Capital One Financial Stock Earnings Reports

Capital One reported Q1 2026 EPS of $3.34 ($2.2 billion) and adjusted EPS of $4.42 after integration and purchase accounting items. Revenues were down 2% sequentially while noninterest expense fell 9%, driving an increase in pre-provision earnings. Provision for credit losses was roughly flat at $4.1 billion with net charge-offs of about $3.8 billion and a $230 million allowance build; total allowance reached $23.6 billion (coverage 5.28%). Key segment highlights: Domestic Card posted strong year-over-year purchase volume (40% including Discover; ~8% ex-Discover) and improving credit metrics, Consumer Banking saw ~37% revenue growth (largely from Discover) and strong deposit growth, and Commercial Banking reported low, stable loss metrics though with a small number of criticized credits. Liquidity was ample (~$165 billion reserves; cash ~$76 billion; LCR ~166%). NIM declined to 7.87% (seasonality, 2 fewer days, elevated cash levels including Discover Home Loans sale impact). CET1 ended the quarter at 14.4% after $2.5 billion of share repurchases in Q1; management closed the Brex acquisition ($~4.5 billion) after quarter-end (expected to reduce CET1 by ~40 bps in Q2). Management reiterated confidence in realizing the Discover integration synergies (revenue synergies already evident from debit conversion; expense synergies more back-loaded tied to tech conversions with full integration expected mid-2027) and emphasized continued investment in technology, AI, marketing, Brex, and in-sourcing of travel capabilities. Management remains focused on growth and long-term earnings power while maintaining a conservative capital posture.