highlights:

• Revenue: $2.01 billion vs analyst estimates of $1.97 billion (12.5% year-on-year growth, 1.8% beat)
• Adjusted EPS: $0.41 vs analyst estimates of $0.39 (6.3% beat)
• Adjusted Operating Income: $635 million vs analyst estimates of $712.4 million (31.7% margin, 10.9% miss)
• Market Capitalization: $23.47 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From KeyCorp’s Q4 Earnings Call

• Ebrahim Poonawala (Bank of America): Asked about organic strategic priorities for 2026 and how management is balancing growth initiatives with return on capital. CEO Chris Gorman outlined a focus on middle market, investment banking, and wealth management, supported by ongoing hiring and technology investments.
• Ryan Nash (Goldman Sachs): Questioned the timeline for new banker hires to meaningfully contribute to growth. Gorman and CFO Clark Khayat indicated productivity from recent hires typically builds over 12–18 months, with some teams already showing results.
• Mike Mayo (Wells Fargo): Inquired about KeyCorp’s appetite for acquisitions following board changes and visibility beyond Q1 in investment banking. Gorman made clear that capital priorities remain unchanged, with no shift towards bank acquisitions, and noted strong current deal pipelines.
• John Pancari (Evercore ISI): Sought more detail on the drivers for return on tangible common equity targets and the contribution from margin expansion and balance sheet remixing. Khayat detailed the expected benefits from higher-yielding loans, deposit optimization, and ongoing efficiency improvement.
• Matthew O’Connor (Deutsche Bank): Asked about commercial real estate growth prospects and revenue mix shifts. Khayat described anticipated fee declines in servicing but optimism for lending and capital markets activity as market activity picks up.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will monitor (1) the pace of new business wins and productivity gains from recent banker hires, (2) the impact of continued technology investments—particularly in AI and digital platforms—on client growth and efficiency, and (3) trends in middle market M&A activity, which could materially influence fee income. We’ll also watch for sustained improvements in asset quality and successful execution on deposit and loan mix strategies.

KeyCorp currently trades at $21.26, in line with $21.17 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).