KeyCorp delivered a strong second quarter of 2026, reporting GAAP diluted EPS of $0.44, up 26% year-over-year, on 7% revenue growth (to about $1.96 billion of taxable-equivalent revenue) and 9% pre-provision net revenue growth. Commercial loan momentum was the highlight, with period-end C&I loans up $2.1 billion (3% sequentially) led by new relationships in utilities, power/renewables, real estate, and technology, much of it tied to the electrical-infrastructure build-out. Net interest margin expanded 2 basis points to 2.89%, and management raised full-year guidance for revenue (7%-8%), net interest income (9%-11%), and average loan growth (4%-5%), reaffirming a path to an exit NIM of 3%-3.05%, positive operating leverage, and a return on tangible common equity above 15% by the end of 2027. Fee businesses were mixed: commercial payments (+12%), wealth (record $74 billion AUM), and the collective priority franchises grew 8% in the first half, but investment banking fees of $169 million fell short of expectations and slipped year-over-year as middle-market M&A continued to lag large-cap and private-equity exits stayed muted, though pipelines hit record levels with a Q3 step-up of 20%+ expected. The two watch items driving a lower stock reaction were the smaller-than-hoped NIM step-up (a timing mismatch between loan growth and a seasonal deposit trough bridged with wholesale funds) and a $126 million rise in non-performing assets to 74 basis points on three idiosyncratic credits in multifamily, consumer goods, and agriculture, against which specific reserves are held and resolutions are expected. Capital remained a strength, with an 11.2% CET1 ratio, over $340 million of buybacks (on pace for at least $1.3 billion), ~$1 billion of technology/operations investment, and the announced Clearwater U.K. acquisition extending KeyCorp's middle-market advisory internationally; operating margin is not a standard metric for a bank.