10-Q · May 7, 2026
Capital One Financial Corporation reported strong Q1 2026 results with net income of $2.2 billion, or $3.34 per diluted share, reflecting a 55% increase in net income compared to $1.4 billion in Q1 2025. Total revenue…
Earnings analysis · 10-Q
COF earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Capital One delivered a substantial year-over-year earnings recovery, with Q2 revenue up 27% to $15.850 billion and diluted EPS of $4.73 versus a prior-year loss of $(8.58), principally because the 2025 Discover…
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Capital One delivered a substantial year-over-year earnings recovery, with Q2 revenue up 27% to $15.850 billion and diluted EPS of $4.73 versus a prior-year loss of $(8.58), principally because the 2025 Discover acquisition allowance build did not recur and card balances/revenue expanded. Credit Card and Consumer Banking grew, while Commercial Banking revenue fell 9% and credit losses rose in auto and commercial portfolios. Balance-sheet liquidity remains strong, with $144.104 billion of liquidity reserves and a 165% LCR, although CET1 declined 60 bps from year-end to 13.7%. Item 1A states that management is not aware of any material changes to the risk factors in its 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.73
- Operating margin
- 24.1%
What stood out
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Revenue accelerated to $15.85B
Q2 total net revenue rose 27% year over year to $15.850 billion from $12.492 billion; it was also $619 million above the implied Q1 2026 level of $15.231 billion derived from six-month revenue of $31.081 billion.
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Profitability rebounded sharply
Net income swung to $3.020 billion, or $4.73 diluted EPS, from a $4.277 billion loss and $(8.58) diluted EPS a year earlier. Pretax continuing income was $3.818 billion versus a $5.929 billion loss, equating to a calculated 24.1% pretax margin versus negative 47.5%.
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Card business drove earnings recovery
Credit Card revenue increased 29% to $11.765 billion and segment profit reached $2.411 billion versus a $4.917 billion loss. Average card loans increased 29% to $271.197 billion, while the card net charge-off rate improved 49 bps to 4.71%.
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Consumer Banking and network scaled
Consumer Banking revenue grew 26% to $3.209 billion, supported by Global Payment Network volume rising 156% to $189.612 billion. Segment profit increased 8% to $486 million and period-end auto loans grew 7% to $89.311 billion.
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Deposits grew while debt declined
Funding remained deposit-led: deposits increased $8.486 billion from year-end to $484.257 billion, while total borrowings declined $5.629 billion to $45.371 billion. Liquidity reserves were stable at $144.104 billion and the average LCR was 165% against a 100% requirement.
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Strong operating cash flow and buybacks
Six-month operating cash flow was $14.467 billion and premises/equipment spending was $920 million, implying strong cash generation at modest 6.4% capex intensity relative to operating cash flow. The company also repurchased $5.2 billion of common stock in the first six months.
What to watch
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Commercial earnings and losses deteriorated
Commercial Banking weakened: Q2 revenue declined 9% to $850 million and segment profit fell 15% to $239 million. Its net charge-off rate rose 20 bps year over year to 0.53%, with commercial-and-industrial charge-offs of $113 million versus $76 million.
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Auto loss rates remain a headwind
Auto credit losses increased despite better delinquencies: Consumer Banking net charge-offs rose 27% to $329 million and the auto net charge-off rate increased 18 bps to 1.48%. The auto allowance increased 14% to $2.162 billion.
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Integration costs and execution risk persist
Acquisition execution remains costly: Discover integration expense was $298 million in Q2 and $713 million in the first half, bringing cumulative expense since announcement to $2.1 billion. Brex added $96 million of Q2 integration expense following its $4.521 billion purchase consideration.
Management's outlook
The 10-Q contains no explicit numerical revenue or EPS outlook. Management states that net interest income and net interest margin are expected to fluctuate with rates and balance-sheet mix; at current rates, projected 12-month NII is expected to remain largely unchanged in higher-rate scenarios and decrease in lower-rate scenarios.
Earlier filings 4
10-K · February 19, 2026
Capital One completed the acquisition of Discover on May 18, 2025 and materially expanded its payments and deposit franchise (purchase consideration $51.8B; identifiable assets acquired $168.6B, including $108.2B of…
10-Q · November 3, 2025
Capital One reported a strong Q3 2025 quarter reflecting the Discover acquisition: total net revenue of $15,359 million and GAAP diluted EPS of $4.83, up versus Q3 2024. Results were driven by materially higher net…
10-Q · May 7, 2025
Capital One reported Q1 2025 net income of $1,404 million ($3.45 diluted EPS) on total net revenue of $10,000 million, representing year-over-year increases of 10% in net income and 6% in revenue. Net interest income…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.