Capital One Financial Stock Earnings Reports

Capital One reported Q1 2026 earnings of $2.2 billion ($3.34 GAAP EPS; $4.42 adjusted EPS). Revenue was down 2% sequentially while noninterest expense declined 9%, driving a sequential pre-provision earnings increase of ~8% (about $530M). Provision for credit losses was roughly flat at $4.1B, with net charge-offs around $3.8B and a $230M allowance build; total allowance is $23.6B and coverage ratio rose to 5.28%. Key segment points: Domestic Card saw purchase volume growth (40% YoY, largely due to Discover) and improving credit metrics; Consumer Banking grew deposits and auto lending (auto originations +21% YoY); Commercial Banking showed low, stable losses but some criticized assets. Liquidity reserves were about $165B with cash at ~$76B and a preliminary LCR of 166%. NIM was 7.87%, down 39 bps QoQ driven by 2 fewer days in the quarter, seasonal card paydowns, and elevated cash balances (including full-quarter impact from the Discover Home Loans sale). CET1 was 14.4% (up 10 bps QoQ) after $2.5B of buybacks; Brex closed post-quarter (~$4.5B consideration) and will reduce CET1 by ~40 bps in Q2; Discover integration progress is on track with revenue synergies already evident and expense synergies expected to be more backloaded, with full integration targeted in mid-2027. Management reiterated confidence in the long-term earnings power/ROTCE from the Discover transaction (normalized to a 12.5% capital assumption) and emphasized continued investments (including Brex and insourcing travel/Hopper) to drive long-term growth, accepting near-term pressure on efficiency ratios. Risks noted: geopolitical/energy price uncertainty could affect consumer resilience; certain Discover vintages show a temporary “brownout” in growth due to prior credit pullbacks, but credit quality has improved.